Kohinoor Diamond

INDEX

No.

Particulars

1

Introduction

2

Industry profile

3

Company profile:
3.1

Introduction

3.2

Vision, mission, value

3.3

History & growth

3.4

Awards & achievements
Practical part (company):

4
4.1

Production management

4.2

Marketing management

4.3

Financial management

4.4

Human resources mgt.

5

Finding & recommendation

6

Conclusion

7

Bibliography

Page no.

INDUSTRY PROFILE

Nature of business: manufacturing
Manufacturing is the use of machines, tools and labor to make things for
use or sale. The term may refer to a range of human activity, from handicraft
to high tech, but is most commonly applied to industrial production, in
which raw materials are transformed into finished goods on a large scale.
Such finished goods may be used for manufacturing other, more complex
products, such as household appliances or automobiles, or sold to
wholesalers, who in turn sell them to retailers, who then sell them to end
users - the "consumers".

Manufacturing takes turns under all types of economic systems. In a free
market economy, manufacturing is usually directed toward the mass
production of products for sale to consumers at a profit. In a collectivist
economy, manufacturing is more frequently directed by the state to supply a

centrally planned economy. In free market economies, manufacturing occurs
under some degree of government regulation.

The manufacturing sector is closely connected with engineering and
industrial design. Examples of major manufacturers in the North America
include General Motors Corporation, General Electric, and Pfizer. Examples
in Europe include Volkswagen Group, Siemens, and Michelin. Examples in
Asia include Toyota, Samsung, and Bridgestone.
Manufacturing industry refers to those industries which involve in the
manufacturing and processing of items and indulge in either creation of new
commodities or in value addition. The manufacturing industry accounts for
a significant share of the industrial sector in developed countries. The final
products can either serves as a finished good for sale to customers or as
intermediate goods used in the production process.

Evolution of the Manufacturing Industry:
Manufacturing

industries

came

into

being

with

the

occurrence

of

technological and socio-economic transformations in the Western countries
in the 18th-19th century. This was widely known as industrial revolution. It
began in Britain and replaced the labor intensive textile production with
mechanization and use of fuels.

Working Of Manufacturing Industry:
Manufacturing industries are the chief wealth producing sectors of an
economy. These industries use various technologies and methods widely
known as manufacturing process management. Manufacturing industries
are broadly categorized into engineering industries, construction industries,
electronics industries, chemical industries, energy industries, textile

industries, food and beverage industries, metalworking industries, plastic
industries, transport and telecommunication industries.

Manufacturing industries are important for an economy as they employ a
huge share of the labor force and produce materials required by sectors of
strategic importance such as national infrastructure and defense. However,
not all manufacturing industries are beneficial to the nation as some of
them generate negative externalities with huge social costs.

Industrial Growth Detail

India's manufacturing sector grew at an average annual rate of 6 per cent
per year in the fourteen years between 1990-91 and 2003-04, which was
higher than the 5.8 per cent growth achieved by overall industry and the 5.7
per cent GDP growth during the same period. The sector recorded a growth
of 11.4 per cent in 2005, while the overall industrial sector also recorded a
double-digit GDP growth of 10.3 per cent. Further, Indian manufactured
products are now gaining acceptance in world markets. India already
exports about US$ 50 billion a year in manufactured goods and this is
increasing at the rate of 20 per cent a year.

A study by the Confederation of Indian Industry (CII) and McKinsey & Co.
on manufacturing sector in India estimates that Indian manufacturing
export has the potential to touch US$ 300 billion by 2015, growing at an
annual rate of 17 per cent as against the historic growth of 11 per cent. Of
this, nearly US$ 70 billion to US$ 90 billion could be captured from just
four sectors — apparel, auto components, specialty chemicals and electrical
and electronic products.

India’s expertise in skill-intensive manufacturing sectors such as auto
components, pharmaceuticals and textiles gives it an edge over other lowwage producers.

COMPANY PROFILE

Introduction
World is moving at a pace faster than you can imagine. Even before you have
imagined, somebody would have already. And even before you fully enjoy the
end result, it will become outdated. Technology drives the world and your
heart is driven by the desire to own it.

Name of Company: Kohinoor Techno Engineers Limited

Nature of business: manufacturing

What is produced?
The company provides variety of software products for diamond machineries
to esteemed clientele. At KOHINOOR, technology meets humanity and forms
this beautiful relationship called trust. Over the years, they are pioneered a
revolution that has developed exiting products to fulfill your dreams. They
are not only creating new products to suit your Diamond Manufacturing
factory but upgrade them from time to time to keep pace with it. From wide
range of diamond machineries like auto-blocking. Auto-bruiting, table
master, dia-marker, laser sawing/bruiting, roundest, double spindle and
now they are introducing complete polishing machine, by these they touch
your diamond in different ways.

Moreover, KOHINOOR cares for you and your environment. They are believed

in sustainable growth without harming our ecology. Therefore, they are
manufacturing our products with in-built vacuum system, which protects
the operator and machine from hazardous dust.

Kohinoor Techno Engineers Head Office Address:

Kohinoor Techno Engineers Limited

(Previously Known as Asian Independent Network Limited)
“Kohinoor House”, Plot No.1, Gajera Industrial Estate
Opp.I.C.Gandhi Mill, A.K Road, Surat- Gujarat

Phone: 0261-2542786 Fax: 0261-2563650
Email: [email protected]

Auditors
BHARAT & Co.
Chartered Accountants
Mr. BHARAT H. GANDHI
C.A, B.Com, LL.B., ACA
503, Ranjit Chambers,
Near Nanpura Police Chowky,
Timiliyawad,
Nanpura
Surat – 395 001
Gujarat, India
Phone: 98792 40828
Email: [email protected]
Surat.

Kohinoor Techno Engineers Financial Details:
No of Employees – 51-200
Turnover in Crs – 0-10 Crs
Sector- Public Sector

All machines are manufactured by highly skilled engineers under ISO-9001
2000 quality management systems. In order to ensure each machine to be
qualified and meet up to customer's expectation, latest technology and
strictly control are introduced into each production process of machines like
material selection, heat treatment, grinding, super finishing assembly,
coating, grease filling, electrical/electronic parameter testing, redelivery
inspection.

Board Of Directors
Mr. Kirit Surajram Bhatt –Directors
Mr. Sanjiv Kiritbhai Bhatt -Directors
Mr. Rajiv Kiritbhai Bhatt -Directors
Mr. Aswad Mohamedamin Pothiawala -Directors
Mr. bhavin prakash Chandra shastri-independent & non executive director
Mr. Mishra rabindra maheshwar- independent & non executive director

Ownership Pattern

The company provides variety of software products for diamond machineries
to our esteemed clientele. Now taking a step forward to expand the business
in the area of producing various diamond machineries. Firstly we are
moving for the following product portfolio of the diamond machineries:

 Auto polishing machine
 Barrel bruiting machines
 Laser machines
 Sawing /bruiting/coning
 Polished diamond analyser
 Rough dia scanner
 Kohinoor dia maker
 Manual polishing mill
 Fancy bruiting system
 Coning machines
 Single spidle

Future plan of Kohinoor

The group has dedicated design & R&D centre which is recognized by
department of sciences & technology govt. of India. this facility is equipped
with most modern instrument, manned by highly qualified engineers from
various disciplines developing products & solution to meet the need of
markets & provides value added services to our customers. Hence the next
step of the company will be to include following variety of products in the
portfolio of the company products:
-Diamond scope
-Luster view
-E scope
-Diamond counting system
-Auto sawing pad
-Polishing sensor

Company products:
EQS Bruiting Machine

Auto bruiting machine

Auto blocking machine

Roundist machine

Digital Maxicut machine

Auto Bruting Machine ZX 9100

Diamond Cutting Tools & Machines

Vision, Mission & Values

Vi
sion:
To provide latest technology & to be premier manufacturing company and to
acquire, provide and nurture the best to industry as well as establish brand
image in international market to achieve maximum customer satisfaction.

Mission:

Partnering with our customers in their relentless quest for growth in
productivity and profitability, by delivering technology solutions that achieve
measurable business gains. To bring to this endeavor a spirit of continuous
renewal reflected in the way we approach our people, process and
technology.
We focus on cost effectiveness along with speedy and flawless performance
while designing our machines, their output considerably; for almost two
decades, Kohinoor has spearheaded R&D-based innovation in diamond
industry, creating the ultimate cost-effective systems for every branch of
global diamond trade, adding accuracy and speed to your operation. Simple
to use, easy to maintain, its machines assure you exactly what you needaccurate, reliable, and fast results. Worldwide, Kohinoor has become
synonymous with reliability, stability and innovation in bruiting, cutting and
polishing systems for gemstone production. So if you can't compromise on
accuracy, speed and quality, we speak the same language –Kohinoor
Constantly enhancing its rich experience, Kohinoor invests substantially in
R&D, focusing on the research development of new features and capacities
that can be effortlessly added to existing Kohinoor systems. Most new
features and benefits can be upgraded in the field, on the customer's
premises.

Values:We aim to be the leader in manufacturing high quality machinery in the
world. We will differentiate ourselves from our competitors through our
efforts on quality, technology & support to satisfy customer's needs.

History & Growth
History
Manufacturers of diamond cutting machinery and diamond processing

tools that includes automatic roundist machinery, automatic bruiting
machinery, double spindle machinery, single spindle machinery, roundist
girdle wheel and auto cutting machinery.
Fact Sheet
Year of

: 2009

Establishment
Nature of Business

: Manufacturer, Exporter

Number of

: 51 to 200 People

Employees
Turnover

: Up to US$ 0.25 Million (or up to Rs. 1 Crore Approx.)

Change name of company:

M/s KOHINOOR TECHNO ENGINEERS LIMITED was incorporated on 27th
November 1991 as RADHESHYAM AGRO COLD STORAGE PRIVATE
LIMITED as a private limited Company engaged in Cold Storage Activities.
On 14th December 1993 the company Changed its constitution to a Limited
Company. The name was then changed to RADHESHYAM AGRO
INDUSTRIES LIMITED in the same year. On 5th October 1994 the name
was again changed to ASIAN DEVELOPMENT NETWORK LIMITED and the
company was also engaged in E‐Business and Software Solutions by this
time. Eventually on 19th May 2008 the company closed down its cold
storage activities and Shifted its focus to manufacturing of Diamond
Machineries and Trading of Cut and Polished Diamonds besides the
Software Solutions Services. On 16th October 2009 the company changed
its name to KOHINOOR TECHNO ENGINEERS LIMITED.The company was
listed in BSE on 30th April, 2001.

Awards & achievements
1. Fun India fast track 2009-2010 (Merit awards for their
contribution to adobe business from Mr. Brian mortas)
2.

Kohinoor

Techno

Machines

limited

got

participation

certificate from JCI- Diamond Trade fair-2009
3. Indian diamond institute gives life time membership award.

Organization Structure of Company:

Director

CEO

Financial

Production

Marketing

Human

manager

manager

manager

resource
manager

Deputy

Executive

Executive

executive

Senior

Staff

Staff

executive
Administration
Staff

Time office

office
Staff

Staff

PRODUCTION
DEPARTMENT

PRODUCTION MANAGEMENT:
“Production management refers to the application of principle to the
production function in factory or company or firms in other words
production management involves application of planning, organizing,
directing, and controlling to the production process.”

Duties of production management:-









Planning the geographical location of factory
Purchasing production equipment
Layout of equipment within the factory
Designing production process
Inventory management
Production planning
Quality control maintenance
Now see such duties which are the followed by the Kohinoor

Techno Engineers Limited

Organization Structure of Production Department

Manager
Mr. Baba Bhai

Blocking

EQS

Connig

R&D

department

department

department

departmen

Workers-4

Workers-7

Workers-7
Software
development

Nano
department

Universal 4in1

Electronic

department

department

Workers-7

Workers-10

Workers-5

Electronic
department

Production Planning:

In Kohinoor, normally production plan is prepared from the customer order
for the product of the company. Starting point of production planning is
store department. Store department supply various products of Kohinoor to
the

dealer.

From

the

information

of

store

department,

production

department

decides

about

manufacture

various

products

as

per

requirement and for this they prepare production plan.

In Kohinoor, production plan document include material, labour capacity,
training and also include a backup plan if thing go wrong like material or
labour does not match with the requirement. It is done by collaborative
effort between different department to effective bring all aspect of the
process together.

In Kohinoor, production planning is including planning of material
requirement, requirement of manpower, capacity of requirement etc.

How They Are Making Decision To Produce?

Marketing department demand 50 E Q S Machines

(Less)
Company has stock of polished diamond is 10 Machines
(Add)
Targeted closing stock will be 20
(=)
Need of production
(50 – 10 + 20 = 60)

Material Requirement Planning:

Material requirement planning is the first of the production planning in any
company. In Kohinoor, list of required quality of material is send to
warehouse manager who check the quantity of material available in stock
&prepare a list of material required to be purchased which is called
purchase plan and send this plan to purchase manager. Production
manager do next planning of manpower.

Manpower Planning

For achieving successful result of production planning, it is advisable to
make manpower planning in advance. In Kohinoor, first they decided how
much labour required producing desirable quantity. If there is shortage of
manpower, they hire casual or part time labour.

Capacity Requirement Planning

Capacity requirement planning is a technique to determine what personal
and equipment capacities are required to meet production objective. In
Kohinoor they make CRP, various operations and assigning to various
departments. If capacity is inadequate they adjust it by some addition
labour or over time.

Maintain Quality Standard

In Kohinoor, there is separate department called quality assurance
department which is check quality of raw material finished product and
semi finished articles on company standards. They try to improve quality
management system for better customer satisfaction and provide qualitative
machines to its customers.

Inventory Control

Since entire material requirement planning is done on the basis of
production plan, ultimately inventory level depends on accuracy of
production plan. In this industry, they use first in first out method for
inventory control.

Production Process:
Kohinoor Company is use various parts for manufacturing machineries like
shaft plate, bearing, computer, motor, electronic panel etc. first they prepare
general body of all machines. The process of preparing that parts as are
follows:

Body of Machines
Casting machining

Drill & Tapping

Color

Assembly

Shaft Plate
Raw Material

Machining

Harding

Gridding

Coating

Bearing, Computer, Motor
Direct purchase from the market

Electronic Panel

Mother Board

Electronic mounting

Testing

Assembly

If raw material is continues provided so Kohinoor Company is produced 2
machineries in one day. Production is totally depending upon the customer
order. How many types of machinery are producing is depend upon how
many orders are receive from the customer. Because it is not possible to
produce the machineries in advance and kept too much machines in to store
Department if they are not receive that level of order so company face the
loss.

Material Requirement Planning:

Material requirement planning is a computer based technique that converts
master production schedule in to detail schedule for requirement of raw
material, components that used in an item.

In the modern world, enterprise resource planning system is being used
extensively and it also takes care of whole organization instead of one unit of
organization. Basically material requirement planning consists of computer
programmed, which is run periodically such as weekly, monthly or quarterly
to incorporate the latest schedule of production requirement.

In Kohinoor, for preparation of material requirement planning three inputs
are used which are as follows:

 Master Production Schedule

MPS is based on forecast of various items. MRP accepts practically possible
master production schedule quantities of various items as quantities of item
to be manufactured. It further calculates what the requirement of various
raw material and inputs is.

 Inventory Status File
All the quantities of various item in MPS is never considered for MRP
process it is always considered after deducting present inventory levels of

various item and pending purchase order for this purpose, it is necessary to
take data from inventory status file of various items.

 Bills Of Material

It is database, which specifies relationship between raw material and
outputs. This document is necessary to convert production quantities of
finished products into requirements of various raw materials, parts,
components and sub assemblies.

Bills of material shows each of the materials, parts or sub assemblies by
unique part number, which facilitate processing by in to price and also
contents the quality of parts or material require per unit of end product.
Bills of material have a series of level each of represents a stage in the
manufacture of the end product.

Level 1: Representing final assembly or end product.
Level 2: Show parts and sub assemblies when end product is the first
desmentated.
Level 3: Result of desmentating the sub assemblies of level 1 in form of part
and father sub assemblies.

Plant layout

“Plant layout refers to the arrangement of machinery, equipment and other
industrial facility for achieving quickage and smooth production at least
cost”

The efficiency of production flow depends largely on how were the employee,
facility are located in a plant. Plant lay out is physical arrange of main
production department technical utility, offices & location of various
machine within different department.

Plant lay out designed is the process of designed plant lay out while new
manufacturing facility is been created. Thus plant lay out designed is
strategic function. This activity starts at ten-plant location selected & land
is purchased.

Factor Affecting To the Plant Layout:

Location of Company:
Most of the big Diamond Manufacturing companies are near to The
Kohinoor Company. This place is the center for selling and export diamond
cutting & policing machinery. The company is located in central place of
Surat city so it is easy transportation of machinery & also easy to get
employees.

How Much To Manufacturing:

The company’s decision will affect number of people who will be working in
production area, size & technical utilities etc. this will have a direct impact
on Layout

Government Rules & Regulation:
There are various rules & regulation of government which concerned with
production department, for example the rules related to air & water
pollution. Because of this reason, all plant layouts have to provide some
space for pollution control equipment & plant. Various rules related to
construction of public building also have directly affected on layout of
company because of this. Rules we see very high ceiling in government
office.

Manufacturing Technology:
Manufacturing technology is directly affect plant lay out. Each machine has
special designed &also different size. This decides how much area is
requiring

for

manufacturing

various

machines

with

change

in

manufacturing technology. As per selection of technology number of people
required for manufacturing machines may change

Cost Land:
Kohinoor Techno Engineers ltd is located in urban area so it cost of land is
high.

Provision for Material Handling:

In Kohinoor Company within production department, there will be
requirement to shift material from one department to another department
so the companies’ plant layout design must accommodate movement of such
equipment

Plant Layout of Kohinoor:
Paint department
Terrace
Wash
room
Nano /blocking
Department

second floor

Electronic Department

Conning Department

Electronic Department
EQS

R &D
DEPT.

Department

Wash

Com.programme Dept.

room

First floor
Administration dept
A/c Department

Wash

CEO

room

office

Roundest
Dept.
Complain

Service

dept.

Dept.

MD
office

Ground

Display

floor

room

Lunch room

S

SE

E

CU

C
U
ENT
RI
ER

RI
TY
PARKING

EXI
T

Store department

Underground Floor

T.L & motor
department

Types and Classification of Material Handling

Material handling means control on movement of material through storage
and production and to the movement of the finished production. Material

handling is concerned with the internal movement and material within a
business unit. Material handling is concerned with internal transportation
of material. Such external transportation is covered by logistics.

 Material handling covers storage of material from internal transportation
of material.
 Material handling is essential because in every industry, production
cannot be done at single location. Different machines, different
departments are required.
Kohinoor used only solid raw material. So we can classify the material
handling equipment of Kohinoor in following basis.





Crates & boxes
Cup board
Hand over material
Trucks & racks

Inventory Control System

Inventory control is concerned with minimizing the total cost of inventory.
Kohinoor control its inventory as per ABC Analysis. According to this
approach, it gives different treatment for various classes of inventory on
basis of its monetary which is consumption value of various products.

As per this approach, Kohinoor gives selective treatment like, A class of item
is monitored by top management which is frequently reviewed for stock level,
price control & reduction in wastage, while B & C class of item are
monitored by store senior manager which are not reviewed so frequently.

Kohinoor’s main objectives of inventory control are:
 To maintain investment in inventory at the lowest level.
 To maximize the efficiency in production.
 To supply the product to its user as per their requirement at the
right time.

 ABC ANALYSIS

Kohinoor control its inventory as per ABC analysis. According to this
approach, it gives different treatment for various classes of inventory on the
basis of its monetary which is consumption value of various products. It is
popularly known as “Always Better Control”. Kohinoor Company use ABC
Analysis for classification of their inventory on basis of its monitory value.
This monitory value is consumption value of various products. In Kohinoor
company different inventory use in different machines so its analysis is
different for various machines.

As per this approach Kohinoor give selective treatment like A class of items
are monitored by top management which is frequently reviewed for stock
level, price control & reduction in wastage. While B & C of items are
monitored by store senior manager which are not reviewed so frequently.

A CLASS

It includes those items which are important and of high value but forms
only a small proportion of total quantity of inventory. In Kohinoor, there are
12 items which are comes in class A and they represents as much as
70.10% of inventories. Strict control over receipt, storage and issue should
be exercised over these items such as Main shaft big, Die flange M.S.,
Plunget set, Block C.I., etc.

B CLASS

It Items included in class B are not as important as those in class A, but are
important enough for its proper records to be maintained. They constitute

15 items of total number of items, but represent 20.78% of total value of
inventory of Kohinoor. These items are Hand pully C.I., Piston small C.I.,
Distance pice 25mm, Capling all, etc.

C CLASS

The remaining items must be placed in class C they are not so important
form the view point of maintaining control over the receipt and consumption
such items constitute 60% of the total number of items but they represent
9.12% of total value.

ABC analysis of Kohinoor

CLASS
A
B
C

N of items (in % of total Value of items (in % of
number of items)
total value of inventory)
10
70.10
25
20.78
65
9.12

%
80.00%
70.00%
60.00%
50.00%
40.00%
30.00%
20.00%
10.00%
0.00%

%

A

B
CLASS

C

VED ANALYSIS:
Kohinoor also used VED analysis method which generally used in
controlling the spare part of inventory which require for maintenance in
production process.

V- Vital item
E –Essential item
D - Desirable item

 Vital item

Vital item are those entire item without which production will instantly
stop. In this industry vital item is Camera Slide Aluminum, Pulnget set,
Hand pully C.L. Without it production will instantly stop.

 Essential item
For these company essential items like computer, Brass Patti etc. is those
items which is necessary to run smooth and speedy production with low
cost and time.

 Desirable item
The items like oil, grease, etc. are comes under desirable items

Inventory Valuation Method

Materials are issued to the different jobs, works, and orders from the ‘store’.
The cost of finished product largely depends upon the price changed for
raw-materials issued to the jobs. Various methods are used for inventory
valuation, which will solute with industry condition. The methods of
inventory valuation are as follow:







FIFO method (first in first out)
LIFO method (last in first out)
HIFO method (highest in first out)
Average cost method
Market price method

 Standard cost method
 Base stock method

Kohinoor used to follow FIFO (First in first out) as inventory valuation
method. This inventory method in which the assets produced or acquired
first are sold used or disposed of first.

Different Record Kept In Store Department

In Kohinoor Techno-Machines LTD store room is situated on under ground.
Row material they record the issue and receipt of material, stock of material,
etc. with use of computer. They store the following items in the store room:
Spar parts, electronic motor, electronic parts

Records keep in store:
1. Material receipt register
2. Material issue register

Materials Receipt Procedure

Kohinoor receives its material by pursuing given process:
Kohinoor receives its raw material from supplier by using Challan, which is
one kind of document sent by supplier. Then after received quantity of

material is verified. If it is does not match with the given order. Suppliers
are informed by telephone or letter.

Then received material is send to inspection department. Once the
inspection is done, rejected quantities are sent to supplier & good quantities
are kept in store which is entered in computer.

Material Receipt Register

Date

Name of dealer

Challan no.

Item

Quantit

Remark

y

Material Issue Procedure

Kohinoor issue its material by pursuing given process:
 Material is issued as per requirement of production department.
 Then quantity of issued material is entered in computer.
 Finally closing stock of material is verified by making comparison
of computer quantity to physical quantity.

Material issue register

Date

Name of

material

department

issue form

Item

Quantity

Remark

no.

Purchase Procedure

Kohinoor follow given types of purchase procedure:
 Purchase process start when warehouse manager need recognizes
need for parts to machinery by determine general characteristics &
required quantity of item then he informs purchase manager by
telephone or making purchase request.
 After receiving purchase request. Purchase manager gives as order to
its regular supplier for required quantity & size of item.

Material Codification System

Kohinoor uses material codification system which can also be termed as
identification of materials. This deals with uniquely identification each item
in inventory.

It gives a unique number to a particular item in the inventory. For instance
30203 mean a bearing in inventory of a certain shape and of certain
dimension of course, each of these number or groups of number conveys

some unique information. In each group the relevant details are sequentially
numbered.

Workers of Kohinoor gets benefitted in requisitioning items or the operation
department in placing of order by the purchase department in receiving and
expediting the items on receipt from the supplier in having a unique record
of each of the items in stores and work in process or in warehouse.

Kohinoor’s first step towards a good materials management system is
unique identification of materials. Whether they are raw materials, work-inprocess or finished goods without it confusion might prevail in the
operational department. Moreover for a good quality control system a unique
identification is a pre-requisite. There are many other advantages such as
variety reduction & standardization etc.

Maintenance Planning System

Kohinoor follow preventive maintenance system for equipment. Preventive
maintenance is a schedule of planned maintenance action aimed at the
prevention of breakdown and failures.
The primary goal of preventive maintenance for Kohinoor is to prevent the
failure of equipment before it actually occurs. It is designed to preserve and
enhance equipment reliability by replacing worn components before they
actually fail. Preventive maintenance activities include equipment checks,
partial or complete overhauls at specified periods, oil changes, lubrication
and so on.

In addition workers can records equipment deterioration so they know to
replace or repair worm parts before they cause system failure recent
technological advances in tool for even more accurate & effective equipment
maintenance the ideal preventive maintenance program would prevent all
equipment failure before it occurs.

Preventive maintenance helps Kohinoor to improve it system reliability to
save time & money & it improve performance of workers

Quality Control

Quality is measure of characteristic of a product or service which impart it
functional or aesthetic value so as to satisfy the needs of and users for a
given price paid by them.

Objective Of Quality Control
Kohinoor’s main objective is to produce cost effective quality machines. The
other objectives are as follow:
 To give qualitative product to customers.
 To reduce wastage.

 To develop quality consciousness.
 To assess the quality.

Quality control guidelines
Kohinoor follow given quality control guideline as per ISO 9000-2000:




To apply a set of procedures that covers all key processes in business,
Monitoring processes to ensure they are effective,
To keep adequate records,
Checking output for defects with appropriate and corrective action

where necessary,
 Regularly reviewing processes and the quality system itself for
effectiveness and
 Facilitating continual improvement.

Quality Control Policy

We are committed to develop manufacture & supply the diamond processing
machineries in time & as per the customer’s requirement, abiding by the
statutory and regulatory rules, we shall to our customer promptly to their

satisfaction we shall achieve this performance by increasing skill &
competence of employees through implementing and monitoring of quality
management system effectively aiming, to continual improvement.

Quality Control Parameters

Kohinoor checks following parameters when machine is in progress:






Center of spindle
Travelling at slide
Higher matter
Timer setting
Camera setting

While it checks following parameters, when machine gets completed










LCD display
Main blocking PCB
Main controller IC
Stopper matter
Grinding & spindle matter
Computer software testing
Back light
Camera PCB
Sensor test

MARKETING
MANAGEMENT

Market:

“Market was physical place where buyers and seller gathered to buy and
sell goods. It is a collection of buyers & sellers who transact over a
particular product or product class.”

Marketing:

“Marketing is an organizational function and a set of processes for
crating, communication, and delivering value to customer and for
managing customer relationship in ways that benefit the organization
and its stakeholders”

“Marketing is the process of discovering and translating consumer needs
and wants into product and service specifications, creating demand for
these products and services and then in turn expanding this demand.”

Detailed
Marketing

Structure of
Management

Marketing Manager
Mr. Rajiv Bhatt

Sales executive

Sales executive

Mr.Rabindra Mishra

Mr.Virendra Mishra

Sales volume

80%
60%

level of
competition

40%
20%
0%

1

2

Types Of Product
Kohinoor provides following products to their clients: Auto polishing machine
 Barrel bruiting machines
 Laser machines
 Sawing /bruiting/coning
 Polished diamond analyzer
 Rough dia scanner
 Kohinoor dia maker
 Manual polishing mill
 Fancy bruiting system
 Coning machines
 Single sidle
 Consultancy services

Unique Feature of Products
EQS Bruiting Machine

EQS Bruting machine is totally computerized
(C N C) & fully automatic machine for
bruiting

the

machine

with

diamond.
mutual

Fully

automatic

combination

of

mechanical, electronics, computer, chemical
& metallurgy profession of engineering which
introduce

EQ

S.

European

technology,

Russian design, but purely Indian with 2
Year warranty.

Dimension(LxBxH)
Weight
Operating Temp.
Consumption
Power Supply

600x685x640 mm
105 Kg.
min 5 oC -max 33 oC
0.4HP max
230 VAC, 50 Hz

Technical Specification

Feature:
 Perfect roundness of diamond.
 Straight girdle.
 The final diameter of the stone can be obtained with perfect roundness.
 No risk of beard.
 No outbreak of facets due to re-cutting.

 Avoid damage of the stone while processing.
 Easy to learn and operate.

Table master

Table master is suitable for making Table or
Block the rough diamond according to laser
marking. Its solid rigid design gives you long
lasting performance

Technical Specification
735x735x920 mm

Dimension (LxBxH)
Weight
Operating Temp.
Power Supply

275 kg
min 5oC to max 40oC
440VAC/50hz 3 phase
230 VAC/50hz 1 phase

Feature:
 Machine is suitable for making Table or Block the rough diamond
according to laser marking.

 Easy to learn & operate.
 Guarantee a quick return on your investment.
 Increase scaife life & avoids the damage.
 Suitable for table blocking for every cut.
 Reduced production cost as one operator can operate two mills.
 It’s outstanding double System of sensing and micron setting which
gives
highest
accuracy
level
ever
seen
before.
Its solid rigid design gives you long lasting performance.

Auto Blocking Machine

of

Auto blocking machine is suitable for blocking
on Top/Bottom of 4, 8 or 16 main facets of
diamond. Facet sequence selection mode
(FSSM), which gives you, accuracy on culet
center balancing of diamond, manually
micro selection mode for extra blocking on
natural, Totally Auto blocking machine is suitable
for blocking on Top/Bottom of 4, 8 or 16 main facets
of diamond. Facet sequence selection mode (FSSM),
which gives you, accuracy on culet center balancing
diamond, manually micro selection mode for
extra blocking on natural.

Feature:
 Machine is suitable for blocking on Top/Bottom of 4, 8 or 16 main
facets of diamond.
 Easy to learn and operate, guarantee a quick return on your
investment.

 Increase scaife life & avoids the damage.
 Its outstanding grain seeking Digital Technology with timing gives
highest production & quality as compare to ordinary machines.
 Its production capability is up to 125 to 175 diamonds approx. 80
carats per day.
 Reduced cost: One operator can control four mills; even in
experienced workers can achieves higher productivity with nearly no
training period.
 Suitable for all types of stones, Full range from 0.10ct to 25ct,
machine is designed to take low power consumption standbyuninterrupted power supply (UPS) at the time of power failure.
 Automatic weight control, according to respective rough & size of the
diamond, fully operating identification is displayed on panel, also
gives language selection facility ENGLISH-HINDI-GUJARATI.

Auto Bruiting Machines

Kohinoor

introduces

the

ROYAL

747

series, a new generation of intelligent
bruiting system, and its futuristic design,
more compact, sturdier with outstanding
performance in accuracy.

Technical Specification
Dimension(LxBxH)
Weight
Operating Temp.
Power
Power Supply

425x455x240 mm
39 kg
min 5oC -max 33oC
0.5HP max
230 VAC/50 hz

Feature:


Totally computerized machine with the combination of micro-processor
and micro-controller.



The only machine which is able to control two diamonds at a time with
the accuracy of ±0.005mm in the world.



Diamond measuring technique is more efficient as compare to ordinary
machine.



The only machine’s software that supports the operational system of
Micro-soft XP, Professionals 2000, window XX series.



Compact in size with rigid mechanical high repeatable accuracy and
smooth linear guide ways is used to maintain. High repeatable accuracy
and smooth linear motion, which saves weak diamond from breaking.



Machine is suitable for 0.05ct to 50ct size of diamond without any
expensive change.



Fighter speed control up to 100 feed options.

Roundist Machines

XD500-Heavy Roundist Machine

Feature:
 Perfect Roundness
 Bright Thread
 Powerful with in built vacuum
system
 Smooth production

Technical Specification:
Dimension(LxBxH)
Weight
Operating Temp.
Power Consumption
Power Supply

475x340x465 mm
32 kg
min 5 oC -max 45 oC
0.2HP (max)
230 VAC/50 hz

XD 500-Mini Roundist Machine

Feature:


Perfect Roundness



Bright Thread



Powerful with in built vacuum system



Smooth Operation

Dimension(LxBxH)
Weight
Operating Temp.
Power Consumption
Power Supply

290x335x295 mm
24 kg
min -5oC to max 45oC
0.2HP (max)
230 VAC/50 hz

Technical Specification

Double Spindle Machine
Feature:


Perfect Cut and Wit thread



Larger Production (400
Diamonds /day)



Optional Power : Single Phase
or three phase

Technical Specification
Dimension(LxBxH)
Weight
Operating Temp.
Power Consumption
Power Supply

655x335x255 mm
54 kg
min -5oC to max 45oC
0.2HP (max)
230VAC/50hz 1 phase or
440VAC 50hz 3 phase

XD-100 Compact Roundist Machine

Feature:
 Count can be set according to diamond
micron and machine
Stops automatically as per diamond
count set.
 One operator can operate more than
one machine, so larger
production

Technical Specification:
Dimension(LxBxH)
Weight
Operating Temp.
Power Consumption
Power Supply

Simple Maxi cut Machine

590x430x330 mm
53 kg
min -5oC to max 35oC
0.25 HP max
230 VAC 50hz

Feature:


Better Roundness and Easy Operation



Operate from Single Phase Power
(203V / 50 Hz, 0.2KW)

Centering Setup Machines

Feature:


Perfect Cut and Wit thread



Larger Production (400 Diamonds /day)



Optional Power : Single Phase or three phase

Technical Specification
Dimension(LxBxH)
Weight
Operating Temp.
Power Consumption
Power Supply

200x500x640 mm
20 kg
min -5oC to max 35oC
0.1 HP max
230 VAC 50hz

About competition

Detail of Competitor:

 Sahajanand Laser technology PVT. LTD
 Sarin technology, Israel
 Bartonville, Belgium
 Lexus, softton

 Adri Belgium
 Dialit
 OGI(Israel)
 Winner, Surat
Level of competition:
Generally Level of competition in market is 10%.every year increase with
by10% it is after 20 years of establishment it is facing 70% competition.

70%
60%
50%
40%

level of competition

30%
20%
10%
0%

1

2

Comparison of 4p’s of Kohinoor with competitors:-

promotion

product

4p's of
marketing

place

price

Product:
Kohinoor manufacturing same product as Lexus manufactures but
Kohinoor provides best quality product & it updates its technology from time
to time to achieve better customer satisfaction as compared to its competitor.

It has all the latest technologies in its premises with all the latest system &
software. it has one if the best designing team who work hard to bring one of
the best diamond machinery in the world than lexus.they push product
design further to innovate at every small detail, making it simpler and easier
to use and at the same time simple & maximum warranty time to its
customers than its competitors.

Price:

Kohinoor innovates best diamond machineries at minimum cost so it is able
to sale its product at lower price as compared to its competitors it gives
same credit period as Lexus gives.
 Prime dia- 1, 31,000
 EQS fancy bruiting machine – 2, 75,000
 EQS machine (final) - 2, 75,000
 EQS table machine - 2, 75,000
 Conning machine – 40,000
 3 in 1 machine - m1 = 1, 75, 000 m2= 3, 00,000
 4 in 1 machine - 4, 00,000
 Half bruiting machine – 1, 51,000
 Auto Roundist Machine – m1=12,000 m2= 12,000 m3= 14,000
 Auto blocking Machine – 1, 31,000
 Auto table ganti – 1, 31,000 &
 Setup station – 1,25,000

Place:
In national& international market Kohinoor sales its machines directly to
industrial customer by using railway & airways respectively while for
international markets, Lexus make use to industrial distribution to sale its
products to its customers.

Promotion:
Kohinoor

make

use of

E-mail,

web, tale-calling and

references

&

advertisement through television or poster as promotional force, so, it is able
to attract customers, while Lexus is the first & foremost company in this
field. So it uses its brand name as main promotional tool along with others.

Distribution network
Kohinoor company sales their machinery basically in two market, Indian
market and foreign market. Distribution network are as follow

Mgt. plant
Surat

Indian market

Mumba

Australia

Bhavnagar

America

Foreign market

Palanpur

Ahmadabad

Israel

Belgium

South
Africa

australia
america

2% 2% 2% 4%
5%
5%
70%

10%

balgium
israil
south africa
bombay
rest of gujarat
surat

As shown in above diagram, one can conclude that Surat is the main
distribution network area of Kohinoor as it is the Diamond city so 70% of its
machineries are sold in Surat, while in rest of Gujarat. It sales 10% in
international markets like South Africa. Kohinoor is able to attract 5% of its
customers for purchasing its products. In Israel, selling of machineries of
doubled as compared to Belgium, America and Australia

How customer order are processed:
1. Sales procedures start when Kohinoor gets any kind of inquiry letter
from its customer. As per inquiry quotation is sent to customer

2. If customer gets satisfy with given quotation then they will place an order
as & when customer order is received, Kohinoor produces machines within
specified time period
3. Finally, produced machines are sent to customer

Sales Procedure
sales on
approval

follow up

Delivery

ordeer
confined

sales
presentation

1. Sales on approval:
At this stage they are finding qualified customers to selling the machineries.

2. Order confined:
After that Kohinoor contacts its customers by phone or mail it makes an
appointment giving customer to choose appointment times and meeting
location.

3. Delivery schedule sales presentation:
During sales appointment, Kohinoor sales representatives make use of their
knowledge about their machines & its feature & also sales brochures,
demonstration material & other supplementary information available to
them to present it before customers; they are quite able to handle an
objection which arises during sales process It customers gets impressed by
sales presentations than they will make a decision to buy.

4. Delivery (dispatch the order)

5. Follow up & services after the sales:
After selling its product, Kohinoor makes follow up & provides after sale
services to its customer to build better relationship with them & to maintain
good reputation in markets

List of Client













Sheetal manufactures company
K.Girdharlal
Mahendra Brothers
Dharmesh Diamond
C. mahendra exports
Ram Krishna exports
Hare Krishna exports
Bhavani gems
Jwlax impacts
Star diamond
CGK enterprise









S.kumar & company
G.naveen
Walam Diamond
Dhami Brothers
Pramukh Diamond
Sangvi exports
Radha Krishna gems

Pricing policy

From the company point of view an efficient price is a price that is very
close to the maximum that customers are prepared to pay. In economic
terms, it is a price that shifts most of the consumer surplus to the producer.
A good pricing strategy would be the one which could balance between the
price floor & the price ceiling the price beyond which the organization
experiences a no diamond situation.
1. Price must achieve the financial goals of the company
2. It must fit in the realities of the market place
3. It must support a products positioning and be consistent with the other
variables in the marketing mix.
4. Price must be set in accordance with the type of distribution channel
used, the type of promotion used and the quality of the product

5. Price will usually need to be relatively high if manufacturing is expensive
and the product is supported by extensive advertising and promotional
campaign
6. A low price can be a viable substitute for effective promotions, or an
energetic selling effort by distribution.

Promotional & Advertising Policy
Kohinoor

mainly

uses

E-mail,

web,

tale-calling,

&

references

&

advertisement through television or poster as promotion forces. It follows
given promotional policy.
1. Kohinoor has a policy to devote 3% of its sales turnover for promotion.
2. Advertising must provide an introduction to the company & its product &
if the product has a new feature, advertisement can explain them.
3. Advertising must be telling customer how to use machines.
4. Advertising must not contain fraudulent unreliable or unpleasant
material, including material that misrepresent, ridicules or attacks an
individual or group on the basis of age, national, origin, race, &religion
5. No advertising shall be permitted which may injure the good name or
reputation of the company.
6. Advertising policy must be revised periodically

Forecasting & sales plan preparation

Kohinoor determine the trend prevailing in machinery industry by talking to
trade supplier about what is selling well and what is not. It checks out
recent copies of its industry’s trade magazines.

Then, it establish the approximate size and location of its planned trading
area like where it intends to distribute or promote its product by using
available statistics or local sources to determine the general characteristics
of this area.

Then after, it prepares a list and profile of competitors selling in its trading
area by visiting the location the where their product is offered

It uses its research to estimate its sales on monthly basis, by using its
research; it makes an educated guess at its market share & expresses this
as the number of customer it can hope to attract.

Taxes

Outside country Export-0%

Within country: CST-4%

Additional tax-1%

FINANCIAL MANAGEMENT:
“Financial management is way of managers decision that result in the
acquisition in financing of long & short term credit for the firm has as such
deal with situation that required selection of specific assets, liability as well
as problem of size & growth of an enterprise the analysis of this decision are
based on expected flows & outflows of funds and their effects on managerial
objectives”

Organizational structure of financial management

Financial Manager
Mr. Tarun Jain

Financial Executive

Junior Financial
Assistant

Data Entry
Operator

Internal Audit Policies

They conducted their audit in accordance with the auditing standards
generally accepted in India. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principle used
and significant estimates made by management as well as evaluating the
overall financial statement presentation. They believe that their audit
provides a reasonable basis for their opinion.

 They have obtained all the information and explanation, which to the
best of their knowledge and belief were necessary for the purpose of their
audit
 In their opinion, the company has kept proper books of account as
required by law. So far, as appear from their examination of the books.
 The balance sheet and profit & loss a/c dealt with by this report are in
agreement with the books of accounts.
 In their opinion, the balance sheet and profit & loss a/c dealt with by
this report comply with the accounting standards referred to in sub
section (3c) of section 211 of the company act, 1956.
 On this basis of written representation received from the directors, as on
31st march 2008, and taken on record by the board of director they
report that none of the directors is disqualified as on 31 st march 2008
from being appointed as a director in term of clause (9) of sub section (1)
of section 274 of company act, 1956.
 Subject to observation in paragraph above, in their opinion and to the
best of their information and according to the explanation and given to
them the said accounts given the information required by companies act,
1956 in the manner so required & given a true and fair view in
conformity with the accounting principles generally accepted in India.

a. In the case of the balance sheet, of the state of affairs of the company as
at 31st march 2008.
b. In the case of the profit & loss a/c of the profit for the year ended on that
date.
As the company does not covered in condition of the companies order 2003
issued by the company law board in terms of section 227 (4a) of the
companies act 1956, under caption order are not applicable.

Accounting Policies
A. Methods of accounting:
The company is maintaining its books of accounts on accrual basis of
accounting system.
B. Inventories:
Stock in trade is valued at cost or market value whichever less is.
C. Fixed assets:
Fixed assets are valued at cost.
D. Depreciation:
Depreciation on books has been providing on fixed assets during the
year as per companies act written down value method.
E. General:
Accounting policies are not specifically referred to be consistent with
generally accepted accounting practices. For VAT accounting, company
followed exclusive method of accounting.
 No provision for gratuity has been made in books of account in account
of gratuity as no employer has put in qualifying period as services for
the establishment of benefits.
 Balance under the main heads, current liabilities, sundry debtors and
loans and advances are subject to confirmation.

Inventory Valuation Method

This method assumes that the first unit making its way into inventory is the
first sold. For example, let’s say that a company produces 200 slides of
machine on Monday at a cost of $ 1 each, and 200 more on Tuesday at
$1.25 each. FIFO states that if the company sold 200 slides on Wednesday,
he costs are $ 1 per slide (recorded on the income statement) because that
was the cost of each of the first slides in inventory. The $1.25 slides would
be allocated to ending inventory (appears on the balance sheet).

FIFO gives us a better indication of the value of ending inventory (on the
balance sheet), but it also increases net income because inventory that
might be several years old is used to value the cost of goods sold. Increasing
the net income sounds good, buy it also has the potential to increase the
amount of taxes that a company must pay. The first units in the oldest ones
are sold first; therefore we leave the newest units for ending inventory.

For taxation purposes, FIFO assumes that are remaining in inventory are
matched to the assets that are most recently purchased on produced.
Because of this assumption, there is number of tax minimization strategies
associated with using the FIFO inventory valuation method.
FIFO assumes that items purchased first are sold first.






Cost of old purchase is recorded as cost of goods sold.
Cost of recent purchases is recorded as cost of ending inventory.
When price goes up, old price is lower than recent price.
Cost of goods sold is lower for FIFO.
Cost of ending inventory is higher for FIFO.

Costing Methods

The methods to be used for the ascertainment of cost of production differ
from industry. It primarily depends upon the manufacturing and also on
the methods of measuring the departmental and finished products.

There are various methods of costing are as follows:
Batch costing
Multiple operation costing
Service costing
Job costing
 Process costing





Kohinoor use batch costing and multiple operation costing methods.
Kohinoor use these methods because Kohinoor produce its product in batch
and multiple operations are proceeding at a time in Kohinoor.

Working Capital Management
Working capital management include the management of





Working capital finance
Management of receivable
Management of inventory
Management of cash

Working capital finance
Kohinoor uses the sources for working capital are as follow:

 Long Term Sources Of Working Capital



Equity share
Long term loans

 Short Term Sources Of Working Capital




Short term loans
Bank overdraft
Trade credit

Management of receivables
Receivable are assets account representing amount owed to the firm as a
result of sale of goods in the ordinary courses of business

Management of receivables is depending upon the credit policy of company.
Kohinoor has the credit policy as under





Kohinoor
Kohinoor
Kohinoor
Kohinoor

has too strict or too liberal credit policy
give goods only on one month credit period.
timely collect and get its receivables
give cash discount in bulky purchase

Management of inventory

Inventory control means the decision of the firm as to the extent to which
inventories can be economically stored
Kohinoor main objectives of inventory control are:
 To maximize the efficiency in production

 To maintain investment in inventory at the lowest level
 To supply the products to its user as per their requirement at right
time
 To minimize holding, replacement and shortage cost of inventory at
minimum level.

Management of cash

Cash is the medium of exchange which allows management to carry on the
various activities of the business on day to day basis.
Cash management involves the following four factors:
 Ascertainment of the minimum cash balance and controlling the level of
cash
 Controlling cash inflows
 Controlling cash outflows
 Optimum investment of surplus cash

Depreciation

Depreciation is the process of allocating the acquisition cost of the tangible
assets less salvage value. If any, in a systematic and a rational manner, over
the estimated useful life of the asset. Kohinoor use only one method for
calculate depreciation is written Down value method.

Depreciation on all assets is provided on written value method. Depreciation
in addition from fixed assets is provided on production data basis from/up
to the date of such addition/Deletion as the case may be .Depreciation in
addition assets due to exchange variation, forward over premium changes
etc. is provided over the remaining useful life the assets.

Ratio Analysis (2010-2011)
1. Current Ratio:

=

Current Asset

Current Liabilities

Year
2008-09
2009-10
2010-11

Current Assets

Current

CR

8746928.74
17564756.85
26086964.76

liability
5455867.9
7561608.29
4501191.61

1.6
2.34
5.80

CR
6
5
4

CR

3
2
1
0
2008-09

2009-10

2010-11

It shows favorable situation for the firm as it is able to pay off its creditors in
time due to larger proportion of current assets.

2. Gross profit Ratio: =

Gross Profit
Net Sales

Gross Profit
2009-10

2319067

2010-11

7486813

Net Sales
13234980
82682534

GP
0.17
0.09

0.18
0.16
0.14
0.12
0.1
0.08
0.06
0.04
0.02
0
1

2

Gross profit margin of the firm is quit satisfaction as it is able to keep all its
direct expenses as low as possible.

Human Resource Planning:

“Human resource planning is the process of determining & assuming that
the organization will have an adequate number of qualified persons,

available at the proper times, performing jobs which meet the needs of the
enterprise &which provides satisfaction for the individuals involved.”

Human resource planning has been defining as, “The process by which
management determines how an organization should move from its current
manpower

position

to

its

desirable

manpower

position.

Though

it

management strive to have the right kind of people at the right place, at the
right time, doings things which result in both the organization and the
individual receiving, maximum long range profit.”

Organization Structure of Human Resource
Department

Administration Office

Executive

Staff

Time Office

Executive

Staff

Parts of HR Department:
1. Administration office
2. Time office

Administration Office:

In administration department responsibility of the manager as follow:
 They examine day to day activity of the employees.
 Recruitment & selection of employs.
 Training & development of employees
 To decide Compensation
 Performance appraisal
 Safety of employees
 Employee welfare activity
 They directing & motivating to employees for better performance.
 They give better working environment to the employees.
 They co-ordinate other department.

Time Office:

Time office is part of administration office:
 Check employees, sales person, purchasing materials entry& exit.
 Informs to other department.

Human Resource Planning
In Kohinoor, human resource planning is done in this way:

Kohinoor takes care of organizational objectives and policies while recruiting
employees. It’s also takes care of such questions like whether organization
should fill vacancies by internal promotion or hiring from outside, which
type of training and development program are needed, what policies are
needed to handle staff unit, how to understand employee job etc.

By analyzing this Kohinoor predict the requirements of employees in near
future. For that Kohinoor uses managerial judgment technique for its
human resource forecasting because it is very simple technique. Under this
method, managers of Kohinoor estimate the manpower requirements for the
respective departments. This departmental estimate are then aggregated
and approved by top management.

Kohinoor fills up this vacant position either by internal or external sources
of recruitment. It makes uses of promotion, former employees and employee
referrals as its internal sources of recruitment and advertisement as its
external sources of recruitment.

After estimating requirement and availability of personnel, managers take
action to balance them. This action may be promotion plan, transfer plan,
training *development plan, retention plan and retrenchment plan.

Once the action plans are implemented the human resource structure and
system get reviewed &regulated by human resource managers. If any
deficiency found in the firm immediately managers take corrective actions.

Recruitment
“Recruitment is the process of finding & attracting capable applicants for
employment. The process begins when new recruits are sought and when
their applications are submitted. The result is a pool of applicants from
which new employees are selected.”

In simple term, recruitment is understood as the process of searching for
ensuring applicants for various job positions which arises from time to time
in the organization.

Recruitment Process of Kohinoor

The recruitment process of Kohinoor starts with the personal planning of
general manager. When any sit becomes vacant or need of new employees
are felt, general manager first plan how many employees are required and
what qualification. General Manager decides which type of people is
required or which type of skill an employee need to have for recruitment.

The second step is searching for employees. General Manager decides from
where the employees need to be recruited and by which sources. The middle
level of employees and workers are mostly recruited within the city & areas
which are near to the company, for recruiting employees, general manager
uses both internal and external sources of recruitment. Manager uses
internal sources like,

 Promotion & transfer
 Former employees
 Employee referrals
Manager uses external sources like,
 Advertisement
 Employment exchange

The third step is screening of collected application. Applications received in
response to advertisement are screened and only eligible applicants are
called for interview. Here the recruitment process ends and the selection
process begins.

Sources of recruitment
Kohinoor use both internal and external sources which are as follow in
detail.

Internal source
Kohinoor uses internal source when they need more employees in short
period of time.

 Promotion & Transfer
Kohinoor uses promotion and transfer as internal sources of recruitment for
its vacant position. It uses promotion to higher position has as it has several
advantages like it encourages competent employees who are ambitious as
well as it is cheaper than going outside to recruit.

 Former Employees
Kohinoor uses this source of recruitment when some retired employees want
to come back to work on part time basis or they may recommend someone
who would be interested in working for the company.

 Employee Referrals
It is a good source of internal recruitment for Kohinoor as it can reach many
qualified people at very low cost. A manager concern with employee
recommendation is that the referred individuals are likely to be similar in
type of those who are already working for the company.

External sources
External sources far outnumber the internal methods.

 Advertisement
This is the common source of recruitment. All types of organizations are
using it for recruitment. Kohinoor uses advertisement as its external
sources of recruitment because of their wide reach. It gives ad in local and
state level news paper and also in business journals for its vacant position.
Kohinoor take care that advertisement must be effectively drafted before
publishing.

 Employment Exchange
Employment exchanges have been setup all over the country in difference to
in provision of the employment exchange act, 1959. The act requires the

entire industrial establishment to notify the vacancies before they are filled.
Kohinoor also notify its vacancies and take employees from employment
exchange.

Selection

“Selection is the process of offering jobs to one or more applicants that are
best candidate from the pull of application.”

Selection is the process by which candidates for employment are divided
into class those who will be offered employment and those who will not.
Thus, the selection process is a tool in the hand of the management to
differentiate the qualified and unqualified applicants by applying various
techniques such as interviews, tests.

 Process of selection
Selection process starts when recruitment process ends. The steps of
selection process are as follows.
 The first of selection process is receipt of application. Then after
application are screened out and only those are selected whose
application gets match with required specifications and attributes.

 The next step taken by Kohinoor is preliminary interview. In this only
general questions are asked and some information about company
and of jobs is given to applicants.

 The third step is selection test. Kohinoor takes written selection test in
which they ask question. This test is taken only for middle level. For
worker and top level manager, written test is not taken. They called for
an interview. Interview is taken by managers and applicants who
passed this interview are selected for job.

 The fourth step is final selection. Job is offered to selected applicants
by giving appointment later and information of company, job and his
co-workers.

Job Description

In Job Description we know that which work I will do? This point is very
important for process in selection and recruitment process. This point is
control for selection and recruitment process. Likewise all relevant detail of
term and condition of service should be made fully available to the
application for the job including comprehensive job description, so that
complete

awareness

is

there

leaving

no

room

for

ambiguity

or

misunderstanding or wrong assumption. He should fully know what he is
bargaining for.

The job description of Kohinoor is involving the following information. Job
descriptions of Kohinoor for top and middle level include same information
as follow:

Information about machines
Job title
Designation of job holder
Job summary
Job duties and responsibilities
Working condition
 Relationship and behavior.







Job Specification

In job specification we know that which work will do and how do you? This
point is also necessary for in selection and recruitment process. The job
specifications are length then it can be separately annexed by stating as per
or as stated in the annexed do his letter of appointment.

Job

specification

summaries

the

human

characteristics

needed

for

satisfactory job completion. It tries to describe the key qualification someone
needs to perform the job successfully. It spells out important attributes of a
person in terms of education, experience, skills, knowledge and abilities to
perform a particular job.

Kohinoor’s job specification for top level or manager is including the
following things:







Post graduation degree
2-3 years experience
Age
Intelligence and power of decision making
Various skills
Behavior and personal attributes.

Kohinoor’s job specification for middle level include all above matters with
some change in education and skills.

Performance Appraisal

“Performance appraisal may be defined as structured & formal system of
measuring & evaluating an employee’s job related behavior & outcomes to

discover how & why the employee presently performing on the job & how the
employee can perform more effectively.”

The latest mantra being followed by company is “get paid according to
what you contribute" – the focus of the Kohinoor company is turning to
performance management and specifically to individual performance.
Performance appraisal helps to rate the performance of the employees and
evaluate their contribution towards the company’s goals. Kohinoor does not
have performance appraisal system. So it should measure the performance
of its worker by this way:

The most difficult part of performance appraisal process is to accurately and
objectively

measure

the

employee

performance.

So,

measuring

the

performance should cover the evaluation of the main tasks completed and
the accomplishment of the employee in a given time period in comparison
with the goals set at the beginning of the period. Measuring also
encompasses the quality of the accomplishment, the compliance with the
desired standards, the cost involved and the time taken in achieving the
results.

For the purpose of measuring employee performance different input forms
can be used for taking the feedback from the various sources like superior,
peers, customers, vendors and the employee himself. All the perspectives
thus received should be combined in the appropriate manner and to get an
overall, complete view of the employee performance. Observation can also be
exercised by the superior to obtain information some suggestion and tips for
measuring employee performance are:
 Clearly define & develop the employee plan of action (performance)
with their role, duties & responsibility.

 Organization outcomes or the achievement of organizational goals
should also be kept in mind.
 Focus on accomplishment &result rather than on activities.
 Also take note of the skills, knowledge & competencies and behaviors
of the employees that help the organization to achieve its goals.
 Financial measures like the return on investment the market share,
the profit generated by the performance of the team should also be
considered.

For an organization to be an effective organization and to achieve its goal, it
is very important to monitor or measure its and its employee performance
on a regular basis. Effective monitoring and measuring also include
providing timely feedback and reviews to employees for their work and
performance according to the pre-determined goals and standards and
solving the problem faced. Timely recognition of the accomplishment also
motivates the employees and help to improve the performance.

Promotion
“Promotion refers to the upward movement of an employee from one job to
another higher one with greater responsibilities, higher status &better
salary.”

Promotion policy
 The promotion policy is prepared with the help of manger &other staff
members.
 Kohinoor provides equal promotional opportunities throughout the
company. It means that an

internal promotion to external recruitment

is same in all departments.
 Kohinoor gives promotion on the basis of both seniority and merits. So it
can take advantages of both.
 It provides suitable training & development opportunities so that
employees can prepare themselves for advancement.
 Promotion is not being forced on unveiling employees.
 Internal staff are given fair chance of promotion before higher level posts
are filled from outside.
 Policy also specifies that whenever a senior person is not selected for
promotion, he will be told the reason for his suppression.

Demotion

“Demotion implies the assignment of an employee to a job of lower rank
with lower pay. It refers to downward movement of an employee in the
organizational hierarchy with lower status and lower salary.”

Demotion policy
 The circumstance under which employees can be demoted should be
clearly specified and made known to employees.
 The superior who is authorized and responsible to initiate a demotion
should be named.

 The policy should be fair and impartial.
 The lines of demotion (from one job to another) should be specified.
 In case of demotion caused by adverse economic condition and
technological changes, the basis for demotion (merit and seniority)
should be specified.
 Clear cut norms for judging merit and seniority should be stated.
 A provision should be made for appeal and review of every demotion
 It should be an opened rather than a closed a policy.

Increment
“Increment implies movement of an employee to a higher pay scale without a
change of job.”

Increment policy
 Increment policy should be based on performance appraisal system.
 The situation under which employees can be given an increment
should be clearly specified and made know to the employees.
 A staff member will not be eligible for an accelerated increment if their
salary is already at the maximum of the salary range. In such cases
consideration should be given to the payment of a one-off bonus
payment in accordance with the bonus payment policy.
 Unless there is specific approval of the CEO, no staff member will
receive more than one accelerated increment in a year.

Employee Welfare

Employee welfare means, “Anything done for an intellection physical, moral
and economic betterment of the worker, whether by employees, by
government or by other agencies, order and above what is laid down by law,
or what is normally expected on the part of the contracted benefits for which
worker may have bargained.

Employee Welfare Activities












Security
Communication facilities
Medical facilities
Convenience and comfort during the work
Training and development programs
Economic services like bonus scheme
Notice boards, posters, information
Workshop and cleanliness lighting, elimination of dust, smoke, gases.
Provision for drinking water
Supply of necessary beverage, pills and tables, tea, coffee
Urinals and latrines, washbasin, waste disposal

 Distribution of work hours and provision for rest hours, meal times and
breaks.

 Safety instrument such as guards, caps, shoes, aid equipments
 Compensation for accident

Employment Records Keeping
Kohinoor kept following employment records for each employee:











Employment history
Employment no
Name
Address
Rate of salary
Attendance record and pay roll
Leaves and promotion
Shift sequence
Overtime series
Training records

Training and Development

“Training is a systematic and organized procedure by which non-managerial
personnel learn technical knowledge and skill for a definite purpose.
Training is a learning process which seeks a relatively permanent change in
behavior that occurs as a result of experience. Training courses are typically
designed for a short term, stated set purpose.”

In Kohinoor, training is given for the purpose of increasing productivity of
employees, quality of work, enhance and update knowledge and skill of
employees and many others. Kohinoor provides on job training in which

company and its member help and provide guidance to new employee. In
Kohinoor, training is given to the worker for the period of one month.

Development is a systematic and organized procedure by which managerial
personnel learn conceptual and theoretical knowledge for general purpose.
Development is the process of transition of an employee from a lower level of
ability, skills and knowledge to that of higher level.

 Induction Training

“Induction training is the process of receiving and welcoming an employee
when he first joins a company and giving him the basic information he
needs to settle down quickly and happily and start work.”

Kohinoor conduct a formal orientation program, in which it administers
smaller doses of information over a period of time rather than giving
everything on a single day. In this program new employee is introduce to the
people with whom he will work like colleagues, superiors and subordinates.
It also provide information like brief history and operations of the company,
product and service of the company, company’s organization structure,
location of the department and employee facilities policies and procedures of
the company, rules and regulations about daily work routines, terms and
condition of service including wages, working hours, overtime, holidays, etc.
benefits and service for employees and opportunities for training, promotion,
etc.

 Identification of training needs

Identification of training need is the most important step in designing a
training program. This includes entire organization, all operation and all
employees
In following cases Kohinoor gives training to employee
1. If there is any difficulty in achieving company’s goal
2. When technology gets changed.

Labour Relations & Trade Unions

Numbers of terms are used to denote word “labour relation”, such as
employee relation, industrial relation, labour management relation, etc.

According to dale yodder: “the industrial relation has been describe as a
relationship between management and employees or among employees and
this organizations bad characterize and grow out of employment.”

 Objective Of Industrial Relationship In Kohinoor






To
To
To
To
To

ensure and establish industrial democracy
protect and safe guard the interest if labour as well as management
increase production as well as productivity
promote and maintain industrial peace and harmony
improve living standard of workers by pay of fair wages, benefits and

provision of better living and work condition.

Trade union is a continuing a long term association of employees form to
protect promote and improve through collective action the social, economic
and political interest of workers.

Different trade union activities of this Kohinoor Techno-Machines Ltd are
given as follows:
 Productivity orientation programme
 Employee development programme
 Leadership development programme
 Communication for Bette union mgt. relationship
 Workers participation in mgt.
 Quality of worker life and productivity.

Wages & Salary Administration
Wages and salary administration of Kohinoor Techno-Machines Ltd are
following:

 All employees shall be paid on 1st week of every month. In case 1st is fall
of Sunday and or national holiday, the payment made one day after.
 The salary grade and structure for various categories are designed
according to the nature of duties, skills, and responsibility.
 The company may revise the same periodically after taking into
consideration the inflation rate in the market as well as the financial
condition and performance of the company. The company also follow
industry region pattern in finalizing the salaries.
 Kohinoor Techno-Machines Ltd company give wages on basis of time
wages system.

Incentives & Motivation System

Incentives are monetary benefit paid to workmen in recognition of their
outstanding performance. Kohinoor uses certain incentives to motive its
employee. Motivation means to force a person & involve him to complete the
works in right time & place with help by providing a basic need or special
need to worker. Especially Maslow’s theory need hierarchy used motive
employees such as basic need, recognize, and identify, self- realization.

Extra salaries are one such type of incentive, which is given to those
employees who show sincerity & regularity throughout in their work. Salary
is the main factor to motivate employee, safety need is also used to complete
the work.

Kohinoor gives incentives base on looking different factors of employees
such as, personality, nature, communication style, behavior, attitude etc.

Finding & Recommendation:

Finding:

Strengths:  They have chosen exact location for production.
 They manufacturing highly precision Diamond machine with foreign
collaboration.

 They have skillful staff in all departments.
 They have good reputation in the market.

Opportunities:
 They have capacity to give good competition to the rival company.
 They have scope to export in the world’s countries
 They have scope to using spare capacity & manufacturing the other
Diamond machinery.

 A marketing opportunity is an area of buyer need in which a company
can perform profitably.

Recommendation:

 Kohinoor Techno Engineers Limited is should much concentrate on
the store department. They have to store raw material in large scale
so that they are not meeting the problem of due delivery.
 In production department, less worker are involved than required. So
they should also take care of personnel management.

Conclusion:

Kohinoor Techno Engineers Limited is medium level company but it make its
position so strong in market by its work is very appreciable. The method of

recruitment, selection, training, development, and performance appraisal is
very good so everyone is satisfied with their duty & responsibility. Because
of that everyone are put more efforts to increase the profit of company. From
working method of this company I hope that Kohinoor techno machines ltd,
will growing more & more in future. And become not only one of the best
companies but only one best company for producing diamond machinery.

Bibliography:

Web link:
www.bseindia.com
www.kohinoormachineries.com

Book:
Pandey, I M. (Ninth edition-2005), Finance Management, India: vikas
publishing house pvt. Ltd.
Gupta,

C.B.

(thirteenth

thoroughly

released-2009),

human

resource

management, India: sultan chand & sons
Bhatt, Asvathapppa K. (first edition-1999, reprint-2009), production &
operational management, India: Himalaya publishing house.
Kotler, Philip (thirteenth edition-2009), marketing management, India:
Dorling Kindersley pvt. Ltd.