PROJECT REPORT A STUDY ON FINANCIAL ANALYSIS

LOM LOGISTICS (INDIAN) PRIVATE LIMITED

Submitted in the partial fulfillment of the
Requirements for the award of the Degree of

MASTER OF BUSINESS ADMINISTRATION

IN
SHIPPING LOGISTICS MANAGEMENT
Submitted by
Mr. VARUN KUMAR.G
Register No: 228488950020
Under the Guidance of
………………………………………

INDIAN INSTITUTE OF LOGISTICS

CHENNAI – 600 023

2022 – 2024
 DECLARATION

I hereby declare that the project work titled a study on financial analysis “LOM
LOGISTICS (INDIAN)PRIVATE LIMITED” is the original work done by
me and submitted to Madras University in partial fulfilment of requirement for
the award of Master in shipping logistics management is a record of original
work done by me under the supervision of ……………………………….

Register No: 228488950020

Place: Chennai
Date

(Mr. VARUN KUMAR.G)

 INDIAN INSTITUTE OF LOGISTICS
CHENNAI- 600 023

CERTIFICATE

This to certify that the project work titled a study on financial analysis “LOM
LOGISTICS (INDIAN) PRIVATE LIMITED” is the original work done by
me and submitted to ALAGAPPA UNIVERSITY in partial fulfilment of
required for the award of Bachelor of Master in Shipping Logistics Management
is a record of original work carried out by Mr.VARUN KUMAR.G Register
No. 228488950020. This project work is original and not submitted earlier for
the award of any Degree, Diploma or Associateship with any other university.

Faculty Guide Head of department

(………………..) (…………………..)

External Examiner Internal Examiner

Date:
Place: Chennai
CHAPTER- I
➢ HISTORY OF THE COMPANY
➢ MEMORANDUM OF ASSOCIATION
➢ ARTICLES OF ASSOCIATION
 HISTORY OF THE COMPANY

Lom Logistics (India) Private Limited was established in the year on 27

Sep 2004 the Company was incorporated. Its registered office is in Chennai,
Tamil Nadu, India. The Company's status is Active, and it has filed its Annual
Returns and Financial Statements up to 31 Mar 2020 (FY 2019-2020). It's a
company limited by shares having an authorized capital of Rs 20 Lakhs and a
paid-up capital of Rs 20 Lakhs as per MCA. 3 Directors are associated with the
organization. Godwin Joe, Prasad Pari Srinivasavara and Hansung Lim are
presently associated as directors.

LOM logistics (India) private limited is one of the leading international freight
forwarding, relocation and project logistics management companies delivering
cost-effective solutions throughout the India from 2004. LOM Logistics
develops comprehensive freight forwarding, project logistics and relocation
service plans tailored to meet specific requirements of customers. This is
accomplished by learning customers exact objectives with regards to their
internal and external requirements, thus ensuring that LOM logistics India will
provide quality services more consistently than any other service provider in the
market.

Our tried and proven multimodal transportation routes to the India ensure
international reach whatever your cargo and timeframe is. As the preferred
supplier for various Fortune 500 companies and the first point of contact to
increase supply chain efficiency in the India, LOM are very proud of reputation
and always strive to maintain it. Apart from handling international
consolidations by sea and air, LOM logistics India documentation, Customs
Clearance, Handling of project work, volumetric cargo and warehousing.

Simply, at LOM logistics India, our objective is to be an extension of your

traffic, shipping and purchasing department in every way.
ABOUT US

Started in the year 2004, LOM Logistics India Private Limited has made a
mark for itself by offering cost-effective logistics handling and warehousing
solutions. LOM is renowned as one of India’s leading international logistics and
warehousing companies. LOM believe in simplifying the entire process of
shifting and logistics handling internationally. LOM understand the significance
of supply chain, and that is Company we provide customized solutions and
service plans to our clients based on their requirement and priorities. We hold
pride in delivering quality service and thorough monitoring across the market.

VISION OF COMPANY

To be known as the No.1 company in providing logistics handling and

warehousing services

MISSION OF COMPANY

Our focus is customer satisfaction, and to gain this LOM India will be in
the process of constantly innovating and building a better mechanism to serve
our valuable customers

OBJECTIVE OF COMPANY

1. To know the importance and benefits of FTWZ.

2. To promote trading related infrastructure to generate import and exports.

3. To understand the Right technique is applied to carry out the fumigation

process.

OUR SERVICES

At Lom Logistics India LOM are dedicated to providing high quality

services in global. Take a look below to find out what we specialize in, and get
in touch with any additional questions or to learn more.
ROAD TRANSPORT

We understand the importance of logistic delivery. Road transport means

transportation of goods and personnel from one place to the other on roads.
Road is a route between two destinations, which has been either paved or
worked on to enable transportation by way of motorised and motorised
carriages. There are many advantages of road transport in comparison to other
means of transport.

AIR FREIGHT

LOM logistics India is known for offering reliable and efficient air-freight
forwarding service throughout the world. With an excellent network of operators
who are available 24/7.

OCEAN FREIGHT

Ocean freight is one of the key elements in multimodal transportation

service. We deliver highly flexible services through partnerships with leading
ocean carriers all over the world.

CUSTOMS CLEARANCE

One of the major issues one faces today during the cargo clearance at the
customs desk. At LOM Logistics, we have an aid for this too.

PROJECT CARGO

To deliver quality has always been our vision. We understand the needs of
our clients and based on their requirements we undertake the project. From
planning to delivery, we help our clients in every phase.
FTWZ (FREE TRADE WAREHOUSE ZONE)

The FTWZ is a distinct category of SEZ (Social Economic Zone). This zone is
administered by the provisions of the SEZ act and rules. FTWZ is known as the
foreign territory.

RELOCATION

With LOM Logistics India Private Limited relocating to a new place is an

easy task. LOM have the right resource, worldwide coverage and well-designed
plans to make our client’s shifting smooth process.

CARGO INSURANCE

LOM Logistics India believes in a safe and secure delivery of cargo

goods. But the Company also need to acknowledge the risks involved in
transportation.

CURRENT STATUS OF LOM LOGISTICS INDIA PRIVATE LIMITED IS –

ACTIVE

LOM logistics India Pvt Ltd is one of the leading international freight
forwarding, relocation and project logistics management companies delivering
cost-effective solutions throughout the India from 2004. LOM Logistics
develops comprehensive freight forwarding, project logistics and relocation
service plans tailored to meet specific requirements of customers. This is
accomplished by learning customers exact objectives with regards to their
internal and external requirements, thus ensuring that LOM logistics India will
provide quality services more consistently than any other service provider in the
market. Our tried and proven multimodal transportation routes to the India
ensure international reach whatever your cargo and timeframe.
CONCEPT OF COMPANY

FTWZ would be a key link in logistics and global supply chains – serving
both India and the globe as international trading hubs, hassle – free–transactions
of imports, exports, and vat services

FTWZ - FREE TRADE AND WAREHOUSING ZONE

The FTWZ is a distinct category of SEZ (Social Economic Zone). This

zone is administered by the provisions of the SEZ act and rules. FTWZ is
known as the foreign territory. They function as the International Trading Hubs
that carry out activities such as trading, warehousing, and other value-added
services ranging from packaging, lableing to polishing and blending

CUSTOMERS CHOOSE LOM LOGISTICS

At LOM we have customized solutions for every one of our client’s

needs. We ensure your whole supply chain runs smoothly so you can focus on
doing what’s necessary to grow your business. If your cargo is stopped at
customs our expert staff communicate with the people and ensure your cargo
continues its journey. Furthermore, our clients such as Hyundai trust us because
of our experience and our commitment to provide the best logistics service.

SERVICE EXPERTS

We are the service experts in the logistics industry. We deliver extreme

satisfaction in mobility services for various industries. Here, we assure you a
safe and speedy delivery. We have derived an exclusive multimodal
transportation route that defines the international reach of cargo within the given
timeframe. With our personalized plans and efficient supply chain in India, we
have been chosen as the preferred logistic service provider by Fortune 200
companies. Until today, we have been consistent in our service delivery and
strive to make this, a peripheral process. At LOM, we do not stop at logistic
handling, we also undertake the complete process of documentation, customs
clearance, volumetric cargo, and warehousing. LOM Logistics India Pvt. Ltd
takes pleasure in being a part of the Country's growth by contributing worldwide
moving services alongside various related administrative activities. As the
preferred supplier by "Fortune 200 companies", we are proud of our
achievements and would continue to work effectively and efficiently in fulfilling
our customers' needs.

DATE OF INCORPORATION

It was incorporated in 27th September 2004 under the Indian companies act Sec
3(1) 1956.
MEMORANDUM OF
ASSOCIATION
 MEMORANDUM OF ASSOCIATION

MEANING

The Memorandum of Association is a fundamental document of a

company, and this is one of the important documents to be submitted at the time
of registration of a company. So, the first step in the formation of a company is
to prepare Memorandum of Association.

DEFINITION

According to section 2(56), "memorandum" means the memorandum of

association of a company as originally framed or as altered from time to time in
pursuance of any previous Company Law or of this Act.

CONTENTS OF THE MEMORANDUM

The memorandum of association of every company should contain the

following six clauses (Sec. 4(1)):

1.NAME CLAUSE

2.SITUATION CLAUSE

3.OBJECTS CLAUSE

4.LIABILITY CLAUSE

5.CAPITAL CLAUSE

6.SUBSCRIPTION CLAUSE
NAME CLAUSE

The name clause contains the name of the company. A company, being a
legal person, must have a name to establish its corporate existence. It provides
the company, the de facto monopoly of corporate trading under a particular
name. Name of the company: LOM LOGISTICS (INDIAN) PVT.LTD

SITUATION CLAUSE

Situation Clause contains the name of the state in which the company's
Registered Office is to be situated. This determines the domicile and nationality
of the company.

The registered office of LOM LOGISTICS (INDIAN) PVT.LTD is situated in

the state of TAMIL NADU.

OBJECTS CLAUSE

a. The name of the Company is LOM LOGISTICS (INDIA) PVT.LTD

b. The Registered Office of the Company will be situated in the State of Tamil
Nadu.

c. The objects for which the Company is established are:

(A) THE MAIN OBJECTS TO BE PURSUED BY THE COMPANY ON ITS

INCORPORATION

 To carry on business of custom house agents, clearing and forwarding,

shipping and air freight agency, travel agency, and supply chain
management, third party logistics, international freight forwarding,
business of consolidation and break bulk agents of sea and air cargo
warehousing, stevedores, freight brokers, insurance and cargo, inspection
 agency, chartered transportation of goods and passengers through surface,
sea and air, bunkers, store-keepers, ship chandlers, vessels agents and
exchange brokers.
 To carry on the business of Importers, exporters, traders, and dealers, in
all kinds of articles, materials, equipments, machineries, machinery parts,
spares, tools, dies, components, raw materials, Semi finished and finished
products and goods of all types, equipments, and to carry on the business
as wholesellers, commission agents, manufactures' representatives,
agents, brokers in all its varieties and area for Industrial, commercial and
residential uses.
 To carry on the business of logistics Management, Consultancy, advisory
and Liaisoning services for execution of afore mentioned objects.

(B) OBJECTS INCIDENTAL OR ANCILLARY TO THE ATTAINMENT OF

THE MAIN OBJECTS

 To carry on the activities which may seem to the Company capable of

being conveniently carried on in connection with or extension of any of
the businesses of the Company aforesaid or calculated to enhance the
value of or render more profitable any of it assets, property or rights.
 To apply for, purchase, hire, take on lease, sub lease or in exchange or
otherwise acquire and hold for any estate or interest any land, buildings,
offices, shops, factories, works, storehouses, wharves, erections, plant,
machinery, equipment, stock and materials and any other real or personal
immovable or movable property and any easements, and other rights and
privileges of any kind necessary to or convenient for the business or
undertaking of the Company or calculated to enhance the value of or
render more profitable any of its assets, property or rights.
 To assemble and prepare and dealing in any materials which may be
useful and conveniently combined with the business of the Company.
 For furthering the aims and objects of the Company to hold conferences,
seminars, symposia, buyer-seller meets, exhibitions, fairs, and to produce
or sponsor cinema or TV serials.
 To enter into agreements and contracts with Indian and Foreign
individuals, companies, or other organisations for technical, financial or
any other assistance for carrying out all or any of the objects of the
company.
 To establish and maintain any agencies in India or any part of the world
for the conduct of the business of the Company or for the sale of any
materials or things or services for the time being at the disposal of the
Company for sale subject to law of land in force.
 To advertise and adopt means of making known the business activities of
the Company or any articles or goods traded or dealt with by the
Company in any way as may be expedient including the pasting of bills in
relation thereto, and the issue of circulars, books, pamphlets and price
lists and the conducting of competitions, exhibitions, and the giving of
prizes, rewards and donations.
 To apply for, purchase or otherwise acquire, and protect and renew in any
part of the world any patents, patent rights, brevets invention, trademarks,
designs, licences, concessions and the like conferring any exclusive or
nonexclusive of limited right to their use, or any secret or other
information as to any invention which may seem capable of being used
for any of the purposes of the Company and to use, exercise, develop or
grant licences in respect of or otherwise, turn to account the property,
rights, or information so acquired, and to expend money in experimenting
upon, testing or improving any such patents, inventions, or rights.
 To expend in speculative presentations, experimenting, testing and
improving or seeking to improve any products, patents, rights, inventions,
discoveries, processes or information of the Company or which the
Company may acquire or propose to acquire.
 To pay all costs, charges and expenses of and incidental to the promotion,
formation, registration and establishment of the Company and the issue of
its capital therewith and to remunerate (by cash or other assets or by the
allotment of fully or partly paid shares or by a call or option of shares,
debentures or securities of this or any other company or in any other
manner whether out of the Company's capital or profits or otherwise) any
person or persons for services rendered or to be rendered in introducing
any property or business to the Company or for any other reason which
the Company may think proper.
 To lend money and negotiate loans and open bank accounts etc, but not to
carry on banking business, as per the Provisions of the Banking
Companies Regulation Act, 1949.
 To guarantee or become liable for the payment of money unsecured or
secured by or payable under or in respect of promissory notes;-bonds,
debentures, contracts, mortgages, charges, obligation's, instruments and
securities of any Company, of any authority supreme, municipal, local or
otherwise or of any person or persons, whomsoever, whether incorporated
or not incorporated and generally to guarantee or become securities for
the performance of any contracts or obligations, subject to the Banking
Regulation Act 1949.
 To enter into agreement with any person, company, Authority supreme,
Municipal or local in or outside India for the purpose of
purchasing/hiring/importing any materials, goods, articles. machinery,
 services or any other property useful for or conducive to the objects of the
Company.
 To invest and deal with the monies and funds belonging or entrusted to-
the Company not immediately required in lands, buildings, bullion,
commodities, articles, goods, negotiable instruments, advances against
property or goods, negotiable instruments and shares of other companies,
debentures, of other companies, Government, Municipal and other bonds
and securities, and in such investments and transactions, and to lend
monies to such persons or companies and on such terms and with or
without security, as may deem expedient, and in particular to customers
and others having dealings with the Company, and to guarantee the
performance of contracts by any such persons or companies.
 To purchase, take on lease or in exchange, hire or otherwise acquire any
real or personal property, rights or privileges which the Company may
deem expedient or convenient for any purpose of its business.
 To search for the purchase or otherwise acquire from any Government or
Authority, supreme, Municipal or local any concessions, grants, decrees,
rights, powers and privileges whatsoever which may seem to the
Company capable of being turned to account.
 To take part in the management, supervision and control of the business
or operations of any Company or undertaking having similar objects but
not to act as manager or managing agent of any other company.
 To acquire and carry on the whole or any part of the business or property,
and to undertake any liabilities of any person, firm, association or
company possessed of property suitable for any of the purposes of this
Company, or carrying on any business which this Company is authorised
to carry on, and as the consideration for the same to pay cash or
toissueany share, stocks or obligations of this Company.
 To promote any company or companies for the purpose of its or their
acquiring all or any of the property, rights and liabilities of the company
and to pay all the expenses of or incidental to such promotion.
 Subject to the provisions of the Act to amalgamate or partially
amalgamate with or acquire interest in the business of any other
Company, person or firm carrying on or engaged in, or about to carry on
or engage in any business or transaction included in the objects of the
Company, or enter into any arrangement for sharing profits, or co-
operation, or for limiting competition or for mutual assistance, with any
such person, firm or Company.
 To draw, make, accept, endorse, discount, execute and issue promissory
notes, bills of exchange, bills of lading, warrants, debentures and other
negotiable or transferable instruments, subject to the Banking Regulation
Act, 1949.
 To sell, let, develop, or otherwise deal with the undertaking of all or any
part of the property of the Company, for such consideration as the
company may think fit, with power to accept as the consideration any
shares, stocks or obligations of or interest in any other company, and to
distribute the assets in specie or in kind.
 To carry out all or any of the foregoing objects as principals, agents,
trustees or in partnership or conjunction with any other person, firm,
association or company, or by means of any subsidiary or auxiliary
company, and in any part of the world.
 Subject to the provisions of Section 58A read with Section 3(1)(iii)(d) of
the Companies Act, 1956, to borrow or raise money or to receive monies
on deposit at interest or otherwise in such manner asthe Companymay
deem fit and in particular by the issue of debentures, perpetual or
otherwise, including debentures convertible into shares of this or any
 other company or perpetual annuities and in security of any such money
so borrowed, raised or received to mortgage, pledge or charge the whole
or any part of the property, assets or revenue of the Company present or
future including its uncalled capital by the special assignment or
otherwise or to transfer or convey the same absolutely or entrust and to
give the lenders the power of sale and other powers as may deem
expedient and to purchase, redeem or pay off any such securities but not
to carry on Banking business as defined by Banking Regulations Act,
1949.
 To create any Depreciation Fund, Reserve Fund, Sinking Fund, Insurance
Fund or any other special funds whether for depreciation or for repairing,
improving, extending or maintaining any of the property of the Company
or for any other purpose conducive to the interest of the Company, and to
transpose such funds, and transfer from one to the other.
 To distribute any of the property or assets of the Company amongst the
members in specie or in kind in the event of winding up.

 To undertake the payment of all rent and the performance of all covenants,
conditions and agreements contained in, and reserved by any lease that may
be granted or assigned to, or be otherwise acquired by the Company, and to
purchase the reversion or otherwise acquire the freehold or all c: any part of
the case hold land and buildings or for the time being property in the
possession of the Company.

 To establish and support, or aid in the establishment and support of

associations, institutions, fund charity or conveniences calculated to
benefit any of the Directors, employees or exwww employees of the
Company or the dependents or connections of such persons, and to grant
bonus, gratuity, pension, privileges, relief and other emoluments and to
provide for the welfare, convenience, entertainment, amelioration,
 education, development and assurance of the said Directors, employees
and their dependents and to subscribe or guarantee money for charitable
or benevolent object or for any exhibition or for any public, general or
useful object.
 To refer any claim, demand, dispute or any other question by or against
the Company, or in which the Company is interested or concerned, and
whether between the Company and the member or members or between
the Company and third parties to arbitration in or outside India, and to
observe and perform and to do all acts, deeds, matters and things to carry
out or enforce the award.
 To insure the whole or any part of the property of the Company, either
fully or partly, to protect and indemnify the Company from liability or
loss in any respect, either fully or partly. and also to insure and to protect
and indemnify any part or portion thereof, either on mutual principle or
otherwise.

(C) THE OTHER OBJECTS NOT INCLUDED IN (A) AND (B) ABOVE

 To manufacture, buy, sell, import, export and deal in wholesale, in

commodities, article or things of all kinds, capable of being used or which
can conveniently be dealt with by the Company in connection with any of
its objects.
 The liability of the members is limited.
 The Authorised Share Capital of the Company is Rs. 5,00,000/- (Rupees
Five Lakhs Only) divided into 50,000 (Fifty Thousand) Equity Shares of
Rs. 10/- (Rupees Ten) each.
We, the several persons whose names and addresses description and
occupations, and subscribed below are desirous of being formed into a
Company in pursuance of this Memorandum of Association and we respectively
agree to take the number of shares in the Capital indicated against our respective
names.

LIABILITY CLAUSE

Section 4 (1)(d) of the Companies Act, states that the liability of members
of the company, whether limited or unlimited. The liability of the members is
limited

CAPITAL CLAUSE

The authorized share capital of the company is Rs.5,00,000/- (rupees five

lakhs only) divided into Rs.50,000/- (rupees fifty thousand) equity shares of Rs.
10/- (rupees ten) each. The company has the power from time to time increase
or reduce its capital as equity, preferred, or deferred shares and to attach to any
class of shares such rights privileges, restrictions or limitations as may from
time to time determined in accordance with the articles of the company to the
provisions of the companies Act, 1956.

SUBSCRIPTION CLAUSE

The subscribers to the Memorandum declare: "We, the several persons

whose names and addresses are subscribed below, are desirous of being formed
into a company in pursuance of this Memorandum of association, and we
respectively agree to take the number of shares in the capital of the company set
opposite our respective names".
 Then follow the names, addresses, description, occupations of the
subscribers, and the number of shares each subscriber has agreed to take and
their signatures attested by a witness. We the several persons, whose names and
address and description are subscribed, are desirous of being formed into a
company in pursuance of this Memorandum of Association and we respectively
agree to take in the number of shares in the capital of the company set opposite
to our respective names here under.

OBJECTS CLAUSE

The third compulsory clause in the Memorandum sets out the objects for
which the company has been formed. Sec. 4(1) (c) of the Companies
(Amendment) Act, 2016 provides that the company may engage in any lawful
act or activity or business, or any other act or activity or business to pursue any
specific object or objects, as per the law for the time being inforce.
SI. NAME & ADDRESSES, NO. OF WITNESS WITH
NO. SIGNATURE DESCRIPTIONS EQUITY ADDRESS,
OF THE AND SHARES DESCRIPTION AND
SUBSCRIBERS OCCUPATIONS TAKEN BY OCCUPATION
OF THE EACH
SUBSCRIBERS SUBSCRIBER
1 Sd/- No. A-104, 1ST 100 The aforesaid subscribers
LEE CHEOL FLOOR have signed in Fornt of
me, today, on September
S/o. LEE HONG PURVA (One Hundred 2004, at Bangalore.
GOO HEIGHTS Only)
BILEKAHALLI,
BANGALORE -
560 0076.
(BUSINESS)
2 Sd/- No. A-104, 1ST 900 Sd/L.SRIDHAR
LIMHANSUNG FLOOR (Nine So/G.Lakshminarasimhan
S/o.LIMJONG PURVA Thousand Sridhar & Brito
WOON HEIGHTS Nine Hundred No. 3/1, 1st Floor 2nd
Cross Lakshmi Road,
BILEKAHALLI, Only)
shanthinagar, Bangalore
BANGALORE - 560 027.
560 076.
(BUSINESS)
10,000 (Ten
thousand only)
TOTAL
DATE: ON 17TH SEP 2004

PLACE: BANGALORE
ARTICLES OF ASSOCIATION

ARTICLES OF ASSOCIATION
MEANING

The Articles of Association is another important document, which is

required to be filed with the Registrar of Companies. This document contains
the rules and regulations regarding the internal management of the company.
The main provisions regarding the Articles of Association are found in Secs. 5,
10 & 14 of the Act. The Articles enable the management to achieve the objects
given in the Memorandum.

DEFINITION

According to Sec. 2(5) of the Companies Act, 2013. Articles means the
Articles of Association of a company originally framed or as altered from time
to time or applied in pursuance of any previous Companies Law or of this Act".

CONTENTS OF THE ARTICLES OF ASSOCIATION

The Articles contain rules and regulations regarding

1. PRELIMINARY

2. PRIVATE COMPANY

3. DIVISION OF SHARE CAPITAL AND ALLOTMENT

4. SHARES TO BE UNDER THE CONTROL OF THE BOARD

5. TRANSFERS

6. BUY BACK OF SHARES

7. NOMINATION

8. SWEAT EQUITY SHARES

9.BORROWING POWERS

10.NON-APPLICABILITY OF CERTAIN SECTIONS

11.MEETINGS

12. BOARD OF DIRECTORS

13. MANAGEMENT

14. DELEGATION OF POWERS

15. COMMON SEAL

16. WINDING UP

17. SECRECY

18. INDEMNITY

PRELIMINARY

Subject to anything to the contrary hereinafter provided, the regulations

contained in Table "A' in the First Schedule to the Companies Act 1956 (Act
NoI of 1956) or any statutory modification thereof. shall apply to the Company.

PRIVATE COMPANY

The Company is a Private Company within the meaning Of Section 3(1)

of the Companies Act. 1956 and accordingly with a minimum paid up capital of
Rupees one lakh or such higher paid up capital as may be prescribed:

a) The right to transfer the shares in the Capital of the Company shall be
restricted in the manner and to the extant hereinafter mentioned in these
articles.

b) The number of members of the Company shall be limited to fifty not

including:
i) Persons who are in the employment of the Company and ii) Persons who
having been formerly in the employment of the Company were members of the
Company while in that employment and have continued to be members of the
Company after such employment ceased provided that where two or more
persons hold one or more shares in the company jointly, they shall, for the
purpose of this Article, be treated as a single member.

c) No invitation shall be issued to the public to subscribe for any shares in or

debentures of the Company.

d) No invitation shall be made for acceptance of deposits from persons

Other than its members, directors and their relatives.

DIVISION OF SHARE CAPITAL AND ALLOTMENT

i) The Authorised Share Capital of the Company is Rs 5,00,000

(Rupees Five Lakhs only) divided into 50,000/- (Fifty Thousand only) Equity
shares of Rs.10/- (Rupees Ten Only) each.

ii) The Board may allot the aforesaid shares in one or more lots at their
discretion for consideration payable in cash or otherwise

SHARES TO BE UNDER THE CONTROL OF THE BOARD

Subject to the provisions of these Articles. the shares shall be under the control
of the Board who may allot or otherwise dispose of the same on such terms
and conditions and at such time as the Board thinks fit but subject always to
Articles 2 Thereof.
TRANSFERS

i) Shares in the Company shall be transferred only amongst the members of the
Company and in case the members are not willing to participate in such
transfers. the same shall be transferred to any person/persons agreed to by the
Board of Directors of the Company. at a price fixed by the Board of-
Directors.

ii) The right of transfer of shares shall rest wholly with the Board of Directors.

iii) In case of any dispute regarding the valuation of shares. the Auditors of
the Company shall be called upon to act as Experts and give their opinion
regarding the fair value of the shares and the shares shall be transferred at
such fair value.

BUY BACK OF SHARES

The Company may purchase its own securities in accordance with the
provisions contained in Section 77A of the Act and the rules made there under in
pursuance of the guidelines issued by the Central Government

NOMINATION

Equity holders of shares/debentures may nominate a person to whom its

shares in, or the debentures of the Company. shall vest. in accordance with {he
provisions contained in Section 209 of the Act.

SWEAT EQUITY SHARES

The Company may authorise the Board of Directors by a special

Resolution to issue Sweat equity shares in accordance with the provisions
contained in the Section 79A of the Act.
BORROWING POWERS

Subject to the provisions Of the Act. the Board of Directors may, from
time to time. at their discretion, borrow or raise funds for the purpose of the
Company. The Board may raise or secure the re-payment of such sum/sums in
such manner and upon such terms and conditions in all respects as they think fit,
and in particular, by the issue of bonds. perpetual or redeemable debentures or
any mortgage, charge or other security on the undertaking of the Company. both
present and future. including its uncalled capital for the time being.

A Director may be or become a Director of any company promoted by

this Company or in which he may be interested as a vendor, shareholder or
otherwise and no such Director shall be accountable for any benefits received as
a Director or shareholder of such company but no such Director shall without
the consent Of the Board be or become a Director Of any company directly or
indirectly carrying on business ot a similar nature as that of the Company.

NON-APPLICABILITY OF CERTAIN SECTIONS

The provisions of Section 171 to Section 186 of the Companies Act shall
not be applicable the company.

MEETING

In common parlance, the word meeting means an act of coming face to face,
coming in company or coming together. The Oxford Dictionary defines a
meeting as, 'An assembly of number of people for entertainment, discussion or
the like'. A meeting therefore, can be defined as a lawful association, or
assembly of two or more persons by previous notice for transacting some
business. The meeting must be validly summoned and convened. Such
gatherings of the members of companies are known as company meetings.
STATUTORY MEETING

It is the first meeting of the shareholders of a public company having share

capital and is held once in the lifetime of a company. A private limited company
and a company limited by guarantee not having share capital need not hold a
statutory meeting. Statutory meeting must be held within a period of not less
than one month and not more than six months after the date on which it is
authorized to commence its business.

ANNUAL GENERAL MEETING

The Annual General Meeting is one of the important meetings of a company. It

is usually held once in a year. AGM should be conducted by both private and
public ltd companies whether limited by shares or by guarantee; having or not
having a share capital. As the name suggests, the meeting is to be held annually
to transact the ordinary business of the company.

EXTRA-ORDINARY GENERAL MEETINGS

Statutory Meeting and Annual General Meetings are called the ordinary
meetings of a company. All other general meetings other than these two are
called Extraordinary General Meetings. As the very name suggests, these
meetings are convened to deal with all the extraordinary matters, which fall
outside the usual business of the Annual General Meetings.

EOGMs are generally called for transacting some urgent or special business,
which cannot be postponed till the next Annual General Meeting. Every
business transacted at these meetings is called Special Business.
PROCEEDINGS OF MEETINGS OF DIRECTORS

Subject to the Provisions of section 287 of the companies Act, 1956 the
quorum necessary for transaction of the business of the Directors is to be two or
one-third of its total strength whichever is higher.

At every meeting of the Board, the Director of the company or the

Managing Director shall be the Chairman. Shall elect one of them as Chairman
for that meeting. In case of an equality of votes, the Chairman of the meeting
shall have a second or casting vote. In the event of his absence, other directors
present in the meeting.

Notwithstanding anything contained in Section 171 of the Act, the notice

given for general meetings other than Annual General Meeting shall be seven
days only. The provisions of Section 171 to 186 except 173 (2) and 176 (2) shall
apply to all General Meetings. 21 days' notice shall be given for the annual
general meeting.

Every member of the company shall have the right to vote on every
resolution placed before the company on a poll and shall be entitled to vote in
proportion to his share of the paid-up equity capital of the company

The Directors may from time to time raise or borrow any sum of money
for and on behalf of the Company from the members or any other person,
Companies or Banks or any one or more Directors on such interest in such a
manner and upon terms and conditions by mortgage, pledge, hypothecation or
otherwise charged upon all or any of the Company's property both present and
future including the uncalled capital as may be approved by the Directors.
GENERAL MEETINGS

l) An Annual General Meeting or the Company may be convened by giving not

than14 days notice in writing. All other General Meetings may be convened by
give not less then7 days notice in writing.

II) If the members holding not less than 50% of such part of. the paid-up
capital Of the Company as gives them a right to vote at the meeting, accord
their consent in writing, a General Meeting, (either Annual General Meeting or
otherwise) may be called by giving shorter notice of not less than 48 hours than
the period specified in Articles 8 (i) above.

III) The accidental omission to give notice to or the non-receipt of notice by

any member or other person to whom it Should be given shall not invalidate the
proceeding at the meeting.

PROXY

A proxy is an agent legally authorized to act on behalf of another party or a

format that allows an investor to vote without being physically present at the
meeting. Shareholders not attending a company's annual general meeting
(AGM)may vote their shares by proxy by allowing someone else to cast votes
on their behalf, or they may vote by mail.

AGENDA

An agenda is a list of meeting activities in the order in which they are to be

taken up, beginning with the call to order and ending with adjournment. It
usually includes one or more specific items of business to be acted upon. It may,
but is not required to, include specific times for one or more activities. An
agenda may also be called a docket, schedule, or calendar. It may also contain a
listing of an order of business.
QUORUM

A quorum refers to the minimum acceptable level of individuals with a vested

interest in a company needed to make the proceedings of a meeting valid under
the corporate. This clause or general agreement ensures there is sufficient
representation present at meetings before any changes can be made by the
board. A quorum normally consists of a group that is considered as large as
possible to be depended on to attend all corporate meetings, which is a
qualitative assessment.

MINUTES

'Minutes' means a record of the proceedings of a Meeting. Minutes should

contain a fair and correct summary of the proceedings of the Meeting and
should normally convey why, how and what conclusions or decisions were
arrived at in relation to each business transacted at the Meeting. It need not be
an exact transcript of the proceedings. Every company is required tokeep
Minutes of all Meetings. Minutes kept in accordance with the provisions of the
Act evidence the proceedings recorded therein. Minutes help in understanding
the deliberations and decisions taken at the Meeting.

BOARD OF DIRECTORS

 The number of directors shall not be less than two and not more then
twelve. including all kinds of directors.
 None of the directors of the company shall be liable to retire by rotation.
However the Company in general meeting may remove a Director and
may appoint pr induct someone else in his place.
 The first Directors of the company shall be-

a) LIM HAN SUNG

b) LEE CHEOL
 A Director. may on the request a Director, the secretary Shan at any time
summon a meeting of Directors.
 The Directors may appoint Additional Directors and lor any alternate
Director to act for a Director during his absence for a period of not less
than three months from the state in which the meeting of the Board are
ordinarily held. Besides the grounds laid down in section 283 of the
companies Act. 1956. the office of a Directors shall become vacant f the
majority of Directors decide by a resolution to his vacating the office and
which shall have effect from the date of the resolution.
 A Director shall not be required to hold any share in the share capital of
the company as his qualification.
 The remuneration of the directors of the company, including fees payable
to the Directors in attending the meeting of the board of committee of the
board, shall be determined by the board of Directors from time to time.
provided that the sitting fees payable to the Directors as aforesaid shall
not exceed such amount as is prescribed under the companies Act, 1956
from time to time.
 In addition to the remuneration to them. the directors. shall be entitled to
be paid all travelling. hotel and other incidental expenses properly
incurred by them in attending and returning from meeting of the board of
Directors or any Committee thereof or in connection with the business of
the CornJHY. The ruks in this regard may be framed by the Board of
Directors from tirne to time
 If any Director. being waling, shall be called upon to perform extra
services or make any special exertions for any of the purposes of the
cornpany or in giving special attention to the business of the Company or
as a member of a committee of the board. then the board may. to section
314 of the Act. remunerate the Director yo doing either by a fixed sum or
 by a percentage of profits or otherwise and such remuneration to which
he may be entitled.
 The board may sanction out of the Company's funds all expenses incurred
for and in connection with the incorporation of the company.
 A writing signed by all the Directors passed by the circulation other then
a resolution which the companies Act requires it specifically to be passed
in a board of Directors Meeting, shall be as effective for an purposes as a
resolution passed at the meeting of the board of Directors duly called,
held and constituted subject to sections 289 and 292 of the Act.
 The quorum necessary for Directors' meeting shall be two or one-third of
the total strength whichever is higher, subject to section 287 of the Act.

MANAGEMENT

 The Directors may appoint one or rnore •their body/ bodies to act as
Chairman. Managing Director or Executive Directors or full time or part
time working Director for such terms and at such remuneration as may be
decided by the Company in its General Meetings.
 The of the Company Shau be carried on by the Board of Directors
through the Chairman and/or the managing and for the Executive
DirectX. and/or its other members. and/or any other person appointed by
the Board of Directors for this purpose. and/or in such other manner as
they to the direction, contract and supervision of the board of Directors
at all times.
 The Chairman. the Managing Director. the Directors and/or any other
person's appointed by the board of Directors as aforesaid shall. subject to
the supervision and control of the Board of the Directors have the power
for engaging and dismissals of secretaries, engineers and other staff
required for the Company. They will have powers to superintend the
business of the Company and do all such acts, matters and thing deemed
 necessary and proper or expedient for carrying on the business and
concern of the Company including the powers to make such investments
of the funds of the Company as they shall think fit and to make and sign
and contracts. to make. draw. endorse. sign accept negotiate and give all
cheques. bills —of lading-drafts. orders. bills of exchange. Government
of India or other promissory note and Other negotiable instruments
required the business of the Company any may also sign and give all
receipts, release and discharges for moneys payable to the Company and
for the claim or demands of the Company.
 The Chairman. the Managing Director, the Executive Director or a
Director may be paid out c the funds of the Company as remuneration:

1. A monthly salary: and/or

2. A commission on net profit or on sate; and/or

3. House rent allowance, traveling conveyance and entertainment allowances

medical. expenses and other allowance as may be determined by the
Company in general meeting. Such remuneration. commission br allowance
shall be exclusive of the fee for attending meetings of the Board of
Committee thereof.

4. The Chairman. the Managing Director, the Executive Director. or the

Directors shall, addition to the Company all such sums as will be actually
disbursed by him on behalf of this Company as rent, taxes. salaries and
wages, traveling expenses. advertisement and the incidental expenses,
conveyance Charges and all Other charges incurred by the Managing
Director discharge of his duties as such.
 DELEGATION OF POWERS

Subject to the provisions Of the Companies Act. 1956 the Board of

Directors may from time tc time entrust. to and upon the Managing Directors
and any other Director for the time being such of the powers exercisable under
these presents by the Board of Directors as they ma) think fit. and. may confer
such powers for such time. and to be exercised for such objects ant purposes and
with such restrictions as they think fit and they may confer such powers of the
Board of Directors in that behalf, and may from time to time withdraw. revoke.
or vary all 01 any of such powers.

COMMON SEAL

The Board shall provide for the safe custody Of the Seal. The Seal of the
Company shall nol be affixed to any instrument except by authority of a
resolution of the Board or a Committee the Board authorised by it in that behalf,
and except in the presence of at least one Director, and the Director aforesaid
shall sign every instrument to Which the Seal of the Company is so affixed in
his presence. The share certificate shall. however. be sealed and signed in
accordance with the Rules framed by the Government from time to time.

WINDING UP

If the Company. shall be wound up, the Liquidator may with sanction of
a special resolution 01 the Company and any other sanction required by the Act.
divide amongst the members, in specie or in kind the whole or any part of the
assets Of the Company. whether they shatl consist of property of the same kind
or not.
 For the purpose as he deems fair. upon any property to be dividend as
aforesaid any may determine how such division shall be carried out as between
the members or different classes of members.

The Liquidator may, with the like sanction. vest the whole or any part of
such assets in Trustees upon such Trust for the benefit of the contributories as
the Liquidator. with the like sanction. shall think fit but so that no member shall
be compelled to accept any shares or other securities whereon there is any
liability.

SECRECY

Every Director, Auditor. Treasurer, Members of the Company, Officer.

Servant. Agent. Accountant or other persons employed in the business of the
Company shall Observe strict secrecy respecting all processes of manufacture,
trade secrets and all transaction or the Company with individuals and in all
matters relating thereto and shall pledge himself not to reveal any of the matters
which may come to his knowledge in the discharge of duties except. when
required so far as may be necessary in order to comply with any of the
provisions in these presents.

INDEMNITY

Subject to the provisions Of Section 201 of the Companies Act. 19956,

every officer or agent for the time being of the Company shall be indemnified
out of the assets of the Company against any liability incurred by him in
defending any proceeding. whether civil, or criminal, in which judgment is
given in his favour or in which he is acquired or in connection with any
application under Section 633 of the Act in which relief is granted to him by the
Court.
SL NAME & ADDRESSES, WITHNESS
NO SIGNATURE OF DESCRIPTIONS WITH
THE AND ADDRESS,
SUBSCRIBES OCCUPATIONS DESCRIPTION AND
OF THE OCCUPATION
SUBSCRIBERS

1 Sd/- No, a-104 1st floor The aforesaid

purva heights subscribers of me
LEE CHEOL bilekahalli, bangalore
– 5600076 (business) today on 17th
S/o. LEE HONG September
GOO 2004, at bngalore.

2 Sd/- No, a-104 1st floor Sd/- L.Sirdhar

purva heights
LIM HAN SUNG bilekahalli, bangalore S/o. G.
– 5600076 (business) Lakshminarasimhan
S/o. LIM JONG
WOON Sridhar & brito

No. 3/1, 1st floor, 2nd

cross, Lakshmi road,
shanthinagar bangalore
560027

DATE: ON 17TH SEP 2004

PLACE: BANGALORE

CHAPTER- II
➢ ORGANISATIONAL STRUCTURE
➢ DEPARTMENTATION
 ORGANIZATIONAL STRUCTURE

MEANING

Organization structure is the pattern of organizational hierarchy based on

authority responsibility relationship.

Organizational structure activities such as task allocation, coordination

and supervision, which are directed towards the achievement of organizational
aims. It can also be considered as the viewing glass or perspective through
which individuals see their organization and its environment. Organizations are
a variant of clustered entities an organization can be structured in many different
ways, depending on their objectives. The structure of an organization will
determine the modes in which it operates and performs.

Organizational structure allows the expressed allocation of

responsibilities for different functions and processes to different entities such as
the branch, department, workgroup and individual. Organizational structure
affects organizational action in two big ways. First, it provides the foundation on
which standard operating procedures and routines rest. Second, it determines
which individuals get to participate in which decision making processes, and
thus to what extent their views shape the organization's actions.

The role of Logistics in organizational structures of companies compared

to other sectors is very variable Almost each company has a different concept of
logistics. Exceptions are companies operating in the automotive industry where
logistics sections are similar in structure due to involvement in the united supply
chain. Trends in the status of logistics in organizational structures are clear. In
the past mainly manufacturing companies did not have separate sections of
logistics and logistics were provided by other sections. The purchasing
department provided orders, transport and components storage, manufacturing
division ensured the production planning and internal logistics and sales
department was in charge of the warehouse finished goods and transportation of
finished goods to customers. This organizational structure, when the logistics
are not centrally managed, belongs among functional organizational structures
and some companies still, use it. At present increasing companies where
logistics is centralized (Fig. 3), the logistics division reports directly to CEO.

It is because logistics costs about total costs rise, companies are involved
in the supply chain, and ever-evolving information technologies unite logistical
flows. It can say that along with marketing logistics are among the areas that are
increasingly perceived in the organizational structures and management
companies. Centralized Logistics manages the flow of materials throughout the
whole company. Logistics workers take customer orders, enter requests into the
production plan, order components based on production plan, they manage the
input material stores and final production warehouses.

The basic organizational structures based on the division of powers are:

• LINE (LINEAR) • STAFF • COMBINED • DIVISIONAL OR

MULTIDIVISIONAL • FLATARCHY STRUCTURE

LINE (LINEAR) ORGANIZATIONAL STRUCTURES

These structures were the first stage of development of the organizations

that were small in scale and in which there was only one management level,
which was usually a business owner. Another development starts to create more
levels of management, which also brings new problems with demands on the
expertise of leadership and to fulfill supported tasks. All these lead to the
formation of other types of organizational structures (e.g linear - staff or
functional). Linear structures include the direct command authority.

STAFF ORGANIZATIONAL STRUCTURES

Staff services are primarily designed to ensure a qualified decision-

making of line managers in their departmental units. Staff group consists of
specialists in various fields and can be divided into personal staff line managers
and professional staff that perform an indirect professional management.
Employee organizational structure cannot exist independently in this sense but it
only exists in combination with linear, functional or other organizational
structure. Smaller companies that are trying to implement logistics systems, and
have not a necessary experience with modern logistics and cannot afford to
implement the entire logistics department often approach the establishment of
logistics staff. It has mostly advisory role, drawing up the strategy, but does not
participate directly in the implementation and operation of logistics activities
and chains.

FUNCTIONAL ORGANIZATIONAL STRUCTURES

Functional organizational structures are structured by grouping workers

into sections based on the similarity of tasks, skills, and activities. The most
common application of this structure can be found in mid-size businesses that
achieve top performance in the production of a small number of products that
require a high level of specialization. One section head, then, manages the entire
section, which contains grouped tasks and competences. Cejthamr and Dedina
of logistical organization. Whether a company chooses hierarchically lower
form a central logistics unit in the form of logistics department, or whether a
higher form such as a division, it is primarily influenced by a range of logistics
activities in the company. logistics organizational.
DIVISIONAL OR MULTIDIVISIONAL STRUCTURE

The second type is common among large companies with many business
units. Called the divisional or multidivisional structure, a company that uses this
method structures its leadership team based on the products, projects, or
subsidiaries they operate. A good example of this structure is Johnson &
Johnson. With thousands of products and lines of business, the company
structures itself so each business unit operates as its own company with its own
president.

FLATARCHY STRUCTURE

Flatarchy, a newer structure, is the third type and is used among many
startups. As the name alludes, it flattens the hierarchy and chain of command
and gives its employees a lot of autonomy. Companies that use this type of
structure have a high speed of implementation.
DEPARTMENTATION
 DEPARTMENTATION
MEANING

Departmentation may be defined as the progress of grouping individual

jobs into departments. It involves grouping of activities and employees into
departments so as to facilities the accomplishment of organization objectives.
Once the total work of an enterprises divided into individual functions and sub
functions, these functions are grouped together into work units on a particular
basis.

ADVANTAGES OF DEPARTMENTATION

➢ Departmentation enables an enterprise to take advantage of specialization.

➢ Departmentation results in the division of the enterprise into
semiautonomous units.
➢ Departmentation enables each person to know the specific part he is to
pay in the total organization.
➢ Departmentation facilitates communication, co-ordination and control.

DISADVANTAGES OF DEPARTMENTATION
➢ Delay in decision making and flow of information.
➢ Business as a whole very often remains out of sight of functional
executives.
➢ Coordination between different functional areas is difficult.
➢ No good training ground for all around promo-table managers is possible
because each personal specialize is only a single field.
NEED FOR DEPARTMENTATION

DIVISION OF WORK

Departmentation gives the advantage of division of labour. As a result, the

organization is able to benefit from specialization. Each departmentation focuses
attention on a specific line of activities.

IDENTITY

Departmentation gives identity to every department. Each department can

be identified with its head and other subordinate staff.

HUMAN RESOURCE DEPARTMENT

Human resource management (HRM, or simply HR) is the management

process of organization's workforce, or human resources. It is responsible for the
attraction, selection, training, assessment, and rewarding of employees, while
also overseeing organizational leadership and culture and ensuring compliance
with employment and labour laws. In circumstances where employees desire
and are legally authorized to hold a collective bargaining agreement, HR will
also serve as the company's primary liaison with the employees' representatives
(usually a trade union).

HUMAN RESOURCE DEPARTMENT FUNCTIONS ARE

➢ MAN POWER PLANNING

➢ RECRUITMENT AND SELECTION OF EMPLOYEES

➢ EMPLOYEE MOTIVATION

➢ EMPLOYEE EVALUATION

➢ ORGANIZATIONAL RELATIONS
FINANCE DEPARTMENT

Finance is a field within economics that deals with the allocation of assets
and liabilities over time under conditions of certainty and uncertainty. A key
point in finance is the time value of money, which states that one unit of
currency today is worth more than one unit of currency tomorrow. Finance aims
to price assets based on their risk level, and expected rate of return. Finance can
be broken into three different sub categories: public finance, corporate finance
and personal finance.

FINANCE DEPARTMENT FUNCTIONS ARE

Prepare financial statements, business activity reports, and forecasts,

➢ Monitor financial details to ensure that legal requirements are met

➢ Supervise employees who do financial reporting and budgeting,
➢ Review company financial reports and seek ways to reduce costs
➢ Analyze market trends to find opportunities for expansion or for acquiring
other companies,
ADMINISTRATION DEPARTMENT

The administration of a business includes the performance or

management of business operations and decision making as well as the efficient
organization of people and other resources, direct activities toward common
goals and objectives.

SUPPLY DEPARTMENT

Supply of goods the act identifying, acquiring, and managing resources

and suppliers that are essential to the operations of an organization. It includes
the purchase of physical goods, information, services, and any other necessary
resources that enable a company to continue for operating and growing.
DISTRIBUTION LOGISTICS

Distribution logistics has, as main tasks, the delivery of the finished

products to the customer. It consists of order processing, warehousing, and
transportation. Distribution logistics is necessary because the time, place, and
quantity of production differ with the time, place, and quantity of consumption.

DISPOSAL LOGISTICS

Disposal logistics has as its main function to reduce logistics cost(s) and
enhance service(s) related to the disposal of waste produced during the
operation of a business.

RECYCLING LOGISTICS

Typical examples of recycling logistics are recovering and recycling

empty cans, plastic bottles, and old paper. Containers, packaging, old
computers, and inkjet cartridges can also be recovered and recycled in the same
manner. The importance of recycling logistics has been increasing in recent
years as measures for the environment and to effectively utilize materials such
as minor metals.

PRODUCTION LOGISTICS

Production logistics is the flow of goods that includes the management of

procured parts and materials, distribution inside a factory, product management,
packaging, and shipping to warehouse. Delivery management, warehouse
dispatch management, and shipping management can be optimized and the state
of delivery vehicles can be managed by smoothly linking procurement logistics
and sales logistics described later.
CHAPTER- III
➢ OFFICE LAYOUT
➢ OFFICE ENVIROMENT
 OFFICE LAYOUT

MEANING

Office layout means the systematic arrangement of office equipment,

machines and furniture and providing adequate space to office personnel for
regular performance of work with efficiency.

DEFINITION

According to Littlefield,"Office layout is the arrangement of equipment

within the available floor space".

According to Hicks and Place,"The problem of layout relates to the

arrangement in the space involved so that all the equipment, supplies,
procedures and personnel can function at maximum efficiency".

Therefore, the main task of office manager is the proper allocation of

space to each section by considering the interlinking of other sections, so that
the activities of different sections can be coordinated and controlled easily.
Faulty or improper arrangement of furniture, equipment and space for
employees leads to unnecessary wastage of time and energy and increase in the
cost of office operations.

OBJECTIVES

The main objectives of office layout are as follows

➢ Effective utilization of available floor space and smooth flow of work.

➢ Both power and telephone service are made available whenever
necessary.
➢ Office supervision is made easier and more convenient.
➢ Good working conditions should be provided to each employee
➢ The reception room should be very near to the main gate or entrance so
that the visitors may feel easy and convenient.

➢ A sense of belonging and loyalty should be made in the minds of office

employees.
➢ Employee's satisfaction should be the outcome of proper office layout.
➢ There should be a free flow of communication among employees.
➢ All the sections cannot work independently. Hence, the office layout
ensues the interlinking of each section according to their needs.
➢ There must be an adequate space between desks, tables and chairs for free
movement of employees.
➢ Noise and disturbing operations should be segregated with the office.
➢ Some sections require privacy. The sections may be interview section and
inquiry section. Interview section is dealing with recruitment of staff and
inquiry section is dealing with progress and performance of the existing
staff.
➢ Frequent mutual consultation and interference between clerks should be
avoided.
➢ The room of the manager should be arranged in such a manner that he can
easily observe the activities of staff for exercising control on them.
➢ The external noise and disturbance should be avoided by fixing double
glazed windows and doors.
➢ Changes may be made in the office layout if the volume of work is
increased in future and requires facilities.
➢ Staff doing confidential work should be provided adequate privacy.
➢ There must be sufficient, natural or artificial light.
➢ Adequate safety of valuable documents and records should be ensured.
OFFICE LAYOUT
OFFICE ENVIRONMENT
 OFFICE ENVIRONMENT

The main purpose of an office environment is to support its occupants in

performing their job preferably at minimum cost and to maximum satisfaction.
With different people performing different tasks and activities, however, it is not
always easy to select the right office spaces.

An office is generally a room or other area where an organization's

employees perform administrative work in order to support and realize objects
and goals of the organization. The word "office" may also denote a position
within an organization with specific duties attached to it; the latter is in fact an
earlier usage, office as place originally referring to the location of one's duty.

When used as an adjective, the term "office" may refer to business-related

tasks. In law, a company or organization has offices in any place where it has an
official presence, even if that presence consists of a storage silo rather than an
establishment with desk-and-chair. An office is also an architectural and design
phenomenon: ranging from a small office such as a bench in the corner of a
small business of extremely small size, through entire floors of buildings, up to
and including massive buildings dedicated entirely to one company. In modern
terms an office is usually the location where white-collar workers carry out their
functions.

"Office is that part of business enterprise which is devoted to the direction

and coordination of its various activities."

For new, or developing businesses, remote satellite offices and project

rooms, serviced offices can provide a simple solution and provide all of the
former types of space.

To aid decision making in workplace and office design, one can

distinguish three different types of office spaces:
1.WORK SPACES

2.MEETING SPACES

3.SUPPORT SPACES

4.VENTILATION AND TEMPERATURE

5.ARTIFICIAL HUMIDIFICATION

6.SPITOONS

7.CANTEEN FACILITIES

8.LIGHTINING

9.REST ROOMS

WORK SPACES

Work spaces in an office are typically used for conventional office

activities such as reading, writing and computer work. There are nine generic
types of work space, each supporting different activities.

MEETING SPACES

Meeting spaces in an office typically use interactive processes, be it quick

conversations or intensive brainstorms. There are six generic types of meeting
space, each supporting different activities.

SUPPORT SPACES

Support spaces in an office are typically used for secondary activities

such as filing documents or taking a break. There are twelve generic types of
support space, each supporting different activities.
VENTILATION AND TEMPERATURE

Ventilation and air circulation ensure normal health to the workmen. in

order to maintain ventilation and fresh air circulation, temperture in the working
place should be secured.

ARTIFICIAL HUMIDIFICATION

In factories where artificial humidification is adopted from the point of

view of manufacturing a product, the norms prescribed by the government must
be strictly followed for increasing or decreasing or maintaining such artificial
humidification.

CANTEEN FACILITIES

Canteens are provided by an employer so has to provide hygienic and nutritious

foods to the employees.

SPITOONS

Warehouse, store place in the dock area and the office premises spittoons are
provided in convenient places and some are maintained in hygienic conditions.

LIGHTNING

Proper and sufficient lights are provided for employees so that they can work
safely during night shift.

REST ROOMS

Adequate number of rest rooms is provided to the workers with provision of

water supply, wash basins, toilets and bathrooms.
CHAPTER- IV
➢ RATIO ANALYSIS
 RATIO ANALYSIS

MEANING

A ratio analysis is a quantitative analysis of information contained in a

coinancial statements. Ratio analysis is used to evaluate various aspects of a
company’s operating and financial performance such as its efficiency, liquidity,
profitability and solvency.

DEFINITION

Khan and Jain define the term ratio analysis as “the systematic use of
ratios to interpret the financial statements so that the strengths and weaknesses
of a firm as well as its historical performance and current financial conditions
can be determined.”

RATIO ANALYSIS INVOLVES FOUR STEPS

❖ Collection of relevant accounting data from financial statements.

❖ Constructing ratios of related accounting figures.
❖ Comparing the ratios thus constructed with the standard ratios which may
be the corresponding past ratios of the firm or industry average ratios of
the firm or ratios of competitors.
❖ Interpretation of ratios to arrive at valid conclusion.

ADVANTAGES OF RATIO ANALYSIS

The following are the principal advantages of ratio analysis:

 CURRENT RATIO
MEANING

Current ratio may be defined as the ratio of current assets and current
liabilities and is obtained by dividing current assets by current liabilities. It is
also known as working capital ratio. Working capital is defined as excess of
current assets over current liabilities. This ratio is it indicator of short-term
liquidity position of a firm. The term liquidity means the ability of the firm to
meet its short-term maturing obligations.

FORMULA CURRENT RATIO = CURRENT ASSETS

CU CURRENT LIABILITIES
Current assets = Current assets = Debtors + Stock + Bills Receivables + Cash
& Bank balance + Prepaid expenses + Income due + Short term investment.
Current liabilities = Creditors + Bank overdraft + Bills payable + Outstanding
Expenses + Income received in advance.

YEAR CURRENT CURRENT CURRENT RATIO

ASSETS LIABILITY

2014-2015 1,380,200,000 987,300,000 1.39

2015-2016 1,515,600,000 964,600,000 1.57

2016-2017 1,569,300,000 1,049,900,000 1.49

2017-2018 1,967,400,000 1,225,600,000 1.60

2018-2019 2,374,200,000 1,459,500,000 1.62

SIGNIFICANCE

Ideal ratio is 2:1 A higher ratio indicates there is sufficient assets in the firm
to meet its current liabilities a lower ratio indicates inadequate current assets to
meet is current liabilities.

INTERPRETATION

The above table show, during the year 2014-2015 the ratio was lowest this
indicates that a company may have difficulty meeting current obligations. In the
year 2018-2019 the ratio was high this indicates that the company may not be
using its current assets or its short-term financing facilities efficiently.
 LIQUID RATIO
MEANING
Quick ratio or liquid ratio is the ratio between quick or liquid assets and quick
or current liabilities. It shows the availability of funds for meeting the
immediate liabilities. Liquid asset mean those assets which are immediately
convertible into cash without much loss. It includes cash, debtors-less bad debts,
short-term bills receivable and temporary investment held in lieu of cash.
Inventories and pre-paid expenses are excluded from liquid assets.

FORMULA

LIQUID RATIO = LIQUID ASSETS

CURRENT LIABILITIES

Liquid assets = Current assets – Stock and Prepaid expenses.

Current liabilities = Creditors + Bank overdraft + Bills payable + Out Standing
expenses + Income received in advance.

YEAR LIQUID CURRENT LIQUID RATIO

ASSET LIABILITIES

2014-2015 1,108,100,000 987,300,000 1.1

2015-2016 1,206,400,000 964,600,000 1.2

2016-2017 1,214,100,000 1,049,900,000 1.1

2017-2018 1,606,900,000 1,225,600,000 1.3

2018-2019 1,865,200,000 1,459,500,000 1.2

SIGNIFICANCE

The ideal liquid ratio is 1:1. Higher ratio indicates prepaid expenses). The
ratio is not preferable.

INTERPRETATION

The above table shows, during the year 2014-2015 the ratio percentage was
low this indicates that the company may struggle to pay short-term obligations.
In the year 2018-2019 the ratio was high this indicates that the business is
holding too much cash that could be utilized in other areas.
 DEBT EQUITY RATIO
MEANING

This ratio shows the relationship between debt capital and equity or
shareholders fund in the capital structure of the firm. It is determined to
measure the firm’s obligations to creditors in relation to funds invested by the
owners.

FORMULA

DEBT EQUITY RATIO = LONGTERM DEBT

SHAREHOLDERS FUNDS

Long term debt = Debentures + Long term loans from bank and financial
institutions.

Shareholders fund = Equity share capital + Preference share capital + Reserves

and surplus.

YEAR LONG TERM SHAREHOLDERS DEBT EQUITY

DEBT FUNDS RATIO

2014-2015 700,000 2,097,700,000 0.0

2015-2016 1,200,000 1,803,000,000 0.0

2016-2017 59,900,000 1,588,600,000 0.03

2017-2018 168,300,000 1,300,200,000 0.12

2018-2019 187,500,000 1,137,900,000 0.16

SIGNIFICANCE

A ratio of between 1 and 1.5 is considered ideal. Anything higher than 2,

for most industries, is too high.

INTERPRETATION

The above shows the debt equity ratio during the year 2016-2017 the ratio
was low this indicates that the lower amount of financing by debt via lenders,
during the year 2018-2019 the ratio was highest this indicates that the company
is getting more of its financing by borrowing money.
 GROSS PROFIT RATIO
MEANING

Gross profit ratio is a profitability ratio that shows the relationship

between gross profit and total net sales revenue. It is a popular tool to evaluate
the operational performance of the business. The ratio is computed by dividing
the gross profit figure by net sales.

FORMULA

GROSS PROFIT = GROSS PROFIT ×100

NET SALES
Gross Profit = Sales – Cost of goods sold

Net sales = Sales – sales return

YEAR GROSS PROFIT NETSALE

GROSS PROFIT
RATIO

2014-2015 2,015,000,000 4,164,100,000 48.3

2015-2016 2,290,700,000 4,484,200,000 51.0

2016-2017 2,292,200,000 4,659,400,000 49.1

2017-2018 2,342,600,000 4,841,000,000 48.3

2018-2019 2,457,700,000 5,138,900,000 47.8

SIGNIFICANCE

A higher ratio is preferable its indicates higher profitability. A lower ratio

indicates lower profitability.

INTERPRETATION

From the above table, during the year 2015-2016 the ratio was highest this
indicates that a company can make a reasonable profit on sales, as long as it
keeps overhead costs in control. In the year 2018-2019 the ratio became low this
indicates that the company is under-pricing.

NET PROFIT RATIO

MEANING:

This is the ratio of net profit after taxes to net sales. Net profit, as used
here, is the balance of profit and loss account which is arrived at after
considering all non-operating incomes such as interest on investment; dividend
received etc. and operating expenses such as office and administrative expenses,
selling and distribution expenses and non-operating expenses like loss on sale of
fixed assets, provision for contingent liability, etc.

FORMULA

NET PROFIT RATIO = NET PROFIT × 100

NET SALES

Net profit =Non-operating incomes + Profits

Net sales = Sales – Sales return

YEAR NET PROFIT NET SALE

NET RATIO

2014-2015 161,100,000 4,164,100,000 3.8

2015-2016 257,600,000 4,484,200,000 5.7

2016-2017 349,300,000 4,659,400,000 7.4

2017-2018 357,500,000 4,841,000,000 7.3

2018-2019 365,300,000 5,138,900,000 7.1

SIGNIFICANCE

Higher the ratio is better the operational efficiency of the business,

concern is good. A lower ratio indicates less operational efficiency of the
business concern.

INTERPRETATION

The above table shows as net profit ratio. During the year 2014-2015 the
ratio was very low this indicates that the net profit efficiency is below industry
norms. In the year 2016-2017 the percentage of ratio was high this indicates that
a company is able to effectively control its costs and provide goods or services
at a price significantly higher than its costs. Therefore, a high ratio can result
from efficient management
 OPERATING PROFIT RATIO

MEANING

The operating profit ratio indicates how much profit a company makes
after paying for variable costs of production such as wages, raw material, etc. it
is also expressed as a percentage of sales and then shows the efficiency of a
company controlling the costs and expenses associated with business
operations.

FORMULA

OPERATING PROFIT RATIO = OPERATING PROFIT × 100

NET SALES

Operating ratio = Net profit + Non-operating expenses + Non-operating

incomes

Net Sales = Sales – Sales return

YEAR OPERATING NET SALE OPERATING

PROFIT PROFIT RATIO

2014-2015 454,900,000 4,164,100,000 10.92

2015-2016 544,300,000 4,484,200,000 12.1

2016-2017 732,200,000 4,659,400,000 15.7

2017-2018 758,700,000 4,841,000,000 15.6

2018-2019 677,800,000 5,138,900,000 13.1

SIGNIFICANCE

This ratio shows the operational efficiency of the firm. A lower ratio is
more efficient the ratio should be low enough provide fair returns to the
shareholders and other investors. High ratio is more inefficient.
INTERPRETATION

The above shows, during the year 2014-2015 the operating profit ratio was
very low. In the year 2017-2018 the ratio was highest it indicates greater
potential to derive profits. During the year 2018-2019 the ratio percentage was
very lowest.
 OPERATING RATIO
MEANING

This is the ratio of cost of goods sold plus operating expenses to net sales
of the firm. This is closely related to the ratio of operating profit to net sales.
Operating cost consists of cost of goods sold, office and administrative expenses
and selling and distribution expenses. Financial charges such as interest,
provision for taxation and loss on sale of investments etc. are excluded from
operating expenses.

FROMULA

OPERATING RATIO = COST GOODS SOLD + OPERATING RATIO × 100

NET SALES

Operating expenses= Cost of goods sold + Administrative expenses + Selling

and distribution expenses.

Net sales = Sales – sales return

YEAR (COST OF GOODS) NET SALES OPERATING

+ RATIO
(OPERATING
EXPENSES)
2014-2015 6,964,500,000 4,164,100,000 1.6

2015-2016 7,298,400,000 4,484,200,000 1.6

2016-2017 7,326,600,000 4,659,400,000 1.5

2017-2018 7,644,300,000 4,841,000,000 1.5

2018-2019 8,338,800,000 5,138,900,000 1.6

SIGNIFICANCE

It indicates the operational efficiency of the concern. A lower ratio is more

efficient. The ratio should be though enough to provide fair return to
shareholders and other investors. A higher ratio is more inefficient.

INTERPRETATION

The above table shows an operating ratio, during the year 2014-2015 the
ratio was highest. In the year 2016-2018 the ratio was lowest this indicates that
the greater the organization’s ability to generate profit. During the year
20182019 the ratio became highest.
 WORKING CAPITAL TURNOVER RATIO
MEANING

The working capital turnover ratio is also referred to as net sales to

working capital. It indicates a company’s effectiveness in using its working
capital. The working capital turnover ratio is calculated as follows: net annual
sales divided by the average amount of working capital during the same year.

FORMULA

WORKING CAPITAL TURUNOVER RATIO = COST OF SALES

WORKING CAPITAL

Working capital = current asset- current liabilities

Cost of sales = Stock + Purchases – closing stock

YEAR COST OF SALES WORKING CAPTIAL

CAPITAL TRUNOVER
RATIO

2014-2015 2,149,100,000 392,900,000 5.4

2015-2016 2,193,500,000 551,000,000 3.9

2016-2017 2,367,200,000 519,400,000 4.5

2017-2018 2,498,400,000 741,800,000 3.3

2018-2019 2,681,200,000 914,700,000 2.9

SIGNIFICANCE

A higher ratio is an indication of the lower investment of working capital

and more profit. A lower ratio indicates high investments of working capital and
loss profit.

INTERPRETATION

The above table shows during the year 2014-2015 a high turnover ratio
this indicates that management is being extremely efficient in using a firm short
term assets and liabilities to support sales. In the year 2018-2019 the ratio was
lowest.
 FIXED ASSET TURNOVER RATIO
MEANING

Fixed asset turnover is the ratio of sales (on the profit and loss account) to
the value of fixed assets (on the balance sheet). It indicates how well the
business is using its fixed assets to generate sales.

FORMULA FIXED ASSET TRUNOVER RATIO = COST OF SALES

FIXED ASSETS
Net fixed assets = Fixed assets - Depreciation
Cost of sales = Stock + Purchases – closing stock

YEAR COST OF SALES FIXED ASSETS FIXED ASSETS

TRUNOVER
RATIO

2014-2015 2,149,100,000 1,170,700,000 1.8

2015-2016 2,193,500,000 1,043,200,000 2.1

2016-2017 2,367,200,000 1,208,200,000 1.9

2017-2018 2,498,400,000 1,141,500,000 2.1

2018-2019 2,681,200,000 1,183,700,000 2.2

SIGNIFICANCE

Higher the ratio more is the efficiency in utilization of fixed assets.

Lower the ratio indicates inefficiency in the utilization of fixed assets.

INTERPRETATION

The above table shows the fixed asset turnover ratio. In the year 2014-
2015 the ratio was lowest this indicates that a company has over-invested in
fixed asset. During the year 2018-2019 the ratio was highest this indicates that a
company spent less money in fixed asset for each rupees of sales revenue.
 CAPITAL TURNOVER RATIO
MEANING

Capital turnover ratio indicates the efficiency of the organization with

which the capital employed is being utilized. A high capital turnover ratio
indicates the capability of the organization to achieve maximum sales with
minimum amount of capital employed. Higher the capital turnover ratio better
will be the situation.

FORMULA

CAPITAL TRUNOVER RATIO = COST OF SALES

CAPITAL EMPLOYED

Cost of sales = Stock + Purchases – closing stock

Capital employed = Equity share capital + Preference share capital + reserves

and surplus + long term borrowed funds
YEAR COST OF SALES CAPITAL TIMES
EMPLOYED

2014-2015 2,149,100,000 1,404,500,000 1.5

2015-2016 2,193,500,000 1,547,600,000 1.4

2016-2017 2,367,200,000 1,727,600,000 1.3

2017-2018 2,498,400,000 1,883,300,000 1.3

2018-2019 2,681,200,000 2,098,400,000 1.2

SIGNIFICANCE

A higher ratio is an indication of lower investment of working capital and

more profit. A lower ratio indicates high investments of working capital and loss
profit.

INTERPRETATION

The above table shows the capital turnover ratio, in the year 2014-2015 the
ratio was high this indicates the capability of the organization to achieve
maximum sales with minimum amount of capital employed. During the year
2018-2019 the ratio was very low.
CHAPTER- V
➢CONCLUSION
➢ANNEXUER
 CONCLUSION
Conclusion constitutes one of the important parts of the study as it gives the
entire study report in the short possible way of Conclusion is derived from the
details of the company in terms the information provided on the calculation
made hashed on the balance sheet, profit and loss and the financial details'
reports provided. The name of the company is LOM LOGISTICS INDIAN
PRIVATE LIMITED. It is a private limited company situated in Chennai
Tamil Nadu.

It is pride to get trained in a private limited company like LOM LOGISTICS

INDIAN PRIVATE LIMITED. under the institutional training for a period of
one month in this duration I have visited several departments in the company
through which was able to gain knowledge on the work in the company.

I have learned the method, how to manage and develop the business. This
internship process helped me to know about various process in the business.

RESULT ANALYSIS

The current financial position of the company is good enough to meet its future
demands without the needs to face losses the company as good enough Current
asset to meet its current liabilities and the company creditors are at the same
position where they can be free of risk in the investment.

SUGGESTION

The company runs its business well in all aspects I suggest to shows quick
progress in the in the projects taken over by the company as it shows slow
progress.
 CONCLUSION AND FINDINGS& SUGGESTION

➢ The current ratio during the year 2014-2015 the ratio was low and in the
year 2018-2019 the ratio was high.
➢ The liquid ratio during the year 2014-2015 the ratio was low. In the year
2018-2019 the ratio was high
➢ The debt equity ratio during the year 2016-2017 the ratio was low. In the
year 2018-2019 the ratio was highest.
➢ The gross profit ratio during the year 2015-2016 the ratio was highest. In
the year 2018-2019 the ratio became low.
➢ The net profit ratio during the year 2014-2015 the ratio was very low. In
the year 2016-2017 the percentage of ratio was high.
➢ The operating profit ratio during the year 2014-2015 the ratio was very
low. In the year 2017-2018 the ratio was highest. During the year 20182019
the ratio percentage was low.
➢ The operating ratio during the year 2014-2015 the ratio was highest. In the
year 2016-2018 the ratio was lowest. During the year 2018-2019 the ratio
became highest.
➢ The working capital turnover ratio during the year 2014-2015 a high
turnover ratio. In the year 2018-2019 the ratio was lowest.
➢ The fixed asset turnover ratio in the year 2014-2015 the ratio was lowest.
During the year 2018-2019 the ratio was highest.
➢ The capital turnover ratio in the year 2014-2015 the ratio was high. During
the year 2018-2019 the ratio was very low.
➢ Company may look into the measures how to refuse the loans and advances
to the employees in the coming periods.
➢ It is suggested to the company that it can strongly focus on cost reduction
strategy that will make the company more profitability
 ➢ The company has better quick liquidity position and to maintain same in
the future.
➢ The company may look into branches as well as customer national wide.
➢ The company should open to a website for the customer enquires in a
network for more advertisement and popularly.

PERSONAL EXPERIENCE

It is a thing of pride and privilege to have opportunity to have a training in a

enterprises like “LOM LOGISTICS INDIAN PVT LIMITED” under the regular
institutional training I have visited the company for a period of thirty days.

CONCLUSION

This study was carried out by us to determine the level of employee welfare
practices in LOM LOGISTICS INDIAN PVT LIMITED The objective of this
study is current ratio of the firm is more than the ideal ratio and it has a good
financial position. the liquidity position of the company is good due to sufficient
asset to the firm to meet the current liability. the current year’s gross profit of
the company is good due to the increase in net sakes as well as the gross profit.
The operating profit of the company is good enough to meet the return to the
shareholders’ funds.

In a LOM LOGISTICS INDIAN PVT. LIMITED this internship has been an

excellent and rewarding experience. The training gave me an insight into the
corporate world and how it functions. Along my training period, I realized that
observation is a main element to find out the root cause of a problem. Not only
for my project but daily activities too. The preparation of the project report
helped me to learn the methodology of analyzing and interpreting the financial
aspects of the company. Apart from that, I have also developed my time
management, networking skills and people management. In sum, the activities
that I had learned during the training periods are extremely useful for me in
future to face challenges in a working environment.

The company has been well equipped, with all the basic needs to run the
organization. Both their service and the machines perform their best in the
work. The organizations profit and turnover are showing a very good progress.
The company has well skilled workers. The organizations involved the hard
workers and efforts of every individual working in organizations.

The office has been in an excellent fashion and located at a central area, the
layout has been designed by considering the various comfort of the employees
which includes the updated infrastructural facilities. The company believes that
their first responsibility is to keep the customer, then their people, next to our
community and finally the shareholders of the company happy and comfortable
with the services.

Lom logistics Indian private limited has been very successful in the markets in
the last four decades and is currently the biggest player in electroplating
industry. The company has impresse1d and satisfied the customers by providing
high quality services at a competent price. The company is looking forward to
reach great heights through perfect planning, technical working and the most
important key is the hard work.