As per Provision of CARO Auditor has to comment on the end use of the money raised by public issue. During the year Company has not raised fund through public issue however Company raised fund through Qualified Institutional Placements. Whether fund raised through QIP would be covered under this clause

Case Study : Sarvodaya Structurals Ltd.




Sarvodaya Structural limited was engaged in the fabrication of heavy structural. The Company had six shops besides engineering, accounts, personnel, sales, and Administrative departments.

It employed 7000 men. The chief executive of the company was the General manage.

In one of the shops employing 1000men. 9000 tons of structural were fabricated every month. The day to day management of the shops was entrusted to the manager, who was assisted by the shop were preparation,. Marking and Finishing.

In the Marking and finishing sections the work was supervised by two foremen each The preparation section was under the direct supervision of the Senior Foremen who in addition planned and coordinated the work of all the three sections,. The preparation Section was responsible for the collection and classification of own and his satisfaction. You are anyway carrying out an in-process quality control, and you might be able to make good use of Govindan in view of his long technical experience of production work. Think it over and let me know by tomorrow.
Rao thought over the matter.

PMA company had been a successful enterprise until March 1972 at which time it suffered a sharp decline of profits : sale had fallen off and production cost had risen. The president adopted three measures which he hoped would improved the condition. First by creating an industrial Engineering department for establishing work standards on all production operations to determine which manufacturing costs were out of line and where remedial action should be taken. Rao,. 28byears old, who had been with the company for two years in the purchasing department was selected,. Rao had B.E. and MBA degrees to his credit. What he lacked in his business experience he made up by his eagerness to learn. He was ambitions and liked by his associated. He wanted a transfer from Purchasing to Productions for better opportunities for advancement
Secondly he consulted a Management consultation firm to make a study if the production Department. They pointed out that the chain of command was too long from production Manager through plant superintendent though /Assistant Superintendent to Foremen. The recommended the elimination of the position of Assistant superintendent.

Thirdly, he engaged an industrial Psychologist to appraise all the supervisory personnel.


Govindan had been with the Company for 20 years since its founding and during this period had worked on every production operation, and his last 11 years had been in supervisory capacity, His manners were rough and aggressive he had little formal education. The industrial Psychologist’s report about Govindan


contained the following points. :

1. Evaluation for the position of Assistant superintendent. : Not good enough.
2. Capacity for good human relations in supervision will have friction frequently.
3. N3eed for development counseling : counseling greatly needed.
4. General evaluation ; Govindan had a good ability profile. He suffers from a sense of inferiority. He does not like the responsibility of making decisions. His supervision is that of autocratic type. Though he has the ability, as far as his personality make up is concerned, he is out of place in the present position.



Questions. :

1. What is the problem in the case ? Explain.

2. Explain Govindan’s behavior and work experience visa-vis the psychologist report.

3. How do you see naik’s suggestion to Rao ? Give reasons.

4. What are Rao’s considerations is taking a decision ? What should he do ?
Explain.

Dear friends,

one company hiring the CRANES to other parties. is he liable to pay service tax? if yes then in which head?

a co op society is formed & there are 25 members they purchase a plot in the societies name & costrct a building
contractors are appointed for labour work & materials are purchase socities name wheter service tax is applicabe to co op socity the owners & beneficiries are the same persons & service tax is applicable to labour contractors or not
more than 12 residental house is liable for service tax

[A[.Case Study : KAMINI BANK


MR. KB. Vatia Branch Manager of Kenya Main Branch of Kamini Bank was wondering as to what can be done to restore the punctuality of the staff in his occasions during a day, which resulted in work remaining incomplete, and payment of overtime wages for its completion.


The problem was generally not faced by other banks in Kenya, except the Bharat Bank, another Indian Bank having branches in Kenya. Other local and British Banks were able the exercise sufficient control over their staff to ensure proper attendance.


Initially Mr. Vatia tries to[persuade these staff to be punctual He sermonized them on several , occasions None of these, however, made any dent of the problem. Falling in these methods he resorted to punishment to the erring members of the staff. This led to some improvement but not to the desired exztent. Mr. Vatia also felt that prolonged use of this method might indeed lead to a more serious trouble. He therefore thought of analyzing and identifying the cause of the problem His investigation on the habits formed revealed that the unauthorized “time off” was used mainly for personal work which included shopping, personal errands. Meeting friends, going for coffee, etc, when caught, the general explanation given by the staff was that he had gone out for a : cup of :coffee. Mr vatia noticed that no canteen facilities were available in the branch nor was there any space there is could be set up. The British and other local banks, however, had made adequate provision for the purpose.


An automatic coffee vending machine was installed but the move did not succeed as the staff complained that the coffee given was not up to the standard. The members of the staff protested and refused to use the machine.



Days passed, one day it occurred to Mr. Vatia that the muster roll of the branch did not have any provision of making the period of the absence by the members of the staff in the event they had to go out for coffee. It was not possible to know or to control the period of his absence. To overcome this, he decided to install “time -- clock” at the main gate with in and out trays for attendance cards. The staff was advised to use these cards for making their arrival and departure and also the absence periods. Authorised outside work could be authenticated by the immediate office supervisor.


The Staff members brought the idea to the notice of the branch union. There was resistance to the idea initially .Mr vatia however pointed out. The them that this was a scientific method of recording the attendance and it was not possible to falsify the same. As it happened, during that period only services of three members of the staff were terminated for dishonesty and fraud. They had altered the time marked in their muster roll for departure, thereby claiming overtime for periods in which they did not work. This was proved by the photocopy of the day’s muster roll taken by Mr. Vatia from time to time by an unscheduled visit to the branch late at night without any indication to any one in the branch.


Mr. Vatia pointed out to the union representatives that by the introduction of “time clock” the tem0ptation to alter time by the members of the staff . The Union members almost came round to accepting the idea but still were not fully convinced. Round to accepting the idea but still were not filly convinced. At this stage, the regional manager, who came to know of the proposal of installing the clock, suggested to Mr. Vatia that as no other bank in Kenya was adopting this Procedure, he should have this scheme approved by the Secretary of the Kenya Bankers Association.



The meeting with the secretary was a failure, He was a man of old British tradition and was shocked at the idea of introduction of a time clock in the banking industry there.All efforts by Mr. Vatia to convince him that there was nothing wrong in it and that most officers of major corporations had this systemic not move him. Other bankers, when individually contacted, also did not favour the idea.


Not willing to go all alone the Regional Manager advise & Mr. Vatia to shelve the idea.



Questions :

1. What was wrong in the approach to the change suggested by Mr. Vatia ?

2. If you were to manage this change, in what way would your approach be different from the one adopted by Mr. Vatia. ?


3. If you were the Regional Manager then , what advicde your would have given to Mr. Vatia.?


4. Do your think that the “time clock” at the main gate will solve the problem faced by Mr. Vatia ?

Hi all,

I want to know wheather in any case a patnership firm can deduct tds of a firm (patnership) @ 11.33% instead of 22.66 %

Thanks & Regards

Please let me know how to make cash flow statement or any particular format is there for creating

X company is dealing in software & Technologies. They have a Demo machine manufactured in house and is considered as Fixed Asset. This machine is being sent to clients for trials in order to grab orders from the clients(sales promotion). Moreover it is not held for sale in the ordinary course of business. Now the query is that what should be the treatment of Demo machine in the book of the company.Should it be considered as inventory or fixed asset?

how many months shold u take leave from office (articleship) in order to have good preparation?

Hi! Club Friends,

In issuing C-Forms for CST purchases, particularly from Andhra Pradesh, is it mandate to issue separate Form-C for each quarter? and under which rule / notification it was added to CST Act?

And for amounts less than 2/3 lakhs of annual turnover of the CST purchase customer, also to be issued for each quarter? Suggest.