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INDEX

SR
NO
1
2
3

TOPIC

PAGE

INTRODUCTION
GUEST LECTURE 1
GUEST LECTURE 2

4
5
6
7
8
9
10
11

GUEST LECTURE 3
VOLKSWAGON
GUEST LECTURE 4
HINDUSTHAN COCO COLA
GITS
LE MEREDIAN
CONCLUSION
BIBLIOGRAPHY

2-21
22-27
2832
33-36
37-41
42-47
48-53
54-57
58-61
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Introduction

While industry is concerned with the production of goods , commerce is


concernd with making th e same available to those who need them in other
words, commerce is mainly concerned with the distribution of goods , it
embrases all those functions which are essential for maintiang a free and
uninterupted flow of goods. Therefore the term commerce includes 'trade' and
'aids' to trade .

MEANING
Commerce is a branch of business. It is concerned with the exchange of goods
and services. It includes all those activities, which directly or indirectly
facilitate that exchange.
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Commerce looks after the distribution aspect of the business. Whatever is


produced it must be consumed, to facilitate this consumption there must be a
proper distribution channel. Here comes the need for commerce which is
concerned with the smooth buying and selling of goods and services.
DEFINITION:
According to james Stephenson, commerce is an organized system for the
exchange of goods between the members of the industrial world.

The importance of trade and commerce are mentioned in following points :-

1. Commerce tries to satisfy increasing human wants

Human wants are never ending. They can be classified as 'Basic wants' and
'Secondary wants'. Commerce has made distribution and movement of goods
possible from one part of the world to the other. Today we can buy anything
produced anywhere in the world. This has in turn enabled man to satisfy his
innumerable wants and thereby promoting social welfare.

2. Commerce helps to increase our standard of living

Standard of living refers to quality of life enjoyed by the members of a society.


When man consumes more products his standard of living improves. To
consume a variety of goods he must be able to secure them first. Commerce
helps us to get what we want at right time, right place and at right price and thus
helps in improving our standard of living.

3. Commerce links producers and consumers

Production is meant for ultimate consumption. Commerce makes possible to


link producers and consumers through retailers and wholesalers and also
through the aids to trade. Consumers get information about different goods
through advertisements and salesmanship. The manufacturers are regularly
informed about the likes and dislikes of the consumers through marketing
research. Thus commerce creates contact between the centers of production and
consumption and links them.

4. Commerce generates employment opportunities

The growth of commerce, industry and trade bring about the growth of agencies
of trade such as banking, transport, warehousing, advertising, etc. These
agencies need people to look after their functioning. Increase in production
results in increasing demand, which further results in boosting employment
opportunities. Thus development of commerce generates more and more
employment opportunities for millions of people in a country.

5. Commerce increases national income and wealth

When production increases, national income also increases. In a developed


country, manufacturing industries and commerce together accounts for nearly
80% of total national income. It also helps to earn foreign exchange by way of
exports and duties levied on imports. Thus, commerce increases the national
income and wealth of a nation.

WHAT IS BUSINESS?
Business is an economic activity. It is related to the continuous and
regular production and distribution of goods and services for satisfying
human wants/ needs.
Business refers to a form of activity conducted with an objective to
earning profits for the benefit of those on whose behalf the activity is
conducted. Industry is a part of business.
Therefore, business deals with numerous transactions such as
exchange of goods and services to earn profits. Business also includes
many risks and uncertainties. Business is a broad concept.

WHAT IS INDUSTRY ?
Industry is production of an economic goods or service within an
economy it can also be defined as group of companies that manufacture
products and services which are closely realated to each other it is an general
business activity .

DEFINITION
1. The manufacturing or technically productive enterprises in a
particular field, country, region, or economy viewed collectively, or one of these
individually. A single industry is often named after its principal product; for
example, the auto industry. For statistical purposes, industries are categorized
generally according a uniform classification code such
as Standard Industrial Classification (SIC).

2. Any general business activity or commercial enterprise that can be isolated


from others, such as the tourist industry or the entertainment industry

INDUSTRIAL SECTORS
The economy is divided into various sectors. This is done to understand how
much of the population is engaged in which work. These sectors help to
understand the economy better.
Following are the types of sectors

P
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Q
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PRIMARY
SECTOR
HUNTING
FISHING
MINNING
LOGGING
AGRICULTURE

SECONDARY
SECTOR
MANUFACTURING
REFINING
ASSEMBLING
PROCESSING

TERTIARY SECTOR

QUATENARY
SECTOR

QUINARY
SECTOR

TRANSPORTATION
COMMUNICATION
UTILITIES

WHOLESALE
COMMERCE
INSURANCE
BANKING
LEGAL
SERVIES
ADVERTISING

EDUCATION
GOVERNMENT
TOURISM
MEDICAL
PROFESSION

PRIMARY SECTOR
PRIMARY SECTOR in the economy is basically related to extracting and
harvesting form the earth. It includes growing crops ie agriculture. Other than
agriculture it also deals with fishing, hunting, grazing, mining, etc.
It also includes processing and packing of raw material.

SECONDARY SECTOR
The SECONDARY SECTOR manufactures finishes goods. All the processing,
manufacturing and construction work comes in secondary sector. All the
activities related to production, chemical, engineering industries, aerospace
manufacturing, textile, breweries and bottles, shipping, etc.
Example: Amul Industry. These process the milk and produce different things
from it and sell it.

TERTIARY SECTOR
The TERTIARY SECTOR is basically the service industry. This sector provides
to the general population and to business. Activities included in this sector are
transportation, distribution, media, etc. Most developing economies have a
growing proportion of tertiary sector.

QUATERNARY SECTOR
The QUATERNARY SCETOR consists of intellectual activities. This group is
involved in the research of science and technology. They include scientists.

QUINARY SECTOR
This sector involves highest level of decision making in a society or economy.
The activities are bound by some rules and regulations. QUINARY SECTOR
involves activities such as hospitality, tourism, education, healthcare,
advertisement, etc.

INDUSTRIAL REVOLUTION

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The INDUSTRIAL REVOLUTION started in the period of 1760 till 1840.


This period completely changed the world. During this period a change from
hand production to machine production took place. It included changes from
usage of wood to fuel. It 1st started in England and then spread to Western
Europe and The United States. The INDUSTRIAL REVOLUTION was a
turning point in the history of the world.

WHY DID INDUSTRIAL REVOLUTION HAPPEN?


Until the early 18th century most people lived off the land ie depended on
agriculture but in the 15 years that followed there was an unprecedented
explosion of ideas and invention of technology which created an increasingly
industrial and urbanised county. There was in an increase in population which
resulted in increase of food production. Due to increase in population the
demand for cloth also increased. During that time cloth was made by hand for
pants, shirts, etc. As the population grew more people were ready to buy textile
goods. The cottage industry could not keep up with the demand of the growing
population. Hence a series of innovations shifted textile production to a new
factory system. The people were rules by small political and social lite. During
that era cold was used a lot and formed the basis for the revolution. The British
had large coal mines. This lead to use of coal ; which lead to the invention of
steam engine.

SITUATION BEFORE INDUSTRIAL REVOLUTION


The situation before the revolution was quite different from today. There were
limited means of communication. There was o infrastructure development.
There wasnt any indoor plumbing facility. Food was produces locally ie there
were not many imports or exports. People from villages and small towns used to
migrate to the city to work in factories. Health facilities were poor. Education
was poor. Only the rich got good education and tutors. The schools and
universities were not for common man. They were only reserved for the
nobility. Politics was based on land ownership and military rank. Women did
not have rights. People were exploited.
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DURING INDUSRIAL REVOLUTION

People began to migrate to cities for job opportunities


The disparity between the rich and poor increased
Production of industrial goods took place
New discoveries and inventions were made
New modes of transport were introduced
Better roads were made
Railways allowed mass transport of goods; promoting trade
Import and export of goods started and began to increase
The life expectancy of children increased

INVENTIONS AND DISCOVERIES

JAMES WATT INVENTED THE STEAM ENGINE


ALEXANDER GRAHAM BELL INVENTED THE TELEPHONE
EDWARD JANNER DISCOVERED A VACCINE TO SMALL POX
MARCONI INVNETED WIRELESS TELEGRAMS
MARRIE CURIE DISCOVERED RADIOACTIVITY
JETHRO TULL INVENTED THE SEED DRILL
BARTOLOMEO INVENTED THE PIANO
JAMES HARGREAVES INVENTED THE SPINNING JENNY
RICHARD ARKWARIGHT PATENTED THE SPINNING FRAME
DAVID BUSHNELL INVENTED THE SUBMARINE
BENJAMIN FRANKLIN INVENTED BI-FOCAL EYE GLASSES
GERNIVUS INVENTED THE CIRCULAR SAW
THE MONTQOLFIER BROTHERS INVENTED THE HOT-AIR
BALLON
COUNT ALESSANDRO VOLTA INVENTED BATTERY
THE WRIGHT BROTHERS INVENTED AEROPLANE
THE INTERNAL COMBUSSION ENGIN WAS INVENTED IN 1870

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SITUATION AFTER INDUSTRIAL REVOLUTION


Since the industrial revolution was new at the end of the 18 th century there were
initially no laws to regulate new industries. No laws prevented children from
working in factories. No rules were made for disposal of hazardous wastage.
Due to immigration; the cities got over crowded which resulted in unhealthy
living conditions. There was a spread of epidemics. Free market capitalism
meant that the government had no role in regulating the new industries or
planning services for new towns. The revolution lead to urbanization. Small
cities like Manchester also grew. This process of urbanization stimulated the
booming new industries and giving jobs to lots of people.
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Industrial revolution resulted in discovery of cures of diseases


like small pox. The face of medicine also began to change. New and modern
approaches to medicine were seen.

INDUSTRIAL REVOLUTION AND INDIA


India was under British rule when the Industrial revolution
occurred. Indian farmers were forced to grow cotton to fuel the English
factories. Instead of growing food crops , cash crops were grown. This resulted
in famines in India. Industrial Revolution ruined India that time. The British
forced the Indian farmers to produce cotton. Many Indian weavers were killed.

AUTOMOBILE INDUSTRY:
With the increasing growth in demand on back of rising income, expanding
middle class and young population base, in addition to a large pool of skilled
manpower and growing technology, will propel India to be among the world's
top five auto-producers by 2015.
India is also one of the key markets for hybrid and electric medium-heavy-duty
trucks and buses.
India is an extremely important market for Hyundai. The Indian automobile
sector is poised for steady and strong growth in the future. The Indian
automobile industry holds good growth potential for the mid-term and long term
horizon, as per Mr Bo Shin Seo, MD and CEO, Hyundai Motor India Ltd
(HMIL).

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Moreover, Ford Motor Co plans to convert India into global production centre
for compact cars, once its Sanand plant in Gujarat comes on stream in 2014,
under a project codenamed B562 that may induce three different compact cars
from the same platform. The Indian automobile industry produced a total 1.69
million vehicles including passenger vehicles, commercial vehicles, three
wheelers and two wheelers in August 2013 as against 1.56 million in August
2012, registering a growth of 8.18 percent over the same month last year. The
cumulative foreign direct investment (FDI) inflow into the Indian automobile
industry during April 2000 to July 2013 was recorded at US$ 8,932 million,
amounting to 4.5 per cent of the total FDI inflows (in terms of US$), as per data
published by Department of Industrial Policy and Promotion (DIPP), Ministry
of Commerce. The overall automobile exports grew by 2.03 per cent during
April-August 2013. Furthermore, the production of passenger vehicles in India
was recorded at 3.23 million in 2012-13 and is expected to grow at a compound
annual growth rate (CAGR) of 13 per cent during 2012-2021, as per data
published by Automotive Component Manufacturers' Association of India
(ACMA).
Hero MotoCorp plans to establish 20 manufacturing and assembly
facilities to expand its presence across 50 countries by 2020. Maruti
Suzuki India Ltd (MSIL) is setting up an operational integrated research
& development (R&D) centre in Rohtak, Haryana. The test tracks at the
new facility would be longer and considerably enhanced in technical
capabilities than the ones at the Suzuki Motor Corp (SMC) facility in
Japan
Tech Mahindra has signed an agreement with Volvo Car Corporation. The
IT company will provide Volvo with a service to maintain and develop a
range of applications that can increase efficiency and reduce costs

TATA MOTORS
Tata entered the commercial vehicle sector in 1954 after forming a joint
venture with DAIMLER BENZ of Germany. After years of dominating
the commercial vehicle market in India, Tata Motors entered the
passenger vehicle market in 1991 by launching the TATA SERIA, a multi
utility vehicle. Tata launched the INDICA in 1998, the first fully
indigenous Indian passenger car. In 2008, Tata Motors acquired the
British car maker JAGUAR , manufacturer of the Jaguar, Land Rover and
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Daimler luxury car brands, from Ford Motor Company. Tata Motors is
among the top four passenger vehicle brands in India with products in the
compact, midsize car and utility vehicle segments.

IT INDUSTRY:
The IT&ITS industry in India has today become a growth engine for the
economy, contributing substantially to increases in the GDP, urban employment
and exports, to achieve the vision of a powerful and resilient India. Indian firms,
across all other sectors, largely depend on the IT & ITS service providers to
make their business processes efficient and streamlined. Indian manufacturing
sector has the highest IT spending followed by automotive, chemicals and
consumer products industries.
Nasscom expects the IT services sector in India to grow by 13-14 per cent in
2013-14 and to touch US$ 225 billion by 2020. Indias total IT industrys
(including hardware) share in the global market stands at 7 per cent; in the IT
segment the share is 4 per cent while in the ITS space the share is 2 per cent.
The industry is dominated by large integrated players consisting of both Indian
and international service providers. During the year, the share of Indian
providers went up to 65 per cent-70 per cent due to the emerging trend of
monetisation of captives. India's IT and BPO sector exports are expected to
grow by 12-14 per cent in FY14 to touch US$ 84 billion - US$ 87 billion,
according to Nasscom. IT spending in India is projected to reach US$ 71.5
billion in 2013, an increase of 7.7 per cent as compared to US$ 66.4 billion
projected for 2012, as per a report by Gartner. enterprise software market in
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India is expected to reach US$ 3.92 billion in 2013, registering a growth of 13.9
per cent over 2012 revenue of US$ 3.45 billion, according to Gartner. Indian
IT's core competencies and strengths have placed it on the international canvas,
attracting investments from major countries. Between April 2000 and June
2013, the computer software and hardware sector attracted cumulative foreign
direct investment (FDI) of Rs 53,757.60 crore (US$ 7.97 billion), according to
data released by the Department of Industrial Policy and Promotion
(DIPP).More recently, online retailing, cloud computing and e-commerce are
the major driving forces behind the rapidly increasing growth in the IT industry.
Online shopping has increased with the emergence of internet retailing and ecommerce.
Some of the major investments in Indian IT and ITS sector:
Baring Private Equity Partners Asia plans to buy IT services firm
Hexaware Technologies in a deal estimated at about US$ 400 million.
Cognizant has been selected by the Saudi Electricity Company (SEC) to
develop a comprehensive billing and revenue management solution based
on SAP utilities enterprise software to meet the functional, technical, and
operational requirements of SEC's rapid growth .
Prisma Global has acquired majority stake in German technology venture
Prisma Gmbh for about Rs 27 crore (US$ 4.00 million). The company
will now own the Intellectual Property (IP) of technologies developed by
the German firm .
Wipro Ltd have secured a large IT outsourcing contract worth US$ 500
million from the US-based financial services company Citigroup. Wipro
will be responsible for application development and maintenance, as well
as providing infrastructure management services, for Citi's global
operations .
Tech Mahindra has signed a five-year agreement with UBS Fund Services
(Luxembourg) (UBS FSL) for its new platform, Tech Mahindra Managed
Data Services (MDS), designed to support asset managers, wealth
managers, investment banks, custodians and administrators. The
companys Brazilian subsidiary Complex IT has also signed two deals to
deliver enterprise solutions for oil and gas, and banking sector.

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INFOSYS:
An example of IT sector is Infosys. It is an Indian multinational provider of
business consulting, information technology ,software engineering
and
outsourcing services. It is headquartered in BENGLURU, KARNATAKA
Infosys is the 3rd largest IT company in the world, and the second largest
employer of professionals in the United States, as of 2012 On 28 March 2013,
its market capitalization was $30.8 billion, making it India's sixth largest
publicly traded company. It was cofounded by Narayana Murti,Nandan
Nilekani, N S Raghavan.

RESEARCH &DEVELOPMENT
The aim of research and development is to improve the current technologies
offered by an organization or to develop innovation that strengthen the
organizations position in the market place. Research and development is
one of the means by which business can experience future growth by
developing new product or processes to improve and expand their
operations.
Now-a-days research and development has become very important in the
business world. The decisions are also made with help of research and
development. It is important in business due to level of competition,
production processes and method increasing.
EXAMPLE:

A supplier of prebaked and frozen dough products had suspicions concerning


the ability of its frozen product to withstand the rigors of freeze-thaw abuse
during the distribution cycle. Working with the supplier, AIB Research staff
developed a test protocol that mimicked the various steps and temperature
swings that might be encountered during production and shipping. Product
temperatures were recorded and other tests administered, the results of which

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indicated the need for upgrades in packaging materials and handling


instructions. As this manufacturer shipped all its goods by common carrier,
turning to AIB for assistance allowed it to maintain control over the test
design, and removed any bias from the results. The dollar savings realized by
utilizing AIB's services for this important project paled in comparison to the
loss of customer goodwill caused by receiving thawed, unusable product.

H AND DEVELOPMENT SECTOR

HOSPITALITY INDUSTRY:
Hospitability is a realtionship between a guest and host. it is also refered
as friendly and generous reception and entertainment of guests , visitors
or starngers. Hospitability management is an area of study that
concentrates with the management oh hotels , restraunts, travel agencies
and other organisation in the hospitabilitiy
Hotels are an important component of the tourism product. They
contribute in the overall tourism experience through the standards of
facilities and services offered by them. The fortunes of the hospitality
industry have always been linked to the prospects of the tourism industry
and tourism is the foremost demand driver of the industry.
Travel & tourisms contribution to capital investment is projected to
grow at 6.5 per cent per annum during 2013-2023, above the global
average of five per cent. The tourism policy of Government of India
aims at speedy implementation of tourism projects, development of
integrated tourism circuits, special capacity building in the hospitality
sector and new marketing strategies.
Case study

TAJ HOTEL GORUP:


The Taj hotel resorts and palaces is an Indian chain of hotels and resorts. They
have the head branch in Mumbai. It is a part of the TATA GROUP. They own
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and operate 93 hotels in 55 locations in India. They have around 16


international hotels in places like Australia, Malaysia, etc. Since the late-2000s,
the Taj group started organizing its hotels into different brands, in a market
segmentation strategy. As of December 2011, not all hotels have been rebranded
- some properties still retain the generic "Taj" brand and await classification.
The Taj Hotels Resorts and Palaces are groups most luxurious hotels and
resorts. These hotels cover business destinations, landmarks, palaces, resorts
and forest destinations. Most of Taj's oldest and most prestigious hotels have
been retained under this brand. Two speciality brands developed under the Taj
are :
Taj Exotica, the premium resort brand in Maldives, Mauritius and Goa.
Taj Safaris, Taj's nascent wildlife lodge brand. It is expected to cover Taj's
premium, high-end forest lodges and destinations.

Vivanta is a contemporary-luxury hotel brand. The brand caters to an upscale


market and is positioned a step below the flagship Taj brand. Vivanta Hotels are
found business and vacation destinations as well.
TATA GROUP also has economical hotels under the name Ginger.

EDUCATION SECTOR:
Education in India is provided by the public sector as well as the private sector,
with control and funding coming from three levels: central, state, and local
government. Education in India falls under the control of both the Union
Government and the State Governments, with some responsibilities lying with
the Union and the states having autonomy for others. India has made progress in
terms of increasing the primary education attendance rate and expanding
literacy to approximately three quarters of the population. The private education
market in India was 5% and in terms of value was estimated to be worth US$40
billion in 2008 but had increased to US$6870 billion by 2012 .As per the
Annual Status of Education Report (ASER) 2012, 96.5% of all rural children
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between the ages of 6-14 were enrolled in school. This is the fourth annual
survey to report enrolment above 96%. 83% of all rural 15-16 year olds were
enrolled in school. Gross enrolment at the tertiary level has crossed 20% as per
an Ernst & Young Report cited in Jan 2013 in Education News. The education
Sector in India is growing rapidly. The number of enrolments in schools and
colleges has increased a lost in the past 10 years. More number of females are
receiving education. There are many schools opened at rural level across many
villages. Children in those schools get mid day meals every day. The basic
challenge for India is to provide quality education.

MANIPAL UNIVERSITY:
Manipal University is recognized for imparting high quality professional
education and believes in providing world- class infrastructure and facilities to
the students. It is located at the southwest part of India. It is a well recognised
university for educational excellence for the past 5 decades. The university
offers more than 180 courses across 13 diverse disciplines and is home to many
of Indias top ranked educational institutions including Manipals Medical
College, Institute of Technology, College of Pharmaceutical Sciences, and
Graduate School of Hotel Administration. Its high profile faculty and world
class infrastructure attract students from over 50 different nationalities. Manipal
University enrols over 14,000 students every year and has an active alumni base
of more than 65,000 students across the world. Their main aim is to provide
leading educational facilities and infrastructure. As part of its vision to provide
leading educational facilities and infrastructure for its students and faculty,
Manipal University was seeking to unwire its campus and deliver a ubiquitous
wireless LAN and wireless broadband network throughout the 5 square km
campus. To fully support the universitys educational needs, the wireless
network had to deliver video and data uniformly across indoor and outdoor
campus spaces, as well as support. They had to build many new buildings and
reconstruct over 25 buildings. The campus-wide, high-speed wireless network
helps Manipal University realize its vision of offering best-in- class educational
facilities. By deploying a high speed ubiquitous Wi-Fi network throughout its
entire campus, the university is able to give students and faculty the technology
foundation to enrich the educational experience, increase productivity and
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improve communication. Their students and faculty can now access a range of
online services and information from the Internet and the Intranet, anytime and
anywhere the universitys very large user base of students, faculty and guests.
With their wireless connection they have achieved their aim of providing
leading education. Today Manipal Universirt is one of the leading universities in
Inida due to their vision and aim at providing quality education.
CONCLUSION:
The Indian economy is the ninth largest economy of the world and also one of
the fastest growing world economies. This growth is attributed to various Indian
industries which have grown tremendously post independence to increase
national income, to generate employment and to generate foreign earnings.
India was initially an agriculture based economy but after liberalization norms
of 1991 particularly, the services sector has taken a lead contributing the most to
the gross domestic product. Presently the agricultural, manufacturing and
service sector account for 16, 27, 57 percent of GDP respectively. The most
important industries from the point of view of Indian economy are listed below:

MANAGEMENT
CONTROL SYSTEM
Guest Lecture 1: Management Control System
Guest Speaker Mrs. Asavari Oak
Date: 21st December 2013
Venue: Ness Wadia College of Commerce
Timing: 10:30am - 12pm

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Introduction
Ness wadia college of commerce conducted a guest lecture for its Second Year
BBA and BBM(IB) studentds on the 21st of December 2013, the guest was Ms
Asavari Oak. The purpose of the lecture was to impart knowledge to the
students on the topic of Management Control Systems
Ms Asavari Oak has passed the CA, ICWA and CPA examinations in her first
attempt. She has also stood first in ISRF exam conducted by ACCA. She stood
second in the B.COM course in university of Pune and first in India in
She has had fourteen years of industrial experience in USA and India.

Ms Asavari Oak stated that the organization goal must be clear and emphasized
the need for knowing why one is doing business for successfully designing
management control system. There should also be goal congruence within the
various departments for sucess.
For a better understanding of the topic she took the example of a hotel industry.
The basic goals for hotel industries are customer satisfaction, profit
maximisation and expansion. The sub processes that are in a hotel are valet,
check-in, room-service, dining and other facilities, check-out and payment.
There maybe certain risks in all these sub processes.
A risk can be defined as something that prevents someone from achieving their
goal. E.g risk at front office(front desk) could be pocketing of money.
For every risk there is a control that can be done to reduce or minimize the
impact of the risk. The controls to be implemented would depend on the cost
benefit. E.g in hotels there is a three way reconciliation where in three
departments that are the revenue accounting department, house-keeping or
operations department and front office have records. More checkpoints results
in more control.
The likely areas experiencing risks are procurement of goods and services, work
contracts for major repairs and front desk. The risks faced in these areas are
spending substantial amount, unfair practices form bribery, manipulating
selection of contractors, favour in supplier, acceptance of substandard services,
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incurring extra cost to boost the value of contract, favouritism in allocating


rooms, misuse of vacant rooms, pocketing of cash through manipulation in
foreign exchange. Some of the controls that can be taken at the front desk are
three way reconciliation, ration analysis, daily cash reconciliation, accounting
records, CCTVs, etc.
It is easier for one person to commit fraud hence there shoukd be a committe to
control risks as there would be atleast one or two honest people in that
committee. Importance was also given to a basic rule that every
industry/organisation should follow, The rule was what can and cannot be
accepted from a supplier. There is a very slim line between a sample and
bribery. For this rules should be about procurement related issues, code of
conduct and regarding acceptance of bribery rules should also be set regarding
what is considered a sample or acceptable gift/tip and what is bribery.
The risks that the hotel industry faces can be controlled by ascertaining the
proper need, management in variation of works order, site inspection, frequent
surprise visits, team rotation, video recording, site photo, variance analysis. One
of the commonly faced risk in any industry is extension of time and liquidated
damages. This can be controlled by including penalty clause in the contract.
Companies should also practice maintaing risk registers. These registers record
the various subprocesses of a company and the risks under them. The risks are
ranked according to the maximum amount of exposure probability.
RISK and FRAUD SCHEMES
1. favouritism in allocating & upgrading rooms
2. packing of cash through manipulation in money exchange
3. caputering customers credit card data for users counterfiet credit card
syndicates
WORK ISSUES
1. variation of works
2. site inspection
3. extension time
4. ascertaining needs
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Grouping triangle
She explained that there are three components of Fraud Triangle as shown in
the figure.

1) Pressure or motivation may include financial problem,


addictions like gambling,shopping,drugs, pressure to show
good performance or results.
2) Rationalization is when individual thinks they are justified
because they are underpaid.
3) Opportunity is created when there are weakness in controls.
Individuals think they won't get caught because nobody is
looking, reviewing, performing reconciliation and reviews.
Then an A B C analysis can be conducted for grouping the risks into a, b or c
category. The high risk areas are grouped into a category. Thus category needs

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compulsory controls and sharing of risks with an insurance company. The risk
areas classified into c category need to be accepted.

The typical issue of this department would be spillage i.e. not having enough
rooms for the customers. The control taken should be having an arrangement
with a nearby hotel and agreeing upon a predetermined rate with that hotel to
prevent loss. There should also be proper documentation, proper policy of room
allocation, keeping abreast of market rates, obtaining and addressing customers,
feedback and special rates for special customers

The lecture was concluded with a question and answer session in which students
were encouraged to ask questions. The questions asked were whether IT sector
faced any risks to which, Ms Oak replied in the positive. The risks are cost of
building a product, need for proper capture of employee cost. The control
should be maintainig time sheet. Another question asked was whether NGOs
face risks? The answer was that NGOs do face risk in the form of limited
finance, which project to choose, etc. Ms Asavari Oak concluded the lecture by
saying that management control systems vary as per culture, size, activity, etc.
The students learnt the basic risks involved in the management system and the
effective ways to control those risks. It was a very informative and thought
provoking lecture helping us to understand the practical application of the
knowledge that we are gaining.

Conclusion
Mrs. Oaks gust lecture on management control systems was productive as
management control systems is a prime area of interest for most of us as
management students. From the guest lecture I understand that MCS is
very important concept to control risk and fraud. A good MCS should be
crated by keeping the goals of organization in mind. Her lecture &
presentation gave us considerable insight in to the field with facts, figures
as well as the working of management control system & dynamics behind
26

it.To make the best use of MCS there should be coordination among the
employers.

STOCK MARKET

27

Guest Lecture 2: STOCK MARKET


Guest Speaker Mr. Rohan Bhase
Date: 11th January 2014
Venue: Ness Wadia College of Commerce
Timing: 10:30am - 12pm

He received technician certificate from the institute of chartered accountant in


India. He is the visiting faculty to ILS College, symbiosis. He has worked in
fields of accounts, taxation, auditing, portfolio, management, etc.

Mr Base told us that people get into share market to earn money. Share market
is another source of earning money. It is ethical as well as beneficial. There is a
28

myth that share market is a gamble and it is unpredictable. It is false. The share
market goes up and down constantly. If a person invests wisely then he wont
suffer major losses. Fluctuation in the market can occur due to foreign
investments as well. Share market has foreign as well as domestic investors.
EXAMPLE: if there are majority of foreign investors they can harm the market.
One day the investors will invest a lot of amount and the next they may
withdraw the entire amount. This will cause the share value of the company to
go down. The market will collapse.
Another example is INFOSYS. They declare dividend on a certain date. If
people apply within that specified date they will get bonus shares or shares
purchased at a lower price. If only foreign investors invest the share price of the
company will increase but there will be a constant fear that the investors will
remove the investment. But if majority of the investors are Indian ie domestic
investors then even if foreign investors remove their investment the company
will lose some share value but the market wont collapse. Our market wont
collapse if domestic investments are more than foreign investments.
Investors mainly like to invest in blue chip companies. These are
the shares of the companies which drive the market. Example : NIFTY. If the
share price of these blue chip shares goes down then the market will collapse.
The largest blow which the Indian market is facing is the fluctuation of share
market due to FDI.
To learn and get into share market it is mandatory to open a De-mat
account. A De-mat account is an electronic account where one can purchase and
sell shares. It can be opened with a share brokering firm or from banks which
provide De-mat account along with savings account like AXIS BAND.
The procedure to open a De-mat account is:
1. Identity proof is required
2. Address proof if required
3. PAN card number is required
De-mat account can be opened individually or as a group.
To purchase shares money is required. Therefore the person having a Demeat account must have a bank account with online banking facilitates.
The share market in India opens at 9:15 in the morning and shuts at
3:30 in the afternoon.
29

The speaker then told us how to invest the money. He told us that
if we deposit 5 lacs in our bank account we must divide it in 3 parts.
The speaker told us that 20% of the money must be used for intraday transactions. Intra -day transaction means purchasing and selling of
shares in the same day. SEBI and Companies Act 1056 state that n
number of shares can be purchased and n number of shares can be sold
within a day. There are no regulations from SEBI regarding intra- day
transactions. For purchasing and selling shares the broker charges
brokerage. The brokering firms generally charge either Rs 16 or Rs 25 or
5% on every transaction. The speaker gave us an example that suppose
you purchase shares worth rupees 350, you will pay 0.5% of rupees 350
or rupees 350 +rupees 25 as brokerage. Brokering firms mainly charge
rupees 25 or 0.5% on purchase of shares.
The speaker gave us 2 scenarios where purchasing one share of
rupees 350 with rupees 25 which amounts to rupees 375 or purchasing
100 shares along with 0.5% brokerage is more profitable. The second
option is better when you purchase shares in bulk then brokerage per
share goes down.
If at 3 in the afternoon the price rises to Rs400 then from 400also
some brokerage will be taken ir Rs10 is deducted leaving Rs 390.
The brokers give us a contract note which shows additions and
deductions. Brokers receive commission wither the customer faces profit
or loss. The brokerage amount is fixed by the brokering house and by
inflation. Brokers do not face losses. They only enjoy good amount of
profits.
The speaker told us about how the share market gets affected. He told
us that the market is sensitive ie it gets affected by external environment
like natural calamities, political environment, elections. If the party which
has invested in a particular company wins the elections then the share
price of that company will go up and vice versa.
The speaker suggested that at the beginners level one should go
through brokers for buying and selling shares.
The speaker then told us to invest 40% of the 5 lacs in short term
investment. Short term investments are done for a short period of time
like a month or 12 months or even a year. It is important to make analysis
of the company for short term investment.
30

Ratio analysis techniques are used to find out the earning per share for
quarterly basis. Financial analysis is more reliable in deciding in which
company to invest in.
Technical analysis chart is another way. In this line charts are used. To
review these charts go to NSE India there select live shares. You will get
the graphical representation with analysis eg day chart, month chat,
quarterly chart. These charts show the financial position of the company,
profit margin, past performance, etc.
If in all charts you rise then it is important o check the foreign
investment.
Example of this is Hindusthan Unilever.
Ratio analysis is a very good method of checking the profitability of the
company. In fundamental analysis ratios and companies issues capital
with contingency capital is studies.eg TATA STEEK is the best to invest
for long term investment. Their reserves in total are twice their issued
capital. Charts have gone down from 2008. They show short term losses
but long term profits. They are one of the blue chip companies.
CONCLUSION:
The speaker told us at initial stage of investment to go to the NSE INDIA site
and check living shares. They give us a vague picture of the shares of future.
One must invest in long term shares as they are profitable. Long term shares are
those where u do not immediate profits. You will get profits after 10 years.
Some of the companies where one can invest are L&T, TATA STEEL, HERO
HONDA, STATE BANK, BABAJ, NESTLE, etc. The speaker told us to invest
in equity market and not in airlines. He also told us not to invest in derivative or
future market. It is better to invest in long term or short term investment. Invest
in companies whose charts are functional and do not go straight. A company
whose chart charts go straight is a dangerous one. They are bound to face major
losses.
The speaker also told us not to invest blindly. If one invests without any
information the he will suffer huge losses. One must use their own mind and
common since. One must study the financial position of the company before
investing. It is good to invest at a young age. As one joins early he will
understand the market better which will in turn reap him profits. Share market is
not a gamble. It is safe as long as the person knows what he is doing. A first
31

timer must be very careful where he is investing. More of foreign investors as


compared to domestic investors can cause the market to collapse. Hence number
of domestic investors need to be at par or more than foreign investors to ensure
that the market does not collapse.

32

LABOUR LAW

DATE: 18th January 2014


VENUE: NEIVELLE WADIA HALL
SPEAKER: ADVOCATE SHREEKANTH MALEGAUKER
He is a lawyer. He has his own law firm. He has dealt with lots of cases related
to corporate law and labour law. He is the visiting faculty for many colleges. He
also gave a lecture on employment law at the London School of Economics. He
33

has completed his Masters degree in Law. He has also written a book called
few books on law and has produced TV serials on law.
The speaker told us that each and every stream has a bearing with
labour law. It is important for management students to know about labour law.
Management students must know the expectations of the people who are
recruiting them for job. The people from companies who want to hire freshers
expect the candidate to at least have the basic knowledge about management
and labour law. It is important for management students to know the history
pertaining to labour law in India.
In 1600s the British entered India expecting to carry out trade with
India. 1600 was the time when the East India Company set foot in India. The
next significant date was 23rd June 1757 which was the Battle of Plassey. The
Battle of Plassey was a decisive victory of the British East India Company over
the Nawab of Bengal. The battle established the Company rule in Bengal which
expanded over most of India. The year 1857 is a landmark year in Indian
history. This was the year when the 1st law commission in India was made
during the year 1860 by Lord Macaully. The law includes Indian Pinal Code sec
302, sec 354 and some more sections. He could envision what crimes would be
committed in future. In 1864 another law was made. In 1872 Indian Contract
Act was made. It was known as SHOPKEEPERS ACT. This law was critised
a lot.
The speaker told us that Indian Labour Law is the combination of
Indian Contract Act along with securities. 1 st Association in India was Bombay
Mill Hands Association. Narayan Lokhande was the pioneer of the labour
movement in India. He ameliorated the working conditions of textile mill
hands. He is known as the Father of Trade Union Movement in India.
The 1991 was when the Ghandhian era began in India. This era
changed the face of India. The people who went for World War2 learnt about the
provisions given to other army people in other countries. They got to know that
in other countries soldiers were given bonus, securities and other provisions.
They came back and spread the world.
In 1992 the 1 st national trade union organisation ie ALL INDIA
TRADE UNION CONGRESS was established. The period of some eleven
years from 1924 to 1935 is considered as the period of LEFT WING TRADE
UNIONISM. The INDIAN TRADE UNION ACT which was passed in 1926
34

is a landmark in the history of trade union movement in India. In 1964 two


major acts were made INDUSRIAL EMPLOYMENT STANDARD ORDER
ACT and BOMBAY INDUSTRIAL RELATIONS ACT 38 misconducts were
given. Co-operative banking is included in Bombay Industrial Relations Act.
The speaker then told us that today India is 35 times richer than Pakistan.
This is because after independence we focused on industrialisation, we focused
on overall development of the economy. The Indian Discipline Act of 1947 is
the backbone of industry. The definition of industry is given in 2J, sec 2M, of
Factories Act, it states every factory may be industry but every factory may be
industry but every industry is not a factory.
There are few case studies which clearly state the use of the law. For
example Bangalore Water Works case deals with Industrial law. There is another
case temple between the university of Delhi and Ramnath.
The speaker also said that however the law is lopsided. Between man
and women the law favours women, similarly between landlord and tenant it
supports tenant, between manager and worker the worker is favoured. The law
favours settlement of dispute. The government solves problems amicably.
Example is the Bajaj Strike.
The speaker then moved on to discuss strikes. The speaker told us that
for the workers to go on strike they have to give advance notice. They cannot
suddenly go on a strike. A strike or morcha requires police permission.
Some types of strikes are rotation strike , sit down strike, sympathetic
strike, lightening strike, etc. For a strike 14 days advance notice needs to be
given. strike is the last weapon in the armoury of labour Lockout is the last
weapon in the armoury of management. The speaker gave us an example of
strike which took place in Mumbai. The workers went on strike and the
management tried everything to get them back. After some time the manager
declared lockout. Lockout and strikes only cause loss.
The speaker also gave an example of how movies can be misleading.
The speaker once saw a movie in which he saw the lead actor tell the workers to
go on strike all of a sudden. This is not ethical. Strikes do not take place in such
a haphazard manner.
The speaker then told us how managers are. He explained it with an
example.
35

A understanding manager is always understanding. On day one his


worker was 15 minutes late. He will forgive him. The next day he is 25 minutes
late, the manager shows his watch but does not say anything. On the 3 rd day the
worker is half an hour late the manager will only stare. On the 4 th day the
worker is late, the worker will be ignored. On the 5th day when the worker is late
the manager will treat him with sarcasm and then have a discussion with him. If
even after that the worker is late then the worker will be discharged but with
honourable letter of discharge. When the worker goes to another factor for work
he will be appointed due to the discharge letter.
But if the manager is strict on the 1 st day the worker is late he will
shout at the worker. On the second day if the worker is late then he will be
dismissed. Due to being dismissed the worker wont get another job.
CONCLUSION:
Labour Laws are important and need to be known. Every student must know the
laws as it gives him an edge over other candidates at interviews. A management
student has to know the laws regarding harassment and Indian Contract Law
and Factories Law. A management student must have the ability to deal with
situations is better way and must avoid strikes or lockouts. A manager must be
kind. If he is wicked the workers will suffer.
In todays world it is mandatory for the students and managers to know
the basic laws and rules. Law is an integral part of management. The managers
need to know all the Acts like Factories Act, etc. By knowing them they will be
able to deal with trade unions problems in a better way. Today the world needs
people who are well informed and find the middle way between unions and
employees. There is a need of charismatic and innovative thinking people.

36

VOLKSWAGON

37

DATE: 5th January 2014


VENUE: Volkswagen
Chakan, Pune Plant.

The Volkswagen Pune plant is in Chakan. It occupies a total area of 2.3 million
sq.metres ie. 575 acres. Its buildings cover about 1,10,000 sq metres. It was
built in 17 months with an investment commitment of INR 3800 crores by
Volkswagen India Private Limited. It is the largest investment by a German
company to date in the growing Indian market.
We were greeted by the Head of Security, Mr. Prashant Kerker. He informed us
about zero scratch cars produced by Volkswagen & gave us some few basic
instructions.
Then, Mr. Chaitanya Halve, the assistant manager met us. He told us that, We
in Volkswagen believe in quality. He was our tour guide. He proceeded to
inform about the production capacity of 1 lac per annum. After every two
minutes one car is born in the plant.
He told us about the two branches of Volkswagen in India; Pune branch and
Aurangabad branch. The one in Aurangabad produces the esteem cars like Audi,
Scoda etc. The Pune branch produces Vento and Brio. While only assembly
takes place at Aurangabad, the entire car production takes place in Pune.
We first saw the Body Shop. It has 1000 employees working in two shifts. The
work is done by machines and manually. Manual labour is used to fix doors of
the cars. The Puka robot makes the inner & outer parts of the doors. The robot
hammar makes the edges of the door and seals them together. There are 96
robots in the Body Shop. High resolution cameras oversee the work done by the
robots.

38

Every car has 94 spots which need proper measurement & precision. The inline
measurement process takes care of this. 70% the work in the Body Shop is done
manually. Spot welding is done by robots & manually. More than 1000 spot
welding is done.
The plant specifically uses Diode Laser Brazing technology. Volkswagen cars
face fewer problems like water leakage, reduction in rigidity, shabby appearance
etc due to this technology and 100% durability, safety and prevention of water
leakage is ensured.
At Volkswagen they have few important points which they keep in mind. They
are:

Quality
Precision
Technology
Safety of customers

The steel used in making the body of the car is imported. Two types of steel are
used in making of the car body, red steel & grey steel. Red steel is used in very
specific places which are prone for attacks & gives more safety as compared to
grey steel.
The space between two doors is measured ie. 3.5mm. Volkswagen provides
robust, strong and rigid car bodies.
In the last line of Body Shop no robots are used. All the work is done manually.
In this part the polishing and finishing work is done. The special quality team
checks the quality of the car body.
The car next goes to the Paint Shop. In the Paint Shop, first the car is washed
from both inside and outside. After washing the car ,it is then coated with white
paint. 4-5 cats are given to the car. Finally the car is given its colour by spray
paint. The paint used is of high quality.
The car next goes through the Check Point Light Tunnel. Two different shades
of light are used for the light test. One set of lights are used to observe the car in
day light. The other set of lights are used for night observation. Scratches if any
are visible clearly & action is taken.

39

431 cars are made daily. 31 cars are born every hour. Both right handed & left
handed cars are made at Chakan plant. The left handed cars are mostly exported
to Dubai, Bangladesh etc.
Next on the journey of completion of the car is the Assembly Line. It is 47sq
meters wide. 4500 employees work directly or indirectly on the Assembly Line.
There are different Assembly Lines.
The 1st assembly line: Here the car bodies get a unique wind number depending
on the type of the car. The car doors are removed for the protection of the car.
The 2nd assembly line: This is the Sub cockpit production line. Cockpits
weighing around 50 Kgs are placed in the car. The flooring in this part of the
plant is wooden for the comfort of the workers. One man works for 115 seconds
on a car. If there are any errors, the car body is pulled out of the line. Once the
cockpit is fixed, the wiring and harnessing of the car takes place.
The glass fittings are next. Here the station numbers are displayed on LCD
screens. If any error occurs, the screen shows the exact car model which is
facing the problem. The process is efficiently conducted.
Volkswagen has a special programme for students known as , Dual Mecatronic
Programme. The programme which is for 3 years has 16 students who also
receive a stipend. Job offers from Volkswagen are generally given on
completion of the course.
Due to government rules & regulations, no women work in the Body Shop. A
special internal logistics team, all parts are accountable.
Next is the Chassis Line. Here the under bodies of the cars are prepared. After
this process, the cars go through the Tire assembly. Here a machine moves the
cars & workers fix the tires. It is a continuous process.
There is a KUP workshop on the Finish line 1. The car seats are assembled here
and the steering wheel is fixed. On the Finish line 2, the car gets its doors and
air-bags. After the car is complete, it goes through multiple tests. Once the car
passes all the tests, it is declared fully complete and ready to be handed over to
its owner.
In Volkswagen, the process where the upper part of the car meets the lower part
is called marriage. It is done with the help of a machine.
40

CONCLUSION:
Volkswagen plant is one of the best & a leading producer of cars. Their cars are
quality oriented. Volkswagen produces sturdy cars which do not get damaged
easily. Due to its carefulness in the assembly line, there is no room for error.
Volkswagen also takes care of its workers. Protective gear of every kind is given
and safety lines are marked everywhere. Special wooden floors prevent injury.
Canteen with hygienic food and sanitation is provided. Safety is their first
priority.
The plant is spacious and clean. Cars are produced with love here. Volkswagen
also shows management of its resources. They conserve energy. They have a set
target for 2018 to reduce their carbon emission.

41

TAXATION

DATE: 8th February 2014


VENUE: NEVILLE WADIA
SPEAKER: Mrs Priyanka

Mrs Priyanka is a CA. She got the 27 th rank in India for CA and the 8 th rank for
BCOM. She has worked for Earls $ Young. She is a professional tax planner.
She takes firm wide trainings as well as trainings for foreign students. She takes
many seminars for students regarding tax.
42

Mrs Priyanka told us during the duration of her lecture she would focus on tax
at corporate level. She started the lecture by asking the students what was the
meaning for the word tax? She then said that the amount paid as tax should go
to the right person. And the amount must be right ie it should not be more or
less. As a manager one is posed to check these details. In a company when the
top level has a problem they go to the managers who are asked to consult tax
planners. As a manager you have to interpret the thoughts of the top level
management and present it well to the consultants. As a manager you should be
able to present the situation to both the parties well. For this the basis of tax
should be known and as management students it is every important to know the
study of tax.
Mrs Priyanka covered 5 topics in the session. They were:

Income Tax Scenario in India


Authorities
Important Concepts
Residency and Scope of Taxable Income
Basis of Salary Tax- Practical Issues

INCOME TAX SCENARIO IN INDIA- AN OVERVIEW


A budget is presented by the Financial Minister by the end of the month
of February every year. The Financial Minister talks about the economy
in general, the current situation in the economy. He then talks about the
direct and indirect taxes and proposes amendments. This then becomes a
bill when passed in the Parliament. The rates of taxes keep changing
every year as per the situation in the economy. There are certain rules of
tax which support the Act eg Perquisite computation, document filings,
etc.
The computation of tax takes place in the following way:
43

INCOME TAC ACT 1961


FINANCIAL ACT
INCOME TAX RULES 1962-: CBDT Sec 295
CBDT Sec 119: Circulars, Notifications, Internal Institutions
JUDICIAL PRECEDENTS
In the structure of CBDT , charitable institutions where amount is
deducted from tax are mentioned under Notifications.
CBDT means Central Board of Direct Taxes.
Income Tax Authorities
SUPEREME COURT

HIGH COURT

INCOME TAX APPELLATE TRIBUNAL

COMMISSSIONER OF INCOME TAX

ASSESSING OFFICERS: ADITS, DDTI, DCTI, ITOs


The Income Tax authorities are CBDT, DIRECTOR GENERAL and
Commissioner of Income Tax.
CBDT has power through Income Tax Rules to make polices. Example every
year order above rupees 10 cores need to be assessed. This rule is given by the
CBDT.

IMPORTANT CONCEPTS
ASSESSMENT YEAR & PREVIOUS YEAR:
The year that computes the financial year ie 1st April to 31st March in
which the income of the previous year is taxable is called assessment
year. The current assessment year going on is 2014-15. The previous year
44

is 2013-14. The rates of 2014-15 are applied for the income earned in
2013-14 ie previous year. Pervious year is financial year.
INCOME:
Income is all the monetary benefits incurred from salary and other
sources. Each of the sources should be specified. Each head of income
needs to be looked into and determined correctly as each head has its own
amendments. The income earned by a professor comes under the head
income from salary. But when the professor sets an exam paper for the
university then the money he gets comes under the head income from
profession or other sources. Therefore the computation of income is
important to categorise the income correctly. Example the income of
parliament members like Sachin Tendulker or Rekha is categorised as
income from other sources. But if Rekha becomes a minister then her
income comes under income from salary.
Prescribed Rates for 2014-15
NET INCOME RANGE
Up to Rs 2,50,000
Up to Rs 2,50,000-5,00,00
Up to Rs 5,00,000-10,00,000
Up to Rs 10,00,000- above

INCOME TAX RATES


NIT
10% of total income minus 2,50,00
2,50,000+20% of
total income5,00,000
Rs 125000+30% of total income minus
10,00,000

To be increased by education cess @ 3%

PERSON:
Person is different assesses in India today. They include Individuals,
Companies, HUD, Partnership, Local Authorities and any not listed above.

RESIDENTIAL STATUS

45

RN
N
IO
EO
O
N
SN
R
R
D
I-I
D
V
R
EE
I
N
D
S
TIU
A
D
L
E
N
T
OR means ordinary resident
NOR means not ordinary resident
NOR includes income:
Received in India
Accruing in India
Deemed to arise in India
NON-RESIDENT includes income:
Received in India
Accruing in India
Deemed to arise in India
DOUBLE TAXATION:
Double taxation is when a person has to pay tax in 2 or more countries.
Example if a person is outside India but his band accounts are in India and
salary is from abroad. Income accrued and received in India is taxable. If he has
shares in India then he has to pay tax in India for the interest and shares and
abroad for the salary.
All the countries have similar residential tests like India. If a person is taxable in
India he may be taxable in some other country. In case of double taxation

46

certain criterias are given. If a person fits into them then he is taxable only in
one country.
Mauritius is a tax heaven county where there is no tax.
BASIS OF SALARY TAXATION
Maam told us that in an employer and employee relation there should
supervision, control and direction.
There are certain exemptions which a person gets in income from salary.

SALARY

ALLOWANCES

SALARY AND WAGES EDUCATION


ALLOWANCE
GRATUITY
HOSTEL ALLOWANCE
EMPLOYERS
TRANSPORT
CONTRIBUTION TO ALLOWANCE
PROVIDENT FUND
ENTERTAINMENT
ALLOWANCE

PERQUITIES
GIFTS
WATER,
ELECTRICITY
CAR, DRIVER

REIMBURSMENT OF
MEDICAL EXPENSES

CONCLUSION:
We learnt how income tax is computed. There are many conditions for
being declared a resident of India. And only when a person fulfils them he
becomes either an ordinary resident or non-ordinary resident. The tax
slabs are decided by the committee. And the rates fixed are always based
on the current economic condition. To evade taxes companies open
offices and operate from tax free countries like Mauritius, Switzerland ,
etc.

47

GAS,

Hindustan
Coco-cola

48

49

DATE: 12th March 2014


VENUE: Pirangut

The plant is located at Pirangut, Pune. There are 450 employees working in 2
shifts. Their first plant was operational in India in 1996. There are three lines
here.

Pet Bottles
RGB line
Jar line.

Ms. Priyanka from the maintenance department was our tour guide. The tour
started backwards. We were first taken to the shop floor where the packaging of
the finished product like labelling takes place.
The three lines in the plant do their distinct work. One line is for cans, the other
for glass bottles and the pet bottles. There are conveyer belts. They prevent any
contamination from taking place. Here the batch number from which plant it is
manufactured etc are mentioned. No lubricant is used on the conveyer belts.
Since no human hand touches anything, there is no contamination. The
temperature required is 4 degrees centigrade. To raise it to room temperature,
warmer is used. Here the bottles are sprayed with hot water to increase the
temperature.
Side Room
Pet bottles get their form here. They originally look like a small test tube. This
test tube enters the machine where it gets it bottle form. The temperature inside
50

is 85 90 degrees centigrade. The plastic easily melts and the inbuilt moulds
give it the desired bottle shape. The entire process takes few seconds. It is a
continuous process. The bottles are then inverted by the machine and a blower
is used to get rid of all the dust and other unwanted matter. The bottles are then
washed. For the wash, purified water is used to avoid micro-organisms and
chemical contamination. The water is drained in two seconds. When the bottles
are dry, they are filled. In one rotation, 45 bottles are filled. The caps are
transferred aerially. Machines put the caps on bottles. They are next sealed and
the filled bottles are made to go through a warmer. The bottles become dry &
then the labels are put.
While this process is going on, simultaneously boxes are made & opened by
another machine. The labelled bottles then are grouped & aerially placed in
open boxes by the machine. The boxes are then closed & sealed by gum which
is food grade. The box then gets its details like batch number, flavour etc.
For glass bottles, the plant collects the used bottles from vendors. When the
bottles reach the plant, they are thoroughly washed. They are then filled by a
default machine which rejects all the bottles that are not good. The machine is
called SCBI machine. It has a dirt sensor which helps to locate a dirty bottle.
The machine can also identify which bottle is for which drink. If a different
drink bottle is in line, the machine rejects it. The clean glass bottles are filled in
a glass room. 72 bottles are filled in a single rotation. The machine is set in a
way to avoid errors. The rejected bottles are separated but by any chance if the
bottle reappears, the machine stops automatically & resumes working only
when the wrong bottle is manually removed. There are two check points to
oversee the work.
There is a separate room for quality testing of the drink. The ingredients used
are specific & have a perfect ratio. If the ratio is not maintained, the drink will
lose its taste. The ratio is 1ml water: 2ml syrup.
The plant produces the drinks according to the orders received from the market.
There are 24 bottles in one case. As per the requirement, the batch is made. 1
unit = 1000-----Therefore
42 units = 42000---Water is heated to 85 deg centigrade. Sugar is next added. Next, carbon high
flow is added in ratio. There are two lots which are there. They go through
filters1 & 2 in two tanks. All the debris from the solution is filtered. The
temperature of the syrup is 85 deg centigrade. After filtration the syrup is
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declared pure. The pure syrup is then cooled to 22 deg centigrade. The PAE is
sensitive to temperature. After it is cooled, flavour is added to it in the tanks
along with water. It is then mixed in different small machines. The drink is then
transferred through pipes and Carbon di-oxide is added to it.
There are CIP machines ie cleaning place. There are 3 filters. The temperature is
85 deg centigrade. Contamination if any is recognised. CIP takes 1 to 2 hours.
Each tank in the plant has its own flavour. There is a network of pipes so that
water can be added without contamination. For the flavour, there is a separate
flavour room. Each flavour has its own temperature. The life of the flavour is
one year.
The water in the drinks is from 3 rivers and 1 well. The water goes through a
clarification process. The water is stored and processed. There is a contact time
of 1 hours to kill all the micro organisms. Then it goes through PSF, ACF,
Lead ACF, Lag ACF and micro filters. In this the tank is filled with water and
granular carbon. Then the filtration process begins. This then leads to micro
filters. There are 3 micro filters.
Next is the UV filters UVA & UVB. After the process of clarification the 2 nd
process is UV process filters.
Jar Bottles
The plant gets the used jars from the vendors. The Jars go through a machine
called a slipper where the damaged jars are removed. Then the jars deemed to
be fit are cleaned manually. They next go through a detergent wash. Here the
washed jars are washed again, 7 at a time. They are washed with their neck
down and bottoms up. Here hot water, cold water and detergent wash are done,
one at a time. In one minute 3 jars are washed. After this thorough washing the
bottles are labelled, given batch names etc. Then the drink is filled and the jar is
sealed.
Coca cola gets all their raw material from suppliers. The raw material is
analysed. They perform few tests like light testing in light testing machine to
check the raw material minutely. All the raw material like jars, bottles,
ingredients go through a quality check before they are used. If the material is
lower or higher than required quality, it is rejected.
Coca cola is quality conscious. Every executive at every line, after a time gap of
half an hour checks one bottle. Bricks and carbon dioxide are also checked.
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Bricks are glucose concentrated. The flavour in the drinks is also bought from
specified vendors. For machines which are installed in Mc Donalds etc the
department sends officials to check quality. Water is not wasted and goes
through treatment to retain its purity.

CONCLUSION
. A visit to Coca-cola was a great experience thanks to our college
authorities for providing us such a great opportunity to explore and gain
more knowledge .It was an amazing experience as to see how soft drinks
are manufactured, packaged and distributed. We saw that the company is
very well organised in its management and administrative aspects
Finally to conclude coca-cola is well know for its
quality and powerful drink.. the working staff was also
cooperative they guided us well.in all it was a great
experience

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GITs

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DATE: 19th February 2014


VENUE: Gits , Hadapsar, Pune
GITS is a food processing industry. Food processing comes under the secondary
sector. In secondary sector food is processed and packed. It started in 1956. It
produces 25 tonnes per day. Gits exports its goods to USA ,UK, Australia and
Gulf. Gits produces 35 products in all out of which 10 are sweets. The workers
work in one shift which starts from 9 and ends at 5 in the evening. Gits exports
its goods to 35 countries. Their major manufacturing product is
GULABJAMUN. The products are made to order. GIT only produces goods as
per the order received. Their major retailers are malls and vendors.
Gits has an outlet in Pune. People at Gits are very particular about hygiene.
They give all the workers and visitors shower caps to wear. No one is allowed to
wear foot wear inside the factory. Being a food processing factory they do know
want any contamination to occur.

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Mr Shailesh from the quality department was our guide. He told us that they
produce 2 categories of food packets. First are the ready to cook mixes. These
contain dry blends of the powers of food. The customers are required only to
add warm milk or water and cook it for 10 minutes. These ready to eat mixes
are very easy to prepare.
Gits gets its own raw material from specific suppliers. The raw material goes
through quality check. After checking the raw material goes through grinding
process. In this process the material is grinded and made into a powder. After
grinding the raw materials are then blend in together.
There are 3 types of packaging. 1 ST is primary packaging which involves roll
packaging. 2nd type of packaging is done in cartons. And theirs is shipped. For
roll packaging there is a FFS machine. The roll is moved and filled then sealed.
FFS means form, fill and seal.
At Gits the basic raw material used is rice, dal, etc. They are all powered
then seeped then loaded on trolleys then dried. They are dried so that they lose
their moisture content. The moisture content is 8 to 12% in the packed FFS
machines.
Gits follows the FOOD SAFETY AND STANDARD ACT. Hence
they are very conscious of the quality.
The raw materials like rice and dal is checked both manually as well as
with a machine. There is a special machine for it. After the sorting is done then
the grains go through grinding. Here they are powdered. There is a special
machine for grinding. After grinding the raw material is then dried. Then it is
put in a blender. Here all the materials blend properly. All the ingredients are
mixed perfectly.
The spices blender is called the mixing station.
After blending process complete the mixture is then put in packets with
the help of machines. This work is not done manually. The machine is set and
accordingly fills the packets. 35 packets are filled per minute. The packets are of
100 grams or 200 grams or 50 grams. After they r put in the packet they r then
manually put into boxes. This is called secondary packing. After the packer is
placed in the box , the box is then sealed by machines. The machine is called jet
package. The box gets its details engraved on it. After it is sealed it is then put in

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cartons and dispatched. There 60 boxes per carton. Gits exports 50% of its
boxes and only 50% are used for India.
The MRP is not printed on the box. MRP is fixed by the seller. There
are around 400 employees working there and 90% of them are females.
CONCLUSION:
At Gits they are conscious about quality as they export the goods. That is why
they have ph test for their goods. They have 2 labs one in online quality testing
and other is for micro bio content checking. They put soda instead of yeast in
their products to make their products light. They take 3 hours to reduce the
moisture content. They are the biggest food processing industry in India. As
they are a world famous brand they need to maintain their standards through
quality check. Ready to eat meals are not very famous in India but are very
famous abroad.

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LE MERIDIAN

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DATE: 21st March 2014.


VENUE: LE MEREDIAN , PUNE
SPEAKERS: Praveen Mane - Assistant HR manager has been for 8 years in
hotel.
Nitin Jadhav - HR security manager who is working for 15 years.
Chef Nadir Shaikh- Working for

The students were taken to the training centre where Mr. Praveen introduced
them to the staff working there. He told us the hierarchy HR, EXECUTIVEHOUSEKEEPING, ENHINEER, FRONT DESK.
There are about 1413 hotels and 318 new hotels coming up soon. There are
about 100 hotels in India itself. There are 9 branches of Starwood. They include:

WESTIN- 236 hotels


SHERATON- 509 hotels
FOUR POINTS by SHERATON- 232 hotels
Le MERIDIEN- 113 hotels
THE LUXURY COLLECTION- 96 hotels
ALOFT- 105 hotels
W HOTELS- 166 hotels
St. REGISIS- 45 hotels

Starwood has 4 dimensions ,North America,Asia Pacific,Latin America and East


America.
The Le Meridian,Pune falls in Asia Pacific and its headquarters is in Singapore.
Starwood has 3,22,700 rooms all over the world. The Le meridian ,Pune is
equipped with 177 rooms, 8 suite Rooms , six banquet halls and 1 Disco named
Scream.
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The main values at Le Meridien, Pune is CHIC, CULTURE and DISCOVER


Then we were shown a video of Le Meridian. Starwood is one of the
shareholders of Le Meridian. Le meridian by 2050 wants to convert its Pune
hotel into Sheraton. They also want to build a new hotel in Mahabaleshwar as
there are no new hotels there. It is to be built on 39Acres Land.
Then Head Chef Nadir Shaikh spoke about cost maintenance .He said that cost
needs to be controlled , maintained but not cut down. The kitchen Department
is divided into 3 sections.: Kitchen , Storage And Service . For this department
ther is cost of fuel, electricity , manpower , water ,etc which needs to be
maintained. Everything that occurs here is related to the number of guests
visiting the hotel. Then the speaker gave us an example comparing Le meridian
and KFC. The price of a chicken dish is different in KFC and the hotel. This is
because in a hotel the service is provided to the customer, from the min night he
enters the hotel till he leaves. Whereas in KFC the customer only pays for the
dish he orders.
Mr Mr. Ahmed told us what Food Audit is. Food Auit is basically related to food
and beverages. It consists of the hygiene maintained around food, how food is
cooked, the conditions in which food is cooked example the temperature. All
frozen goods need to be stored at 18*c while ice creams and other frozen goods
are stores at 5*c or below. Food auditing takes place for all the hotels chains.
The Le Meredian Pune had their food audit on 10th January 2014.
Hotels get their raw materials from local vendors. The food is cooked at a
specific temperature. For this purpose a thermometer is used. There are two
temperature calculating techniques:
o Holding temperature for a buffet is 60*c
o Colding temperature is 5*c and below.
But sometimes improper food management does take place. It can take
place due to food not being properly cooked, improper raw material or
bacteria.

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To prevent such problems Food and Hygiene Department are there in


every hotel of Le Meredian.
In a hotel the wastage percentage is between 10%-15%. The banquet in a hotel
should be maintained in the same manner till the last person walks out.
Everything needs to be maintained accordingly including the temperature of the
food.
Le meridian gives discount to its customers in the form HAPPY HOURS in the
evening , Late Night hours, etc.
In Pune there are three starwood hotels. They are : Westin , Le Meridian and
Four Points by Sheraton.
CONCLUSION:
Le Meridian is one of the Luxury Hotels In Pune. Their main aim is to please
their customers. They have been able to reduce their Wastage and have
maintained their Standard. By 2015, they will achieve their target of converting
Le Meridian into Sheraton. The HILTON CANNAUGHT is coming soon in
Pune.

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CONCLUSION
Industrial Exposure is important for students. It provides the students with
knowledge and information. Though Industrial Exposure one gets to know
whats happening in the economy of the county. One gets to know what the
GDP is , which sector contributes the most to GDT. One also gets methods or
ways to improve the GDP. Students get to know the latest trends going on in the
market.
Industrial Exposure provides information about each sector of the economy in
detail. It shows how that particular sector works. It improves the skills,
knowledge and brings about innovation. Industrial Exposure is a boon for
management students. Students get an idea of the sectors and how they work.
This helps students to understand which career to select. Students benefit from
this. They are able to work better and with better understanding.

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BIBLIOGRAPHY
www.wikipedia.com
www.google.com
Timesofindia.com

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