HISTORY OF TYCO:-

Tyco was founded in 1960 when ARTHUR J ROSENBURG, PhD, opens a research laboratory to do experimental work for government. He incorporated business as Tyco laboratories in 1962 & changed its focus to high tech materials science & energy conversion product for commercial sector. In September 1964 the company went public & in 1965 it began acquires other company to full gaps in its development & distribution as a result Tyco’s thrust manufacturing industrial product.

Tyco international is a highly diversified global company that provides thousand of product & services vitally important to residential and commercial customers. Those products range from electronic security and alarm monitoring to fire fighting equipment and breathing apparatus, and from water purification and flow control solution to galvanize steel tude and armored wire and cable.

Today, Tyco is a model of sophisticate & innovative manufacturing & service employing 250000 employees world wide

1

each Tyco’s core business hold a leadership position in its specific market.

Effective June 29, 2007, Tyco International Ltd. (hereinafter referred to as ‘‘we,’’ the ‘‘Company’ or ‘‘Tyco’’) completed the spin-offs of Covidien and Tyco Electronics, formerly our Healthcare and Electronics businesses, respectively, into separate, publicly traded companies (the ‘‘Separation’’) in the form of a distribution to Tyco shareholders. The distribution was made on June 29, 2007, to Tyco shareholders of record on June 18, 2007, the record date. Each Tyco shareholder received 0.25 of common share of each of Covidien and Tyco Electronics for each Tyco common share held on the record date. As a result of the distribution, the operations of Tyco’s former Healthcare and ElectronicsBusinesses are now classified as discontinued operations in all periods presented. In connection with the Separation, we realigned our management and segment reporting structure. The segment data presented reflects the new segment structure. The Company reports financial and operating information in the following five segments, effective March 31, 2007:

2

3

• ADT Worldwide designs, sells, installs, services and monitors electronic security systems to residential, commercial, industrial and governmental customers.

• Fire Protection Services designs, sells, installs and services fire detection and fire suppression systems to commercial, industrial and governmental customers.

4

• Flow Control designs, manufactures, sells and services valves, pipes, fittings, valve automation and heat tracing products for the water and wastewater markets, the oil, gas and other energy markets along with general process industries.

• Safety Products designs, manufactures and sells fire protection, security and life safety products, including fire suppression products, breathing apparatus, intrusion security, access control and video management systems. In addition, Safety Products manufactures products installed and serviced by ADT Worldwide and Fire Protection Services.

5

We are the world’s largest manufacturer of flow control products and heat-tracing solutions for the oil and gas, power, food

and beverage, chemical, water and other process industries.

• Electrical and Metal Products designs, manufactures and sells steel tubing and pipe products, as well as cable products, including pre-wired armored cable and flexible conduit products for commercial construction. We also provide general corporate services to our segments and these costs are reported asCorporate and Other. References to the segment data are to the Company’s continuing operations. Prior period amount shave been reclassified to exclude the results of discontinued operations.

6

We design, manufacture and sell galvanized steel tubes, armored wire & cable and other metal products for

construction, electrical, fire and security, mechanical and automotive

customers.

GLIMPSE PICTURE OF THE COMPANY:

Tyco Flow Control brings together the world's premier manufacturers of flow control products. With over 90 valve brands, we offer a level of expertise that is second-to-none in providing innovative solutions to the most challenging flow control.

We are the world's largest manufacturer of valve products that move, control, and sample liquids, gases, powders, and other substances. Brand names we feature include Anderson Greenwood, AVID, Biffi, Clarkson, Crosby, Descote, Hancock, Keystone, Kunkle, KTM, L&M Valve, MCF, Morin, NeoTecha, Rovalve, Valvtron, Vanessa, Varec and Yarway. Product types include, ball valves, butterfly valves, control valves, check valves, gate valves, globe valves, instrumentation valves, knife gate valves, pressure & safety relief valves, rotary process valves, sampling valves, electric actuators, pneumatic actuators, hydraulic actuators, actuator positioners and actuator controls.

7

With worldwide sales, service and distribution centers, we can become a single source for Total Flow Control Solutions(TM)

8

Tyco Flow Control is a global network, bringing together the manufacture, marketing, sales and after-sales support of the most comprehensive range of industrial flow control products in the world. The product range incorporates some of the world's best known brand names in valves, actuators, controls and instrumentation. They are used widely throughout demanding markets including power, oil production and refining, chemical and petrochemical, pharmaceutical, food and beverage, gas, water, marine and shipbuilding, and other industries.

WHAT IS MARKETING?

Marketing is a typical task of creating,

promoting, delivering goods & service to consumer & business.

Marketing deal with human & social needs.

Tyco Company does marketing by creating &

promoting services to the customer by fully understand & exceed our

customer need, wants & preferences & provide greater value to our

customer.

KEY BENEFITS

Comprehensive sales division.

Dedicated product stock at prime location.

Service facilities & after sales support in all key market

areas.

Attention to detail across all product ranges.

9

Sales & Marketing Organization Chart

10

MARKETING ENVIRONMENT

Marketing activities of a business firm are affected by a

large number of environmental factors that surrounds the company.

These factors or forces influences the decision making capability of the

enterprise.

The factors or forces are collectively called marketing

environment. If the company of all those factor which have an impact

on market & marketing efforts of the enterprise.

Marketing environment refers to external & internal

forces & factors that affect the company’s ability to develop and

maintain successful relationship with its target customer.

DOMESTIC ENVIRONMENT:-

Geographic: TYCO has divided their market into

different geographical units such as nations, states and regions. Region

vice segmentation is as follow.

Western region: Baroda, Mumbai

Southern region: Chennai

Northern region: Delhi

Eastern region: Kolkata

11

12

International environment:-

TYCO is India’s largest exporter of flat product

and it exports about half of its production to the demanding Western

markets as well as to the growing markets of Asia and the Middle East.

13

MARKETING COMPETITION:

The flow control industry is highly fragmented are

compete against the number of international, national & local

manufacturers of industrial values as well as against specialized

manufacture on the basis of product capability, product quality, breath

of product line delivery & price. Our major competitions vary by using.

MAJOR CUSTOMERS

Our major customers and their orders in crores are as

follows:-

Orders > 1 Crore

Reliance

Patalganga 50 Crore

Hazira 75 Crore

Jamnagar 100 Crore

Vedanta Lanjigarh 40 Crore (under exec.)

Indian Oil Corporation

Baroda 5 Crore

Mathura 10 Crore

Haldia 10 Crore

Baruni 3 Crore

NTPC

Farrakha 5 Crore

Ramagundam 5 Crore

Talchar 10 Crore

Sipat 5 Crore (under exec.)

14

Vindhyachal 3 Crore

Singrauli 1 Crore

Kahalgaon 5 Crore

Hindalco

Gandhar Copper > 2 Crore

Renukoot – Aluminia > 5 Crore

Numaligarh Refinery > 6 Crore (under exec.)

BPCL 5Crore

HPCL 3 Crore

TISCO (Jamshedpur) 3 Crore

MSEB (all plants) 10 Crore

Hy Grade Pellts 2 Crore

Gujarat Ambuja 2 Crore

BHEL Trichy

(Major Power Plants) 10 Crore

Gujarat Water (Narmada Canal) 3 Crore

Chennai Water 10 Crore

ONGC >10 Crore

Sylhet Gas – Bangladesh > 5 Crore

Paper Plants (HPC/TN Paper) > 5 Crore

Syngenta (Lined Valves) > 2 Crore

Caustic Chlorie

(Bihar, Kanodia, Punjab, Gujarat) > 5 Crore

15

PRODUCT OF THE COMPANY (PRODUCT MIX):

“A product mix (product assortment) is the set of the

all product lines & items that a particular seller offers for sale to

buyers”.

An organization with several product lines has a

product mix. Product mix need not consist of related products. In other

words, product mix is “the composite of products offered for sale by a

firm. It is a collection of products manufactured or distributed by a

firm. It is the full list of all products offered by a firm”. For eg. A firm

manufacturers, watches, machinery items, electric lamp etc. It has four

main characteristics:

Length.

Width.

Depth.

Consistency.

PRODUCTS OF THE TYCO:-

TYCO products are world class, meeting the highest

international standards. The company’s extensive marketing network

and sales service ensures high levels of customer satisfaction. TYCO

has concept that proper product should go to proper customer. Each

customer has an expectation from each product – mix. Following is the

Tyco’s product-mix.

1> S 20B

2>Slurry valves

16

3> F 631 4> F990

5> F 631 6> F360/370

17

7>F1/AR1 8>F1/AR1

9>R347/348 10>F310/312

11> F2/AR2 12>Rubber seated butterfly Valves

18

13>Ball valves 14>Color port gauges & Indicator

15>Automated KGV’s

PACKAGING & LABELLING

PACKAGING:

“The packaging of a consumer product is an important

part of the marketing plan. There are many factors to be considered

while designing a package.”

Packing means wrapping of goods before they are

transported or stored or delivered to a consumer on the other hand,

packing is the sub-division of packing function of marketing

“packaging” has been defined as “an activity which is concerned with

protections, economy, convenience &promotional considerations”.

19

PACKING AND PACKING MARKING OF THE TYCO:

After goods are manufactured they are placed in a

finished goods store unit instruction are received for the product to be

packed for shipment against an order from overseas buyer. As and

when the instructions regarding export packing are received from the

export department. The product is sent to the packing department for

export worthy packing.

In the export business it is very important to follow

the instructions regarding packing marking and labeling received from

the overseas buyer.

PACKAGING AND PACKING:

Every exporter should be very careful in packaging and

packing which is or great importance in transportation as well as in the

safety of the goods weight measurements used in the export packing

are;

Net: weight of product without packing.

Net Net: weight of product without internal wrapping,

packing materials or packing case.

Gross: weight of product plus weight of packing case

and packing material.

Tare: weight of packing only.

20

LABELING:

“Label is a part of the product which carriers verbal information

about the product or seller. It may be a part of a package or it may be

an attached directly to the product”.

Label may be a small slip or a printed statement. It may be a

part of a package or it may be attached to the product. It conveys

verbal information about the product and seller. The producer gives

necessary information to the consumers through the label. Labels are

of three types;

A Brand Label.

A Grande Label.

A Descriptive Label.

LABELING AND MARKING OF TYCO:

On the request of importer, the exporter has to attach

particular types of labels price tickets etc. Which may be considered

factorable to his market, import trade control and customs may grant

this facility.

MARKING:

Shipping mark as requested by the overseas buyer should

be put on each packing case so that the consignment may be

identified throughout transit and on reaching its destinations marking

includes shipping marks of consignee like short name of the buyer.

21

Part of dispatch, part of destination, steamer’s name and bill of lading

number etc.

PRICE OF PRODUCTS (PRICING POLICIES)

“Price may be defined as the exchange of goods

&services in terms of money. Without price there is no marketing in

the society. If money is not there, exchange of goods can be

undertaken but without price i.e. there is no exchange value of a

product or service agreed upon in a market transaction, is the key

factor which affects the sales operations.”

“What you pay is the price for what you get.”

Price is exchange value of goods and services in terms

of money. Price of a product or service is what the seller feels it worth

in terms of money to the buyer.

PRICING POLICIES OF TYCO

Price is the one element of the marketing

mix the produces revenue. The other elements produce cost. Prices are

the assist marketing mix element to adjust product feature, channels &

even promotion take more time. Company handle pricing and Varieties

of wayes.

Valves industry is an oligopolistic industry. Here, few companies

producing and selling differentiated products.

Generally in valves industry the firms follow going-

rate pricing policy. Company decides its pricing policy based which are

affordable by the buyers.

The firm can charge the same price, more or less than the

major competitors. High import duties for global competitor to

establish menu based to be competitive (bound tariff 35% applied tariff

16.4%). One of the highest in India, The small firms follow the leader’s

22

price, in this situation the market leader’s price change when their own

demand or cost change and other firm accept that price to sustain in

the market.

ORGANISATION’S BUYING PROCESS

BUYING BEHAVIOUR PROCESS:

It contains eight stage of buying:

Problem recognization

General need description

Product specification

Supplier search

Proposal solicitation

Supplier selection

Order routine specification

Performance review

PROBLEM RECOGNISATION:

In this stage where the customer perceive a need for the

product but the exact product specification of the product are

generally not defined at this stage.

This is the stage where the customer has a problem, & is

looking for an acceptable solution. Problem recognisation may occur as

a result of internal & external stimuli.

The reorganization of our product may occur because the

company decides to develop a new product & needs new equipment &

materials to produce the product. A purchasing manager fined an

opportunity to obtain lower price & a better quality.

23

GENERAL NEED DISCRIPTION:

Once a need is recognize the buyer proceeds to determine

the need items general characteristics & require quantity. For standard

item, this is simple for complex item the buyer will work with other

engineers, users to define characteristics like reliability, durability or

price. Business marketer can help by describing how product meet or

even exceeds the buyer’s need.

The company wants to increase its sales hence they want

to change their values of the machinery & a need is described.

PRODUCT SPECIFICATION:

This stage when customer is more specific about what he is

looking for. He lays down the exact specification for the product. He

also decides about the service requirement. In short all the technical

specification is decided about the product in this stage.

The company is become more specific about the purchase

of the values product for their machinery.

SUPPLIER SEARCH:

The buyers now try to identify the most appropriate

suppliers. The buyer can examine trade directories, contact other

companies for recommendation, watch trade advertisement & attend

24

trade shows. However, this base the most likely place to look is on the

internet. Websites are organized around two types of:

Vertical hubs &

Functional.

The buyers of our product search their requirement of the

product through internet & also through mailings & catalogues.

PROPOSAL SOLICITATION:

The buyer invites qualified supplier to submit proposals.

If the item is complex or expensive, the buyer will require detailed

written proposal from each qualified supplier. After evaluating the

proposal, the buyer will invite a few suppliers to make formal

presentation. Business marketers must be skilled in researching,

writing & presenting proposals.

Our company attends the informal meeting organized

by the buyer company send skilled business marketer to attend the

meeting. The company provides the buyer written proposal so that

they can verify the proposals of our company.

SUPPLIER SELECTION:

Once the technical evaluation is complete & the

supplier are short listed for final selection, commercial evaluation of

the proposal is done .Here the supplier are examined more closely on

their capability to meet the buyers requirement. This is the stage when

often negotiations take place between the buyer & the supplier. After

evaluation & negotiation, supplier is selected. In actual practice the

25

buyer generally select two suppliers so as to ensure uninterrupted

suppliers.

Our company provides product & extra services

as per the customer requirement, hence our company is closely

recognized by the buyer & it is selected by the buyer as one of the

companies selected by the buyer as one of the two companies selected

by the buyer. After long evaluation by the buyer our company is

selected.

ORDER ROUTINE SPECIFICATION:

After selecting supplier the buyer negotiates the final order,

listing & technical specification, the quantity needed, the expected

time of delivery return polices, warranties &so on in the case of

maintenance, to repair an operating items buyers are moving towards

blanket contract rather then periodic purchase order. A blanket

contract establishes long term relationship in which the suppliers

promise to re-supply buyers as needed. At agreed upon prices, over a

specified period of time.

Our company gives warranty of the product. It provides

product as per the buyer’s requirement & provides bulk order facility to

the buyer. Our company promises the buyer for resupply of the

product. It gives credit facility to the buyer.

PERFORMANCE REVIEW:

The buyer periodically reviews the performance of the

chosen supplier. Three methods are commonly used. The buyer may

26

contact the end user & ask for the evaluation, & the buyer may rate

the supplier on several criteria using a weighted score method. The

performance review may lead the buyer to continue, modify or end the

relationship with the supplier.

The company decides to purchase the valves of our

company. The buyers review our purchase the valves of our

company.The buyers review our product periodically & find that

because of installment of our valves in their machinery there is

increase in their production & quality of the product. Hence the buyer

maintains the long term relationship with us.

PRODUCT LIFE CYCLE

Every product has a life. Some live other live long. Ultimately

Whether product is short or long life it sale declines. During it’s whole

life a product passes through a different stages which is known as a life

cycle of the product.

A product life cycle means typical pattern of development of life

time sale of a product. The main stages of the product life cycle can be

stated as under.

Introduction

Growth

Maturity

Decline

Any company making product has to pass from the above

stated stages & for that they apply some strategies.

27

PRODUCT LIFE CYCLE OF COMPANY

OUR COMPANY IS RECENTLY ON THE GROTH STAGE.

Our company increase sales & earning profit. The

product is consistent with consumer’s preferences within a short period

of time growth rate of sales begins to increase. Our customer satisfies

with first purchasing continue to purchase & canvass for the product

amongst other customers. As result the sales of our company

increases with the increase in production & average cost of production

declines increases. Our company’s profit is now at higher level. At this

stage our products begins to make a rapid sales.

STRATEGIES OF OUR COMPANY

28

Increases the quality of the product & added new features of

the product.

Increases the expenditure enhancing the trust of the people in

the product.

With the help of above marketing strategies the company

is increases it’s market share.

MARKETING STRATEGY:

We intend to further align with our customers needs by

focusing, our sales & marketing resources along key vertical markets,

including water & wastewater, oil &gas, food processing & general

industrial. We plan to continue expanding our product offering through

increased R & D investment in developing technologies as well as

through selective accusations & premierships. By continuing to invest

in out service & repair capabilities. We except to capitalize UN strong

industry demand for parts & after market services in our recurring

revenue business. We intend to leverage the breadth of our product

portfolio & our geographic capabilities to enhance our ability to meet

the customer requirements for global projects. We intend to capitalize

on growth opportunities in times in very emerging markets by

accelerating our investment in sales & marketing. We also our

investment in sales & marketing. We also intend to focus on improving

profitability through the optimization of our manufacturing footprint &

product offerings.

29

CHANNEL OF DISTRIBUTION

A channel of distribution or marketing channel is the

structured of intra company organization units & extra company

agents & dealers, wholesale, retail through which a commodity product

or service is marketed.

DISTRIBUTION CHANNEL USED BY THE COMPANY

Tyco company provides services of there product at various

location from all over the world. The Tyco service is distributed all over

the world so the marketing is to be done in EUROPE, MIDDLE EAST,

AFRICA, ASIA, and U.S.A, CANADA. IN INDIA LIKE BARODA, MADRAS,

KOLKATA, NEW DELHI. MUMBAI. This is the places where the services

are provided by the company.

DISTRIBUTION CHANNELS:

Personal selling.

Sales promotion with customer contact.

Direct selling through e-mail.

The level of channel distribution is manufacturer to

customer. The most common group used for linking the product to

market from producer or manufacturers to consumer are as follows.

Manufacturer – Consumer:

30

There are three alternative in direct sales to

consumers.

Mail order selling.

Sales through traveling sales forces.

Sales through retail shop of manufacturer.

31

ORGANISATION STRUCTURE OF HR DEPARTMENT

“HRM is the planning, organizing and controlling of the recurement, development, compensation, integration, maintenances and reproduction of human resource to the end that individual, organizational and social objective are accomplished.”

ACTIVITIES OF HR DEPARTMENT

The following are the activities of HR- departmentRecruitment & Selection.Human Resource planning.

Director (HR)

SR. general manager

Dy. General Manager

General Manager

Manager

Assist. Manager

Sr. executives (personnel)

Sr. executives (welfare)

Sr. executives (clerical)

Sr. executives (legal)

32

Training & Development.Promotion & Transfer.Performance Appraisal.Wages & Salary structure.Employee Welfare.Human Resource Audit.Absenteeism Rate.Employees Turnover.

HR has been focusing on

Fostering a culture of leadershipLeading strategic initiativesEstablishing foundational elements

Five key HR Imperatives Emerged

Live our values & behaviorImprove talent supplyFoster leadership developmentEnable competitive cost structureSimplify HR process & service delivery

Key Imperatives Link to Business Goals

HR Key Imperatives

Tyco goals: What We Seek To AchieveGrowth

Financial strengthen & flexibility

customers

Operational Excellence

Governance

Live Our Values & Behaviors

● ● ● ● ●

Improve Talent

● ● ● ● ●

Foster leadership development

● ● ● ● ●

Enable ● ● ●

33

competitive cost structureSimplify HR processes & service delivery

● ● ● ●

SIMPLIFY HR PROCESS & SERVICE DELIVERY

ACTIONS:

-Establish & reinforce global data standards & accountability for data accuracyProcess improvement & automation Improve connectivity of existing systemsLeverage existing system

RECRUITMENT & SELECTION

RECRUITMENT: “Recruitment is the process of searching for prospective employees and stimulating and encouraging them to apply for job in the organization.” Company is always trying to attract qualified & competent personnel for different jobs. This includes of existing source of labour market, the development of new sources, & the need for attracting a large no. of potential applicants so that a good selection mat be possible. SOURCE OF RECRUITMENT:

INTERNAL SOURCE: This includes personal already on the payroll of an organization, i.e., its present working force. Whenever any vacancy occurs, somebody from within the organization is upgraded, transferred, promoted. This source also includes personal who are once on the payroll of the co. but who plan

34

to return or whom the co. would like to rehire, such as those on leave of absence. EXTERNAL SOURCES: These lies outside the org. they usually include:New entrant to the labour force, i.e., young, mostly inexperienced potential employees- the college students.The un employed – with a wide range of skills and ability Retire experienced persons such as mechanics, machinists, vendors & accountants.Other not in the labour force, such as married women & persons from minority groups.

(a) RECRUITMENT METHOD & TECHNIQUES ADOPTING BY THE COMPANY:

DIRECT METHODS: -Sending traveling recruiters to educational & professional institutions. - Employees contact with public. - Manned exhibition.

INDIRECT METHODS:Advertising in news paper.Advertising on radio.Trade & professionals journals.Technical magazines & brouchers.

THIRD PARTY METHODS:Private employment agencies.State or public employment agencies.School, colleges & professional institutes.Indoctrination seminar for professors.Employee referrals.Trade union.Casual labour or applicant at the gate.Voluntary organizations.

35

SELECTION:-

“It is the process of differentiating between applicants in order to identify those with a greater like hood of success in a job.”

SELECTION PROCESS:

Selection is a long process, commencing from the preliminary interview of the applicants and ending with the contract of employment. In practice, the process differs among organizations and between two different jobs within the same organization. Selection procedure for senior managers will be long-drawn and rigorous, but it is simple and short while hiring shop-floor workers. The generalized selection process point:

External EnvironmentInternal EnvironmentPreliminary InterviewSelection TestsEmployment InterviewReference and Background AnalysisSelection DecisionPhysical ExaminationJob offerEmployment ContractEvaluation

Tyco using the selection process with the development of selection policies and procedure and evaluation of potential employees in terms of job specifications. This process includes the development of application blanks, valid and reliable tests, interview techniques, employee referral systems, evaluation and

36

selection of personnel in terms of job specification, , the making up of final recommendation to the line management and the sending of offers and rejection letters. It is mainly concerned with securing relevant information about and applicant. This information is secured in a number of steps or stages. The main objective of the selection process is to determine whether applicants meet the qualifications for a specific job and the applicant who is most likely to perform well in that job.

[A] Selection procedure of the company

Reception or preliminary interview or screeningApplication blankA well conducted interview to explore the facts and get at the attitude of the applicant and his family to the job.A physical examinationPhysical testing to explore the surface area and get an objective look at a candidate’s suitability for a job.A reference check.Final selection approval by manager and communication of the decision to the candidate.

37

.PLACEMENT:-

“Placement is the determination of the job to which an acceptedCandidate is to be assign & his assignment to their job. It is a meeting of what supervisor has reason to thing; he can do with the job demands.”

At the placement activities the HR manager perfuming the various task like placing an employee in a job for which he is best fitted, keeping in view he job requirements, his qualifications and personality needs.

INDUCTION AND ORIENTATION:-

Orientation or induction 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.”

This activity which providing the introduction of an employee to the organization and the job by giving him all the possible information about the organization’s history, objectives, philosophy, policies, future development opportunities, product, goodwill in the market and in the community, and introducing him to other employees with whom and under whom he has to work.

Induction procedure of TYCO

Give information about the timing and the place work.Introduction of the employees with his immediate boss or supervisors.

38

Introduction about the rules and policies of the organization such item as vacations, probationary period, medical absences, and suggestion systems.Departmental orientation, this include introduction to the department, explanation of the functions of the department, job instruction and to go whom when he should look for help at the time of problem.Verbal explanation is supplemented by a wide verity of printed material, employees’ handbooks, flyers, employee manuals, house journals, picture stories etc.Employee orientation programmers usually cover

things like employee compensation benefits, personnel policies, the employee daily routine, employee orientation and operations, safety measures, and regulations. The new employee supervisor is often giving an orientation checklist. This helps to ensure that the supervisor has covered all of the necessary orientation steps.

39

HUMAN RESOURCE PLANING

“Human resource planning has been defined as “The process by which mgt. determines how an org. should move from its current manpower position to list desired manpower position. Through it mgt. desire to have the right number and right kind of people at a right place, at a right time, doing things which result in both the org. and individual receiving, maximum long range profit.”

TYCO’S MAN POWER PLANNING:

Tyco Valves and Controls using very sophisticated manpower planning techniques. Here personnel department continuously co-coordinating with the related departments for right man power planning. Company is using the process by which a management determines how an organization should move from its current manpower position to its desired manpower position. Through planning, a management tries to fix the right number and the right kind of people at the right places, at right time, to do things which result in both the organization and the individual receiving the maximum long – range benefit.

Personnel department of the Tyco Valves and Controls doing their manpower planning with the series of activities like:

Forecasting future manpower requirements, in terms of mathematical projections of trend in the economic environment and development in industry. Also analyzing the judgment estimates based upon the specific future plans of a company.

40

Making an inventory of present manpower resources and assessing the extend to which this resources are employed optimally.Anticipating manpower problems by projecting present resources in to the future and comparing them with the forecast of requirements to determine their adequacy, both quantitatively and qualitatively.Planning the necessary programmers of requirement, selection, training, development, utilization, transfer, promotion, motivation and compensation to insure that future manpower requirements are properly met.

Company is using the adequate process for the manpower planning. Process mainly consist the following steps.

Deciding goals or objectivesEstimate future organizational structure and manpower requirements.Auditing human resourcesPlanning job requirements and job descriptionsDeveloping human resources planning

41

TRAINING AND DEVELOPMENT

TRAINING Training is the process of increasing the knowledge and skills for doing a particular job. It is an organized procedure by which people learn knowledge and skill for a definite purpose. The purpose of training is basically to bridge the gap between job requirement and present competence of an employee. Training is aimed at improving the behavior and performance of a person. It is a never ending or continuous process. Training is closely related with education and development but needs to be differentiated from these terms.

TRAINING & DEVELOPMENT:

Employee training is distinct from mgt.development.Training is a short term process utilizing a systematic and organization procedure by which non managerial personnel learn technical knowledge and skills for a definite purpose. It refers to instructions in technical and mechanical operations like operation of machine. It is designed primarily for non managers. It is for a short duration and for a specific job related purpose.

On the other hand, development is a long term education process utilizing a systematic and organized procedure by which managerial personnel learn conceptual and theoretical knowledge for general purpose. It involves philosophical and theoretical knowledge for general purpose. It involves philosophical and theoretical educational concepts and it is designed for managers. It involves broader education and its purpose is long term development. Training involves helping an individual learn how to perform his present job satisfactorily. Development involves preparing the individual for a future job and growth of the individual in all respects. Development complements training because HR can

42

exert their full potential only when the learning process goes far beyond simple routine.

TRAINING & DEVLOPMENT OF THE COMPANY

In any organization person at any level of hierarchy, have to perform certain jobs, which in turn require certain competencies to be present in the person. The type of competencies which are required when compared to actually posses by that particular individual gives an idea about gaps/lacunae, which are to be addressed. Here comes the role of training and development activities which help in bridging the gap and thus making the individual perform his job.

Types of training imparted at company are as under:

1 2 3Under qualified Fresher Qualified/ExperiencedClass room lecture Class room lecture Enhancement of

knowledge & skillsWork shop On the job Administrative and

managerial skillOn the job Rational training

programmesCross functional awareness

Role playing Case studies T- group trainingApprenticeship(For technical areas)

Human resource department (TYCO valves and control) implementing this activity with increasing the capabilities of individuals and groups so that they may contribute effectively to the attainment of organizational goals. This process includes:

The determination of training needs of personnel at all levels, skill training, employee counseling, programs for managerial professionals and employee development.Self initiated development activities (formal education), during off hours, reading and participation in the activities of the company.

43

Under this area the training needs of the company are identified, suitable training programs are developed, operatives and executives are identified for training, motivation is provided for joining training programs, the line management is advised in matter of conducting training programs, and the services of specialists are enlisted. The effective programs are evaluated by arranging follow- up studies.

The essential components or steps of a comprehensive management development programs performed by the TYCO valves and controls. The programs are discussed below under the following heads.

Looking at organization’s objectivesAscertaining development needsAppraisal of present management talents

Preparation of manpower inventoryPlanning of individual development programsEstablishing of training and development programsProgram evaluation.

44

TRANSFER PROCESS

“Transfer is a fathered shift chousing movement of individual from one position to another usually without including any marked change in duties, responsibilities, skills needed or compensation.”

Personnel department is also performing the transfer process by analyzing the placement of the employee in a position in which his ability can be best utilized. Moreover, this all things done by developing transfer policies and procedures, counseling employees and line management on transfer and evaluating transfer policies and procedures.

45

PROMOTION PROCESS

“A promotion is the transfer of an employee to a job which pays more money or some preferred status.” The two factors that affect promotion primarily are;

MeritSeniority

For the better promotion of the company adopting a fair, just and equitable promotions policy and procedure. Here line managers and employees have to be advised on these policies, which have to be evaluated to find out weather they have been successful.

PROMOTION POLICIES OF THE COMPANY

Fair and multiple presentations here management is able to remove all suspicions of arbitrariness, aphorism, and improvisation to suit particular individuals.To maintain the absence of over estimation or under estimation. And promoting the people with the proper procedure and analysis. Promotion is bases on either the “rank-in-the-job or rank-in-the-men”. In former system, the contact of the job including the level of skill, efforts and responsibilities form bases. In this system, emphasis is laid on the job analysis, job evaluation, organizational planning, etc. these determine the pay and status in the organization. In the later system, emphasis is put on proficiency of the individuals. It determines the position level in the hierarchy of career pattern.

PERFORMANCE APPRAISAL:

Performance evaluation or performance appraisal is the process of assessing the performance and progress of an employee or a group of employees on a given job and his potential for future development. It consists of all formal procedures used in working organizations to evaluate personalities, contributions and potentials of employees. “Performance appraisal is the systematic, periodic and an impartial rating of an employee’s excellence in matters pertaining to his present job and his potential for a better job.” It is the process of obtaining, analyzing and recording information about the relative worth of an employee.

46

Performance appraisal and merit rating are used synonymously. But strictly speaking, performance appraisal is a wider term than merit-rating. In merit rating, the focus is on judging the caliber of an employee so as to decide salary increment. It is designed primarily to cover rank and file personnel. On the other hand, performance appraisal focuses on the performance and future potential of the employee. Its aim is not simply to decide salary increments but to develop a rational basis for personnel decisions. Merit rating measures what the persons is (traits) whereas performance appraisal measures what the person does (performance).

TYCO’S PERFORMANCE APPRAISAL: When he does his work well the employee naturally wants it to be a praised and recognized by his boss and fellow workers. “Praises seem to have its greatest value when giving and receive as recognition, and are not perceived by either party as an attempt to control the behavior of the recipient.” Recognition satisfies human needs for esteem by other and for self-esteem. This recognition may be shown in the form of praise, of a pat on the back of the employees or a recommendation for a pay raise, promotion, on assignment of more interesting tasks. Awards may be given in the form of articles, banquets honoring certain individuals, certificates and plaques, too, may be given, or the employees name may be entered on the Honors Board. Such recognition may be generally given for good workable suggestions leading to a reduction in time or cost or in improving the quality of a product; for valuable services in an emergency, as when a fire breaks out, or there is a breakdown, or there are riots or accidents; exceeding the sales beyond the set quota, and regularly in attendance on the job. Collective recognition may be given by the award of shield, a banner, or a certificate or by giving certificate, special privileges or a money bonus to the employees.

WAGE AND SALARY ADMINISTRATIVE

47

The compensation and human resource committee is appointed by TYCO for the purpose of:

Review and approve compensation, benefits and HR policies and objectives;Determine whether the company’s officers, directors and employees are compensated in accordance with these policies and objectives; andCarry out the board’s responsibilities relating to compensation of the company’s executives.

In addition, the compensation and human resource committee produces an annual report on executives’ compensation for inclusion in the company’s proxy statement, in accordance with applicable rules and regulations.

There are certain principals of wage and salary, which is practicing by the HR department.

Practice the definite plan to ensure that difference in pay for jobs are based upon variations in the job requirements, such as skill, effort, responsibility or working condition and mental and physical requirements.The general level of wages and salary should be reasonably in line with that prevailing in the lab our market.An adopting plan that carefully distinguish between jobs and employeesEqual pay for equal work.An equitable practice should be adopted for the recognition of individual differences in ability and contribution.There should be a clearly established procedure for hiring and adjusting wage and salary complaints.The wage and salary should be sufficient to ensure for the employees and for his family reasonable standard of living.Maintaining flexible wage and salary structure so that changing conditions can be easily met.Prompt and correct payments of the dues of the employees must be ensured and arrears of payment

48

must be ensured and arrears of payment should not accumulate.The wage and salary payment must be fulfilling a wide verity of employees including the need for self-actualization.

SALARY & SALARY PAYMENT:

An employee’s commencement of salary will be stated in his/her letter of appointment.The annual salary review shall be effective from 1st

January of each calendar year. For employees with less then one year of service any salary adjustment shall be computed on the basis of the no. of completed months of service.For staff salary will credit into their Bank Account. The HR department will issues individual pay slips to communicate their earnings & deductions & maintain register to comply statutory requirement.Generally the salary will be paid before the 7th working day of the next month.

BONOUS & EX – GRATIA PAYMENT:

The company will pay annual mandatory bonus in accordance with payment bonus act.The company may under normal circumstances pay an ex-gratia payment to employees who are not covered under bonus act.The Company may under normal circumstances pay an ex-gratia payment to employees who are not cored under bonus act.Any payment will be generally disbursed in the month of October/November every year. I.e.15 days before diwali festival.

EMPLOYEE WELFERE:

“Labour welfare means anything done for the comfort and improvement, intellectual or social, of the employees over and above the wages paid which is not a necessity of the industry.”

TYPES OF WELFARE SERVICES:

49

Employee welfare services may be classified into two broad categories:

Intramural: These services are provided within the establishment. These include latrines and urinals, washing and bathing facilities, crèches, rest shelters, canteens uniform, medical aid, library, recreation facilities, free or subsidized food, etc.Extra-mural: These services are provided outside the establishment. These consist of housing accommodation , transport , maternity benefits , children’s education, sports fields, family planning and child welfare ,holiday homes, leave travel facilities, workers cooperative stores, fair price shops ,credit societies, vocational guidance, interest free loans, etc.

Tyco’s Employees Health and Safety Programme:

Health and Safety Policy of the Organization:Professionally managed and comply with the statutory provisions by according high priority to health, safety and environmental control programmes.Ensure that technology absorbed, assimilated, upgrade and developed by the company lays emphasis on safety in and around the work place.Insure continuous improvement in safety and health aspect by carrying out safety audit, risk analysis, hozop studies, etc.Constitute safety committees to promote safety awareness and ensure participation of employees in safety and health related functions.Organize structure training programmes on continuous basis to educate employees and neighboring society on safety, health and loss prevention and control aspects.Ensure codification of safety standards and extend services to parties associated with company on safety aspects.Recognize contributions made by individual employees towards safety and health aspects.

50

SAFETY COLOUR CODE: Company is using the three colour code for the safety maintenance: red, to indicate that a person should be stop; orange, giving warning of danger, and green to identify the safety equipment, escape routes, and first aid boxes.

EDUCATION AND TRAINING: The goal of the company for the safety education is two-fold;

To develop safety consciousness among employees, and build up a favorable attitude on employee part toward safety measures and precautions.

To ensure safe work performance on the part of each employee by developing his skill in the use and operation of safety equipment.

Employee Services:

Service Related to the Type to Work Performed: Including the subsidies of the purchase and keeping of work clothing and uniforms and of the various types of tools used by a worker in the course of his work.

EATING FACILITIES: This includes the provision of company canteen, lunchroom, vending machines, and fully or partially subsidized food. TRANSPORTATION FACILITIES: Include parking lots and bus service. To ensure all the employees reach the factory in time for the respective shifts in view of insufficient public transport facilities. The pick up/drop up co. whicle is also utilized as ambulance in times of emergency, if any. Employee using his/her personal vehicle for official purpore within the & cope of his portion will be compeneated by the met age at the rate mentioned below;Pay’s rate certain: motorcycle =3.10/km For car = 6.60/km

HOUSING SERVICE: Including company;

Own housing projects

51

Subsidized housing

FINANCIAL AND LEGAL SERVICES: Including sponsoring of loan funds, credit unions, income tax cervices, legal aid saving plans, and group insurance plan.

GROUP INSURANCE: GROUP Accident: Every employee shall be covered by the

group accident policy for death and disability due to accident. To compensate the loss of earning due to unforeseen accident

and disablement due to accident.

RECREATIONAL, SOCIAL, CULTURAL PROGRAMMES: Including athletics, parties, picnics, libraries and reading rooms.

EDUCATIONAL SERVICES: Which include sponsorship for off duty courses, educational leave and scholarships for employees and their children.MEDICAL SERVICES: Including plant infirmaries, clinics and hospitals, counseling service and referrals to community social services.

OUTPLACEMENT SERVICES: Which include contact with other employers in the area, help in writing up resumes, and secretarial assistance. FLEXITIME: The workers are permitted to build up their flexible workday around acore of mid-day hours. It is call flextime because the workers themselves determine there own starting and stopping time.

HOLIDAYS: There are public holidays granted by the company in the calendar year. The list of holiday is circulated at the beginning of the year to the respective departments.

FIRST AID: In Tyco valves and Controls, First aid is given through time office. Some general medicines are also given by time office whenever it is needed like medicines for headache stomach pain, band aid etc.

52

INDUSTRIAL RELATION:

“Industrial relation is concerned with the systems, rules and procedure used by the unions and employees to determine the record for effort and other condition of employment to protect the interest of employee and their employers and to regulate the ways in which employees treat there employee.”

Halol Plant is running with Zero Industrial dispute rate since last Five Years.Organized works Committee to arrived at mutual agreement for working conditions and wage settlement.Zero legal Liabilities in terms of labor dispute and industrial relations.

HUMAN RESOURCE AUDIT: “HR audit refers to an examination and evaluation of policies, procedures and practices to determine the effectiveness of HR department.”

“Tyco follows the same Patten will be use in the company.”

ABSENTEEISM RATE: In to the Tyco Valves and Controls attendance punching card are issued to all employees. Employees have to punch their card two times while coming and while going. At the prescribed time the print of the data of attendance is taken out by the executive in the time office and it is sent to the personnel manager.

53

EMPLOYEE TURNOVER:

The employee turnover rate is 1.79% annually. Which is been calculated by monthly record of the employee’s joining and leaving of the organization. The yearly employee turnover is as follows:

Sl No.

Month

Opening balance

No. of Employees Joined

Employees Left

Closing

Attrition %balance

             1 January 201 3 4 201 0.98%2 Februar

y201 5 6 200 2.91%

3 March 200 4 1 203 0.49%4 April 203 3 3 203 1.46%5 May 203 4 5 202 2.42%

54

6 June 202 4 6 200 2.91%7 July 200 9 3 206 1.44%8 August 206 2 4 204 1.92%9 Septem

ber204 0 0 204 0.00%

10 October 204 0 2 202 0.98%

11November

202 2 2 202 0.98%

12December

202 4 3 203 1.46%

            #DIV/0!             

           1.79%

55

Production:-

“Production is a process of converting the raw material or

other inputs into the product for further production or the finished

goods or services so that the utility of the inputs are created and the

need of the customer is satisfied.”

Production management:

“Production management means creating and maintaining

an environment in which individual working together in groups willingly

contribute their best to produce the specified goods or services by

optimum utilization of raw material and other input so as to timely

satisfy the needs of the customer.”

56

ACTIVITIES OF PRODUCTION DEPARTMENT:

Operate equipment as per the standard operating procedure to

produce product of specified quality and to achieve production

target

Responsible for coordinating day-to-day maintenance activities

to get specified plant availability.

Production departments have to deal with material handling

dept., maintenance dept., ppc dept., QC/QA dept. on day-to-day

basis.

Services and Products

Flow Control designs and manufactures a wide variety of valves,

actuators, controls, pipes, fittings and heat tracing products. Valve

products include a broad range of industrial valves, including on-off

valves, safety relief valves and other specialty valves. Actuation

products include pneumatic, hydraulic and electric actuators. Control

products include limit switches, solenoid valves, valve, positioners,

network systems and accessories. For the water market, Flow Control

offers a wide variety of pipes, valves, hydrants, house connections and

fittings for water transmission and distribution applications.

Flow control is also a global provider of heat tracing services

and products. In addition to these core products, flow control makes a

variety of specialty products for environmental, instrumentation and

other application. We manufacture these products in facilities located

through out the world. Flow control products are used in many

application including power generation, chemical, petrochemical, oil

and gas, water distribution, waste water, pulp and paper, commercial

57

irrigation, mining, food and beverage, plumping and HVAC. Flow

control also provides engineering, design, inspection, maintenance and

repair services for its valves and related products.

Flow Control products are sold under many trade names,

including Anderson Greenwood, Biffi, Crosby, Keystone, KTM, Raychem,

Sempell, Tracer and Vanessa. Flow Control sells

Its services and products in most geographic regions directly through

its internal sales force and in some cases through a network of

independent distributors and manufacturers’ representatives

RAW MATERIAL:

Installation in fire protection systems or for distribution.

Materials are purchased from a large number of independent sources

around the world. There have been no shortages in materials that have

58

had a material adverse effect on our businesses. However, significant

increases in certain raw material costs may have an adverse impact on

costs and operating margins. We enter into long-term supply contracts,

using fixed or variable pricing to manage our exposure to potential

supply disruptions.

PRODUCTION FUNCTION

TYCO OPERATION IS DIVIDED INTO FOUR MAJOR

FUNCTIONS.

Product development centre.

Valve automation centre

Ware house for imported goods.

Manufacturing standards and tailor-made valves.

PRODUCTION PROCESS:

The company is adopted depending upon the grouping of machines,

equipments & facilities different type of production process.

Tyco production process is defined as follows:

Production process is been divided into three shops

a. Machinery shops

b. Maintenance shop

c. Assembly shop

These three shops can be explained with the help of below

diagram

59

MACHINERY SHOP

One of the production processes is machinery shop.

This process can be explained as below.

Firstly the production managers do the production planning and

control.

Then the managers signed their copies to the store and machine

shop and work order is being placed.

The process regarding the sequence is being maintained.

The finalization of the product is being done and component

credit voucher is being prepared.

Then the inspection department checks the product.

Production planning /control (PPC)

Work order

Process sequence

Final productComponent credit

voucher(ccv)

Inspection department

STORE

60

After finalize by the inspection department it is being stored in

the store.

MAINTENENCE SHOP

The following diagram below can also explain

the maintenance shop

The maintenance shop process is as follows:

The preventive measures are taken so that no accidents or loss

occurs.

Up to some extent prediction is being done so as to meet the

unforeseen circumstances.

Preventive

Predictive

Breakdown

61

PPC (prod. Planning control)

Work order Material receive

Loading

Assembly

TestingPaintingPI (third party inspection)

Inspection report

PCV(prod. Credit voucher) DESPATCH

If any kind of break down occurs corrective measures are to be

taken.

ASSEMBLY SHOP

The process of assembly shop is being explained by

the below diagram:

The process of assembly shop can be explained as under:

62

The production planning and control is been done and the work

order is been released.

The work order copies are being signed and then sent to the

assembly shop.

Then the material is being received.

The loading of the material is being done.

Then testing and painting of the material is been completed.

The third party does the inspection and inspection report is being

prepared.

After that the product credit voucher is prepared.

Finally the product is dispatched.

OPERATIONAL METRICS… HISTORY…

DESCRIPTION FY-05 FY-06 TARGET FY-07On time delivery 31.41% 54.72% 86%Customer complaints

92% 120% 75%

In house rejection

0.02% 0.20% 0.20%

Supplier rejection 1.07% 0.86% 0.50%Man days lost due to accident

0 0 0

0PEX INITIATIVES

OTD- Improvement from 15% to 76% - target fixed 86% by end

of FY-07.

Implementation of 5S

Improvement of productivity through KAIZEN

Widening of sub-vendor base

Review of customer complaints & corrective/ preventive actions

to eliminate the root cause.

Improvement in valve packaging to avoid transit damage

63

TECHNOLOGY USED:

The company in the form of machineries to make the final

product is used the various technologies.

The following are the available technology of the company

which is been used:

AVAILABLE MACHINERIESLathes

Heavy duty lathes -O4

NOS.

Conventional lathes -14

NOS.

Drilling machines

Pillar drilling machines - 03

NOS.

Radial drilling machine - 05

NOS.

Milling machines - 02

NOS.

64

CNC machines - 01

NOS.

Vertical turret lathe - 02

NOS.

Horizontal boring machine 80MM - 02

NOS.

Spindle size,

Welding systems

ARC welding machines - 02

NOS.

TIG welding machines - 01

NO.

CNC MACHINE CENTRE

65

CNC TURNING CENTRE

CNC DRILLING CENTRE

MANUFACTURING FACILITIES: ASSEMBLY

66

MATERIAL HANDLING SYSTEMS

MATERIAL HANDLING:

67

Material handling is the art and science of materials in

any form from one place to another from receiving through operation

to final shipment stage, their packaging and storing. So that the time

and place utility is created at the lowest possible cost and space

through the use of proper methods and equipments. It includes lifting,

shifting, positioning, holding, releasing, stacking, conveying, elevating,

dropping, etc. of materials.

The following are the material handling equipments that are been

used by the company:

EOT CRANE 15 TON CAP, - 01 NO.

EOT CRANE 5-TON CAP, - 02 NOS.

EOT CRANE 2 TON CAP, - 01 NO.

EOT CRANE 1 TON CAP, - 01 NO.

JIB CRANE 1 TON CAP, - 02 NOS.

FORK LIFT 3.5 TON CAP, - 01 NO.

MANUAL TROLLEYS (2.5 TON CAP) - 06 NOS.

MACHINERIES REQUIRED

HORIZONTAL MACHINE CENTRE - 01 NO.

CNC TURNING CENTRE - 01 NO.

MATERIAL HANDELING EQUIPMENTS

68

E.O.T CRANES 2-TON CAPACITIES - 01 NO.

MACHINERY OPERATION STORES

There is the storage facility for the operation of the machinery. To

make the operation process smooth the machineries are adjust in the

suitable form to smoothen the production process.

69

QUALITY CONTROL & PRE-SHIPMENT INSPECTION

QUALITY CONTROL:

Quality control refers to those activities used to refer to a

specific organization within the industrial enterprise, which is assigned

responsibility for many of activities necessary to achieve quality

objectives.

INSPECTOIN:

Inspection is a art of determining the acceptability or non-

acceptability of the parts, products or services. Comparing the quality

of the product to the standard makes inspection.

Exports (quality control & inspection) act.

70

When the goods are ready for shipment the exporter should

prepare for its pre shipment inspection. The supply of quality goods is

a must for hitting the international market & consolidating the position

in the existing market.

Pre shipment inspection is carried out the pursuance of the

foreign buyer. The Govt. of INDIA has launched a programmed for

quality control & pre shipment inspection under the exports (quality

control & inspection) act 1963.

INSPECTION BY BUYER’S AGENCY:-

Some items the foreign buyer lay down their own

standards/ specification which may or may not be equivalent with the

INDIAN standards including stipulates under the quality control

regulations. For this purpose the overseas buyers nominates their own

agencies persons to supervise the production of goods & or carry out

inspection before the shipment.

Types of pre shipment inspection.

Consignment- wise inspection

In- process quality control

Self- certification schemes

Fumigation of consignment.

QUALITY SYSTEM For maintaining the quality of the product the company maintain the quality system for that the company follows the quality system process. The quality system process of the company can be explained by the following chart and figures.

The quality system process is divided in the following steps:

71

Receiving inspection.In process inspection.Hydro test.Final inspection.Calibration.Quality system audit.

With the help of following flow chart the quality system process is explained.

QUALITY SYSTEM

- Raw material - Stage - Bodies - Instrument - Assessment- Bought out Inspection - Gauges - Surveillance- Sub contract - Jigs - Performance - Fixtures - In house

The inspection received of raw material is the first major most step of the quality system.Then the in process inspection i.e. the stage inspection is performed.Then the hydro test of the bodies is been done.Then the final inspection is been performed.After the final inspection the calibration of the jigs, fixtures, gauges & the instrument is done.Lastly the quality system audit by vendor assessment, vendor surveillance, vendor performance & in house is done.

MACHINES USED FOR THE QUALITY SYSTEM:

72

In process inspection

Hydro test Final Inspection

Receivinginspection

Calibration

Quality System audit

For the testing facility or inspection of the quality of the product two types of machineries are used.

Micro hite.Hydro test. Co-ordinate measuring machine.

73

74

STRUCTURE OF FINANCE DEPARTMENT

FUNCTION OF FINANCE DEPARTMENT

1 Budgeting & planning

2 Taking loans

3 Issuing shares

4 Balance sheet & annual report

5 Cash budget, inventories

Bharat Mehta Finance controller

Mangesh jadhavSenior account

Manoj shahAssistant finance manager

Mafat PatelExecutive finance

Dhiren barot Finance manager

Ashwin patelExecutive a\c

SandeepKashikara\c manager

Girish patelAccountant

75

6 Working capital

BUDGETING CONCEPT:

The concept of ‘going concerns” has become an

established rule for modern business houses. The organization always

strives to adapt itself to the changes in dynamic world. Thus, every

organization has to make plans for expansion, diversification,

modernization, replacement of obsolete assets etc.on a regular basis.

All these plans require huge investment to be made. Of course, the

benefit out of these schemes is spread over many years. Spending

money in the acquisition of such permanent facilities is called capital

expenditure and planning of such expenditure is called “capital

budget”

Budget is an important tool of profit planning. Budgeting as

a tool of planning is closely related to the broader system of planning

in an organization.planning involves the specification of the basic

objectives that the organization will pursue and the fundamental

policies that will guide it.

WHAT IS BUDGET?

“Budget is a quantitative and/or financial statement prepared prior to

a defined period of time reflecting the policy to be pursued during that

period for the purpose of attaining a given objective”. The definition of

76

‘Budget’ gives a complete picture of the concept of budget. It is an

action programmed prepared to achieve the set objective of the

enterprise.

This programmed is implemented for the coming financial period. It is

prepared on the basis of existing or historical data and with certain

assumption. Standards are also set to compare the actual

performance. Thus, it is a time bound plan of action to be implemented

for a specific coming period.

DEFINITION:

A budget is defined as a ‘comprehensive and coordinated plan,

expressed in financial terms, for the operations and resources of an

enterprise for some specified period in the future.’

“A budget is an estimate of future needs arranged according

to an orderly basis, converting some or all the activities of an

enterprise for definite period of time”.

Geor R.

Terry

As we have already discussed, budget is the expression of

firm’s planning financial form for period of time in future. Here we have

taken a few budgets to understand the same.

ISSUING SHARES:

SHARES:

77

A share is one of the unit into which total requirement of

capital is divided. The share is basically divided into two types. 1.

Equity share 2. Preference share.

Purchase or Acquisition of Shares by Company. The Board of

Directors may, at its discretion, authorize the purchase or acquisition

by the Company of its own shares of any class pursuant to and in

accordance with sections 42A and 42B of the companies act upon such

term as the board may determine. Any shares so purchased or

acquired may be either cancelled or held in treasury any such share

there was or is treated as having been acquired and held by the

company, which share has been continuously held by the company

since it was acquired, is referred to herein as a ‘‘Treasury Share.’’

All the rights attaching to a Treasury Share shall be suspended and

shall not be exercised by the company while it holds such treasury

share and treasury shares shall be excluded from the calculation of

any percentage or fraction of the share capital

or shares, of the Company as provided by the companies act.

Subject to the provisions of these Bye-laws, any shares of the

Company held by the

Company as Treasury Shares shall be at the disposal of the Board,

which may hold all or any of such shares, dispose of or transfer all or

any of such shares for cash or other consideration, or cancel all or any

of such shares.

Trading StatisticsPrice & Volume

78

Recent Price 43.18

Trade Date 06/20/08

52 Week High 54.17

52 Week Low 31.01

52 Week Price Percent Change -19.53%

YTD Price Percent Change 8.90%

Volume (10 Day Average) (000) 2,883.40

Beta (5-Year) 1.16

Share Related

Market Cap (Total, All Common Classes) (mil) 20,895

Shares Outstanding (Total, All Classes) (mil) 482.24

Shares Outstanding Average, latest FYE (mil) 495.00

STOCK QUOTE & CHART:

TYC (Common) Price 43.18 Change - 0.59Volume 3,108,925 % Change 1.35%Intraday High 43.80 52 Week High 54.17Intraday Low 43.01 52 Week Low 31.01Today's Open 43.79 Currency US DollarPrevious Close 43.77 Exchange NYSE

79

UNITED STATESSECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549FORM 10-K(Mark One)_ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THESECURITIES EXCHANGE ACT OF 1934For the fiscal year ended September 28, 2007OR_ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THESECURITIES EXCHANGE ACT OF 1934001-13836(Commission File Number) TYCO INTERNATIONAL LTD.(Exact name of registrant as specified in its charter)Bermuda 98-0390500(Jurisdiction of Incorporation) (IRS Employer Identification No.)Second Floor, 90 Pitts Bay Road, Pembroke HM 08, Bermuda(Address of registrant’s principal executive office)441-292-8674(Registrant’s telephone number)Securities registered pursuant to Section 12(b) of the Act:Title of each class Name of each exchange on which registeredCommon Shares, Par Value $0.80 New York Stock ExchangeSecurities registered pursuant to Section 12(g) of the Act: NoneIndicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the SecuritiesAct. Yes _ No _Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the

80

Act. Yes _ No _Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of theSecurities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required tofile such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes _ No _Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein,and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated byreference in Part III or this Form 10-K or any amendment to this Form 10-K _.Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer.See definition of ‘‘accelerated filer’’ and ‘‘large accelerated filer’’ in Rule 12b-2 of the Exchange Act (check one):Large accelerated filer _ Accelerated filer _ Non-accelerated filer _Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the ExchangeAct). Yes _ No _The aggregate market value of voting common shares held by non-affiliates of the registrant as of March 30, 2007 wasapproximately $61,353,813,918 or $24,060,223,857, as adjusted for the one for four reverse stock split and Separation described herein.The beneficial common share holdings of all executive officers and directors of the registrant as of October 2, 2006, have beendeemed, solely for the purpose of the foregoing calculation, to be holdings of affiliates of the registrant.The number of common shares outstanding as of November 22, 2007 was 494,815,892.

81

82

WEBSITES:

www.TYCO.COM

www.TYCO INDIA.COM

www.TYCO FLOW.COM

BOOK REFERENCE:

MARKETING MANAGEMENT (KOTTLER)

83