Professional Documents
Culture Documents
HISTORY:
The field of Aviation has been investigated for millennium but modern Aviation began with
the first powered flight on 16th December 1903 by the ‘WRIGHT BROTHERS’. From there
on, Aviation has grown to be one of the most existing, diverse and fast growing field of
today.
From the hot air balloons of 18th century to the first maned machine to the moon on
Apollo 11 to the new and exiting air craft being developed by the companies like Boeing,
Airbus and Bombardier, aero space has come a long way over a century.
Way back centuries, people started thinking of ways to fly in the Greek legend, Icarus and
his father Daedal ,built wings of features and wax and flew out with a person, Icarus flew
close to the Sun, the wax melted and he fell in the Sea and drowned .
The Aerospace and Defense industry was struggling to maintain profitability even
before Sep 2001, and fears of further terrorism, the conflicts in Afghanistan and Iraq, and a
weak economy combined to devastate the commercial aerospace industry over the
ensuring years.
On the other hand the wars in Afghanistan and Iraq bolstered the coffers of many defense
companies; belt tightening may be on the way.
The mother of all defense deals occurred in 2001 When Lockheed beat out Boeing
for the $200 Billion joint strike fighter contract, the largest defense contract ever. Spread
out almost 30 years, it may be the last deal for drones (as evidence in Afghanistan with the
use of general atomics predator) it expected to continue supplanting the need for the more
expensive manned aircraft and making it unnecessary to risk pilots lives in combat. In the
interim, the soaring costs in Iraq have also put a damper on some other major projects.
In 2004 the US army cancelled the planned $40 billion apache reconnaissance
Helicopter program; early in 2005 there was talk of scaling back the F/A-22 Raptor program
and of reducing the number of c-130J aircraft on order. A desire to be smart, fast, and
mobile has replaced the “more and bigger” doctrine of the cold war.
The top defence contractors are Lockheed Martin, Boeing Northrop Grumman,
and BAE systems, Raytheon, GENERAL Dynamics, and EADS.
On the commercial side, airlines- by far the biggest customers in the sector have lost
Billions since 2001.
By way of illustration, the top nine airlines lost$10 billion in 2002, almost $6 billion in 2003,
and about $4 billion in 2004 and both UAL (the parent of United Airlines) and US AIRWAYS
have filed for bankruptcy protection.
That market, which accounts for about 40% of aerospace and defence industry spending, is
divided in to our segments: -
In 2001, Boeing and Airbus, the world’s only large commercial aircraft market,
saw market plummet by 45% and 28% respectively.
Airbus recently surpassed Boeing in orders, but the formers 2002 deliver dropped
7% from 2001.Boeing meanwhile experienced a staggering 28% decline in deliveries from
2001.
AS a result of the drastic fall-off in business, Boeing cut about 30000 jobs or
roughly
30% of it commercial aircraft workforce in 2002.
The Maintenance repairs and overhauls (MRO), jet engine, and business and
regional aircraft markets have suffered right along with airlines and large commercial
aircraft makers.
The biggest regional aircraft makers are Bombardier, Gulf Stream and
Textron’s Cessna Unit., GE Aircraft Engines, Rolls Royse, and Pratt and Whitney are the
three largest jet engine makers. The space market is made up of two primary segments;
satellite and rocket manufacturing and launch services.
Even before the terrorist attacks, Boeing for example, was placing more
emphasis on
Market in its strategic thinking, and proposed a sweeping overhaul of the world’s air traffic
control system.
The main activity of the division is manufacturing of fighter aircrafts like Jaguar, Hawk,
Lakshya and landing gears for Dornier Aircraft and exports project like manufacture of
Boeing and airbus doors. It also manufactures materials for Indian Aerospace organization
such as ISRO, DRDO &NAL etc…
INTRODUCTION:
Aviation is one of the most significant technological influences of our times and empowers
the nation with strength.
It is a major tool for Economic development and has significant role in National security and
International RELATION. India has been fortunate to have started Aeronautics related
activities in 1940 with the establishment of HAL.
The aviation industry globally has many players. U.S Aircraft major players are:
2. Boeing (U.S),
5. Raytheon (U.S) are the top five dominated U.S aero space and defense majors.
The aviation industry comprises companies producing air craft, guided missiles, aircraft
engines, space vehicles, propulsion units and reduced parts. Aircraft overhaul, rebuilding
and parts are also included.
The aviation industry in India includes State owned entities and also number of Private
players. The ministry of civil aviation governs the aviation industry.
Hindustan Aeronautics, ranked 34th among the global league of top 50 aerospace
companies moving up since last years rank of 45.
In 2004 - 2005, the India share of the global aviation industry was US $36 Billion.
Aviation Industry in India is one of the fastest growing aviation industries in the world, with
the liberalization of the India aviation sector;
Aviation industry in India has undergone a rapid transformation. From being primarily a
government owned industry, the India Aviation Industry is now dominated by privately
owned full service air lines and low cost carriers.
2. Coast Guards.
Transport Aircraft and Helicopters have also been supplied to Airlines as well as State
Governments of India.
LEADING PLAYERS IN AERONAUTICS INDUSTRY:
Private airlines account for around 75% share of the domestic aviation market.
Hindustan Aeronautics Limited (HAL)
Hindustan Aeronautics Limited (HAL) came into existence on 1st October 1964. The
Company was formed by the merger of Hindustan Aircraft Limited with Aeronautics India
Limited and Aircraft Manufacturing Depot, Kanpur.
The Company traces its roots to the pioneering efforts of an industrialist with extraordinary
vision, the late Seth Walchand Hirachand, who set up Hindustan Aircraft Limited at
Bangalore in association with the erstwhile princely State of Mysore in December 1940,
with the object of establishing an aviation industry that can manufacture, assemble and
Overhaul aircraft under license.
The Government of India became a shareholder in March 1941 and took over the
Management in 1942.
For six decades, HAL has spread its wings to cover various activities in the areas of design
and development, Manufacture and Maintenance of advanced fighters, piston and jet
engines trainer’s commercial aircraft, helicopters and associated Aero engines, aircraft
systems, equipment and avionics
Today, HAL has 19 Production Units and 9 Research and Design Centers in 7 locations in
India. The Company has an impressive product track record - 12 types of aircraft
manufactured with in-house R & D and 14 types produced under license. HAL has
manufactured over 3550 aircraft, 3600 engines and overhauled
over 8150 aircraft and 27300 engines.
HAL has been successful in numerous R & D programs developed for both Defense and
Civil Aviation sectors. HAL has made substantial progress in its current projects:
Dhruv was delivered to the Indian Army, Navy, Air Force and the Coast Guard in
March 2002, in the very first year of its production, a unique achievement.
HAL has played a significant role for India's space programs by participating in the
manufacture of structures for Satellite Launch Vehicles like
Apart from these seven, other major diversification projects are Industrial Marine Gas
Turbine and Airport Services. Several Co-production and Joint Ventures with international
participation are under consideration.
HAL's supplies / services are mainly to Indian Defense Services, Coast Guards and Border
Security Forces. Transport Aircraft and Helicopters have also been supplied to Airlines as
well as State Governments of India. The Company has also achieved a foothold in export in
more than 30 countries, having demonstrated its quality and price competitiveness.
HAL is India’s only Aircraft manufacturer and is the foremost aviation company in the
southern region.
Today the companies activities range from the design, repair and Overall the
maintenance and field support to:
The Bangalore complex of HAL is the oldest and the largest group of aircraft and
engines factories of the company. The complex has its own airfield and comprises the
engine, aircraft, helicopter division, over all foundry and forge divisions.
The first helicopter type to be built at HAL Bangalore was the ALOUETTE ILL, later
names CHETAK.
From past 20 years, HAL’s Helicopter division produced 336 CHETAK‘s AND 246
CHEETAH helicopters and more than 200 Helicopters of both the types for the Indian Air
force , Navy, Army and coast Guards.
HISTORY & INCEPTION OF HAL:
During the 1980s, HAL's operations saw a rapid increase which resulted in the
development of new indigenous aircraft such as HAL Tejas and HAL Dhruv. HAL also
developed an advanced version of the MiG-21, known as MiG-21 Bison, which increased
its life-span by more than 20 years. HAL has also obtained several multi-million dollar
contracts from leading international aerospace firms such as Airbus, Boeing and Honeywell
to manufacture aircraft spare parts and engines.
On the 2 April 1942 the government announced that the company had been nationalised
when it had bought out the stakes of Walchand Hirachand and other promoters so that it
can act freely. The Mysore Kingdom refused to sell its stake in the company but yielded the
management control over to the Indian Government. The company has been making
steady growth in financial terms over the years. The company enjoys the highest credit
rating by CRISIL and ICRA for short term and long-term debt Programs.
Hindustan Aeronautics Limited (HAL) has achieved sales turnover of Rs.11, 457 crores
during the Financial Year 2009-10.
The profit of the Company (Profit before Tax) soared to Rs.2, 688 crores.
Rupees in Crores
Growth over
Particulars 2008-09 2009-10
Previous Year
Sales 10373 11457 10.45%
VOP 11811 13490 14.22%
Profit before tax 2335 2688 15.12%
Profit after tax 1740 1967 13.05%
Gross Block 2638 2934 11.22%
DEFENCE MINISTER
SECRETARIAT
CHAIRMAN
BOARD OF
DIRECTORS
MANAGING
MANAGING MANAGING
MANAGING DIRECTOR
DIRECTOR (BC) DIRECTOR
DIRECTOR (ACCESSORIES
(MIG
(DC) EXECUTIVE COMPLEX)
COMPLEX)
DIRECTOR
GENERAL MANAGER
ADDITIONAL
GENERAL MANAGER
DEPUTY GENERAL
MANAGER
SENIOR ASST.
SUPERVISOR
CHIEF MANAGER
ASST.
SENIOR MANAGER SUPERVISOR
MANAGER WORKERS
DEPUTY MANAGER
ENGINEER/OFFICER
ASST.ENGINEER
CHIEF SUPERVISOR
NATURE OF THE BUSINESS – HAL
• Design and development of fixed and rotary wing aircraft, avionics and
accessories.
• Design and exhibition of military as civil updates and modernization.
• Manufacture , maintenance , repair of :
VISION:
“To make HAL a dynamic, vibrant, value – based learning organization with human
resource exceptionally skilled, highly motivated to meet the current and future challenges,
this will be driven by core values of the company fully embedded in the culture of the
organization”.
OUR MISSION:
“To become a globally competitive aerospace industry while working as an instrument for
equipment and diversifying to related areas, managing the business on commercial lines in
QUALITY POLICY:
Aircraft division’s quality policy is “To manufacture and supply aeronautical products to
meet the customer’s requirements and to continuously improve quality in all products,
processes and services to ensure customer satisfaction”.
CUSTOMER SATISFACTION
We are dedicated to building a relationship with our customers where we become partners in fulfilling
their mission. We strive to understand our customers ' needs and to deliver products and services that
fulfill and exceed all their requirements.
INTEGRITY
CREDIT RATING :
The Company continued to maintain the highest credit rating of both, short-term as well as long-term
debt programmers, for Rs.450/-crores each from the Investment Information & Credit Rating Agency (ICRA)
and Credit Rating Information Services of India Limited (CRISIL).
Although yours is a ‘Zero-Debt’ Company, it has been availing Cash Credit facility from the Bankers
to meet its short-term requirements from time to time. This credit rating has enabled the Company to source funds
at the best possible rates, thereby improving the profitability.
The cash and bank balances, including short-term deposits at the end of the year under review
stood at Rs. 18657.64 crore against Rs. 19744.56 crores of the previous years.
The Company scaled new heights in the financial year 2006-07 with a turnover of Rs.7, 783.61 Crores.
Definition : Key result area
“Key results areas or KRA’s referred to general areas of output or outcomes for
which department’s roll is responsible”.
“KRA in simple terms may be defined as primary responsibilities of an
individual, the core area which each person is accountable.
Importance of KRA’s
Types of KRA’s
1) Training KRA’s.
2) Management KRA’s.
3) Purchasing KRA’s.
4) R & D KRA’s.
5) Administration KRA’s.
6) Finance KRA’s.
7) Human resource KRA’s.
8) Manufacturing KRA’s.
9) Marketing KRA’s.
10) Sales KRA’s.
§ Continual improvement in all processes based on previous and customer feed back.
§ To empower the employees through and encouraging in quality circle/ small ground
activities and suggestion scheme.
§ To up keep and improve the infra structure to meet the requirements of process, people
and environment.
HAL has been successful in numerous R & D programs developed for both Defense and
Civil Aviation sectors.
AREA OF OPERATION:
DOMESTIC AREA:
Indian Air Force
Indian Navy
Indian coast guard
Defense Research & Development organization
Indian Space Research organization
Bharat Electronic Limited
National Aerospace Laboratories
INTERNATIONAL AREA:
Air bus, France
Boeing, USA
BAe system, UK
Danault Aviation, France
Israel Aircraft Industries, Israel
Mitsubishi Heavy Industries, Japan
Royal Air force of OMAN
Air Mauritius
Airline Operations in South Asian Countries.
HAL’s major exports during the year included A – 320 passenger doors to airbus, HAL
Aircraft division 777 uplock equipment to Russia, Spares and services to Nepal, Malaysia,
Thailand, Zimbabwe, Mauritius and Oman.HAL has also initiated measures to identify and
establish strategic alliances and joint ventures with global aerospace companies who
provide cutting edge technologies help in upgrading the skill/quality levels in addition to
opening export markets.
The company is also having its operation all over the world its liaison offices are
situated in countries like
o LONDON
o FRANCE
o GERMANY
o ISREAL
It also has customers like BAE (UK), IAI (ISREAL), BOEING (USA), AIRBUS (FRANCE)
and other different countries.
The Hindustan aeronautics Limited (HAL) evolved into a vertically integrated aeronautics
complex and the large of its kind in Asia.
Today HAL has 19 production unit and 9 research and design centers spread
over at:
• Bangalore
• Nasik
• Koraput
• Kanpur
• Lucknow
• Korwa
• Hyderabad
• Barrack pure
Further, several co-production and joint ventures with international participation are
under consideration, aiming to enhance business and upgrade technology.
OWNERSHIP PATTERN:
The Government of India (GOI) became one of the shareholders of Hindustan Aircraft
Limited in March 1941 and took over the management in 1942. HAL in its present form as a
Public Sector Undertaking (PSB) under the Ministry of Defense and fully owned by HAL
Aircraft division GOI, came into existence on October 1, 1964, when Aeronautics India
Limited and Aircraft manufacturing Depot were merged with Hindustan Aircraft Limited.
HAL is the largest PSU under the Department of defense Production, GOI and has been
declared as a Mini Ratna (category – 1) company.
HAL has blossomed into a major player in the Global Aviation Arena and is today one
among the elite “NAVARATHNA COMPANIES”.
The Government of India became a shareholder in March-1941 and took over the
Management in 1942. HAL in its present forms as the Public Sector Undertaking (PSU)
under the Ministry of Defense and Gully owned by Government of India came into
existence on October-1st – 1964, when Aeronautics India Limited and Aircraft
Manufacturing depot were merged with HAL.
Thus, HAL is purely a public enterprise but in recent years the government has been
encouraging greater interaction of private players with Defense Research Organizations by
allowing them access to research done by their Laboratories.
Nearly US $ 275 Million worth of material, sub-assemblies and components are obtained by
State-owned Defense Undertakings by the Private Sector.
COMPETITORS INFORMATION:
The Aerospace Market is highly competitive with the State owned, HAL being the largest
Indian Aircraft manufacture. Competition is likely to intensify with greater Private Sector and
Foreign participation. The Government too has set up its role in promoting the industry.
The company does not have any competitors in Domestic Market, for its Aircraft because it
requires huge sum of money & vast area of land for establishing a company and it also
involves huge risk which the private parties would not like to take. And the engine division
manufactures Aircraft purely for countries defense purpose. So its main customer is IAF
(Indian Air force).
The company is having few competitors of its export projects like; Boeing &Airbus does
from countries like China and Pakistan.
INFRASTRUCTURAL FACILITIES:
A. SECURITY DEPARTMENT:
B. TRAINING HALLS:
HAL has 5 air conditioned training halls with seating capacity varying from
15-50, with flexible seating arrangements. Each classroom is equipped with
an overhead projector, writing board, public address system, digital light
processing projector (DLP) computer, with the necessary state- of the art
software to make presentations.
C. LIBRARY:
D. AUDITORIUM:
E. ACCOMODATION:
G. CANTEEN FACILITIES:
H. TRANSPORT FACILITIES:
I. EDUCATIONAL FACILITIES :
J. AMBULANCE ROOM
This department is one of the safety measures. This department is to help the
employees. Medicines are provided and available 24hours.
The Prime Minister, Dr. Manmohan Singh presenting the MoU Excellence Award 2006-
07 for “Industrial Sector” to the Officiating CMD of Hindustan Aeronautics Ltd., Shri
Sanjeev Sahi on behalf of the Hindustan Aeronautics Ltd., at the presentation ceremony
of the MoU Excellence Awards and SCOPE Awards for the year 2006-07 and 2007-08
for Excellence and Outstanding Contribution to Public Sector Management, in New Delhi
on October15, 2009.
HAL WINS BOEING’S 2009 SUPPLIER OF THE YEAR AWARD:
Bangalore-based HAL has been awarded the newly-constituted ‘The Alliance Award’ in
recognition of its “unique capabilities and services that are instrumental to a new Boeing
product”.
• HAL was awarded the “INTERNATIONAL GOLD MEDAL AWARD” for Corporate
Achievement in Quality and Efficiency at the International Summit (Global Rating
Leaders 2003) - London, UK by M/s Global Rating-UK in conjunction with the
International Information and Marketing Centre (IIMC).
• At the National level, HAL won the "GOLD TROPHY" for excellence in Public
Sector Management, instituted by the Standing Conference of Public Enterprises
(SCOPE).
• SIGNIFICANT ACHIEVEMENTS:
• The Company produced Su-30MKI, Hawk, DO-228 aircraft ALH and Cheetal
helicopters along with their engines and accessories for the Indian Defence
Services.
• The ALH in the new configuration (Mk.III) with high powered Shakti engine was
produced for the Indian Air Force (IAF) and new systems like EO Pod, EW Suite /
Integrated Self Protection System, Active Vibration Control System, etc were
produced for the military utility operations. The ALH in the civil version was also
produced for the Border Security Force (BSF).
• The Company carried out overhaul on 203 aircraft / helicopters and 497 engines
encompassing 13 types of aircraft and 15 types of engines.
• Production of the Intermediate Jet Trainer (IJT) crossed a major milestone with
the first Limited Series Production aircraft undergoing flight tests on 4th January
2010.
BANGALORE: India on 10TH JANUARY 2011, Monday joined the select club of countries
making a fighter jet from scratch when Indian Air Force flew for the first time the lightweight
indigenous multi-role Light Combat Aircraft...
HAL TEJAS:
The HAL Tejas (Sanskrit: Tejas mean "Radiant" is a lightweight multirole jet fighter being
developed by India. It is a tailless, compound delta wing design powered by a single
engine. It came from the Light Combat Aircraft (LCA) programme, which was begun in the
1980s to replace India's ageing MiG-21 fighters. Later the LCA was officially named "Tejas"
by then Prime Minister Atal Bihari Vajpayee.
The IAF is reported to have a requirement for 200 single-seat and 20 two-seat conversion
trainers, while the Indian Navy may order up to 40 single-seaters to replace its Sea Harrier
FRS.51 and Harrier T.60. During its sea level flight trials off Goa, Tejas notched a speed of
over 1,350 km per hour, thus becoming the second supersonic fighter manufactured
indigenously by Hindustan Aeronautics Limited after the HAL Marut. The first squadron of
Tejas aircraft was cleared to entered service 10th January 2011.
Work Flow model means the process occurring in the organization to convert raw
material into finished goods to meet the organizational goals and needs.
In HAL Aircraft Division the work flow model is as follows:
Stores department
Assembling
Final inspection
The Company has challenging times ahead with delivery commitments with respect to
major manufacturing projects like the Su-30 MKI, Hawk, IJT, LCA, ALH and Do-228.Your
Company has geared up to enhance the capacity required to meet the commitments. The
number of aircraft to be produced in the coming years will be higher, almost double,
compared with the last couple of years. This requires concerted efforts to streamline the
sources and achieve the desired level of productivity.
1) Physical task:
Hawk Mk 132.
Pta-lakshya.
2) RMS orders:
3) Export orders:
Airbus.
Boeing.
Cargo doors.
Gun bay doors.
Wire bundle.
Weapon bay door.
Developed in the early 1980s by Tom Peters and Robert Waterman, two
consultants working at the McKinsey & Company consulting firm, the basic premise of the
model is that there are seven internal aspects of an organization that need to be aligned if it
is to be successful.
They published their 7-s Model in their articulate “structure Is Not Organization”
(1980 and in their books. “The art of Japanese Management” (1981) and “In Search of
Excellence” (1982).
The most notable exception, which might be the cause of its enormous
popularity, has been the book “In search of excellence” by Tom Peters and Robert
Waterman (1982), where they emphasize the lesson to be derived from America’s best run
companies.
The McKinsey 7S model involves seven interdependent factors which are categorized as
either "hard" or "soft" elements:
"Hard" elements are easier to define or identify and management can directly influence
them: These are strategy statements; organization charts and reporting lines; and formal
processes and IT systems.
"Soft" elements, on the other hand, can be more difficult to describe, and are less tangible
and more influenced by culture. However, these soft elements are as important as the hard
elements if the organization is going to be successful. Those seven elements are
distinguished in so called hard S’s and soft S’s. The hard elements are feasible and easy to
identify. They can be found in strategy statements, corporate plans, organizational charts
and other documentation.
STRATEGY:
B. Training Programmes.
DGM-Finance
Senior manager-Finance
Manager-Finance
Deputy Manager
Accounts officer
Employees
HAL Aircraft has a vertical structure. The hierarchy relationship with a number
of levels from top to bottom. Authority flows downward. It is pyramid shaped,
which implies Centralized Authority at the top, departmental job hierarchy in the
middle and intense division of labor at the bottom.
This type of structure provides a clear and well-defined work setting to its
employees.
The following are various departments of HAL which is helpful to run the
company systematically and smoothly perform the organizational goals and
objectives:
o Production.
o Finance.
o Human Resource & Administration.
o Marketing.
o Purchase Department.
o Research & Development.
o Material Management.
o Product Design.
o Industrial Engineering & Management services.
o Stores department.
SYSTEM:
System refers to the rules, regulation and production concept both formal ad
informal that complement the organization structure.
The organization follows the informal and legal procedure in taking the orders
from the customers. For the regular interaction with sub-ordinates and line
persons, the company people go for both formal and informal interaction.
SHARED VALUES:
The Management should share these values with employees. This sharing lead
to greater productivity, Quality, job satisfaction and products.
1. CUSTOMER SATISFACTION:
The company believes that its success depends on its ability to continually
reduce the cost and shorten the delivery period of the products and services.
The company will achieve this by elimination waste in all activities and
continuously improving all processes in every area of the
The company values its employees. The company will treat each other with
dignity and respect and strive for individual growth and realization of every
ones real potential.
STAFF:
Staffing is the process of acquiring human resource for the organization and
assuming that they have the potential to contribute to the achievement of the
organization goals.
The following is the various categories & designations of staff in HAL:
CATEGORY DESIGNATION
S1 Departmental supervisor
S2 Joint supervisor
S3 Supervisor
S4 senior supervisor
CATEGORY DESIGNATION
GRADE 1 Assistant engineer,
assistant officer
GRADE 2 Engineers
GRADE 3 Assistant managers
GRADE 4 Managers
GRADE 5 Senior Managers
GRADE 6 Assistant General
Managers
GRADE 7 Deputy General
Managers
GRADE 8 General Managers
GRADE 9 Chief General
Managers
GRADE 10 Executive directors
Executives: ENGINEERING.
Non Executives: ITI and Diploma.
PERFORMANCE APPRAISAL:
REWARD SYSTEM:
HAL has also introduced the scheme for learning and certification for the
Executives as a starting point for building individual knowledge.
The scheme inter-alia provides opportunity for the Junior and Middle
Management executives to broaden perspective by not only learning
about all functions and also the procedures in their respective discipline
but also in related areas and overall knowledge about the organization
and its environment.
STYLE:
TOP
MGT
MIDDLE MANAGEMENT
2. Middle level consists of Deputy Manager, Manager, Senior departmental and sectional
heads.
The management activities flow from top to bottom and it is authoritative organization
where everyone is not given individual freedom to put rules and regulations. It has to act
according to the ministry of defence.
SWOT ANALYSIS:
A scan of the internal and external environment is an important part of the strategic
planning
process. Environment factors internal to the firm usually can be classified as strength (S) or
weaknesses (W), and that external to the firm can be classified as opportunities (O) or
Threats
The SWOT analysis provides information that is helpful in matching the firm’s resources
and
strategy formulation and selection. The following diagram shows how a SWOT analysis fits
in to
an environment scan:
Environmental Scan
Enjoys monopoly
Enjoys budgetary support and orders
Only supplier for maintenance of Aircrafts.
Biggest overhaul centre in the East.
More than 50 yrs old, it has achieved expertise in technology.
Biggest R&D Unit and also foundry and forge unit.
High skilled laborers.
WEAKNESS:
OPPORTUNITIES:
THREATS:
Overhaul of Aircraft and light maintenance open to Private.
Permitting Private sector for manufacturing and supplying Defense
requirements.
Liberalization Policy of Government of India.
New Economic Policy and signing of WTO Agreement by the
Government.
Change in Technology of information with more features.
Is facing competition with the international market because of
licenses.
Licenses agreement has restricted the company to enter into
business with other countries.
Depends on other countries for raw materials.
Changing foreign policy also affects the industry.
Sole customers may go for outsourcing.
Delays in placing order.
SOURCES OF FUNDS
SHARE HOLDERS FUNDS
Head Office Control Account 1 -128984.47 -118759.95
Reserves And Surplus 2 11245.75 9347.01
-117738.72 -109412.94
LOAN FUNDS 3
Secured Loans 1453.51 190.76
Unsecured Loans 0.00 0.00
1453.51
0.00
Deferred Liabilities (Net) 4
Deferred Tax Liabilities 4A 0.00 0.00
-116285.21 -109222.18
APPLICATION OF FUNDS
FIXED ASSETS
Gross Block 5 9551.84 9290.02
Less : Depreciation 6 7860.27 7617.92
Net Block 1691.57 1672.10
Capital WIP 7 1755.58 671.26
3447.15 2343.36
Special Tools & Equip.. 8 24793.75 10694.96
INTANGIBLE ASSETS
Gross Carrying Amount 15 25124.64 25039.29
Less: Cumulative 1236.79 467.65
Amortization and Impairment Loss
Net Carrying Amount 23887.85 24571.64
-116285.21 -109222.18
ADDITIO
CHAIRMA
NAL GM
N
GENERAL
(FINA
MANAGER
NCE)