Biz Hq

Recently here is in steel market the Steel Minister Paswan said India’s steel production is probable to excess the household necessities by 2011-12, easing stress on prices of the alloy, which has been totaling to the spiralling inflation. They said that we shall achieve 124 million tons of steel capacity by 2011-12, well above the obligation that would be to the tune of regarding 110 million tons at that point of time. Above 50 percent steel price is shot up since January, last year adding to the woes of the UPA government which is battle a seven-year soaring rise of 8.75 percent.

In India regarding 13 per cent rising the annual demand for steel but the production is rising by above 6 per cent according to authorized basis. Last financial the country’s crude steel production stood at 53.9 million tons of which regarding 5 million tons were sell overseas. Country’s ended as per executive figures steel significance go up by above 300 percent from1.6 million tons in 2002-03 to nearly 7 million tons in 2007-08.

Via:Steel Production

Primary industries concerned with rearing and breeding of animals and birds and growing of plants are called genetic industry. Reproduction and multiplication of certain species is the main activity in genetic industry. Aquaculture, dairy farming, poultry farming, floriculture, sericulture, orchards, piscicilture, animal husbandry are some example of genetic industry. Agriculture involves production of crops. Dairy farming involves using milk from cattle to produce butter, cheese, etc. Poultry farming includes raising birds for eggs and meat. (more…)

Industry and commerce are closely related to each other. For example, industry provides goods and services which are distributed through commerce. No commercial activity is possible in the absence of industry and production. Sound industrial base and infrastructure facilitate trade. At the same time, industry and production cannot survive unless the goods and services are distributed among consumers through commerce. Therefore, industry and commerce are interdependent. Industry provides the base for commerce and commerce serves as the backbone of industry. None of them can exist in isolation as each is essential for other.

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Periodic Audit is also called final Audit. Under periodic audit, the auditor takes up his work of audit only at the end of an accounting period. The auditor checks the financial transactions in continuous sessions or at one stretch. According to De Paula, “Periodical audit is one where the auditor does not attend until the completion and closure of the financial accounts by the undertaking or client and the auditor takes the audit task as a whole and the checking is done at one time,”
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The controlling system should not be rigid. It should be able to be changed according to the changing need and pace of business situation.

The effective control system should be able to anticipate deviation before they occur. It should be preventive rather than corrective.

The effective business control system must suggest remedial measures to move the deviations and bring improvement in future performance.
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The control system should be clear, easy to understand and simple to understand so that every worker follows it easily. Complicated system creates obstacle in working.

The controlling system must be selection keeping in mind the nature, type, size and need to the enterprise. For example, the controlling system of a manufacturing concern cannot be applied by a trading concern.
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Every marketer offers a product or service to the customer but what product or service has to be offered must be planned. The planning part includes the decisions like what should be the quality standards used in product, what shape or design would be used, what type of packing, how many models, how it can be made better than the competitor’s product etc. For taking all these decisions proper product planning is done by the marketer for example, if marketer is dealing with refrigerator then in product planning they decide the quality standard, size of refrigerators, color, design, technology of refrigerator etc.

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Companies cannot survive in isolation. Companies use the resources of society they earn from the members of society. So it is obligatory on the part of company to do things which are beneficial for the society. Society includes various stockholders such as Government, NGO, media, customers etc. Customer is just one segment of society. Companies must take care of other segments also. So company must involve it self in fields like education, environment protection, women’s empowerment, health awareness and aid etc. Companies are becoming aware that by ignoring the benefits of society they also cannot prosper that is why companies are taking measures to bring improvement in society. (more…)

After setting up of standards the performance of the employees is measured by evaluating the actual work done by the employees. When the performance can be measured numerically then it is very convenient to measure the performance. While performance is kept in mind. Sometimes employees achieve the quantitative standards by ignoring quality standards. That is why while measuring the performance quality standards are also measured. certain quality parameters are fixed to measure the quality standard when number of rejections or sales return increases. It indicates low standard of quality.

Generally the performance of managers is measured by looking at the overall efficiency level of the organisation. The performance of research and development department is measured by change in technology and updation of production department. The performance of financial department is measured by checking the solvency and liquidity ratios etc. The performance must be measured periodically in short period of time.

Budget is a statement of expected results and expected cost expresed in numerical terms. Budget is a statement which helps us to know the future results and to achieve these results how much prepared by an organisation : for example, sales budget, production budget, financial budget, cash budget etc.

In budgetary control technique the estimated results are compared with the actual results. The variation between these two indicates inefficiency. Budgetary control provides following benefits to the company:

1. Budgeting focuses on standards or objectives.
2. Budget helps subordinates to compare their performance with budgetary standards and can do self appraisal.
3. Through budgeting managers can allocate resources to departments according to their budgetary allocation.
4. Budgets help to improve coordination between various departments. As budget of one deptt. depends on other. For example, budget of sales deptt. budget of production deptt. depends upon budget of purchase deptt.
5. It helps to use the principle of management by exception by giving more attention to departments where actual operations and target deviate from budgetary standards.

The success of budgetary techniques depend upon the estimation of standards. As far as possible we should prepare flexible budgets due to dynamic environment.