SUMMER TRAINING REPORT ON

RAW MATERIAL ASSISTANCE SCHEMS TO SMALL SCALE INDUSTRIES

AT
NATIONAL SMALL INDUSTRIES CORPORATION Ltd. (NSIC), ALIGARH
A PROJECT
SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE AWARD OF THE DEGREE OF

Master of Business administration

Submitted by:

Deepak Kumar Verma

UNDER THE SUPERVISION OF External Supervisor T.S. RAJPUT Internal Supervisor Mr. Faran Izhar
(Lecture ABIMS)

(Deputy General Manager)

1

TABLE OF CONTENTS
CERTIFICATE OF COLLEGE CERTIFICATE OF COMPANY ACKNOWLEDGEMENT PREFACE 4 5

INTRODUCTION OF NSIC COURSE OF NSIC SCHEMES OF NSIC EXHIBTIONS OF NSIC TO SUUPORT SSIS HIERARCHY OF NSIC (ALIGARH) DESCRIPTION OF VARIOUS DEPARTMENT Technical Department Finance Department Personnel Department Quality assurance Department

9 14 11 31 32 37 37 38 39 41

TOPIC INTRODUCTION OBJECTIVE OF STUDY RESEARCH METHODOLOGY DATA ANALYSIS FINADING LIMITATIONS SUGGESTION BIBLIOGRAPHY 2

42 77 78 79 91 92 93 94

APPENDIX

95

ACKNOWLEDGEMENT
By the grace of GOD, I take the opportunity with great pleasure to plot the circle of warm complement deep sense of gratitude and profound thanks to all those who have spared their valuable time and giving me their cooperation to make this project complete. First of all I would like to express my sincere thanks to my supervisor Mr. saxena HR manager NSIC , Aligarh. For his efforts, continuous proper guidance, supervision and generous cooperation throughout this work which enabled me to present this project report. Special thanks have to be reserved for Mr. T. S. Rajput (DGM) NSIC, Aligarh for providing facilities and extending full support to and project work. I express my profound thanks to Mr.Javed, Mr.Jabbar who helped a lot during this training for giving precious time, giving encouragement time to time I would be filling in my duty if, I do not express my heartiest thanks to lecturer and coordinate department for giving all possible support, suggestion and is valuable time in preparing this project.

PREFACE

As an essential and obligatory part of my course undergone 8 weeks, complete summer training at National small industries corporation ltd, Aligarh. This training helped me in getting practical knowledge into the business environment. I got a practical about national small industries corporation ltd. How the work is done in this company. I have more emphasize on the training program in NSIC. In this project report .I have all the information related to HR operation of the company. I have also mentioned functions of various departments: finance department, production dept, HR department, quality assurance dept, engineering dept, etc. In this project report, I gave all the information which not only serve comprehensive knowledge base but also helps the reader in understanding the fundamental related to the subject.

MISSION
To enhance the competitiveness of small enterprises through a blend of promotional and commercial activities.

VISION
To be a world class organization fostering the growth of small enterprises.

NSIC PREMIER VALUES

INNOVATION:-To innovate from product to processes. Excellence:- TO be best in quality and in everything we do. Risk Tolerance:- To create a culture where entrepreneurship and prudent risk
taking are encouraged and rewarded.

Motivation:-To

celebrated

success,

recognizing

and

rewarding

the

achievements of individual and teams.

Respect: - TO act with integrity and respect towards all.

NSIC CHIRMANS FOUR IMPERATIVES

1 :- Maintain Profitable Growth 2 :- Measure and Recognize Performance 3 :- Remove the Clutter 4 :- Squeeze out costs

Introduction to NSIC
National Small Industries Corporation Ltd. (NSIC), an ISO 9001 certified company, since its establishment in 1955, has been working to fulfill its mission of promoting, aiding and fostering the growth of small scale industries and industry related small scale services/business enterprises in the country. Over a period of five decades of transition, growth and development, NSIC has proved its strength within the country and abroad by promoting modernization, up gradation of technology, quality consciousness, strengthening linkages with large medium enterprises and enhancing exports - projects and products from small industries. NSIC operates through more than 120 offices, supported by a team of over 500 professionals spread across the country. To manage operations in African countries, NSIC operates from its office in Johannesburg. NSIC carries forward its mission to assist small enterprises with a set of specially tailored schemes designed to put them in a competitive and advantageous position. The schemes comprise of facilitating marketing support, credit support, technology support and other support services. NSIC carries forward its mission to assist small enterprises with a set of specially tailored schemes designed to put them in a competitive and advantageous position. The schemes comprise of facilitating marketing support, credit support, technology support and other support services.

Marketing: Marketing, a strategic tool for business development, is critical to

the growth and survival of small enterprises in today's intensely competitive market. NSIC acts as a facilitator to promote small industries products and has devised a number of schemes to support small enterprises in their marketing efforts, both in an outside the country. These schemes are briefly described as under. Consortia and Tender Marketing: Small Enterprises in their individual capacity face problems to procure & execute large orders, which inhibit and restrict their growth. NSIC, accordingly adopts Consortia approach and forms consortia of units manufacturing the same products, thereby easing out marketing problems of SSIs. The Corporation explores the market and secures orders for bulk quantities. These orders are then distributed to small units in tune with their production capacity. Testing facilities are also provided to enable units to improve and maintain the quality of their products conforming to the standard specifications. Single point Registration for Government Purchase: NSIC operates a single Point Registration Scheme under the Government Purchase Programme, wherein the registered SSI units get purchase preference in Government purchase programme, exemption from payment of Earnest Money Deposit etc. Issue of tender sets free of cost. Advance intimation of tenders issued by DGS&D. Exemption from payment of earnest money. Waiver of security deposit up to the monetary limit for which the unit is registered
10

Issue of competency certificate in case the value of an order exceeds the monetary limit, after due verification. Small Enterprise Establishment Programme (SEEP) This programme facilitates setting up of new enterprises all over the country by creating self-employment opportunities for the unemployed persons. The objective of this scheme is to facilitate establishment of new small enterprises by way of providing integrated services in the areas of training for entrepreneurial skill development, selection of small projects, preparation of project profiles/reports, identification and sourcing of plant, machinery and equipments, facilitating sanction of credit facility and providing other support services in order to boost the development of small enterprises in manufacturing and services sector.

11

NSIC-TSC, ALIGARH

THE NSIC-TECHNIAL services center was established during the year 1986 primarily for the upliftment of locks and hardware, allied small scale industries and rural artisan .

AIMS AND OBJECTIVES:

To provide technical and vocational training to youths for employment generation. To improve and quality and productivity by providing tools and on job training. Up gradation of technology to SSIs To provide skilled manpower to SSI units. To provide common facility services in areas such as:

Design and development of press tool, dies and mould, jigs and fixtures gauges. Job work services to SSIs.

12

TRAINING ACTIVITIES :
NTSC, ALIGARH has a wide spectrum of training courses ranging from Basic Technical Training courses to specialized and HI-TECH training courses as well as tailor made training courses to suit the need and requirements of one and all.

Further, NTSC, Aligarh has also been conducting specialized training Program of OBS candidates sponsored by National Backward Classes Finance and development corporation (NBCFDC). 200 Child labour youths have been trained under Indus project supported by ILO.NSCFDC has also sponsored 25 youths six months training.. The centre has trained more than 16000 youths in the different industrial trades till date We are committed for quality training. We maintain the ethics of teacher and student relationship. We are more emphasizing on job training along with classroom training. We trained our trainees to get employment and also inspired them for self employment.

13

COURSES AVAILABLE AT NSIC

Course Name:DurationCourse Name: Duration-

Tool & die design with Auto CAD 2Years Tool & Die Maker with CNC wire-cut 2Years

Course Name: Turner with CNC lathe Duration2Years

Course Name : Product Design Engg(with Delcam) DurationCourse Name: Course Name: DurationCourse Name: DurationCourse Name: Duration1year Tool Design with Auto CAD CNC Wire-cut Programming and operation 3months Programming and Operation of CNC Milling 3months Programming and Operation of CNC Lathe 3months

14

Course Name: DurationCourse Name: DurationCourse Name: DurationCourse Name: DurationCourse Name: Duration-

Programming and Operation of CNC Wire-Cut 3months Programming and Operation of CNC Lathe 6months Programming and Operation of CNC Milling 6months Auto CAD 2007(Mechanical) 2months Press Tool Design with Auto CAD 50hrs

15

CONVENTIONAL TRAINING PROGRAMME

Course Name: Draughtsman(Mechanical) Duration1Year

Course Name: Electrician Duration1year

Course Name: Machinist Duration1Year

SPECIALIZED TRAINING PROGRAMME (short term)

Course Name: Course Name: Course Name:

TQM/ISO 9001:2008 Awareness 1 Electronics 2 Mobil Repairing Electric Motor Repair and Rewinding

16

NSIC SCHEMES

1-PERFORMANCE & CREDIT RATING SCHEME

Need of a Performance and Credit Rating Mechanism for SSIs was highlighted in Union Budget 04-05. A scheme for SSIs has been formulated in consultation with Indian Banks Association (IBA) and Rating Agencies. NSIC has been appointed the nodal agency for implementation of this scheme through empanelled agencies.

Benefits of Performance and Credit Rating

An independent, trusted third party opinion on capabilities and creditworthiness of SSIs

Availability of credit at attractive interest Recognition in global trade Prompt sanctions of Credit from Banks and Financial Institutions Subsidized rating fee structure for SSIs Facilitate vendors/buyers in capability and capacity assessment of SSIs Enable SSIs to ascertain the strengths and weaknesses of their existing operations and take corrective measures.

17

Benefits to Banks and Financial Institutions Availability of an independent evaluation of the strength and weaknesses of an SSI unit seeking credit and thereby enabling banks and financial institutions manage their credit risk Salient Features

A combination of credit and performance factors including operations, finance, business and management risk

Uniform Rating Scale for all empanelled rating agencies. SSIs have the liberty to choose among the empanelled Rating Agencies. Turn-Over based Fee structure Partial Reimbursement of Rating Fee through NSIC

Empanelled Agencies

CARE CRISIL FITCH ICRA ONICRA SMERA Dun & Bradstreet(D&B)

18

Performance and Credit Rating Fee

Turu over of SSi Up to Rs 50 lacks Above Rs 50 to lacks More than Rs 200 lacks Fee through NSIC Rs 25000/Rs 30000/Rs 40000/-

Reimbursement of Performance and Rating Fee

Turn over of SSI Up to RS 50 Lacks Above RS to 200 Lacks More than RS 200 Lacks

Reimbursement of Fee through NSIC 75% of the Fee or RS 2500/-(which is lees) 75% of the Fee or RS 3000/- (Which is Less 75% of The fees RS 4000/- (which is lees)

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2-BANK CREDIT FACILITATION SCHEME

Equipments Financing: The Corporation is facilitating micro and small enterprises in securing loans for purchase of equipment and machinery.

Tie-up with Commercial Banks: To meet the credit needs of MSEs, NSIC has tied up with commercial banks of section of terms loans and working capital facilitating as per the convenience of the micro and small enterprises. The arrangement envisages forwarding of loan application of the interested micro and small enterprises by NSIC to the interested micro and small enterprises by NSIC to the banks without any cost to micro and small enterprises. The accredited micro and small enterprises under the performance and credit rating scheme of NSIC will stand at a good chance to get the credit from these commercial banks at liberal rate.

20

3-RAW MATERIAL ASSISTANCE

Raw

Material

Assistance

Scheme

aims

at

helping

Small

Scale

Industries/Enterprises by way of financing the purchase of Raw Material (both indigenous & imported). This gives an opportunity to SSI to focus better on manufacturing quality products.

Benefits of the Scheme

Financial Assistance for procurement of Raw Material upto 90 days. SSI helped to avail Economics of Purchases like bulk purchase; cash discount etc

NSIC takes care of all the procedures, documentation & issue of Letter of credit in case of imports.

Process to Apply
The Entrepreneurs are required to apply for Raw Material Assistance only on the prescribed application forms. The blank forms are also available free of charge from the zonal and Branch offices. 1. Duly filled application form is to be submitted along with the Application Processing Fee ( by Bank Draft / Pay Order in favour of NSIC Ltd.). 2. Preliminary appraisal and Unit inspection is carried out by NSIC. 3. Sanction of Limit to the Unit. 4. Signing of agreement between NSIC and Unit.
21

5. Disbursement of assistance to the unit.

Processing Fee (depends on amount of assistance sought)

S.No. Slab for Processing fee a.) b.) c.) d.) Up to Rs.25 lacs above Rs.25 lacs and up to Rs.50 lacs above Rs.50 lacs and up to Rs.1 core above Rs.1 core Rs.2,500/Rs. 5,000/Rs. 10,000/0.1% of the assistance applied for

22

5-EXPORTS
NSIC is a recognized Export House. NSIC, on behalf of small industries, is exporting products and projects around the globe. The major areas of operation are:

Export of Indian products like handicrafts, leather items, hand tools etc. Supply of Small Industry Projects on turnkey basis. Export of IT solutions from India. Export of Relief supplies from India to UN and other International Agencies

Product
NSIC is associated with the exports of Small Scale Industries products to other countries.

Project
NSIC undertakes export of industrial projects under its is associated with the exports of Small Scale Industries products to other countries on turnkey Basis. NSIC provides a package of services for setting up of Industrial Projects to other countries

23

Exports Assistance
NSIC is associated with the exports of Small Scale Industries products to other countries. The broad categories of products exported by NSIC are:

Builders Hardware Garden Tools & Accessories Handicrafts Electrical Products & Accessories Sports Goods Sanitary Fittings Textile and Textile Products Leather Products Auto Components Architectural Iron Light Engineering Goods Hand Tools Castings & Forgings

24

6-BILL DISCOUNTING SCHEME

The Scheme covers purchase / discounting of bills arising out of genuine trade transactions i.e. purchase of supplies made by small scale units to reputed Public Limited Companies / State and Central Govt. Departments / Undertakings.

SELLERS
Small Scale Units

BUYERS
i) State and Central Govt. Departments / Undertakings ii) Public Limited Companies

GRANT OF PURCHASER-WISE LIMITS

Bills drawn by small-scale units for the supplies made by them and duly accepted by the Purchaser will be financed against security of Bank Guarantee in favour of NSIC. Purchaser unit(s) may approach NSIC for sanction of annual limits by furnishing information as per the prescribed application form.

25

GRANT OF SELLER-WISE LIMITS

Seller unit(s) may provide bank guarantee in favor of NSIC for availing financial assistance under the scheme. Bills drawn by them against their supplies made, duly accepted by the purchaser will be financed. Annual limits can be fixed for such units by obtaining information as per the prescribed application form.

PERIOD OF USANCE OF BILLS TO BE CONSIDERED FOR DISCOUNTING :

The maximum period of such bills should not exceed 90 days. The period of unexpired of the bill shall not exceed 90 days while the tenure of the bills shall not exceed 120 days.

SECURITY:
Bank guarantees issued by banks approved by Head Office. The Bank Guarantee to be obtained should be equivalent to the value of assistance (including discounting charges & service charges for 90 days). OR Bill of exchange duly accepted by large corporate units of good financial standing with a turnover exceeding Rs 200 Crores and net-worth exceeding Rs 50 crorers

26

and which are profit making for the last three years. Personal guarantee of proprietor, partners of firms and Directors of the company shall also be obtained.

RATE OF INTEREST
The rate of interest would be as under ( w.e.f 11/05/2009): a) Assistance against the security of BG/SDR/FDR : 11.25 % p.a b) Assistance against the security other than those mentioned above : 13.25% p.a. to 16.25% ( in such cases high Power Acceptance committee at H.O. is empowered to fix the rate of interest on case to case basis.) The rate of interest on the delayed payment (w.e.f 11/05/2009) shall be charged as follows: (i) For the delays beyond 90 days but up to 180 days : 2.50% over and over and above the normal rate of interest. (ii) For the delays beyond 180 days : 3.00% over and above the normal rate of interest. Revised rate of interest shall be made applicable on : a. All the cases sanctioned and / or disbursed on and after 11/05/2009 and b. Principal amount outstanding (not overdue) as on 11/05/2009, against the assistance already granted & disbursed.

27

SERVICE CHARGES
FOR UNITS PLACED ALL OVER THE COUNTRY OTHER THAN NORTH EASTERN REGION
Minimum service charges will be 0.25% for the first 30 days and thereafter 0.08% per week subject to maximum of 3% of the Principal amount (i.e. amount of invoice to be discounted). OR Commitment charge @ 2% p.a. on the limit sanctioned to be collected in advance.

FOR UNITS PLACED IN NORTH EASTERN REGION

Minimum service charges will be 0.13% for first 30 days and thereafter 0.04% per week subject to a maximum of 1.50% of the principal amount (i.e. amount of invoice to be discounted). OR Commitment charge @ 1% p.a. on the limit sanctioned to be collected in advance.

28

PROCESSING FEE
(i) Processing Fee shall be collected in advance on receipt of application and will be non-refundable. The processing fee shall be 0.2% of the limit applied for. (ii) At the time of processing of application for enhancement of limit, the rates shall be the same as at (i) above. (iii) At the time of processing of application for renewal of limit, the rates shall be fifty percent of the rates as at (i) above. The application for the request to sanction limit under the Bill Discounting Scheme is to be submitted by the seller unit duly signed by the authorized signatory i.e. Proprietor / Partner / Director of the Firm / Company in duplicate in the prescribed form

29

7-GOVERNMENT STORES PURCHASE PROGRAMME

The Government is the single largest buyer of a variety of goods. With a view to increase the share of purchases from the small-scale sector, the Government Stores Purchase Programme was launched in 1955-56. NSIC registers SSI units under Single Point Registration scheme for participation in Government Purchases.

Benefits of Registration

Issue of tender sets free of cost. Advance intimation of tenders issued by DGS&D. Exemption from payment of earnest money. Waiver of security deposit up to the monetary limit for which the unit is registered.

Issue of competency certificate in case the value of an order exceeds the monetary limit, after due verification.

30

Eligibility :
Micro & small Enterprises which are in continuous production of stores for one year or more and are registered with the Director of Industries (DI) as manufacturing SSI Unit/Small Scale (industry related) Service & Business Enterprises(SSSBE), who own workshop of their own or on lease basis and have the commercial and technical competence to produce stores/provide services for supply to the Government Departments such as DGS&D, Railways, Defense, P&T, Central/State Government Departments and Central/State Government Public Sector Undertakings etc. conforming to BIS or such standards as required by the Government buying agencies. For the micro & small Enterprises who have commenced the commercial production but not completed one year of existence and hence not able to submit the Audited Balance Sheets and other annexure, the provisional Registration Certificate can be issued to such Micro & Small Enterprises under Single Point Registration Scheme which shall be valid for the period of one year only for the date of issue after levying the registration fee and obtaining the requisite documents. The initial monetary limit for such units will be fixed at Rs. Lac Only. The Provisional Registration Certificate will be valid for the period of one year only. The Provisional Registration Certificate shall to be renewed by the unit before it expiry as per the term and conditions of the Single Point Registration Scheme laid down for the renewal of the registration.
31

How to Apply
SSI Units shall have to apply on the prescribed application form in Duplicate and to be submitted to the concerned Zonal/Branch Office of NSIC located nearest to the unit. In case of any difficulty in filling the application form and completing the documentation please consult any of the Zonal / Branch office of NSIC. REGISTRATION FEE Registration Fee to be paid to NSIC

S.No. Category 1. For Fresh Registration : Based on the Investment in Plant and Machinery as per slab given below Up to Rs. 5 Lac More than Rs 5 Lac but up to Rs 25 Lac More than Rs 25 Lac but up to Rs 100 Lac More than Rs 100 Lac but up to Rs 500 Lac 2.

Rs 2,500/Rs. 4000/Rs. 7000/Rs. 10,000/-

Fee for issuance of amendments in stores 50% of the charges as (Qualitative & Quantity); Fee for issuance mentioned at S.No. 1 of change in monetary limit or any other above

32

amendment in the certificate and fee for issuance of Renewal of GP Registration. (Every Two years)

REGISTRATION PROCESS
1. The SSI Unit has to submit the application form (in duplicate) along with requisite fee and documents to the Zonal/Branch and Sub Office of NSIC situated nearest to their location. 2. Duplicate copy of the G.P. Registration Application Form submitted by the SSI Unit will be forwarded to the concerned SISI along with copies of required documents and Draft/Pay Order of Rs. 1000/-, requesting for carrying out the Technical Inspection of SSI Unit and forward their recommendations in this regard. 3. After receiving SISI Inspection Report, NSIC will issue the GP Registration Certificate to SSI Unit for items/stores as recommended. Procedure for calculation & fixation of Monetary Limits of SSI Units: Monetary limit of the company is fixed on the basis of the unit's net sales turnover during the last three years reflected in the Audited Balance Sheets. Sample calculation: Net Sales = Total sales All Duties, Taxes, returns etc Details of the net sales of the company during last three years:2002-03 Rs. 50 Lacs 2003-04 Rs. 75 Lacs
33

2004-05 Rs. 80 Lacs Therefore, Monetary Limit = Rs. (50+75+80)/3 X 50% = Rs. 34.26 Lac. Say = Rs. 34 Lac.

In case the Company/Partnership concern/Proprietorship unit is in loss for one year out of past three years, their monetary limit will be fixed at 40% of their average net sales turnover.

Similarly, when the SSI Unit is in loss for two years out of the past three years, the monetary limit will be accordingly fixed at 30% of their average net sales turnover of the past three years.

In the event of SSI unit being in loss throughout past three years, the monetary limit of the Unit will be fixed at 20% of the average net sales turnover of the Unit during the past three years In cases of initial registration where the firm has been in existence for less than 3 years MTL may be fixed at 50% of the average net sales value of the last year for which audited accounts are available.

Validity Period of G. P. Registration

The G. P. Registration Certificate granted to the SSI Unit under Single Point Registration Scheme (Revised), 2003 is valid for Two Years and will be reviewed and renewed after every two years by verifying continuous Commercial and Technical Competence of the registered SSI Unit in manufacturing / producing the stores for which it has been registered by NSIC.

Documents Required for Renewal of the Registration

34

1. Original GP Registration Certificate. 2. A Copy of the Permanent Account Number (PAN CARD). 3. Copy of valid SSI Registration Certificate 4. List of major Govt. Orders executed during last 2 (two) years. 5. Copies of Audited Balance sheet for last 3 years duly signed by the authorized person under his seal 6. List of addition/deletion in the plant and machinery after the registration. 7. For the following documents one declaration shall be given :1. Factory License/Shop Establishment Act License 2. Photocopy of Municipal Corporation Certificate 3. Proof of ownership Deed/Lease Deed/ Rent Deed 4. No Objection Certificate from Pollution Control Board.

35

TECHNOLOGY SUPPORT
Technology is the key to enhance a companys competitive advantage in todays dynamic information age. Micro and Small enterprises need to develop and implement technology strategy in addition to financial, marketing and operational strategies and adopt the one that helps integrate their operation with their environment, customers and suppliers. NSIC offers the following support services to micro and small enterprises through its Technical Service Centers and Extension Centers. Advice on application of new techniques Material testing facilitating through accredited laboratories Product design including CAD/CAM Common facility support in machining, EDM, CNC, DNC, etc. Energy and environment audit services at selected centers Classroom and practical training for skill up gradation and entrepreneurship development.

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8-Infomediary Services
Information today is becoming almost as vital as the air we breathe. We need it every minute of our working lives. And with the increase in competition and melting away of international boundaries, the demand for information is reaching new heights. Keeping in mind the information needs of small industries NSIC has launched "Infomediary Services". A one-stop, one-window bouquet of aids that will provide information on business, technology and finance, and also exhibit the core competence of Indian SMEs in terms of price and quality-internationally, as well as domestically. NSIC's Infomediary Services use a professionally managed HR base and modern technology for dissemination of vital information-websites, sector-specific newsletters (both print and electronic), and e-mails. Potential beneficiaries would be entrepreneurs-both existing and aspiring-R&D labs, SME seeking business collaboration and co-production opportunities, joint ventures, exporters and importers, and those looking for technology transfer.

Salient Features
37

Tender Information in your e-mail box and web based browsing Banner display on NSIC's website Concessions on Apollo Hospitals Medical Facilities. Concessions on hotel reservation in select hotels. Access to a wide rang of technologies from India and abroad. Access to national and international business leads, JV opportunities and trade information.

Information on Trade and events. Comprehensive information on Government policies, rules and regulations, schemes and incentives. Access to industrial databases and members' directory.

Access to NSIC's Business Centre with facilities such as conference hall, fax, telephone, photocopy and A/V aids etc.

Access to a wide range of assistance for participation in business delegations, exhibitions/fairs.

Availability of a wide range of escort services, e.g., product design, credit and support rating, developing catalogues and product literature, energy and environment audit, introduction of information technology (IT) solution in Business operations. Skill up gradation Training, mentoring services, common facility at NSIC Technical Services Centre(s), banners display on websites and market studies.

In addition Infomediary member would get discounts from Apollo Hospital for medical facilities.

Access to Infomediary services is through NSIC Infomediary Services (IS) membership at a cost of Rs. 5000/- (Five Thousand Only).
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INTERNATIONAL AND NATIONAL EXHIBITION

NSIC has now emerged as one of the key players for the promotion and development of Micro and Small Enterprises in the country. NSIC had laid certain goals and objectives for the company and looking back after almost two years since then, NSIC can derive some satisfaction that the company has been able to tread the path of development. It has not only achieved a turn around in its profitability, but has also reached out to a larger number of Micro and Small Enterprises for providing its services. NSIC have always urged upon all the employees to not only enhance the business operations and viability, but also improve the quality of service to our customers. You will agree that good customer service always brings a greater satisfaction while profitability is necessary to keep operations continuing. There is marked improvement on this front too but, a lot more needs to be done to earn the trust and confidence of a larger number of beneficiaries of NSICS services. At the national level, NSIC was conferred the Corporate Excellence Award by Amity International Business School during the year 2006-07 thus, acknowledging the turnaround in overall performance and quality of service delivery. Institute of Economics Studies- New Delhi conferred

39

the Udyog Rattan Award and Excellence Award to NSIC for outstanding performance in the field of industrial development of the country. For participating in the India International Trade Fair organized by India Trade Promotion Organization (ITPO), NSIC was given the award for Best Display in Theme Category. NSIC is closing the current financial year 2009-10 with a record performance in terms of turnover and profitability, but NSIC cannot rest at these levels as majority of potential customers are still waiting to receive its services. NSIC has to reach out to the marginalized and unemployed in order to help them in their self-employment activities.

Participation under NSIC banner

To showcase the competencies of Micro & Small Enterprise (MSEs) and to capture market opportunities, NSIC participates in selected International Exhibition every year. NSIC facilitates the participation of small enterprises by providing the special discount on Stall rental and Airfare only. Participation in these events provides exposure to MSE units in International market and enhances their business prowess.

Benefits of participation
NSIC is a brand name for the development and promotion of Micro & Small Enterprises worldwide. The participation of Indian Micro & Small Enterprises under the NSIC banner facilitates them to grow and expand their business. NSIC
40

creates a platform for Micro & Small enterprises in Foreign Fairs to enable them to obtain credibility about their competency and capability to supply goods/technologies to foreign buyers matching International Standards.

Organizing International Technology Exhibitions in Foreign Countries by NSIC and participation in International Exhibitions/Trade Fairs

Opportunities in emerging and developing markets. These exhibitions may be organized in consultation with the concerned stakeholders and industry associations etc. The calendar for these events may be finalized well in advance and published widely amongst all participants/stakeholders. The calendar of events would also be displayed on the Web-site of NSIC. Such expositions showcase the diverse technologies, products and services produced/rendered by Indian MSMEs and provide them with excellent business opportunities, besides promoting trade, establishing joint ventures, technology transfers, marketing arrangements and image building of Indian MSMEs in foreign countries. In addition to the organization of the international exhibitions, NSIC would also facilitate participation of Indian MSMEs in the select international exhibitions and trade fairs. Participation in such events exposes MSMEs to international practices and enhances their business prowess. These events provide a platform to MSMEs where they meet, discuss, and conclude agreements on technical and business collaborations.
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Rules and regulations for participation in fair abroad through NSIC The participants interested to participate in any of the International exhibition Need to apply with. 1. Duly filled application form along with following documents as mentioned in the FACT SHEET.

Copy of the valid SSI Registration Certification or Entrepreneurs' Memorandum (1& 2) filed with the notified authority as a proof of Micro or Small enterprise.

Copy of Membership Certificate of Industry / Associations / Chamber of Commerce / Export Promotion Council.

Proof in support of the promoter's category or categories (Women, SC/ST. Backward, Minority) etc.

Copies of Audited Balance Sheet with Income Tax Returns for the last two year.

Proof in support of the promoter's category or categories (Women, SC/ST. Backward, Minority) etc.

Copies of Audited Balance Sheet with Income Tax Returns for the last two year.

Copy of company profile.

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To sign an agreement with NSIC in case of participation in technology exhibition (Format of agreement).

2. Participation Fee: Complete stall charges (non-refundable) by Demand Draft in favor of National Small Industries Corporation, New Delhi towards participation fees should be submitted by the participating unit after availing the amount of concession a accruable to the unit.

Organizing Domestic Exhibitions and Participation in Exhibitions/ Trade Fairs in India

In order to provide marketing opportunities to MSMEs within the country, certain theme based exhibitions / technology fairs etc. may be organized by NSIC, focused on products and services offered by MSMEs, including technologies suitable for employment generation, products from specific regions or clusters (like North Eastern Region, Food processing, Machine-tools, Electronics, Leather etc). Micro, Small & Medium Enterprises would be provided space at concessional rates to exhibit their products and services in such exhibitions/fairs. Apart from above NSIC may also facilitate participation of MSMEs in the exhibitions / trade fairs / events being organized by various State Government departments, industry associations and other institutions, all over the country to exhibit their products and services. These exhibitions may be organized in consultation with the concerned stakeholders and industry associations etc. The calendar for these events may be
43

finalized

well

in

advance

and

published

widely

amongst

all

participants/stakeholders. The calendar of events would also be displayed on the Web-site of NSIC. Participation in such events is expected to help the MSMEs in enhancing their marketing avenues by way of capturing new markets and expanding existing markets. This would also help them in becoming ancillaries, partners in joint ventures and sub-contracting for large companies.

Proposed Calendar of Domestic Exhibition for the year 2009-10

S. No. 1

Name of the Exhibition Techmart India 2009

Type of Event Technology Fair East

Duration 14-27 2009 Jan. 2010 Feb.2010 Nov

Dealing Branch Office H.O./Branches

2 3

North East Trade Expo 2009, North Delhi Guwahati Trade Fair

Handicrafts/Products North East Products

Doner / NE/ HO B.O. North East

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B. Exhibitions Proposed to be Participated Dealing S.No. Name of the Exhibition Type of Event Duration Branch office 7-9 August 2009 Delhi Parliament Street /

5th Fod & Technology Expo 2009,Prag Food & Technology

Automnation 2009, Mumbai

Automobile Technology / Products Automobile Technology / Products Industrial Technologies Products /

Sept. 2009 B.O.Mumbai

Indian Automobile Trade Fair, Pune

Dec.2009 B.O.Mumbai

4 5 6

Industrial India Trade Fair, Kolkata

Dec.2009 B.O.Kolkata Jan. 2010 B.O.Kolkata Jan. 2010 B.O. Jaipur

Shilpa Banijya Mela 2010, West Begal Multi Products Pashchimi Rajsthan Udyog Hastship 2010, Jodhpur Handicrafts

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Descriptions of various functions

TECHNICAL DEPARTMENT
Engineering services a vital role in proper working of an organization. The quality those services decides the quality of work life (QWL) and the productivity level. The role is highly emphasized since the main motive of every worker and the factory, as a whole is high productivity.

Engineering services actions always try to improve its utilities services and maintenances service. The main emphasis is on prevention of wear and also wastage.

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FINANCIAL DEPERTMENT
Money is all about goes famous saying. Finance and account department is the backbone of any organization. Thus it can be said that success of any organization largely depends upon the optimum utilization of funds. NSIC has a well-equipped finance department with vice president finance as the controlling from the Dhali. NSIC has finance executive and account officers and other staff working under him who are placed at Aligarh factory. These are in total 8 persons working in accounts department. Aligarh factory also controls the computer department.

Functions of account Department: Fund Management. Budgetary control. Purchases Accounting and control. Wages Administration.
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 Audit compliance Variance Analysis. Information Technology.

PERSONNEL AND HRD DEPARTMENT

1-RECRUITMENT AND SELECTION

Recruitment refers to the getting interested applicants and providing a pool of prospective employees as that the management can select the right person for the right form the poor.

Source of recruitment 1-Internal source Present employees, employee referrals former

employees, previous applicant.

2-External source- Advertisement, employment exchange, campus

recruitment, walk in, talking write in interview.

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The purpose of the selection process is to choose right type of candidates form various type of jobs.

Recruitment in NSIC
Here the aim of selection process is to reject the unsuitable candidates. But recruitment is a positive process because it aims at attracting applicants for various jobs. In order to carry out the organizational activities every organizational needs to recruits people. In NSIC recruitment is mainly done through internal as well as external sources. As an internal sources, the authorized staff of NSIC consider job description and specification is done before going for recruitment and selection. NSIC has its own recruitment policies. Vacancies are widely publicized through various means as newspaper etc. it has a selection committee comprising of director of company. Candidates are selected through written test and interviews. Appointment letters issue at the of joining of the service.

2-Training and development

Training is an organized activity for increasing the knowledge and skills of people for definite purpose.

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It involves systematic procedure for transferring technical employees so as to increase their knowledge and skills for doing specific job with proficiency. B development means growth of the individuals in all respects enables them to be more effective in performing the various functions of management. In NSIC training is an integral part of the HRD and considered essential for encouraging employees for commitment to quality. Company has been organizing various training programme for its employees as it increases their efficiency and update the latest technology. Improves knowledge and skills of employees personally and provides them with feeling of job satisfaction. It help them to inculcate the team sprit and better relations among them to keep in pace with the competitive word. The training needs are indemnified by personnel department in consideration with department heads. The HRD at Mumbai takes care of T & D activities. There is provision for both in house training programme as well as external training programme. Proper measurers are taken to evaluate the training programme. Proper measures are taken to evaluate the training programme.

III- promotion and transfer

Promotion is based on the basis of seniority. Performance, attendance is chronological order. For the management staff it is based on performance

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appraisal rating Method and for the other staff is based on annual review system.

IV wages and salary Administration

Fixation of wages is based on job analysis Remuneration = Basic salary +DA +HRA Difference in compensation is according to the grades and groups of employees. Casual workers are paid fortnightly. Deduction from the wages is made on account of damage to the company property or when the loan is taken by the employee.

V Welfare activities
NSIC has been providing a series of welfare activities (statutory and nonstatutory) to its employees. These facilities make the employee feel satisfied and make them loyal towards the company and they perform their duties with great interest and enthusiasm.

Vl Industrial relation

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I R help in maintain industrial pieceworker participation in management (WPM) helps in improving the relationship with workers, increasing the production and solving disputes which arise between workers and management by bilateral talks.

VII social security and labor laws

The company has implemented various labour laws in order to provide social security to its workers. The labour laws implemented by the company are ESI act, gratuity bonus, and payment of wages Act, factories Act etc. against certain risks.

vII- performance appraisal

Performance appraisal thus is systematic and object way of judging tae relative worth or employees in performing the task.

Performance appraisal introduce

1. Identifying employees for salary increase; promotion, transfer, and layoff or termination of services. 2. Determining training needs for further improvements in performance. 3. Motivating employees by indicating their performance levels

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4. Establishing a basic for recherch and references for personal decisions in future. Appraisal system plays an integer part in any company likewise after taking over of NCIC significant change was introduced wherein annual increments were linked with the performance appraisal. The system is now made more objective and the element of subjectivity has been reducing for the performance appraisals are divided into two categories for performance appraisal.

Methods of performance appraisal

Past Oriented 1. Rating scale method 2. Forced choice method 3. Forced distribution method 4. Behaviorally encoded rating scale 5. Annul confidential report (ACR) 6. Performance test and observation 7. Performance test and observation 8. Cost accounting method 9. Comparative evaluation method

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Future oriented
1. MBO 2. Psychological appraisal 3. Assessment centers

PERSONAL POLICIES
Manpower planning and recruitment Joining and induction Performance management Training and development Promotion Retirement programs Holidays and leaves Housing Hospitalization and accident insurance Contribution to external media

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QUALITY ASSURANC DEPARTMENT

Quality this word meant a lot for FMCG Company because they are known for their good quality so it is not mere an accidents but the promise which they keep against the costumers. It is a collective work of efficient people with a team of well trained and experienced people. Quality policy NSIC is committed to: 1) Procurement, development, production and marketing of safe clean

wholesome foods of high quality, keeping focus on customers

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By establishing and maintaining proper facilities necessary for controlled production consistency in a sanitary manner, so as to ensure that customers confidence is generated and maintained consistently. 2) Establishing and maintaining appropriate operating and monitoring procedure necessary for controlled production. Establishing and maintaining appropriate Training programme so that every person responsible for products integrity and safeguarding quality environments competent to carry out his responsibilities. 3) Achieving high safety, Occupational health and environment standards by establishing internal review procedure to compliance applicable laws and regulations.

PROJECT INTRODUCTION OF TOPIC

(RAW MATERIAL ASSISTANCE)

Raw Material Assistance Scheme aims at helping Small Scale Industries/Enterprises by way of financing the purchase of Raw Material (both indigenous & imported). This gives an opportunity to SSI to focus better on manufacturing quality products.

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Benefits of the Scheme

Financial Assistance for procurement of Raw Material upto 90 days. SSI helped to avail Economics of Purchases like bulk purchase; cash discount etc

NSIC takes care of all the procedures, documentation & issue of Letter of credit in case of imports.

Process to Apply
The Entrepreneurs are required to apply for Raw Material Assistance only on the prescribed application forms. The blank forms are also available free of charge from the zonal and Branch offices. 6. Duly filled application form is to be submitted along with the Application Processing Fee ( by Bank Draft / Pay Order in favour of NSIC Ltd.). 7. Preliminary appraisal and Unit inspection is carried out by NSIC. 8. Sanction of Limit to the Unit. 9. Signing of agreement between NSIC and Unit. 10.Disbursement of assistance to the unit.

Processing Fee (depends on amount of assistance sought)

S.No. Slab for Processing fee a.) b.) c.) d.) Up to Rs.25 lacs above Rs.25 lacs and up to Rs.50 lacs above Rs.50 lacs and up to Rs.1 core above Rs.1 core Rs.2,500/Rs. 5,000/Rs. 10,000/0.1% of the assistance applied for

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OBJECTIVES OF THE STUDY

To analyze the benefits to SMES through Raw Material Assistance scheme of NSIC.

To study the customer satisfaction towards the Raw Material Assistance scheme provide by NSIC.

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RESEARCH METHODOLOGY
Research Design Sample Size Sample Area Sample Unit Methods Used : - Descriptive research : - 50 : - NSIC, Aligarh : - SSIs in Aligarh : - Questionnaire

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Questionnaire Type Sampling Design

: - Close ended questions : - Convenience sampling

Data collection : - Source of primary data

Questionnaire Data provided by Employees of NSIC

Sources of Secondary data

Internet Conceptual books

DATA ANALYSIS

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Q1-Do you know about Raw Material Assistance scheme provides by NSIC?

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40% 60%

Yes No

Interpretation: The above question has been formed to know the how much customer
(industry) aware about this scheme. Under this chart show the awareness is very low to support SSIs because the only 40% small scale industry aware about the Ram Material Assistance scheme and remain 60% are not aware.

Q2-Are you satisfied with this scheme?

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30% Yes 70%

No

Interpretation: - Form the above result it is clears that out of 100 customers (industry) 30
% customer is satisfied and rest 70% not satisfied

Q3- Rate your level of satisfaction with the process charge and rate of interest under Raw material assistance scheme?
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Highly satisfied Satisfied 6% 44% 22% Neither satisfied nor Dissatisfied Dissatisfied

28%

Interpretation: - According the question the process charge and the rate of interest is not
reasonable. Only 6% (SSI,s) is highly satisfied ,22% (SSI,s) is satisfied,28% (SSI,s) is neither satisfied nor dissatisfied,44% (SSI,s) is dissatisfied.

Q4- Would u like to suggest this scheme to other units?

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20%

Yes No

80%

Interpretation: - As per question 20% (SSI, s) suggest this scheme other and remain 80% is say
no.

Q5- Is it easier to avail the Raw Material Assistance from NSIC rather than any other financial institution?

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40% 60%

Yes
No

Interpretation: - In this question to analysis the requirement of the documentation as well

as the necessary formalities to avail the Ram Material Assistance scheme. Only 40% (SSI, s) says is easier to avail the Raw Material Assistance from NSIC rather than any other financial institution. And
remain says no

Q6 what is the percentage rate increase into your turnover after availing the Raw Material Assistance facility-?

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20%

15% 35%

0 <20 20 to <30 30 to <40 40 to <50

30%

Q7- How fast your application for assistance under Raw Material Assistance proceeds?

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10% 20% 45% Very slow Slow Fast 25% Very Fast

Q8- How much is the portion of assistance under this scheme out of the total assistance?
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21% 26%

11% 42%

0 <20 20 to <30 30 to <40 40 to <50

Q9- Is Raw Material Assistance scheme help you in producing quality product?

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40% Yes 60% No

FINDINGS
Most of the Micro and Small Enterprises (MSEs) were not aware about Raw Material Assistance scheme provided by NSIC.

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 Most of the Micro and Small Enterprises (MSEs) thinks that the schemes provided by NSIC are not satisfactory. Most of the Micro and Small Enterprises (MSEs) thinks the interest rate is not reasonable. Most of the Micro and Small Enterprises (MSEs) thinks that the process charge is very high. Most of the Micro and Small Enterprises (MSEs) thinks that the schemes provided by NSIC are not promoting their business. Most of the Micro and Small Enterprises (MSEs) think that the assistance timing is slow.

SUGGESTION
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 NSIC should make more efforts to spread the awareness about its Raw Material Assistance scheme through newspaper, internet, T.V. or other electronic media. NSIC should decrease the rate of interest on the Raw Material Assistance scheme. NSIC should decrease the process rate under Raw Material Assistance and as well as simplify documentation process. NSIC should be providing the Raw Material Assistance scheme to SSIs as soon as possible.

CONCLUSION
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 To provide Raw Material Assistance scheme to Micro and Small Enterprises (MSEs) who cannot afford raw material for manufacturing but the main objective of NSIC to promote the business and develop SSIs is not fulfill because the rate of interest and process charges is very high.

Under Raw Material Assistance scheme financial support also provide against bank guarantee for which NSIC charges interest rate and process charges.

LIMITATON OF STUDY

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 The sample size is small and cannot represent whole of NSIC. Due to time constraint the research could not be done exhaustively which may not have resulted deeper insights. Some Micro and Small Enterprises (MSEs) are reluctant to give responses to some questions.

BIBLIOGRAPHY Website:
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www.nsic.com

Resources Person: Mr. T.S.Rajput (D.G.M NSIC) Mr. Javed Ahmad (F.M NSIC)

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