Professional Documents
Culture Documents
CHAPTER-3
COMPANY PROFILE
Bharat Earth Movers Limited (BEML) incorporation in May 1964 with its corporate
offices at Bangalore and commenced operation from 1st January 1965, the production units of the
company are located at Bangalore, Kolar Gold Field and Mysore in Karnataka and Pallakad in
Kerala. The company is engaged in the production of rail coaches, rail bus and Direct Current
Electrical Multipurpose Unit for Indian Railways, heavy duty trucks/its variants, crash fire
tenders, heavy recover vehicles, PMS bridges and earth moving equipment’s and aggregate for
Defence. Other major customers of BEML are Coal India Limited, Naively Lignite Corporation,
Associated Cement Company, Steel Authority of India Limited and the National Hydro Electric
Thermal Power Corporation.
BEML is a premier ISO 9000 company in India and the second largest manufacture of
earth moving equipment in Asia. A three-decade-old multi-location and multi-product company,
BEML has vital application in diverse sector of economy such as coal, mining, steel, cement,
powder, irrigation, construction and road building and railway. It has expanded its product range
to cover high-quality hydraulics, heavy duty diesel engines, welding robots and undertaking of
heavy fabrication jobs.
A public sector undertaking, BEML commands 70% market share in domestic earth
mover industry. Nearly 40% of its quality has divested to financially institution and public.
BEML has its corporate headquarters and central marketing division at Bangalore.
BEML manufactures wide range of products to meet the needs of mining, construction,
power, irrigation, fertilizer, cement, steel and rail sector. The earth moving equipment includes
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bulldozers, dump trucks, hydraulic, excavators, and wheel loaders, rope shovels, walking
draglines, motor graders and scrapers.
BEML has recently introduced road headers and slide discharge loaders for underground
mining application. Railway products include integral rail coaches, electrical multiple units, rail
buses, track laying equipment’s and overhead equipment inspection cars.
BEML manufactures heavy duty trucks and trailers and hydraulic aggregates for
transportation sector. The company also manufactures high power diesel engines and heavy duty
hydraulic aggregates to meet specific customer requirements. The company plans to diversify
into varied activities including underground mining equipment, underground for petro-products,
leasing and financial services and joint-ventures abroad.
BEML is rated as the first amongst the fastest growing construction equipment in India. It
is today leading the infrastructure revolution in the country with successful foray into hi-tech
metro trains. Beings a multi-technology, multi-unit and multi-location company, BEML offers
high quality products for diverse sector of the economy such as coal, mining, steel, cement,
powder, irrigation, construction, road building. Defence, Metro and Railways. It has come to the
forefront of heavy engineering industry with a track record of growth and profit in the last for
decades.
With increased focus on quality, safety and productivity, BEML is evolving new
technologies and aiming at value-addition in all its process and products.
The company’s manufacturing facilities are certified under ISO 9000-2000 series. Its
strategic alliances with global partners have ensured a continuous flow of state-of-art
technologies and gain international competence. With impetus on market driven R&D, BEML
has rolled out several innovative products.
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The Company has partially disinvested and presently Government of India owns 54
percent of total equity and rest 46 percent is held by Public, Financial Institutions, Foreign
Institutional Investors, Banks and Employees.
The company has been registering consistent growth in sales and profits and has made a
turnover of ` 3,558 Cr in 2009-10 registering a growth of 18% over the previous year with a
Profit Before Tax of ` 320 Cr and has orders on hand of over ` 5,000 Cr as of end March 2010.
The Company has drawn up VISION – 2013 with an ambitious growth rate of 12%
CAGR for crossing ` 5,000 Cr turnover by 2013-14 coinciding with BEML’s Golden Jubilee
year. With this emerging prospects, BEML has plans to cross ` 5,000 Cr in the next 2 years and
is poised to achieve ` 10,000 Cr mark by 2016-17 and the company is gearing up with necessary
infrastructure for achieving the same.
The company is established R&D centre of excellence for metro technology to match
world-class standards with grants received from planning commission, government of India.
BEML’s nationwide network of sales offices enables buyer with ready access to its wide range
of products and services.
Its service centre, repair shops and parts depots total equipment care and availability of
machines through prompt after sales-service. Today BEML brand of products are popular in
over30 countries across the world in Asia, Africa, Europe, Middle-East and Latin America. The
company is in the process of opening overseas offices at Singapore and China.
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BEML is a PSU (Public Sector Undertaking) under the effective administration of Ministry of
Defence (department of Defence supply). The organization was setup in the late 40’s as part of
HAL now know as “HINDUSTAN AERONAUTICS LIMITED” to manufacture rail coaches. It
gradually diversified earth moving equipment in 1964. The company was incorporated in the
first five year plan when India was very weak economically. The main objective of setting up the
organization was to manufacture heavy earth moving equipment. Rail coaches heavy duty trucks,
trucks-laying equipment etc.
NATURE OF BUSINESS
BEML is equipment manufacturer for the industries such as construction and mining,
Defense, aviation, Metro and Railway sector.
COMPANY VISION
“To become a market leader, as a diversified company supplying products and services to
Mining & Construction, Railway & Metro and Defence Services and emerge as an International
Player”.
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COMPANY MISSION
COMPANY OBJECTIVES
To maintain a dominant position in design, development, manufacture and marketing of
Defence, Earthmoving and Construction and Rail & Metro equipment.
To diversify and grow.
To provide total engineering solution to its customer.
To internationalised operation by enhancing exports.
To maintain state-of-art technology for all products.
Re-orientation of the business operation to match the present scenario.
Continues building of skills and competencies to bring about executive effectiveness for
management succession.
QUALITY POLICY
“QUALITY IS THE HALLMARK OF EXCELLENCE”
At BEML, a corporate quality policy emphasizing total quality management
ensures the quality system adopted companywide to meet stringent standards and
requisite performance criteria. A separate quality spearheads the thrust towards total
quality. All manufacturing units in the company are under ISO 9000-2000 certification.
BEML equipment works in hospitality terrain under gruelling operation condition.
In order to ensure optimum performance of equipment each product is tested in working
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PRODUCT PROFILE:
BEML products that are “Machine that build the nation” find their application in core
sector of economy in the country viz, mining, agriculture, energy, irrigation, cement, steel,
construction, rail and road transport apart from Defence.
The company has three ranges of products like earth moving equipments, Defence
products and railways products.
The earth moving equipment’s include bulldozers, dump trucks, hydraulic excavators,
wheel loaders, wheel dozers, tyre handlers, pipe layers, rope sholves, draglines, motor grades,
scrapers, water sprinklers, aircraft towing tractors and backhoe loader. BEML has recently
introduced road headers and side discharge loaders for underground mining application, tracking
laying equipment, inspection cars. BEML manufactures heavy duty trucks and trailers and
hydraulic aggregates for transportation sector. A part from this, BEML also radio controls
disaster management equipment in case of emergency.
BEML PRODUCTS:
Mining Machines.
Electric shovels.
Bulldozers.
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Wheel dozers.
Dump trucks.
Motor graders.
Pipe layer & tyre handler.
Giant walking draggling for cost item.
DEFENCE EQUIPMENTS
BEML-TATRA T815 VVNC8*8 vehicle.
BEML-TATRA T815 VVL8*8 vehicle.
BEML-TATRA T815 VVTI8*8-Tank Transportation.
BEML-TATRA T815 VVNC6*6 High Mobility Vehicle.
BEML-TATRA T815 VVNC6*6 Field Artillery Tractor.
BEML-TATRA T815 VI4*4 High Mobility Vehicle.
PRITHVI missile launcher.
OXIDISER carrier.
WA RDHEAD carrier.
FUEL carrier vehicles.
MISSILE Transport.
10T mobile crane.
Ammunition Loader.
Pontoon Bridge set.
Pontoon Truck.
Truck Mounted crane.
Pavement Laying Truck.
Dolly.
Light Recovery vehicle.
Armoured Recovery vehicle.
Backhoe loader transport.
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RAILWAYS:
Passenger coaches.
DC electrical multiple units (DC-EMUS).
AC electrical multiple units (AC-EMUS).
Track laying equipment.
Rail bus.
Spoil disposal units (SDU)
Treasury vans.
Mill rail coaches.
Metro cars.
OHE cars.
DIESEL ENGINES:
100-1000hp engines for contribution and mining equipment.
Irrigation pumps.
Marine vessel engines.
Compressors.
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ENERGY:
Diesel genets-230, 360, 550KVP.
INDUSTRIAL AND AUTOMATION:
Industrial welding robots,
Machine tending robots.
AREA OPERATION:
BEML being a public sector undertaking operates well in the global market also. The
company’s international divisions are involved in large trading as well as counter trade
in countries worldwide covering Asia and Middle East besides entering into European
market through UK, Italy and Greece.
The company commenced its overseas operations in 1969-70 and has exposed earth
moving equipment’s, rail coaches and spare parts valued at several million US$ to countries all
over the world.
As a recognized export house, BEML has expanded operation to include export of
engineering goods, Defence items commodities and undertaking of project management and
turnkey contracts. Despite the pressure of highly competitive market for heavy construction and
mining equipment, BEML’s Export is attributed to good quality equipment and very efficient
after sales services. Fully satisfied with the BEML’s services, customers in several countries
have been placing repeat orders for the company’s equipment.
The company is looking at global market for future growth several countries have been
identified for making a foray. In keeping with this, the export target for the year 2009-2010 has
been fixed at over Rs 500 crores which are stiff considering the strong foothold of competition in
the world market. Exports were made to countries like Syria, Tunisia, South Africa, Afghanistan,
Bhutan, Abu Dhabi, Jordan, Bangladesh and Suriname in Latin America.
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ORGANIZATIONAL CHART
CMD BEML
GENERAL
MANAGER
BOARD OF DIRECTORS
Sri VGENERAL
DEPUTY R S Natarajan
MANAGER
Chairman & Managing Director
ASST. GENERAL
FUNCTIONAL DIRECTORS
MANAGER
Sri V Mohan
Director (Defence)
SENIOR MANAGER
Shri M.Poongavanam
ASST. (Mining
Director MANAGER
& Construction)
OFFICER
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WORKER
A Study on effectiveness of Performance Management system
Shri P Dwarakanth
Director (Metro&Rail)
Shri M Pitchaih
Director (Finance)
Shri M Nellaiappan
Director (HR)
OFFICIAL DIRECTORS
Shri Satyajeet Rajan
Jt.Secretary (Exports), Ministry of Defence
INDEPENDENT DIRECTORS
Sri J P Singh, IAS (Retd)
Sri M B N Rao
Sri J P Batra
VARIOUS DEPARTMENTS
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FINANCE DEPARTMENT
INTRODUCTION
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BILLS PAYABLE-INLAND
This section deals with the following aspects of supplies and services rendered by
inland vendors to the company.
Payment and accounting of advances to supplies.
Payment and accounting of advance to other vendors.
Payment and accounting of final bills.
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This section deals with the following aspects of supplies and services rendered by
foreign vendors or collaboration to the company.
Payment and accounting of advances to supplies.
Payment and accounting for services obtained from collaboration and others.
Payment and accounting of contractual fees (licence fees, royalty, etc).
Payment and accounting of customs duty, freight bills agency, commission bills
etc.
Payment and accounting of final bills.
Accounting and pricing of receipt vouchers.
Opening of letter of credit and dealing with banks for obtaining foreign exchange
release and payment there off.
Maintenance of deferred liabilities account.
The following major accounting register and subsidiary accounting registers are
maintained in this section.
Foreign purchase journal.
LC registers.
Goods-in-transit register.
Contractual payment registers.
Advance to supplier register.
Sundry creditors register.
Deferred liability register.
In addition to the above accounting records the following register are also
maintained in this section.
Foreign purchase order registers.
Agency commission bills register.
Bills of entry register.
Foreign bills register.
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3. BILLS RECEIVABLE:
It is responsibility for the preparation and submission of invoice for the
equipment and spare parts sold; service rendered, followed up for the collection
&accounting of sales & all other works connected to the sales like filling of commercial
tax return etc.
Functions
Register &scrutiny of sales order pertaining to equipment & spare parts including
export.
Preparation &submission of invoice to customer for payment.
Accounting of sales.
Compliance of sales tax returns.
Review of balance in the customer’s account on a frequent basis.
Records maintained:
Sales order register.
Stage payment register.
Dispatch advice/invoice register.
Sales journal.
Sundry debtor’s ledger.
Register of export sales.
4. CASH OFFICE
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This section is responsible for all payments of cash, cheques & accounting same
in the books of accounts.
Function:
Receipt of cash, cheque & bank draft etc & issue of official receipts for the same.
Follow up/watch for the transfer of funds to & from regional/district offices.
Operations of bank accounts.
Cash disbursement to payroll for the payment of salaries & wages & other
payments.
To check the bank statement.
Reconciliation of inter transfer of funds transaction.
5. PROVIDENT FUND
This deals with the provident fund of the workers & the employees & it deals with
the family provident fund, employees deposit insurance schemes, gratuity fund
and group saving linked insurance plan.
It also provide other activities like investment of PF accumulation in approved
securities, final payment of on the termination or on the death of the person,
declaration of the person, declaration of the PF accumulation in approved
securities, declaration of the PF interest & crediting it to the members accounts
etc.
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be allocated for each and every activity. These will help to maintain the working capital
and funds property.
7. PURCHASE SCRUTINY
Purchase is considered to be very important function in a firm. Therefore,
scrutinizing the purchase procedure is also as important as purchase itself.
The main function of this section is to scrutinize the purchase orders.
This section will assist the purchase department in deciding on the purchase order.
All information of the purchase department will be scrutinized i.e. from the time
request for material is placed till the purchase order being placed.
Coordinating with the department during the tender formalities also.
8. MATERIAL ACCOUNT
This section is responsible for accounting the material held in the holding stores by
accounting all the receipts & issue documents. The accounts is done in quality, value &
also in charge of accounting of material issued for subcontracts of fabrication, sent on
loan basis, sent for rework/recommendation & stock transfer to other departments.
Functions:
Maintenance of material ledger in the computer system for all items of the
material held in the stores, investment account wise & store wise by accounting
the receipts & issue to the production & other accounts & releasing the accounting
entries.
Reconciliation of the value of inventory as per the material ledger with the general
ledger figure.
Reconciliation of the quality balance against the items in bin card with the
material ledger balance by rendering the required assistance to the stores
department.
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Accounting & control of the material issued to the sub contract for the
fabrication/completed items as well as loaned items.
Scrutiny of the list of non moving surplus items as well as loaned items.
Accounting for scarp disposal orders.
Books maintained:
Material ledger.
Inventory accounts.
Ledger for material issued to sub contractors.
Register for scarp/surplus items dispatched.
All store documents relating to stock accounting.
9. BOOK KEEPING
This section is completely responsible for the maintenance of the complete
financial records all the accounting section sections present in BEML have to report to
this book keeping section. This document constantly keeps in touch with other
department for information pertaining to sales & purchase, investment, loans, advances
& other details for the profit & loss account & balance sheet which is to be prepared at
the end of the year.
BEML comes under the ministry of defence which has its own set of rulers
which governs the administration of the company but still it follows the rulers &
regulation laid down in the companies ACT of 1956.
This section is also responsible for the reconciliation of accounts of other
divisions, it also charges the depreciation on the assets of the company & is responsible
to answer the government audit & also entered with the work of the tax audit report.
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HR VISION
HR will be Dynamic, pro-active & strategic Business Partner to enable BEML to
maintain its leadership position in all its Business Domains.
HR MISSION
To continuously innovate, evaluate and religion HR practices with the
environment, business strategies/directions and expectation to maintain relevance
and to attract nature and retain talent.
To foster a spirit of creativity and innovation amongst the employees by facilities
creation of a rewarding, inspiring and motivational organization climate.
To act as a champion of change and managing the people implication of
organization changes.
HRM IN BEML CAN BE DIVIDED IN TO FOLLOWING DEPARTMENTS:
Welfare.
Establishment
Training & development
Disciplinary
Time office
House keeping
Canteen
Horticulture
Training centre
WELFARE:
As the name states the main aim of this department is to ensure the welfare of
the employees in various fields. It caters to the requirements of employees. Various
benefits being provided are as follows:
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TRANSPORTATION
This department provides transportation facilities of the employees to the
factory. Various functions of this section are issuing bus passes, processing bills,
correspondence with BMTC, surprise checking & monitoring, cost reduction measure,
maintenance of files, cleanness of bus yard etc.
MEDICAL
This section deals with the medical treatment & facilities being provided
to the employees. Various activities being performed are conducting various health
programmes i.e. pulse programme, free health camp, eye check up, skin check up,
diabetic check up, conducting various training programme, first aid training, checking &
compliance with ESI Act Provisions, Blood donation camp arrangement & so on.
CANTEEN
This department ensures daily visit to canteen during breakfast & lunch
hour, coordinating with the canteen officer for canteen activities, framing rules &
regulation to regulate the canteen services.
HOUSING /TOWNSHIP
Conducts regular visit to township for beautification & handling the
grievances of township offices/employees. Coordinating with the committee for smooth
function of development work. Checking the day to day activities, planning for revenue
generation.
OTHERS
Various other functions being carried out by this department are providing
uniforms, shoes, dairies, coordinating with stores for smooth distribution of activities,
small savings, and distribution of Sodexho coupons, settlement of death accounts,
implementation of welfare activities & policies, conducting election for BEMEA &
other elected bodies, meritorious awards, attending accident cases, handling the
complaints boxes, school management, counselling the employees & so on.
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ESTABLISHMENT
This section is considering as the back bone of HRD. It contains all the matters relating
to an employee i.e. form the time he joins the firm till he leaves. It performs various
functions such as maintenance of personal files, issues relating to promotion, wage
fixation, recruitment, issuance of various certificates like service, salary, NOCs etc. the
company has a total strength of 12573 comprising 2708 offices & 9865 employees. The
following is the strength of the man power in Bangalore Complex as on 1-5-2010.
REPRESENTATION OF SC/ST/EX-SERVICEMEN
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PERFORMANCE APPRAISAL
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PROMOTION
Promotion is given based on the seniority as well as the performance basis.
Once certain year of service is completed by an employee’s automatically he is posted
to the next level. In case of extra ordinary performance also before the tenure itself an
employee will be promoted.
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DISCIPLINARY
In every organization there are set rulers & regulations to be followed by the
employees. In the event of violation of standing orders, disciplinary action as deemed fit
will be initiated by this department. All matters relating to the problem of the employees
regarding violation of the rulers will be handled by this section.
TIME OFFICE
Attendance is an important aspect in any field. Therefore it is necessary to
maintain the record of employee’s attendance. In this case each employee’s entry & exit
time will be recorded & for this purpose punching is being used. If any employee has to
go out during the working hour’s gate pass will be issued by the department head & also
recorded in the books of the security.
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HOUSE KEEPING
Cleanliness is very important to be considered in any organization as it conveys
a message about the image of the firm to the outsiders. Therefore, a separate section is
formed by the organization in order to maintain the cleanliness of factory premises.
CANTEEN
BEML is having three canteens which provide food to all employees.
Seating capacity 4000-4500.
Cost Rs. 5 per meal employees.
Purchases are done from Government agency.
Order will be placed for 1 year except vegetables.
Total requirement of rice 800 kg per day.
Total cost Rs. 75000-80000 per day.
Wastage 2%- 3% per day.
Total number of canteen staff 100 (No woman employees).
HORICULTURE
For any organization greenery adds to its beauty. So the firm has made a
separate section to look into the gardening/beautification of its firm. BEML has
achieved various awards for its beautiful garden.
TRAINING CENTRE
This is another section which is different from the training & development
section. This section mainly focuses on the training requirements of the apprenticeship
for various types of technical & non technical training for a specific period. It does not
look into the training needs of the employees.
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CALCULATION
Salary for this purpose includes Basic, DA
= (LAST SALARY DRAWN) *15* (COMPLETED YEARS OF SERVICE)/26
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