Business Model: Amazon versus eBay Essay

A company’s business model is the activities it uses to create and capture value through its offerings to the market. Modelling helps firms develop business visions and strategies, redesign and align business operations, share knowledge about the business and its vision and ensure the acceptance of business decisions through committing stakeholders to the decisions made (Persson & Stirna , 2001). Amazon and eBay both share space in the retail industry of e-retail and e-commerce services. The two companies have found success by conducting business using the internet by providing products, services, and information to consumers. Although, B2C (business to customer) strategies have helped both companies to achieve success they have sustained and dominated the market through evolving business models that capitalize on value creation to the consumer. eBay’s business model is based on creating an online trading community where the company provides an auctioning platform that brings sellers and buyers together. Thousands of items are listed in catalog form according to topic and category. eBay at no time takes possession of any item which leaves shipping costs details between the buyer and seller. However, it does offer secure payment methods free of charge. On the other hand, Amazon incorporates a long tail retail business model which assumes that products that are in low demand or have low sales volume can collectively make up a market share that rivals or exceeds the relatively few current bestsellers and blockbusters, but only if the store or distribution channel is large enough (Investopedia, 2014). By offering a large variety of products on its sites for sell inventory is kept in what the company terms as fulfilment centers. Whereas when merchandise is selected and paid for through Amazon’s e-commerce site it is shipped free or at little cost to the buyer. The value creation does not end once the exchanges of goods have taken place for both eBay and Amazon they have extended the transaction process by incorporating feedback forums. For example eBay depends on the integrity of others in making person to person ethical transactions; there is a feedback forum where the seller and buyer can comment on the process. Amazon in turn has created customer value and loyalty by offering a comment section where buyers can rate experience on a star system, and provide reviews. The seller is tracked by Amazon using a  metric system based on number of reviews and ratings in percentages telling how much positive feedback a seller has received in a specific time. heavily and leverages its fixed assets to and On the other hand, Amazon beginning as an online book seller utilizing B2C strategy quickly redefined its retail strategy to include large varieties of products that are stored in what it The company in compensation charges listing fees or insertion fee to promote the product, and a final sales price fee of 7.9% once the final bid is accepted. Through these activities eBay creates value to the consumer by providing a vast listing of items for sale in one location, ease of use, and security in financial payment methods. Although, eBay’s business model is built around its core competencies of on-line person to person auctioning Amazon has taken a more innovative approach by redefining its business model and creating entirely new markets. Amazon begi nning as an online book seller utilizing B2C strategy quickly redefined its retail strategy to include large varieties of products. While incorporating a long tail retail business model which assumes that products that are in low demand or have low sales volume can collectively make up a market share that rivals or exceeds the relatively few current bestsellers and blockbusters, but only if the store or distribution channel is large enough (Investopedia, 2014). Hence Amazon dumps short term profits for long term investments often making the company appear not profitable in its financial statements. Amazon through business model innovation (BMI) evolves by thinking long term continues to fill the white space by focusing and then capitalizing on the unmet needs of consumers. The company since inception in 1995 Amazon started off by focusing on Business-to-Consumer relationships between itself and its customers, and Business-to-Business relationships between itself and its suppliers but it then moved to incorporate Customer-to-Business transactions as it realized the value of customer reviews as part of the product descriptions. t is when an online company earns its revenues mainly by selling a broad selection of products.

Is Our Country Too Small to Sustain so Many Professional Sports Teams Essay

Is our country too small to sustain so many professional sports teams? This question is being asked and written about a lot lately. New Zealand sport is fairly strong in places but there are a lot of negatives. But many great sporting triumphs have come out our tiny sports crazy country. But it is debatable wether or not provincial sport is going well at the moment. Teams are dropping out of competitions and are running out of money. On the other hand our country has had some great sporting milestones and our provincial sport is a stepping-stone for some of our world-class athletes to make their mark on the world. Firstly many provincial teams are losing money or are in debt. This either forces teams to drop out of an upcoming season or completely fold. For example the Otago Nuggets had to drop out of the NBL (National Basketball League) in 2009 because of financial reasons. But thanks to their major sponsor Oceania Gold they are back in the League. The Otago Rugby Football Union who over four years lost nearly $4 million and have just announced they may go into liquidation and miss the 2012 ITM Cup. This all starts because unions are spending more money to buy players, coaches, staff, flights and accommodation than what they can afford. With teams going into debt they cannot afford to buy their star players, buying star players maybe good for the team in the short run but can end badly in the long run. This is bad because with a team pulling out does not give locals the chance to get recognised on the big stage where their career could start. This is also bad for big sports fans in a region, as they do not have a team to support. With all the negative points there are positives like there is so many sporting milestones being reached. For such a small country we compete very well against the rest of the world, in some cases we are even world champions. This makes me proud to be a New Zealander. E. g. The All Blacks finally won the rugby world cup after a 24-year drought, 3 times loosing to France. Or the New Zealand Breakers winning the Australian National Basketball League and becoming the first New Zealand team to win an Australian competition beating the Warriors in the NRL for rugby league and the Phoenix in the A-league for soccer. Or The Silver Ferns Beating the world champions in the final of the netball in the commonwealth games and finally the Kiwis who won the last Rugby League World Cup showing that national sport in New Zealand is very strong. It is important having strong national teams as it is a good reputation to have as a country, and for such a sports crazy nation it is good to see New Zealand win. Lastly, for great sportsmen and women provincial level is where is all begins on their journey to greatness. Many great sportsmen have been recognised from sports in New Zealand. E. g. Brendon McCullum who plays cricket for Otago and New Zealand got a contract for US$900,000 by an Indian cricket club, the Kolkata Night Riders. McCullum is now one of the best Twenty/Twenty players in the world. Another example is Kirk Penny. Penny had a great season for the New Zealand Breakers basketball team. A European club, Madrid Fuenlabrada signed him and he is now making his mark in Spain. This is important as it helps world-class athletes from New Zealand be known to the rest of the world. In conclusion we see that professional sport in New Zealand has its downsides being that teams are going broke or defunct but many positives like our national teams doing well and New Zealand players being recognised worldwide. We can see there are many positives and negatives but most professional sports in New Zealand are strong and I believe New Zealand sport is great.

AS Level Sociology - Culture and Identity Families and Households Essay

AS Level Sociology - Culture and Identity Families and Households Wealth, Poverty and Welfare - Essay Example However the connection of income to consumption is not wholly simple. The lower class will use up greater fractions of their income on needs and the elite on wants, but the lower class also give excessively to charitable and religious groups (Haworth 2004). The equivalent of the overwhelming selection of products and services introduced in the late twentieth century is the condition that for a significant percentage of consumers some part of their spending is ‘discretionary’ (Haworth 2004). This discretion entails not only brand preferences, or one clothing style or form of diet or residential architecture rather than another. It reaches the entire notion of ‘lifestyle’ (Haworth 2004). Several families will be penny-wise and prudent, saving for their future; others will adopt a lifestyle that exceeds their means. Several families will continue buying things such as summer homes, home workshops, automobiles, and swimming pools—and other will buy experi ences such as participation in sports, concerts, plays, or operas. Veblen’s notion of ‘conspicuous consumption’ is very accurate at the turn of the 21st century (Haworth 2004), but not limited anymore to the ‘leisure classes’. ... Among the most significant concepts for categorising social life are those that assign social statutes or positions, or socially acknowledged classifications of individuals that denote position in structured social activity or social character (Ellemers, Spears & Doosje 2002). Aside from characterising and positioning individuals in social conditions, social divisions communicate identity or behavioural expectations. The latter are named roles by sociological classical role theory, a tradition applied by identity theory in social psychology (Ellemers et al. 2002). Hence, when individuals use social divisions to identify and acknowledge one another in social circumstances, they bring in role expectations for the behaviour of each other; if they use positions submissively to identify and categorise themselves, they create role expectations or purposes for their personal behaviour (Cote & Levine 2002). Perceived as self-conceptualisations, these reflexively employed positional labels ar e the emphasis of identity theorists, in which they are called ‘identities’ or ‘role-identities’ (Cote & Levine 2002). The theory of social identity in social psychology raises a comparable identity construct, but underlines identities on the basis of wide-ranging social classifications such as social class, ethnic status, and sex, instead of those related to job-related and other roles in the society’s social structure (Ellemers et al. 2002). In Mead’s and symbolic interactionism’s cognitive tradition, identity theorists define identities as â€Å"cognitive responses to oneself [or other] as an object [of consciousness]† (ibid, p. 49). From

Architects Guide to Running a Job Research Paper

Architects Guide to Running a Job - Research Paper Example Many people have recognized the benefits of the construction industry to the public and thus engaged in it. The plan that the team has come up with on the site redevelopment includes the recommendations, identifying any possible issues with regards to the site and the design of developments intended to secure savings for the client for more than 20percent of what would be the capital cost. The proposed design offers favorable conditions in relation to the market conditions with the main challenge being the delivery of significant volume and its implementation. The work of the team was able to come up with a design that will meet the client’s expectations with regards to the timescale for completing the redevelopment, provide recommendations in each step of the project, give the client value for his money and provide a positive contribution to the construction industry. Business improvement sites have been associated with commercial and industrial property clients within commercial areas that have been specified. Some of the clients end up teaming up with an aim of stimulating their business. The team’s role is to provide both coordination and recommendation roles during such redevelopment projects (Larson, 2002, p. 45). A particular area that needs redevelopment is a site in the Dundas Street located between the Landsdowne railway line and Bathurst. The location is vibrant and mixed with small and retail business. The site is also ethically-mixed thus attracts immigrants from the first generation and other participants in th e construction industry. This makes the site a wide income area and also has a mixture of occupants in terms of culture and ethnicity. It is among the areas in Downtown West where there is affordable residential and commercial rents are still offered (Larson, 2012, p. 78).

The Transfer of Japanese-Style Management to American Subsidiaries Research Paper

The Transfer of Japanese-Style Management to American Subsidiaries - Research Paper Example Firstly, the organization should desist from over-depending on personal relationships. Within Japanese sales situations, personal relations with customers are the single most crucial aspect of sales. This is hardly ever the case in the US. Although personal relations are essential in the US, they are not as vital as in Japan (Beechler and Yang 482). Americans are more independent than the Japanese and do not conform to a culturally established need to seek out personal relationships. Often, Americans find it vital to deter the appearance of favoritism opting to conduct business strictly on an emotionally distant basis. It is, therefore, critical that the Japanese realize that they should conduct business primarily on the basis of price, product fit or quality regardless of personal relationships. A notable benefit to the Japanese company is that, as a consequence of the natural interpersonal distance in the US business relations; the conventional Japanese requirement of sending expen sive seasonal gifts to potential, current, and past customers is not necessary. In truth, many Americans consider Japanese gift-giving practices as expensive, excessive and reason for ethical concern. In addition, the Japanese company will also need to change its culture of disparaging the company. In order to show humility and proper hierarchical status, Japanese businesspeople often criticize, disparage and demean themselves, their own products and company. Although this form of outward humility is a norm in Japan, it can result in diminished sales in the US. A Japanese customer automatically understands that a Japanese businessperson demeaning his company or product does so out of cultural behavior even in the event that the product is the best in the industry (Beechler and Yang 486). This is not so in the US, hence in order to attain success in the US production industry, Digital Frontier should express confidence by touting the strength of its  products and services.

Choose a city or neighborhood and research the effects of race and Essay

Choose a city or neighborhood and research the effects of race and class on the place - Essay Example r clarification, the subject matter centers on recent situations experienced in Brooklyn’s neighborhoods, where racial diversities may explain how the outlook and evolution in overall economic and social movements in the area. Brooklyn communities in New York City are, in a way, a melting pot of diverse ethnic groups. Contrary to what most commonly perceive, the neighborhood in Brooklyn is not primarily composed of â€Å"white† citizens. Among the overall population of 85, 343 in 2000, white non-hispanic amounted only a small portion of 0.7 %, while majority are African-Americans with 78.2%; followed by Hispanic groups with 18% (â€Å"Brooklyn Community District† 5). This shows migration patterns in Brooklyn, where minority groups, particularly the African and Hispanic descent, gain the upper hand, with their workforce drive increasing economic opportunities. The significance lies on their interaction in the communities, especially in the early parts of the 19th century, where the influx of migrating races is at its peak. In spite of the excess statistics of minority groups invading the Western territory of Brooklyn, the displacement of the original white inhabitants is not as profound as formerly assumed. Class distinctions may have been a primary incident in 18th centuries, where the rich and the poor are clearly divided; however, it seems that the later century still inspires such outlook (Scherzer 6). There is still a high degree of likelihood that low socioeconomic conditions and condensed levels of minority groups are of similar specters, paving way for poor neighborhood conditions (Weintraub 3). At most, although the urban conditions in Brooklyn is not extensively impoverished, its stability is deemed unsecured for households to live in satisfaction. The availability of several educational centers in Brooklyn, New York, from preschool to university institutions, is quite generous in number--perceiving the importance of education in the future of Brooklyn

Physics Essay Example | Topics and Well Written Essays - 1250 words - 1

Physics - Essay Example With relation to topic of World, physics encompasses essentially all of nature including the laws and properties of matter and the forces acting upon them. Especially the causes, that modify the general properties of bodies, like light, magnetism, electricity, quantum effects, gravity etc. Physics studies every motion, from objects as small as neutrons to as massive as planets. It also studies the forces, and the interactions between bodies. It is the study of the most fundamental interactions between time, space, energy and matter. "We have sought for firm ground and found none. The deeper we penetrate, the more restless becomes the universe, all is rushing about and vibrating in a wild dance."(Max Born) Physics answers these and many such questions. Let us consider our last question, we often wonder why an object in motion stops suddenly, it is due to the Frictional force. There are many things in this world that makes the presence of Friction felt. For example, when we try to push a table across a room, we experience a resisting force which makes our work much more difficult, and this is the frictional force. It is a well known phenomenon in the universe that any bod... . Physics answers these and many such questions. Let us consider our last question, we often wonder why an object in motion stops suddenly, it is due to the Frictional force. There are many things in this world that makes the presence of Friction felt. For example, when we try to push a table across a room, we experience a resisting force which makes our work much more difficult, and this is the frictional force. FRICTION: It is a well known phenomenon in the universe that any body which is in state of motion on any plane, left to itself automatically comes to rest after traveling through some distance, this is due to Friction. It is the resistive force acting between bodies that tends to oppose and damp out motion. Types of friction: 1. Static friction 2. Kinetic/dynamic friction 3. Rolling Friction Static friction: The Static force of friction ( fs ) is the force of friction between two objects when there is no motion. Consider a block' B' which is resting on a horizontal table. Let a small pan be attached the block by means of a horizontal thread passing over a smooth frictionless pulley. When the weight in the pan is less, the block does not move because the pulling force or applied force' p' is balanced by the frictional force' f' which is called static friction.. If the weight in the pan increases further then the block tends to slide over the surface. At this stage the force of friction also reaches a maximum value called limited friction. Thus the maximum or limiting value of force of friction that comes into play when the body just begins to slide over the surface of another body is known as Limiting Friction. Dynamic Friction or Kinetic Friction: The Kinetic force of friction ( fk ) is the force of friction between two objects

The Impact of Performance Management Research Paper

The Impact of Performance Management - Research Paper Example Performance management also refers to a sequence of steps through which businesses align their employees, resources and systems with organizational priorities, strategic goals and objectives. Essentially, performance management is the complex science, which guarantees the management of behaviors and results, which are principal elements of performance. Organizations initiate performance management through supposed strategic tactics directed at enhancing organizational effectiveness via the enhancement of managers’ and employees’ performances. This is through the enhancement of the capabilities of both teams and individuals. This paper will study the issue of performance management, discussing its negative effects. The appreciation of the adverse effects of performance management encourages organizations to learn from its experiences, enhance them and sustain employees’ interests in the reviews. Performance management exposes employees and managers to undue pressu re, which ultimately results in poor levels of performance and dwindling organizational successfulness. Traditional points of view consider performance management on account of performance assessment systems having immense, positive effects on business performance. However, there is relatively little evidence to defend this hypothesis. There is a growing appreciation for the adverse consequences of performance management to both organizations and employees (Godener & Soderquist, 2004). One of the most prominent negative effects of performance management is the bureaucracy associated with the compilation of reports for regular assessments. The preparation of such reports takes at least two days, which is the normal quantity of time, invested from middle and senior managers for performance management purposes, in a month. The complexity of performance management is also a significant hurdle since it disconnects employees from the entire process of performance management. Measures such as composite measures and performance indexes, which managers use in performance management, may not be universally ideal. The negative impacts of performance management also include decreased departmental and organizational performance. The implementation of performance management has an adverse effect on the organization’s immediate performance, particularly with regard to employees’ performance. This situation emerges as a result of lack of proper training of employees and managers, especially in terms of formal change management. In addition, performance management results in diminished organizational performance when the review process fails to address the changes in the organization’s culture. Performance management demoralizes employees. This is because employees consider performance reviews as management-based tools used to get back at them, thereby, subjecting the employees to extreme levels of subjectivity. Performance management produces particularly adverse effects when the process fails to address employees’ fears and clarify the essence of the process and its benefits to employees. Furthermore, performance management results in low productivity due to inadequate management commitment to the process and a notable lack of consistency regarding performance management in different organizational departments. In addition, performance management, which is a two-way communication process, could degrade communication. When managers fail to appreciate

Pr campaign brief Coursework Example | Topics and Well Written Essays - 750 words

Pr campaign brief - Coursework Example We shall stress on the advantages of building the bypass and at the same time try to counter any adverse reaction. My firm will present its ideas to the relevant authorities with the full realization that while it may not be their responsibility to buy these ideas, it is our responsibility to sell them. We will therefore try to have these authorities interested by stressing on the importance and urgency of the project (Deegan, 2001). Our petition to the House of Commons will be aimed at facilitating any kind legislation needed to undertake this process. We shall present the risks posed to the inhabitants and the vehicle drivers by the numerous vehicles passing through the village centre. We shall particularly present the risk of fatal accidents to the residents, school children, senior citizens and other members of the Ponteland and Darras Hall community as well as the drivers. In addition, we shall present our concerns about the centre’s pollution, traffic congestion and the traffic slows down; leading to longer travel time, fuel wastage and loss of timing for the vehicles. We shall also present the overwhelming support this proposal has received, not only from the community, but also other organisations such as AA, RAC, the British Coach Operators Federation and the Freight Drivers Association. To achieve this goal, will create awareness through methods such as radio talk shows, protest meetings and media coverage to increase pressure on the MPs. Moreover, we shall use posters, stickers and other methods to publicize the issues and carry out door to door canvassing to enrol more and more members. From our cost-benefit analysis, we shall show the Department of Transport and the ex-chequer that even though the bypass will cost some amount of money, its long term benefits will be much more than the cost of building it. We shall bring to their attention the immense saving they will make in

Susan B. Anthony Essay Example for Free

Susan B. Anthony Essay It is impossible to believe there was a time that women did not have an input on anything in this world. Women did not have a say in anything in the 1800’s, they were just people that did whatever â€Å"man† told them to do without any questions asked. There are a lot of powerful people in history that stood up for what they felt was important, like women’s rights. Women by the name of Susan B. Anthony wanted to have change in this world for women that wanted to be a part of society. Born on February 15, 1820 in Adams, Massachusetts on a farm house, Anthony was one of eight children in a house with a father who was strict and was very much in the civil rights movement. At a young age she would go through something that most women today will never understand. She was taken of district school by her father when he found out that she could not get educated in mathematics because of the fact she was a â€Å" girl â€Å" ( was later sent to a boarding school in Philadelphia ). Since she did not go to public school her father decided to home school her and her sisters. Her father taught her and her sisters to be independent and self-discipline. Anthony was expected to help her mother with domestic chores. Anthony’s dad owned his own cotton-mill where he had his wife and family help maintain the mill endless cooking, cleaning, and washing, Anthony’s job was to bake 21 loaves of bread a day. As a teenager she was already being an activist, collecting anti -slavery ballots and having abolitionist meetings at her home. â€Å"She learned early on that making the right choice was more important than making a popular choice â€Å". (One woman’s voice) Anthony’s father is the one person who influenced her to become the person who she was, with discipline and structure she became an independent women. She was a girl that had a goal and a plan to accomplish that goal with the help of her father motto of â€Å"all work no play â€Å". Trying to get your point across and having people agree with what you’re saying can be the most difficult things to do when there is no one in your corner. Anthony worked at a school where she was making one-fifth of what a man would make in a weekly pay so she protested for the inequality and she was let go of her job. This was an issue to her and made her want to take a stand. Anthony could not take anymore of being put down by society because of her gender, she never gave up what she thought was right she kept pushing and stayed motivated. Anthony encouraged a lot of women to become teachers to get away from doing household chores. She began to focus on the temperance movement speech, she felt that the banning alcohol was the only way for the ending of the abuse women and children suffered at the hands of husbands and fathers who drank a lot of alcohol. She was doing everything in her power to make women’s voices be heard, she realized the only way she can let her vo ice be heard is to win the right to participate in the political process. She setup a series of state and national conventions for women suffrage and door-to-door campaign to collect signatures for a petition that will give women the right to vote and own their own property. For her to be women that are trying to change the way women are treated the press attacked her, but she and other women like her refuse to depend on a man. She found her opportunity around voting time when she was reading a newspaper that in the amendments it never said women could never vote, when she saw that she went in the barber shop and read the amendment to the men and they let her go in and vote with her sisters. She knew what she was doing was wrong, but she did not care about the consequences behind it. Anthony and all the women that voted that day were arrested for civil disobedience. With anything you do that is wrong there comes consequences and sometimes things happen to challenge you, to see how much you really want it. Anthony belief in women’s rights had consequences that came with it. She did not care about what happen to her because she felt what she was doing for women was rights. Anthony has had some long term and short term consequences, a long term consequence has been that she had to go most of her life not being able to live it the way she wanted to live it because women were not allowed to dress the way they wanted to, work, vote, or own their own property. To live somewhere that you have no control of anything but your chores is a  horrible way to live. Anthony’s short term consequence was when she was a kid and had to work like an adult, barley having a childhood â€Å" all work no play â€Å", even though it is a consequence not having a childhood she was very focused and matured at a young age. Another short term consequence wa s that Anthony went to jail for voting. She knew voting was wrong but she knew that if she did it would cause controversy and a lot of other women will follow in her footsteps and peruse being an independent women that does everything on their own with no help needed. Without women like Anthony we would have no change in this world, people like her who stand up for important issues like the one of women’s rights will forever be looked at in history for making a difference for women everywhere. She has shown that with hard work and dedication anything is possible and that women can provide and live on their own just as well as men, Anthony will always be looked at in a positive light and thanked by all the hard working women across the world. â€Å" Susan B. Anthony.† Contemporary Heroes and Heroines. Vol. 3 Detroit: Gale, 1998. Biography in Context. Web. 21 Mar, 2014. â€Å"Women’s Suffrage.† Gale Encyclopedia of U.S. History. War. Detroit: Gale, 2009. Student resouece in context. Web. 26 Mar, 2014 â€Å" Susan B. Anthony.† Historic World Leaders. Gale, 1994. Biography in context. Web. 20 Mar, 2014 Murtati, John. â€Å" None Violent Action: History of women’s movement.† Everyman: A mens Journal. 30 Sep, 2002: pg 16. eLibrary. Web. 26 Mar, 2014 Matthews, Glenna..Anthony, Susan Brownell. Oxford University press, 2000. eLibrary. Web. 21 Mar, 2014.

Current And Traditional Approaches To Motivation Business Essay

Current And Traditional Approaches To Motivation Business Essay In this dissertation paper I am going to provide a definition of motivation, describe and explain the differences between current and traditional approaches to motivation and identify and describe all motivation theories including content, process and reinforcement theories. I am going to explore the way motivation influences performance and explore ways in which managers can create a sense of meaning and importance for employees within their working environment. ACKNOWLEGMENTS In this paragraph I have the need to express my deepest gratitude to all the people that in one way or another contributed in the gathering of information and successful completing of this dissertation paper. First of all I would like to thank my tutor please state the name of your tutor, whose constant advising and guiding has offered me wealth of knowledge and support throughout my years of study. I would also like to thank my internship and at the time work supervisor, for showing me that theory can be put into practice and even though there might be difficulties in applying academic theories, results compensate for all the effort that is put in these actions. Last but not least I would like to thank my parents that offered me the opportunity to continue my studies at this academic level and have supported my efforts, both morally and financially, throughout all my years of study. TABLE OF CONTENTS INTRODUCTION Motivation is not a new managerial or leaders tool. It has been used for years and therefore a number of motivation theories exist, current and traditional ones. However applying motivational theories in practice makes us come across difficulties that have to do with each individual employee. Personality, needs and goals are factors to take under consideration before applying any motivational theory to a group of employees in order to make sure that positive results with derive from this effort. Daily change makes its appearance due to either market switches or technological achievements. Every industry faces changes and in most cases senior employees become outdate and reduce their productivity. Younger and more energetic employees become their managers, leaving them with no other personal goal rather than to wait for their retirement. So companies have come to a point where, what used to be once the most productive part of their manpower stop producing. Even if the new employees fill the gap of the reduced production (or sales) the company still is at loss and that has to be corrected. During this effort to produce a realistic and actual solution to this problem, I came across the strongest limitation I could ever encounter. Motivation, as well as all the factors it involves cannot be observed directly. All theories and their evaluation derive from the final outcome of a persons actions. However our observation of that result makes the steps followed previously seem rational and make sense. But it is not until the final result is measured that we actually know if the method used was the correct one or the most efficient one. So, in order to provide a solution I am going to present the data collected from my research and attempt an analysis that will offer a number of proposed solutions. I can not claim that this paper includes new motivational theories and concepts. However, I believe that it depicts, analyzes and offers solutions to a major problem of out time. The motivation Concept Motivation refers to the forces either within or external to a person that arouse enthusiasm and persistence to pursue a certain course of action. Richard L. Daft, 2006. Every day, from the very morning we wake up, we are involved into actions. We go to school, or to work, we have a certain behavior, but it is very rare for as to question the reason behind, us liking some activities more than others. For instance why do we enjoy one class more, or certain projects at work bring out the best of us. However our behavior is always motivated by something. The following table will help us indentify what hides behind our behavior. Model of Motivation. Source Modified from Games H. Donnely, James L. Gibson, and john M. Ivancevich, Fundamentals of Managemnet, 3rd edition, p. 185, 1978, by Business Publications, Inc. The needs we feel depend on our recent activity. For example, some one who is attenting a dinner event and has just eaten, may not feel hungry but yet wishes to communicate and entertain. On the other hand someone who is just returning from work and had no meal during the day, is hungry and probably has no mood for social interraction until he/ she eats. So, what we want (our goals) depends on our approaches to satisfying our needs. Let us not forget that the approach to satisfying ones need may seem logical to the person involved, but strange to someone who has other needs to fulfill. The next step is to follow a certain behavior that will lead to reaching our goals. This effort might tow different outcomes. One is the goals achievement which gives feedback that the behavior used to satisfy the needs is succesful. However a continious effort with no success will bring frustration, in which case the person involved may either try a new constructive behavior (actually involves new search behavior, goal indentification and goal-directed behavior). If again numerous efforts do not succeed, psychological defense is put to use, meaning that the person involved avoids thinking and feeling of the need even though it is not fully or at all fulfilled. When a goal is achieved a person received a sort of reward, that indicate that the behavior followed was the appropriate one and is to be used again in the future. There are two types of rewards. The instrinsic reward, which derives within the person involved and has do more with the sense of self fulfillment. And the extrinsic reward, which is given by a third person a supervisor or manager and could be a promotion, or bonus. Both types of rewards are important for an employee. Successful managers help their employees reach their intrinsic reward, while offering them extrinsic rewards too. It has been observed that the most innovating and high performance employees are the ones that find reward in the work itself. It is only natural to conclude, enen though studies have also proven it so, that employee motivaton leads to high performance nad increases productivity and profits. motivation approaches There are four motivation approaches and the managers form the way they use motivation and rewards according the motivation approach they choose to follow. The Traditional Approach Frederic W. Taylor was the first who studied employee motivation in order to increase their work efficiency. The rewards of this approach are only financial. The employee is paid more according the to quality and quantity of the work produced. The Human Relations Approach The human resource approach takes a step further that the traditional approach. For the first time employees were studied as people and managers tried to provide rewards that covered social needs as well, which seemed more important that economic rewards. The Human Resource Approach This approach brings the two previous approached to a new level. This theory actually identifies employees as complex human beings that can be motivated in more than one way. According to the human resource approach, working a vital activity for every person. This is the basis of the contemporary approach. The Contemporary Approach Three types of theories dominate the contemporary approach. The content theories point out the employees needs and help managers identify them and fulfill them in the working environment. Process theories are focused on the behavior the employees embrace in order to reach rewards within the work place. The third and final are the reinforcement theories that focus on how employees are going to be trained into a certain type of behavior, within their working environment that will lead them to the desired result and thus the reward as well. Content theories on motivation Understanding what motivates employees is a key aspect of management and can assist in achieving high performance standards and organizational development. Content theories seek to identify what people need at work and additionally how they try to meet these needs. Managers need to understand the variety of needs employees are trying to fulfill and design work in such way as to help them satisfy these needs but at the same time reach organizational goals as well. So, this theory focuses on the needs that drive employees. People have all sorts of needs, at one time or another, from basic needs such as food and clothing to achievement and money rewards. Content theories help identify the needs that act as motivators and make people adopt behaviors that will lead them to fulfill these needs. So, all management has to do is to design jobs that will meet theses needs and promote desired work behaviors. The Hierarchy of Needs Theory Developed by Abraham Maslow, the hierarchy of needs theory may be the most famous theories and identifies that people have multiple needs which are put in hierarchical order. According to Maslow human needs form a pyramid, at the base of the pyramid are most basic human needs, also knows are physiological needs. They involve eating food, drinking water, breathing air. Within a working environment these needs represent salary to ensure survival as well working condition up to sufficient heat and air supply. Just above are the safety needs that represent the needs for a safe and secure environment. Following are the belongingness needs and they include the need of feeling part of a group, having good relations with other co workers and generally being accepted as a team member. Then come the esteem needs that mainly have to do with receiving recognition and positive attention, being appreciated and motivated by receiving praise, promotion and more responsibilities. Last come the self actualization needs that represent the need for self fulfillment. Within an organization self actualization is reached when employees are provided with opportunities for growth, creativity and training. According to Maslow the needs at the base of the pyramid must be met, before the one at the top are satisfied. Once one level of needs is satisfied then the person seeks to fulfill the next in hierarchy level of needs. The ERG Theory The ERG theory is a modification of the needs hierarchy that proposes three categories of need: existence, relatedness and growth. (Richard L. Daft, 2006). This theory was developed by Clayton Alderfer that actually modified Maslows theory. He simplified the needs and set the tree below categories: Existence needs, are the needs of physical well being that include food, water, air, heat, safety and so on. Relatedness needs, are the needs to have relationship with others. Growth needs, are needs that focus mainly on a persons development. This theory also suggest that when an employee fails to fulfill a higher level need, as the need of personal growth, then turns back and focuses on an already fulfilled need, as the need to earn more money. This theory explains why companies are working so hard in order to find ways to show recognition and encourage participation of employees in decision making. The reason is that employees that contribute ideas and feel appreciated feel valued, loyal and motivated. It is also important to note that when an employees idea is actually implemented the positive affect of motivation influences not only the employee involved but the entire work force, that sees hope for their efforts to be recognized and appreciated as well. It is also important to note, at this point that other actions such as offering job flexibility enhance motivation within organizations. Such actions include telecommunicating, flexible hours, and job sharing, enables employees to have more control over their work and responsibility for its organization. Job flexibility is considered an important benefit that makes employees more committed to the company they work for. Additionally companies have tried to make employees feel that there is connectivity between their personal and working life, by trying to add the element of fun in the workplace, making less strict rules and making work something more pleasant and personal. The Two-Factor Theory The two-factor theory was developed by Frederic Herzberg, who after interviewing large number of employees concluded that there are two factors that influence work motivation. The first set of factor is also called hygiene factors. Are the factors that make an employee not satisfied, but not dissatisfied with the working environment. They include work condition, payment and interpersonal relationships. When the hygiene factors are low then the employee is more likely to be dissatisfied. It is important to note that good hygiene factors only remove dissatisfaction, but do not provoke satisfaction. The second set of factors are called motivators. They are mainly focused on the higher level of needs, such as recognition, achievement, personal growth and responsibility. The absence of motivators causes, with good hygiene factors cause neutral feeling towards work. The conclusion of this theory is very interesting. It shows that dissatisfaction and satisfaction for ones work come from totally different factors. So managers need to correctly focus their efforts towards both factors in order to have not only, not dissatisfied employees, but also motivated ones that will increase their performance. Acquired Needs Theory According to David McClelland, some needs people acquire during their lifetime. These needs are not at the basis of Maslows pyramid of needs and people are not born with them, but rather learn to have them. More specifically these needs are: The need for Achievement. The need for Affiliation The need for Power Life experiences are responsible for the acquisition of such needs. After 20 years of study McClelland concluded that people with high needs for achievement are mainly entrepreneurs, while those with high need of affiliation make good coordinators and establish good working relationships. Those with high need of power are most probably the ones to choose paths that will lead them to managerial positions. PRocess theories on motivation Process theories of motivation seek to understand the complex relationship between the many variable that motivation consists of. Managers need to understand what initiates behavior, and how it is directed and sustained. There are two main process theories. The equity and the expectancy theory. Equity Theory The equity theory is the process theory that focuses on individuals perceptions of how fairly they are treated relative to others (Richard l Daft, 2006). J. Stacy Adams, who developed the theory, claims that people are motivated by seeking social equity. If people believe that they are compensated as much as others for a relative equal contribution, then they would feel that they are fairly treated. In order for people to measure equity they use a ration of inputs (that are effort, education, experience and ability) to outputs (that are recognition, payment, promotions and benefits). Equity is achieved when ones persons ration equals anothers persons ratio. Within a working environment that inequity is perceived there is tension and a strive to bring equity back. The methods most commonly used to correct inequity are: Change inputs. For example a person that is overpaid may increase effort while a personal that is underpaid may decrease it. Change outcomes. For example an employee or a union may request a raise or better working conditions in order to equal input with output, relatively to better paid employees. Distort perception In such cases, people artificially believe and make others believe that their job position is more important than it really is, or that someone elses benefits are not so important as they might sound. This brings a delusional balance. Leave the job. For example people that feel that there is no equity will seek another working environment that is more balanced. Expectancy Theory According to the expectancy theory, motivation depend on individuals expectations about their ability to perform tasks and receive desired rewards. It is concerned with the thinking process people use in order to be rewarded. Based on individual effort and performance it involves the following: Whether the effort that will be put into a task will result to the desired performance level. Whether the successful performance will bring the desired outcome. Whether the value of the outcome is highly valued by the employee as well. High expectancy and high valued outcome leads to high motivation, otherwise motivation level is low. So actually this model theory is not concerned with the needs people have and how they act as motivators. It focuses on they way employees think in order to achieve rewards. Since each employee is a personal with different personality, their goals may differ as well and seek to satisfy different needs. This personalization of needs brings implications for management. Since the goal of the management team is to help employees meet their own goals but at the same time meet the companys goals as well, managers need to make sure that personal abilities match the job demands and at the same time that each employee is given the time, equipment and support needed to reach the goals set. The Goal Setting Theory It has been observed that employees seem to be more motivated when specific targets are given to them to achieve. The goal needs to be specific, attainable and accepted by the employees. The last and one of the most important elements of his theory is feedback. Performance feedback is crucial in order to sustain desired work behavior, though motivation. According to Edwin Locke and Gary Latham, who came up with this theory, goal setting increases motivation because it helps employees target their energy and efforts towards one direction. Challenge is another strong motivator, when asked to achieve difficult goals, that drives employees into putting in more effort to reach their goal achievement. Reinforcement theories on motivation The reinforcement theory does not involve approaches according to the needs and ways of thinking of the employees. It is only based on the relationship between behavior and consequences. The law of affect is what rules over this theory. A behavior that is rewarded tends to be repeated when a behavior that is punished tends to be corrected. So a positive reinforcement, is a pleasant rewarding for an employees working behavior and may consist of praise, promotion, more responsibility, work flexibility, social recognition. This tool of reinforcement theory shows that non financial incentives have proven to be as powerful as the financial ones. Another tool is negative reinforcement, that mainly indicates that a negative consequences will stop once the desired behavior is adopted. Punishment is another tool that suggests that an undesirable working behavior suffers consequences, however this tools fails to point out the desired or correct behavior, since it provide only negative input to the employee. The last reinforcement tool is extinction, that involves the withdrawal of positive rewards such as praises, pay raises. Reinforcement Schedules There are five basic types of reinforcement schedules, according to which the timing and frequency of reinforcement have the desired impact on employees. Continuous reinforcement is one method, suggesting that every time the desired behavior occurs it is reinforced. This strategy is especially effective in the early stages of learning desired working behaviors. Partial reinforcement suggests that positive reinforcement occurs only after the repeating the desired behavior several times. Motivational ideas No doubt, we are going through some turbulent times. Organizations seek ways to increase performance and by hiring new, young and highly ambitious employees, that are highly motivated to reach new, increased sales and productivity goals. They are positioned as managers of senior employees with precious experience and know how. So from the one hand we have highly motivated young managers and on the other we have low motivated senior employees. What happens to them is that the seconds lose interest in their job and rather pass their time, until retirement. The loss for the organization is greater than suspected, since the under productive employees, apart from their own productivity, influence the productivity of their entire group or team. Their behavior derives from the lack of motivation. The new, younger and inexperienced employees are put to positions above the seniors, receiving the same or even more payment. This a clear case of inequity, that influences the performance of the once strongest performers are constantly under performing even though they know they still have a lot to offer. A smart manager should try to keep feelings of equity in balance in order to keep the entire workforce motivated. Empowerment Empowering people to meet higher needs is a very good way by which management can provide motivation. In our case of the senior workers empowerment would mean power sharing, and even if new and younger employees were put in managerial positions, authority could be shared with senior employees. This way, the managerial job description would be a little altered, however senior employees would not be hostile towards the junior managers and would try to work together with them as a team. This is also a way for the senior employees to put themselves on the test and check if they could, within the current market conditions, lead their team to successful results. These employees already know the can do a good job and so empowerment at this stage only releases a motivation that already exists. Employee empowerment involve four elements that need to be given to employees in order for them to be able and accomplish their job. Information. Employees receive all information about company performance. Access to the companys financial and operational information gives the feeling of power and importance to the employee. Knowledge. Training programs are put together, made accessible to all employees, making sure that everyone has the knowledge required to contribute to organizational performance but also fulfill the need of personal growth. Power. Employees have the power to make substantive decisions, influencing organization performance, within self directed work teams. Reward. Employees are rewarded based on the companies performance. This kind of reward inspires more team work and acts as a very powerful motivator. Giving Meaning to Work Another way to motivate employees is to help them identify intrinsic rewards from their own work. For example in the case of the senior employees, let them give talk to seminars for new management trainees and to speak and lead sessions at conferences on district managers, helping them fulfill high level esteem and self actualization needs. Mentoring relationships could also be allowed to help towards the same direction. Another way to give meaning to the work for the senior employees could be to put them in groups that keep close communication and make them compete on actual results. Using the above techniques and actions will help senior employees feel respected, valued, important and empowered within the company, shooting their motivation and thus their performance to the sky. conclusion Now that we have closely seen what motivation is and how it is applied it is time to answer the question of how does motivation actually affect performance. Traditional and contemporary motivation theories as analyzed before suggest that there is a strong link between motivation and performance. What we actually need to do is to understand the nature of motivation. An individual employee may question the motivation theory, by simply asking Why should I perform harder?. Is there concrete evidence that motivation is linked to performance? In order to answer this question we need to look to this issue from another perspective. Since motivation and the factors involved in it, cannot be directly observed and it is only the final outcome that can be evaluated, let us observe what happens to performance in the lack of any motivation activity. Taking under consideration the content theories of motivation there are clear hygiene factors, such as working conditions, payment and safety, that if not fulfilled will lead to extremely low performance. Accordingly factors such inequity or rare reinforcement also show a very low performance level. However it is very hard to expect employee behavior to follow a certain pattern and also hard to suggest to what extend a yearly or semi yearly appraisal will ensure that desired working behavior is achieved on a daily basis. The role of the manager nowadays is not to control the workforce but more to establish the environment in which the workforce will learn, contribute and grow. Their role also includes channeling employee motivation toward the accomplishment of organizational goals, by making the best out of each employees unique skills, talents, interests and needs.

Topology Essay -- Math Mathmatics

Topology The two main figures of Topology, the spheroid and the torus. Shown together like this, they create the symbol for the sun in ancient times (2, 1). The field of mathematics encompasses many different sub-fields which have been studied and researched for a very long time. One of the most intriguing divisions of mathematics is topology. Topology, the mathematical study of the properties of objects which are preserved through deformations, twistings, and stretchings (4, 1), is rooted far back in time; so far back that it outdates all recorded history (2, 1). Modern topological mathematics was introduced in the late 19th century by a mathematician named Henri Poincare` (2, 2). Poincare` Pictures Henri Poincare` was born in Nancy, France in 1854. He received his education at The Ecole Polytechnique and the Ecole Superieur des Mines in Paris (8, 1). Poincare` then spent from 1879 to 1896 lecturing and teaching an array of fields ranging from physical and mathematical mechanics to celestial mechanics at both the University of Caen and the University of Paris. Although Poincare` was considered a physicist, his greatest accomplishments came in the fields of topology, differential equations, and probability, all mathematical fields (8,1). Poincare`’s greatest exposure to the public came in 1887, when King Oscar of Sweden announced that he would award 2,500 crowns to any man who could prove the stability of the orbital dynamics of our solar system. This was a great problem for the mathematicians of the day, and a very significant problem for every being on our Earth (2, 2). If the stability of the orbits could not be proven, one could not rule out the possibility of Earth be ing hurtled into space by the influence of the other p... ...logy and its functions. Works Cited Fauvel, John. MÃ ¶bius and his Band, Oxford University Press, New York, 1993. Gilmore, Tom. Mathematics of Topology, http://www.tomgilmore.com/z_top.htm, 4 pp., 12/5/99. Klein, http://history.math.csusb.edu/Mathematicians/Klein.html, 2 pp., 12/9/99. MÃ ¶bius Strip, http://www.treasure-troves.com/math/MoebiusStrip.html, 4 pp., 12/9/99. Paper Strip, http://cut-the-knot.com/do_you_know/paper_strip.html, 5 pp., 12/14/99. Poincare, http://euler.ciens.ucv.ve/English/mathematics/poincare.html, 2 pp., 12/9/99. 7. Poincare, Henri, http://www.treasure-troves.com/bios/Poincare.html, 1 p, 12/9/99. 8. Poincare, Jules Henri, Microsoft Encarta 1999 ed., Microsoft Inc. 9. Tarot FAQ Version 2, http://lonestar.texas.net/~r3winter/tarotfaq.html, 12/10/99. Topology, http://www.treasure-troves.com/math/Topology.html, 3 pp., 12/9/99.

George Orwell’s 1984 - Mindless People :: 1984 Essays

Occupations are important in order to be successful in life. One needs a source of income and a way to provide for one’s families. Some people work at home, some people have a schedule when one leaves at a certain time each day and return home at the same time each night. One gets comfortable in one’s work but does one take time to ask oneself why one is doing it? If an occupation does not help society or have any real purpose then is it really a useful occupation or is it just a bunch of mindless activity? Professional athletes make an insurmountable amount of money but what is the point of professional sports? Professional sports do not help make the world a better place nor does it have a purpose other than entertainment for the sports junkies on this earth. What is the purpose of movie makers and artists? How do they make the world a better place? In some ways they make a world a worse place because people get so caught up in entertainment that they forget about th e rest of the world and the ones who suffer and the corrupt governments and the deadly diseases. Why cant jobs be created to help in those areas? Instead of paying people for doing mindless jobs, one should be paying others to actually work to make this world a better place with a better economy and without suffering people. In George Orwell’s novel 1984 it offers a great view of mindless occupations. Winston, the main character talks about how boring his work is in the Ministry of Plenty. He explains how his work is to change the words and meaning in newspapers, books, letters and any other text related materials in order to make the government and the society the best that it can be. Then once he follows his orders and completely changes history with his speakwrite, he takes the original information and dumps it down a memory hole which destroys it (Orwell 37). Everything that Winston must write has to take the form of the Newspeak language which is the English language modified, and made simpler by combining words together. For example, instead of having words such as ‘excellent’ or ‘splendid’ one would use the word plusgood or doubleplusgood if you wanted something even stronger (Orwell 51). Another example is Winston’s workplace.

Medicare :: essays research papers

The Medicare DebateEssay submitted by Unknown The U.S. government have denied that Medicare has been going bankrupt. Although the government may say that Medicare has plenty of money it is untrue because it is a fact that Medicare will go bankrupt by the year 2001 as stated by preliminary sources. Medicare is one of the main sources of funding for those people that have no money or very small amount of money. The community service that was done for this research paper is hospital volunteering at John Muir Medical Center. The community service included various jobs that was needed to be done were, Putting items away for nurses, discharging patients, doing paper work, feeding patients, answering phones, and helping patients when they ask for assistance. The floor I worked on was Oncology (The branch of medicine that deals with tumors, including study of their development, diagnosis, treatment, and prevention). This community service has help me gain insight on the Medicare situation be cause I have asked multiple amount of people that work at John Muir Medical Center. There is a side to be considered about Medicare and Social Security in the government. The vice president of the United States, Al Gore, wrote in a letter stating that social security funds are not being depleted. Gore said that, "the allegations to the contrary have been circulated by certain organizations as a money-making scheme for some time." (Gore Letter). Vice President Gore tries to show theses allegations are untrue by explaining how social security works. In this letter, Vice President Gore cleared up the allegations by writing that, "When Social Security taxes are collected, they are credited to the Social Security trust funds with government security, perhaps the safest investment in the United States. In history Medicare has experience a few problem regarding it's funding. Problems have occurred over the history of Medicare. The major problem and most recent of Medicare is that it is going bankrupt. Medicare is another legacy of Lyndon Baines Johnson Great Society. Spending is obviously out of control. On June 5th the government announced that the Medicare Trust Fund would go broke by the year 2001(nationaldebt). In 1965 when LBJ started Health and Medicare, the Total Federal Spending for the year was $101 Billion. By the year 2000 we will spend over 4 times than amount on Health and Medicare alone, and Medicare will equal the annual spending for Defense(CNN).

Sugar Factory Project

A PROJECT REPORT ON â€Å" STUDY OF EXCISE DUTY PAYMENT BY GABRIEL INDIA LTD. † AT [pic] -: Submitted By:- AVINASH CHANRDAKANT IGHE -: The Research Guide:- PRO:-D. D. WALKE -: Affiliated To :- University of Pune N. D. M. V. P. Samaj’s Nashik [pic] Institute of Management Research and Technology (IMRT) For The Academic Year 2008 -2009 PREFACE Indirect tax is the one of the most enormous source of fund collection of the Indian government which aids to development expenses and other aspects. Central excise is one aspects of fund/revenue collection. Features of indirect taxes. Government of India needs funds for various purposes like maintenance of law and order, defence, social /health services etc. Government obtains funds from various sources out of which one main source is taxation, Justice Holmes of US Supreme Court has long ago rightly said that tax is the price which we pay for a civilized society. -view echoed in Parshuram Pottery works ltd vs. ITO (1977) 106ITR 1(sc). Taxes are conventionally broadly classified as Direct taxes and indirect taxes. As the name suggest, direct taxes are paid directly and indirect taxes paid indirectly. In the case of indirect taxes, they are paid by one person, but he recovers the same from another person. Thus, the person who actually bears the tax burden pays it indirectly through some other person, Who practically, merely acts as colleting agent of course, he is liable if fails to collect and pay the taxes. Central excise is totally whit the manufacturing company, which company Produce or manufacture excisable goods as per Central Excise Act 1944. Excisable goods indicate which goods failing under Central Excise Act 1944, And it is also must be movable and marketable and must be produce or manufacture in India. Indirect tax structure on goods. †¢ Excise duty 14%, †¢ Education cess 2%, †¢ Secondary and higher secondary education cess 1%, †¢ Vat 12. 50%. Invoice must be have 4 copy 1) Original for buyer. 2) Duplicate for transporter. 3) Third for assesses. 4) Fourth acknowledgement copy. ACKNOWLEDGEMENT It gives me immense pleasure to present this project report on study of Excise Duty Paid out by GABRIEL INDIA LTD. In partial fulfillment of post-graduate course M. B. A. No work can be carried out without the help and guidance of various persons. I am happy to take this opportunity to impress my gratitude to those who have helped me in completing this project report. At the outset, I would like to thank Mr. Kadam Head of Dept. (Excise) of ‘GABRIEL INDIA LTD’ for their valuable advice and guidance during my project completion, also Mr. Doke for timely help concerning various aspects of project. I would be failing in my duty if I do not express my deep sense of gratitude to Prof. D. D. WALKE without his guidance. It wouldn’t have been possible for me to complete this project work. Lastly I would like to thank all professors and staff at I. M. R. T. , my friends and all those persons who contributed directly or indirectly for successful completion of this project. AVINASH C. IGHE DECLARATION I, Avinash Chandrakant Ighe, student of MBA studying in Institute of Management Research & Technology, Nashik solemnly declare that the project titled â€Å"STUTY OF EXCISE DUTY PAYMENT BY GABRIEL INDIA LTD. was carried out by me in partial fulfillment of the MBA program under University of Pune. This project was under taken as part of academic curriculum as per university rules and norms and by no commercial interest or motive. It is my original work and not submitted elsewhere for any other purpose earlier. PLACE: NASIK AVINASH C. IGHE DATE: INDEX |Chapter No. |Contents |Page No. | | 1 | |INTRODUCTION ABOUT THE STUDY | 1-8 | | |1. |Object of the project | 1 | | | 1. 2 |Selection of the Topic for study | 2 | | |1. 3 |Objective of the project | 3 | | |1. 4 |Research methodology | 4 | | | |Scope of the study | 5 | | |1. |Limitation of study | 6 | | |1. 7 |Revenue collection of major taxes in India | 7 | | |1. 8 |Budget changes 2008 | 8 | | | | | | | 2 | |PROFILE OF THE ORGANIZATION | 9-15 | | |2. |Introduction of the Company | 9 | | |2. 2 |Product Profile | 14 | | |2. 3 |Organizational structure | 15 | | | | | | | 3 | |ANALYSIS AND INTERPRETATION OF DATA | 16-53 | | | | | | | | | | | | | | | | | |DDDDDDDATADATA | | | |3. 1 |Topic under study | 16 | | |3. |Key analysis & Data presentation | 35 | | | | | | | 4 | |EXECUTIVE SUMMARY | 54-56 | | | | | | | 5 | |CONCLUSIONS & FINDING | 57-58 | | | | | | | 6 | |SUGGESTIONS & RECOMMENDATIONS | 59 | | | | | | | 7 | |APPENDICES | 60-61 | | |6. 1 |Bibliography | 60 | | |6. |Glossary | 61 | | | | | | 1. Object of the Project In Master in Business Administration, theoretical knowledge is not sufficient. Prac tical knowledge got by the project is very useful in our future. MBA has to play quit responsible role as a manager, so that practical knowledge is must for management student. During the project we come across different real life problems. This practical knowledge helps us in future to overcome such problems in the corporate world. The objectives of the project work are as follows: 1. To enable the MBA student to test their theoretical knowledge in practical. 2. To provide training to student by the organization, this is very useful in their future. 3. Preparation of project report is mandatory for every MBA student, that is why the primary objective of any project is fulfill the requirement of the syllabus with the grasping the knowledge. 1. 2Selection of the topic for study Topic selections the one of the important aspect of our project. As it decided the course of action, to be followed. The topic selected should be such that it helps in understanding the excise concept clearly, as was given the topic by the company itself. This topic given by project guide was â€Å"STUTY OF EXCISE DUTY PAYMENT BY GABRIEL INDIA LTD†. Covers all the things related to excise analysis provided by the company. 1. 3Objectives of the project 1. To study procedure of central excise registration. 2. To study E. R. 1 form of central excise. 3. To study applicability of the central excise. 4. To study journey of Cenvat credit. 5. To study process of Cenvat credit taken. 6. To study drawbacks of central excise. 1. 4RESEARCH METHODOLOGY Research methodology is a way to systematically solve the research problem. It may be understood as a science of studying now research is done systematically. In that various steps, those are generally adopted by a researcher in studying his problem along with the logic behind them. Data collection is important step in any project and success of any project will be largely depend upon now much accurate you will be able to collect and how much time, money and effort will be required to collect that necessary data, this is also important step. Data collection plays an important role in research work. Without proper data available for analysis you cannot do the research work accurately. There are two types of data collection methods available. 1) Primary data: – The information about the Company is gathered from the discussion with the employees/staff. 2) Secondary data:- The secondary data collected – The balance sheets as on the date of 31st Dec 2007 for the period of 1st April 2007 to 31st Dec 2007 The methodology of this study has been adopted on the following basis: Study of various Journals, Notes & Books. †¢ Collection of Primary & Secondary data records of the organization. †¢ Analysis of the collected data for its application. 1. 5S cope of the project The excise is the important tax from indirect tax. This project covers all points about excise and also cenvat credit rules and conditions. The central excise law mainly comprise of Central Excise act 1944, Central Excise rules 2002, Cenvat Credit Rule 2004. This project also comprises central excise registration procedure, assessee profile, rules related with central excise, journey of cenvat credit rule, process of cenvat credit taken and drawbacks of central excise. Central excise is source of Indian Government from collection funds. 1. 6 LIMITATIONS OF THE STUDY †¢ Generally company does not allow outsiders to conduct any study or research work in company. Therefore, get the project done in company itself was very difficult. †¢ Due to confidentiality some important information, which are important for the project, could not be collected. †¢ Some of the information lack in accuracy, due to which approximate values were used for the analysis. Hence, the results also reveal approximate values. †¢ The project is based on theoretical guidelines and as per situations prevalent at the time of practical training. Hence, it may not be apply to different situations. †¢ The time span for the project was very short which was of 2 months, which itself acts as a major constraint. Moreover, studying the guidelines and applied it practically within such short time span was a task of great pressure. 1. 7 Revenue collection of major taxes in India [pic] Note:- (1) N. A – not available. (2) Figures in crores. 1. 8 Budget changes 2008. Budget 2007-08 and Finance Bill 2008 was presented before Parliament on 29-02-2008. The changes which are effective immediately or from 1-04-2008 have been discussed at relevant places. The statutory changes and changes in duty rates are summarized in fort pages. Highlights as follows:- †¢ General rate of basic duty reduced from 16% to 14% from1-3-2008. †¢ Rule 6(3) of cenvat credit rule recast to provide for proportionate credit in case where manufacturer is manufacturing both exempted and taxable goods and service provider is providing both taxable as well as exempted services. †¢ In case of deemed manufacturer, simple repacking will be ‘Manufacture’ 1-3-2008. Till now, labeling, re-labeling and also repacking was required. †¢ Service tax on GTA to be paid by cash only. Controversy relating to cenvat credit of outward freight continues. †¢ Strips of plastics for weaving fabric eligible for SSI exemption 1-4-2008. EOU have to pay duty equal to 50% of customs duty plus excise duty 1-3-2008. †¢ NCCD of 1% imposed on mobile phones but NCCD on PFY and pan masala not containing tobacco has been withdrawn. 2. 1 Introduction of the company Gabriel India sets up its facility in Parwanoo in 1978 in collabora tion with Federal Mogul, USA world leader in thin-walled, bimetal engine bearings, the Parwanoo plant is equipped with a fully integrated facility for the manufacture of a complete range of bimetal bearing, bushes, flanges and thrust washes; including manufacturing of powder metal and bimetal strips. In 2004, Gabriel has put up a new plant in Khandsa (Haryana) for anufacture of aluminum tin bearings. Anand Engine bearing division was emerged in 2007 from Gabriel India Ltd and is now called Anand Engine Component Ltd. Anand Engine Component Ltd is a leading suppler of Engine bearings to domestic OEMS and replacement market in the automotive industry as well as other segments such Railway, Marine and power generation. Its product also being exported to several oversea markets. Name of the company: – Gabriel India limited, Address of company: – 29th milestones, Pune-Nashik Highway, Village Kuruli, Tal: Khed, Dist. Pune -410501 (India) Tel. :+91-9922908401/2/3/4 Fax: +91-2 135-261200 www. anandgroupindia. com 1. Capital Employed – $ 43 Million 2. Net Fixed Assets – $ 31 Million 3. Major Products- Shock Absorbers, Strutsand Front Forks. Engine Bearings. 4. HQ Location- Delhi 5. Established – 1961 2. 1. 1Brief history of Gabriel:- 1997 : Started Plant for OE Passenger car shocks 1998 : HMI, Tata Motors & Ford India business started 1999 : Toyota Kirloskar business started (Qualis) 2000 : Acquired certification for QS 9000 by BVQI 2001 : HM business started (Lancer) 2003 : Acquired certification for ISO 14000 2003 : Acquired certification for OHSAS 18000 2003 : Maruti business started 003 : Acquired certification for TS 16949 by BVQI 2003 : Acquired certification for Ford. 2004 : GMI business started. 2. 1. 2 Mission of the Company:- The mission statement of Gabriel is:- â€Å"To champion and accelerate learning by providing world-class technical and managerial solution and act as the hub for transfer of learning throughout the group. † Basic philosophy behind that i s â€Å"Increase of value contribution & customer satisfaction† which means elimination of non value added activities and emphasis on value stream way of thinking rather than the traditional functional way of thinking. 2. 1. 3 Logo of the Company:- pic] 2. 1. 4 Location of the production: – Company has six branches in India. It is as follows. †¢ Pune. †¢ Dewas. †¢ Hosur. †¢ Parwnaoo (Himachal Pradesh). †¢ Nashik. †¢ Gurgoan. 2. 1. 5 Production capacity:- 1) Struts 1. 5 Million units per annum. 2) Front Forks 1. 5 Million units per annum. 3) Shock Absorbers 10. 0 Million unit per annum. 2. 1. 6 Certification of the Company:- 1:-ISO9002 – Nashik, Hosur, Parwanoo. 2:-ISO14001 – Hosur, Dewas, Pune. 3:-QS9000 – Hosur, Dewas, Nashik. 4:-ISO16949 – Hosur, Pune, Dewas. 5:-OHSAS 18001 – Hosur, Dewas, Pune. 2. 1. 7 Ride control global product range. |Twin tube shocks (gas). | |Twin tube shocks (non-gas). |Mono tube shocks. | |Spring seat shocks (semi-strut). | |Cab suspension damper. | |Steering damper. | |Strut cartridges. | |McPherson struts. | |Self leveling shocks. | |Active suspension. | |Suspension corner module. | 2. 1. 7 Gabriel Pune [pic] 2. 2Product profile:- [pic] [pic] 2. 3 Organizational chart :- Deep C Anand Foundation Mr. S. G. Kulkarni (D. G. M finance) Mr. A. Vispute Mr. S. Das (Sr. manager) Manager) Mr. M. Dalal Mr. S. Agnihotri Mr. A. Mane Mr. T. J. Kadam (A. M) (A. M) (A. M) (A. M) Miss. Harivanda Mr. A. P. Doke (Asst. ) (Officer) Mr. R. M. Wadekar Mr. M. D. Pardeshi 3. 1 TOPIC UNDER STUDY 3. 1. 1 Theoretical background :- 1) Journey of Central Excise. 2) Central Excise Act 1944. 3) Central Excise Rules 2002. 4) Cenvat Credit Rule 2004. ) Registration procedure of central excise. 6) E. R. 1 form, analysis and format. 3. 1. 2 Journey of Central Excise. Available historical evidence on the organized forms of commodity taxation shows that duty on two commodities – salt and liquor – was levied during flourishing Mauryan period (5% to 10%). During Mughal period, tax on manufactured goods was extended to indigo, cotton, soap, edible oil, tobacco and salt. Early British Rule imposed duty on dairy products, handlooms, leather products. Iron and steel. Excise, as we understand it today, was 1st introduced on cotton yarn in 1894, mainly to check exports of Indian textiles to USA, China, Japan and Hong Kong. Subsequently, excise net was widened and it was imposed on motor spirit (1917), kerosene (1922), Silver (1930), Sugar and matches (1934). More items were covered under excise in 1943. Development of Excise Law Initially, separate Act used to be introduced for each commodity. Thus, by 1944, there were 16 each enactment. All these were consolidated and a consolidating Act was passed in 1944(which is still in force). The consolidated act included various items called Tariff Items (TI) – like Sugar (TI-1), Coffee (TI-2), Tea (TI-3) etc. More and more items were added each year, usually at the time of Budget. Finally, residual item – called Not Elsewhere specified (NES) (TI-68)-was introduced w. e. f. 1-3-1975. Thus, effectively, all items were covered. Duty on TI – 68 was 1% in the beginning, which was raised in stages to 12%. Central Excise Tariff :- Since tariff item were added from time to time, the arrangement and sequence of each was not tariff item was not scientific and logical as items were added in the Schedule to central Excise Act from time to time. In the meanwhile, International Standards were developed for classification of goods and Customs Tariff in India was revised to fall in line with International Standards for classification. Excise tariff was also revised and Central Excise Tariff Act, 1985 was brought into effect from 1-3-1986. Thus, only 15 commodities were covered in 1944, against over 1,300 commodities covered in 1994. MODVAT in 1986 :– Modvat was introduced w. e. f. 1-3-1986, to avoid cascading effect of taxation. Coverage of MODVAT was increased over a period of time and now most of the inputs (except a few), are eligible. MODVAT was extended to capital goods and petroleum products in March 94. (MODVAT was renamed as CENVAT w. e. f. 1-4-2000) Other landmarks – until 1938, excise duties were administered by provincial (Now called State) Governments. Central Excise and Salt Revenue Department was established in 1938. Changes in recent times:- Some important changes in recent times are as follows: 1-4-2000 – Basic Excise Duty will be 16%on almost on all commodities. Branded goods manufactured by SSI in rural area will be exempted from duty. 1-4-2000 – Modvat was renamed as Cenvat. New Cenvat rules 57 AK introduced Duty payment on fortnightly basic, instead of at every time before clearance. 1-7-2000 – All statutory records abolished. Department will rely on private records of assessee. New Valuation section 4 and new Valuation rules introduced. 1-7-2001- New Central Excise Rules made effective and earlier Central Excise Rules, 1944 scrapped. Many procedural simplifications made. September, 2001 – CBE&C released ‘New Central Excise Manual, 2001’ and ‘Custom Manual, 2001’. Basically, these are consolidation of many previous trade notices, public notices and CBE&C circulars. In addition, general information about customs and excise law is contained in these manual. 9-7-2004 – Introduction of Education Cess @ 2% of duty or tax, Textile Articles practically out of excise net. 10-9-2004 – Integration of Cenvat Credit of Excise duty on goods and service tax. Credit is inter-changeable. 1-1-2005 – Service tax on Goods Transport Agency. Tax payable by consignor/consignee paying freight. 28-2-2005 – Central Excise Tariff converted from 6 digits to 8 digits. 1-3-2006 – AED (GSI) fully exempted. SED merged with basic excise duty. 13-7-2006 – department can provisionally attach property of a person to whom show cause notice has been served (section 11DDA of CEA). Basic procedure in Central Excise As per section 6 of CEA, registration is required to be obtained by (a) every manufacturer or producer of excisable goods that is goods specified in first and second schedule to central excise tariff act (b) wholesale purchase or sale or storage of any specified goods included in first or second schedule of central excise tariff act. As per rule 9 of Central Excise Rules, every person who produces, manufacturers, carries on trade, holds private store room or warehouses or other wise uses excisable goods shall get registered. The rule also otherwise Board to issue notification (a) specifying conditions and procedures for registration and (b) grating exemption to person or class of person from provisions registration. Registration is compulsory as both section 6 of CEA and rule 9(1). It has been clarified that registration granted in earlier old rule 174 will be valued under new rules. 3. 1. 3 Central Excise act 1944 (sec 40) This is the first act which gave the power to excise officer for provision of collecting the excise or taking action of arrest, penalty, Valuation. Nature of Excise Act The basic condition for levy of Excise Duty:- 1) The duty is on goods. 2) The goods must be excisable. 3) The goods must be produced or manufactured with aid of power. 4) Such production must be in India. 5) Goods must be movable and marketable. 3. 1. 4 Central Excise Rules 2002 Rule 1:-Short title, extent and commencement. Rule 2: – Definition of. Act †¢ Assessment †¢ Assesses †¢ Board †¢ Duty †¢ Notification †¢ Tariff act †¢ Warehouse Rule 3: – Appointment and jurisdiction of central excise officer. Rule 4: – Duty payable on removal. (Molasses) Every person who produce or manufacture any excisable goods, or who store s uch goods in a warehouse, shall pay the duty livable on such goods in the manner provided in the rule 8 under any law, and no excisable goods, on which any duty is payable, shall be removed without payment of duty from any place, where they are produce or manufactured, or from a warehouse, unless otherwise provided. Rule 5: – Date for determination of duty and tariff valuation. If any excisable are used within the factory, the date of removable of such shall mean the date on which the goods are issued for such use. Rule 6: – Assessment of duty. The assessee shall himself assess the duty payable on any excisable goods. Rule 7: – Provisional assessment. The Assistant Commissioner of central excise or the deputy commissioner of central excise, as may be required for finalizing the assessment, the is available, but within a period not exceeding six months from the date of the communication of the order issued under sub rule (1). Rule 8: – Manner of payment. The duty on the goods removed from the factory or the warehouse during a month shall be paid. Rule 9:-Registration. Any person who produces, manufacture, carries on trade, holds privet store-room or warehouse or otherwise uses excisable goods, shall get registered. Rule 10:-Daily stock account. All such records shall be preserved for a period of five years Immediately after the financial year to which such records pertain. Rule 11:-Goods to be removed on invoice. No excisable goods shall be removed from a factory or a warehouse except under an invoice singed by the owner of the factory or his authorized agent and in the case of cigarettes, each such invoice shall also be countersigned by the inspector of central or the superintendent of central excise before the cigarettes are removed from the factory. Rule 12:-Return to filing Provided that an assesses manufacturing pan masala failing under tariff item 21 06 90 20 or pan masala containing tobacco failing under tariff item 24 09 99 90, shall also file, along with the return ,for the month which the said return relates, a statement summarizing Rule 13: – Export without payment of duty. †¢ Any excisable goods may be exported without payment of duty from a factory of the producer or the manufacture or any other premises, as may be approved by the commissioner. †¢ Any material may be removed without payment of duty from a factory of the producer or the any other premises, for use in the manufacture or processing of the goods which are exported, as may be approved by the commissioner. †¢ The export under sub rule (1) or sub rule (2) shall be subject to such conditions, safeguards and procedure as may be specified by notification by the Board. Rule 14: – Warehousing provision. The central government may be notification, extend the fac ility of removal of any excisable goods from the factory of production to a warehouses to another warehouses without of payment duty. †¢ The facility under sub-rule (1) shall be available subject to such condition, including penalty and interest, limitation with respect to the period for which the goods may remain in the warehouse and safeguard and procedure including in the related to the dispatch, movement, receipt, accountable and disposal of such goods may be specified by the Board. 3. 1. 5 Cenvat credit rule 2004. (rule 16) Dated 10/9/2004 amended. Government appointed Dr. Vijay Kelkar for recommending tax reforms and as part of the report. Union budget 2003-2004 clearly recommendation of Kelkar committee have been accepted. A new rule 12 A was inserted vide notification no: 19/2006, dated 30/09/2006. which deals with the procedure and facilities for large tax payer, particularly with reference to the following aspects. 1) Removal of input or capital goods by a large tax payer through a transfer challan/invoice. 2) Transfer of cenvat available with one of the units of the large taxpayer to his other registered premises through a transfer challan. Cenvat credit rule deals with as follows goods, Rules 1 :- Capital goods †¢ All goods failing under chapter 82,84,85,90 heading no 68. 02. †¢ Pollution control equipment. †¢ Component, spares and accessories of the goods. Specified (1) (2) above. †¢ Moulds and dies, jigs and fixtures. Refractory and material. †¢ Tubes and pipes and fitting. †¢ Storage tank. Note:-office equipment and appliance in an industry and hence credit cannot be valid. Rules 2 :- Inputs All goods and raw material Except light diesel oil, high speed diesel oil and motor spirit, commonly known as petrol and motor vehicles, used for providing any output service. Rule: – 3 A manufacturer or producer of final products or a provider of taxable service shall be allowed to take credit. †¢ The duty of excise of specified in the first schedule to the Excise Tariff Act, livable under the excise act. †¢ The duty of excise specified in the second schedule to the Excise Tariff Act. The education cess on excisable goods under section 91. Rule:-4 Condition for allowing CENVAT credit. The cenvat credit in respect of inputs may be taken immediately on receipt of the inputs in the factory of the manufacturer or in the premises of the provider of output service. Rule: – 5 Refund of CENVAT credit to units in specified areas. For the purposes of this rule, â€Å"duty† means the duties specified in the sub rule (1) of rule 3 of these rules. Rule: – 6 Obligation of manufacturer of dutiable and exempted goods and provider of taxable and exempted services. Rule: – 7 Distribution of credit on inputs by the office or any other premise of output service provider. A provider of output services shall be allowed to take credit on inputs and capital goods received on the basis of an invoice or a bill or a bill a challan issued by an office or premises of the said provider of output service, which receives invoice, issued in terms of the provision of the central excise rules, 2002, towards the purchase of inputs and capital goods. Rule: – 8 Storage of inputs outside the factory of the manufacturing. Rule: – 9 Documents and accounts. (1) An invoice. (2) A supplementary invoice. (3) A bill of entry. (4) A certificate issued by an appraiser of customs in respect of goods imported through a Foreign Post office. Rule: -10 Transfer of cenvat credit. Rule: – 11 Special dispensation in respect of inputs manufactured in factories located in specified areas of North East region, Kutch district of Gujarat, state of Jammu and Kashmir and state of Sikkim. Rule: – 12 Power of central government to notify goods for deemed cenvat credit. Rule: – 13 Recovery of cenvat credit wrongly taken or erroneously refunded. Where the cenvat credit has been taken or utilize wrongly or has been erroneously refunded, the same along with interest shall be recovered from the manufacturer or the provider of the output service and the provision of section 11A B of the excise act or section 73 and 75 of the finance act. Rule: – 14 Supplementary provision. Any notification, circular, instruction standing order trade notice or other order trade issued under the Cenvat Credit Rule 2002, by the Central Government, the central board of excise and customs, the chief commissioner of central excise, and in fore of the commencement of these rules, shall, to the extent it is relevant and consistent with these rules, be deemed to be valid and issued under the corresponding provision of these rules. 6. Registration procedure of Central Excise As per section 6 of CEA 1944, Registration is required to be obtained by (a) every manufacturer or producer of excisable goods that is goods specified in first and second schedule to central excise tariff act b(b) wholesale purchase or sale or storage of any specified goods included in first or second schedule of central excise tariff act. As per rule 9 of central excise rules, every person who produces, manufacturers, carries on trade, holds privet store room or warehouses or other wise uses excisable goods shall get registered. The rule also otherwise Board to issue notification (a) specifying conditions and procedures for registration and (b) grating exemption to person or class of person from provisions registration. Registration is compulsory as both section 6 of CEA and rule 9 (1) use the world shall. It has been clarified that registration granted in earlier old rule 174 will be valued under new rules. 1. Application for registration:- Before starting production of excisable goods or dealership for the purpose of issuing invoice to pass Cenvat credit, registration should be obtained. The Application Forms specified for this purpose are given in Annexure (Form A1 for all persons except certain textile processors/cheroot manufacturers). Separate Forms A2 is prescribed for registration of Power loom Weavers/Hand processors/ dealers of yarns and fabrics and manufacturers of readymade garments. Form A3 is the application for registration specified for manufacturers of hand – rolled cheroots tobacco falling under sub – heading 2402. 00 of Central Excise Tariff. The application should be submitted in duplicate to the jurisdictional Deputy/ Asst. Commissioner of Central Excise. An attested copy of permanent Account Number (PAN) allotted by Income Tax Department should be enclosed with the application. Under the New Central Excise Registration Procedure for Power loom Weavers/Hand processors/ dealers of yarns and fabrics and manufacturers of readymade garments, the C. B. E. and C. through Circular No. 708/24/2003- CX, dated 23-4-2003[2003(153) E. L. T(T63)], asked departmental officers to issue registrations even if PAN is not available. 2. Registrations Certificate:- The Registrations Certificate in prescribed format [Form RC-Annexure-2] will be issued within seven days. Normally, RC can be obtained across the table on the date of application itself. Verification of the premises will be made later. 3. Permanent nature of RC:- Registrations Certificate, once issued, is permanent except when it is suspended or revoked. RC is not required to be renewed. 4. No fee for Registration:- Registrations Certificate is issued free of charge and there is no fee prescribed for the same. 5. Same form for intimation of changes:- The same application form is to be used for intimating any change in the information furnished originally at the time of applying for Registrations Certificate. Manufacture of new or additional products need not be intimated. 6. Transfer of Business:- Excise registration is premises-specific. But it is non-transferable and hence, when the business is transferred to another person by way of sale or lease, the taking over the business (transferee) should take fresh registration in this name. 7. Change in the Constitution:- If the entity holding Central Excise Registration is a firm or company or association of persons, any change in the constitutions should be intimated to the concerned Central Excise Officer within 30 days. 8. De- Registration:- If the business is not carried, Registrations Certificate should be surrendered to the superintendent of Central Excise. A declaration specified for this purpose [Annexure-3] should be given while surrendering RC. 9. Quoting RC Number:- The PAN- based Excise registration number is required to be printed on top of all Central Excise invoices, duty challans, PLA & other Forms /documents. Textile units coming into Excise fold for the first time can clear their goods and pay duty pending grand of registration. 10. Revocation or suspension of registration:- For contravention of provisions of Central Excise Act, 1944/ Central Excise Rules, 2002 and other specified offences, RC can be suspended or revoked by the deputy/Assistant Commissioner. As there are separate penal provisions to take care of various infractions, this is seldom resorted to. 3. 1. 7 Analysis and detail of Excise Return Form: – Excise Return (E. R. -1) form :- Excise Return (E. R. -1) form is the most important document of excise return. Rule 12 of the Central Excise Rules, 2002 and rule 9(7) of CENVAT Rules, 2004. Each E. R. 1 form have two copies one is original and other is duplicate this document use for return of excisable goods and availment of cenvat credit for the month. Includes details of the manufacture, clearance and duty payable also detail of goods item code, registration number, name of the company, address, quantity manufactured, and quantity cleared assessable value etc. E. R. 1 form has details about basic excise duty 14%, education cess 2% and secondary and higher education cess. Attached all detailed value, item code number, description and also detail of cenvat credit availment and utilized. E. R. 1 form has details about cenvat input goods, cenvat capital goods, and cenvat service tax. The following points are include in cenvat credit availment and utilized. †¢ Credit on manufacture invoice. †¢ Credit taken on Dealers invoices. †¢ Credit taken on capital goods. †¢ Credit taken on input services. †¢ Credit taken on imported capital goods. Credits taken from inter unit transfer of credit by a large taxpayer. E. R. 1 form include Self assessment memorandum, acknowledgment and lastly authorized signature and name. 3 . 1. 8 CENVAT Credit Process:- (1) Cenvat credit is allowed to offset duty liability on final product services. Hence, as per rule, Cenvat credit is not allowed on quantity of inputs and input service used exclusively in the manufacturer of exempted goods/ services. If cenvat credit is availed on inputs and input services used in the manufacture or rendering of both dutiable and exempted goods or services, 10% of total price (excluding sales tax and other taxes if any paid) shall be paid. The output service provider shall utilize credit only credit only to the extent of an amount not exceeding 20% of the amount of service tax payable or taxable output service. Now sub-rule (3A) in Rule 6 Vide Notification No. 10/2008-C. E. (N. T. ), dated 1-3-2008. (w. e. f. 1-4-2008) provides for reversal of credit attributable to the input and input services used in the manufacture of exempted goods as per the prescribed in the said rule. (2) The condition of 10% payment is not applicable if separate accounts of receipt, consumption and inventory of such inputs or input service are maintained cenvat credit is taken on that quantity of inputs and input services used in the manufacture of dutiable goods/ taxable service only. In respect of certain specified services, such restriction doses not operate. Thus credit is allowed on the service tax pay without the requirement of maintaining separate accounts to consulting engineer, architect, and interior decorator, management consultant, real estate agent, commissioning and instillation service, technical inspection and certification service, commercial or industrial construction service security, security agency, scientific or technical consultancy, banking and financial services, life insurance services, technical testing and analysis service, maintenance or repair service and intellectual property service, if these or not used exclusively for providing exempted output services. In the case of general insurance service, when both taxable and exempted services are provided, an optional scheme, utilize Cenvat credit attributable to inputs/ input services used in providing taxable services, has been provided. (3) For manufactured of certain specified exempted goods manufacturer shall pay an amount equivalent to Cenvat credit attributable to inputs and input services used in or in relation to manufacture of such final products. These products are: A – Goods falling within heading No. 2207 of the First Schedule to the Tariff Act; (Ethyl alcohol and other spirits, denatured, of any strength); B – Low sulphur Heavy Stock (LSHS) used in the generation of electricity; C – Naphtha (RN) used in the manufacture of fertilizer; D -. Newsprint, in rolls and sheets, falling within heading No 48. 1 of Central excise tariff; E – Final products failing within chapters 50 to 63 Central excise tariff; F – Naphtha (RN) furnace oil used for gener ation of electricity; G – Goods supplied to defense projects or to the Ministry of Defense for official purposes, under any of the specified notifications; H – Liquefied Petroleum Gases (LPG) falling within item 27111200, 2711300 and 27111900 of the said First Schedule; I – Kerosene for ultimate sale through Public Distribution System. If the above producer is not followed the assessee will be liable not only for recovery under Rule 14 of Cenvat Credit Rule, 2004, but also for interest penalty. (4) Amount of 8% paid (now 10% under Rule 6) while clearing non-dutiable goods and realized from customers was held as not recoverable under section 11D of Central Excise Act, 1944 – Unison Metals Ltd. V. commissioner, 2006 (204) E. L. T. 323(Tri. -LB). But if the amount was collected in respect of dutiable goods, the same Larger Bench judgment says, real identity of the amount collected is not relevant for section 11D; whether the collection ‘represented duty’ of excise alone is relevant. (5) As per new condition â€Å"(d)† in Rule 6(3), the output service provider in the case of general insurance service has to intimate the option in writing to utilize Cenvat attributable to inputs and input services in providing taxable output services to the Range Superintendent, giving prescribed details. The option once exercised cannot be withdrawn during the remaining part of the financial year. (6) Credit is not admissible on capital goods used exclusively in manufacture of exempted goods/rendering of exempted services. 7) Under Rule 6 (3), no distinction is to be made between intended final product and unintended emergency of by – product – 2007 (208) E. L. T. 25(Tri. -LB) – Rallies India Ltd. v. CC E. (8) The substantive provisions of Rule 6 as contain in sub-rule (1),(2) and (3) shall not apply for exempted goods cleared either to :- ? SEZ Unit, ? 100% EOU, ? EHTP,STP unit, ? United Nations or an International Organization for their official use or supplied to projects listed in Notification No. 108/95 – C. E. , or ? For export under bond under Rule 19 of the Central Excise Rules, 2002. [ C. B. E. & C. circular No. 785/18/2004 – CX. , dated 17-5-2004 – 2004 (167) E. L. T. T35] ? Gold or Silver arising in the course of manufacture of copper or zinc by smelting, or, All goods which are exempt from the basic duties of Customs and the additional duty (C. V. D. ) when imported into India and supplied against International competitive bidding in terms of Notification No. 6/2006 – C. E. 2. KEY ANALYSIS & DATA PRESENTATION 3. 2. 1 EXCISE DATA OF THE COMPANY :- Financial highlight of the period 1st April 2004 to 31st March 2008 A. Value of clearance goods. |S. R. |Particulars |2004 – 2005 |2005 – 2006 |2006 – 2007 |2007 – 2008 | |1 |Domestic clearance |774200060 |1001839000 |1024535335. 87 |761355812. 0 | |2 |Scrap |2990434 |4460621 |4406276 |3947935 | | | | | | | | |3 |Export clearance |11270 |2740620 |5150444 |1958831 | |4 |Other |26581926 |29447903 |8895151. 08 |00. 00 | |5 |Total clearance |803783690 |103783690 |1042987207. 15 |767262578. 50 | B. Central excise duty. |S. R. Particulars |2004 – 2005 |2005 – 2006 |20 06 – 2007 |2007 – 2008 | |1 |Payment in PLA |48740016 |53681491 |41367098 |26186202 | | | | | | | | |2 |Payment through cenvat credit |90119634 |112750237 |169196919 |100193615 | | | | | | | | | | | | | | | |3 | Total |138859650 |166431728 |210564017 |126379817 | | | | | | | | | | | | | | | C. Cenvat credit taken. |S. R | Particulars |2004 – 2005 |2005 – 2006 |2006 – 2007 |2007 – 2008 | |1 |On capital goods |4958440 |4773122 |8147200 |7764147 | | | | | | | | |2 |On input goods |87752967 |109226355 |153488966 |86673644 | | | | | | | | |3 |On input services |165307 |311808 |4044501 |3008152 | | | | | | | | | | | | | | |4 | Total |91776714 |114311285 |165680667 |97445943 | | | | | | | | | | | | | | | Passenger cars in India- Share of Business The following chart shows market share of Gabriel India ltd. Conclusion:- The above pie chart shows Gabriel is the enormous producer in the India which produces automotive components. Gabriel covered about 63%production and other companies covered only 37%. It is indicating Gabriel very important company for the Indian automobile sector. Central excise paid by Gabriel: (Payment in PLA, payment through cenvat credit) The following chart shows payment through personal ledger account and cenvat credit. Conclusion:- The above chart shows central excise payment through personal ledger account and cenvat credit. Cenvat credit is the most important element of excise. As per above chart company paid continuously excise from personal ledger account and continuously growth in payment of duty. Total excise payment of Gabriel (from 2001 to 2008) The following pie chart shows excise payment of Gabriel India ltd. ll payment shows in parentage from 2001 – 02 to 2007 – 08 [pic] Conclusion :- The above chart shows every year increase the total value of excise clearance, that means Gabriel have incessantly growth and also paid the duty regularly. Cenvat credit taken :- The following bar graph shows cenvat credit taken by Gabriel India ltd. The following value shows Capital goods, Input goods and Input Services. [pic] Conclusion :- The above hart shows value of Capital goods, Input goods and Input Services in graphically. As per above chart input goods is one most important goods for cenvat credit and large commitment for cenvat credit. Capital goods and input services covered very small area of cenvat credit. | |[See rule 12 of the Central Excise Rules, 2002 and rule 9 (7) of CENVAT Credit Rules, 2004] | |   |   |   |   | |Large Taxpayer unit opted for (Name of City) |   | |   | |   |   |   |   |   | |   |   |   |   |   |   | |Name of the assessee | |   | 29-Mile Stone Pune – Nasik Highway |   | |   |   | |   |Village Kuruli, Pune-410501 |   | |  3. Details of the manufacture, clearance and duty payable: |   | |   |   |   |   |   | |1 |Motor Vehicle parts & Accessories : Shock |8708. 00 | | 14 % | | |Absorber & Struts / Kits/Tube | | | | | | | |- | | |2 |Tools & Dies |8207. 00 | – |14 % | |3 |Waste & Scrap of Steel |7204. 90 | – |14 % | 2. List of the principal inputs and capital goods used by the assessee. A) Inputs :- 1) MS Steel Tubes 2) Bright Bar 3) Sintered parts. B) Capital Goods: – As per Annex- G. 4. Brief details of the revenue for the list three years in the Performa given below. |Year. |Total duty paid |Total duty paid through CENVAAT | Total duty | | |PLA |Inputs Cap. Goods | | | | | |payment | | |(In Rs. ) |(In Rs. ) | | | | | |(In Rs. | | | | Inputs /Cap. Goods | | |2002-2003 |28871497 |42919868 / 3224062 | 75015427 | |2003-2004 |39091938 | 61721263 / | 104876428 | | | |4063257 | | |2004-2005 |48740016 | 86010192 / 3369064 | 138119272 | C. SUMMARY OF AUDIT RESULTS Date of preparation 22. 09. 2002 W/P No_____________ Provide an outline of all objections , which involve short/non levy/collection of Duty, amount (say under Sec. 1D), irregular availment / utilization of credit, Irregular payment of refund and non -payment of interest due. Details of objection Of technical /procedural in nature without involving revenue / credit / interest /amounts should also be mentio ned . Indicate whether the assessee has agreed to the objection and if so , has made spot payment (if so details thereof). D. PRELIMINARY OR DISK REVIEW: Date of preparationW/P No_____________ 1. Give reasons for selection of the unit for audit this time (as informed by Planning Cell) The Company has paid Central Excise Duty between 1 to 2 crores through PLA for the last three years; therefore according to the CBEC letter F. No. 598/35/2001-CX DT. 09. 11. 2001, the company has been selected for EA-2000 Audit, under new standard audit programmer 2. The auditor should check whether the Assessee Master File (refer to in Annexure A and B of New SAP) is available in IAD and whether the same is complete. If not the auditor should complete the same as for as possible from the information available in the office. Go through the information available in Assessee Master File. Identify and mention (with justifications), the areas or issues those merit verification during the conduct of audit (refer Para 3. 4. 2 of New SAP) No Assessee Master File has been maintained in IAD. However, now it is being prepared. (i) Obtain and study other documents illustrated in para 3. 4. 2 and Annexure G of New SAP and conduct examination as illustrated in Annexure D of New SAP. List Out the documents studied. 1) Balance Sheet 2) Clearances for last three years 3) Classification list 4) Modvat Declaration (ii) Identify and mention (with justifications), the areas or issues those merit Verification during the conduct of audit (refer para 3. 4. 2 of New SAP). In the balance sheet for the year 2003-04 it is observe that the company has shown Other income Rs. 50,163,700/- the detail of the same are required to be verified (See Annexure â€Å"A†) 3. Work out sum of the important financial ratios as mentioned in para 3. 4. 3 and Annexure C of New SAP. Mention the important indicators which require detailed Verification during the conduct of audit. From the balance sheet for the year 2000-01 & 2001-02 it is observed that the company have not taken any term loan from bank but during the year 1996-97 the company has taken term loan from ICICI, SBI Patiyala, Deutche bank for installation an of plant as well as purchase of assets. Further the company has not taken major advances from their customers. 4. Mention charges in the law and rates of duty pertaining to the products manufactured and inputs since previous audit. There is no change in rates of duty for products manufactured and inputs since last audit. 5. Mention details of Anti-evasion cases booked in recent past or are in progress and Past audit objections, which have not been settled so far by way of assessee acceptance, Adjudication, appeals etc. No anti-evasion cases booked in recent or past, Audit objections are pending related to service tax on Tech. know how and clearance to Sister Unit, Non payment of interest on rate escalation charges 6. Observation of the Auditor on any other issue emerging during Desk Review. E. GATHERING AND DOCUMENTIING SYSTEMS INFORMATION INTERVIEWS Date of preparation: 16. 09. 2 to 18. 09. 02W/P No_____________ Person (s) Interviewed, their designation and dates of interview. |Person |Designation |Date of interview | |Mr. Sanjay Agrawal |Sr. Manager, Finance | | |Mr. B. Rao |Sr. Manager Production | | Whether the assessee’s as submitted list of all documents maintained in respect of items mentioned und er Para 3. 4. 7 of New SAP. Yes the assessee has submitted the list of all documents i. e. Trial balance, Balance Sheet, profit & loss account, Sales tax returns, Income tax returns, Purchase & Sales ledger Give the gist of interviews especially in respect of i) related ventures , business with these ventures and annual volume of such Transactions, ii) relationships with the unit and its owners/shareholders , iii) the head office /registered office of the unit , location of its operations and location of its accounting records Head Office/Factory: Kuruli, Pune- Nasik Highway, Tal -Khed, Dist-Pune. iv) whether Company is an ancillary unit or independent unit of productions: It is an independent Unit. v) Any organizational or systems changes that has occurred since last audit CENVAT TO PLA RATIO (in 000) Year |PLA |CENVAT |Ratio | |2003-04 |39092 |65785 |37:63 | |2004-05 |4874 |89379 |35:66 | Excise Duty to Turnover Ratio (in 000) |Year |Excise duty |Turnover |Ratio | |2003-04 |104877 | | % | |2004-05 |138119 | | % | AUDIT PLAN: (Please see para 3,4,22 to 3,4,24 and Annexure J of NEW SAP) Date of preparation 14. 01. 2006 W/P No_____________ Audit Plan approved by___________ ) The Audit Plan must be based on the issues identified in the previous stops as to be verified during the conduct of audit and must be specific in the following format(also given in Annexure J of New SAP) |Srno |Subject No |Specific issue |Source Document |Field Document |Coverage Period |Selection |Verification | | | | | | | |Criteria |Paper No | |1 |Capital goods |Credit availed on |1. Invoice |1)purchase register|December, |Company | 1 | | | |capital goods & | |/ |2001. |Availed | | | | |installation |2. RT 12 |order | |Credit in | | | | | | | | |Capital goods of | | | | | |3. Balnce |2) Asset | |Rs. lakhs for | | | | | |sheet |Register, | |the month of Dec. | | | | | | | | |2001. | | | | | |4. Delivery |3)Installatn | | | | | | | |Challan |certificate | | | | | | | | | | | | | | | | |5. Cenvat A/c |4)Gate | | | | | | | |Register. |register | | | | | | | | | | | | | | | | | |5) Issue slip | | | | | | | | | | | | | |2 |Credit on input|Credit availed on |1). Export |1). Purchase |November, 2001. |Company has |2 | | | |inputs of |Invoices |Register, | |availed CENVAT | | | | |utilization |2). RT 12 |2) Purchase | |Credit of | | | | | |3). Balance |order, | |Rs. 62 lakhs | | | | | |sheet |3) Gate | |On input for the| | | | | |4). CENVAT A/c |register, | |month of Nov. | | | | | |register |4). Issue slip | |2001 and March | | | | | | |5) Stock | |2002 | | | | | | |statement. | | | | |3 |Export |Export under bond |1). RT 12 |1). Purchase order,|August, 2001, |Company has | 3 | | | |/ rebate |2). ARE I |2).. Shipping | |exported | | | | | |3) Invoice |bill | |excisable product| | | | | |4). UT1. |3).. Delivery | |under UT | | | | | |5) RG1 |challan | |amounting to Rs, | | | | | | |4). Packing slip, | |30012993 | | | | | | |5). Proof of | | | | | | | | |export, | | | | | | | | |6) Sales register. | | | | |4 |Waste and scrap|Clearance of steel|1). RT 12 |1). Balance sheet. |March 2002 |Company has | 4 | | |of steel |scrap |2). Invoice, |2). Sales register,| |cleared maximum | | | | | |3). Delivery |3).. Tender copy, | |steel scrap in | | | | | |challan, |4). Weight | |March 2002 | | | | | |4). RG1 |slip, | | | | | | | |5) Prodn. Clearance |5) Gate register | | | | | | | |Statement for | | | | | | | | |2001-02 | | | | | |5 |Consulting |Expenditure on |1). Agreement |1). RBI Permission |1997-98 |1997-98 onwards | 5 | | |Engineer |technical know-how|2). Balance |2). Party |Onwards |to August 2002 | | | | |i. e. |Sheet |Ledger, | | | | | | |Consulting | |3) Payment | | | | | | |Engineer | |particular | | | | EXECUTIVE SUMMARY The project titled as â€Å"STUTY OF EXCISE DUTY PAYMENT BY GABRIEL INDIA LTD† Was done at Gabriel India Ltd Pune. Indirect tax is the one of the most enormous source of fund collection of the Indian government which aids to development expenses and other aspects. Central excise is one aspects of fund/revenue collection. Selection of the topic is one of the important aspects of our project. As it decided the course of action, to be followed. The topic selected should be such that it helps in understanding the excise concept clearly, as was given the topic by the company itself. The project is based on the Total excise paid by company also its registration procedure, cenvat credit taken, E. R. 1 form and various rules. The objectives of this project was – 1) To study procedure of central excise registration. 2) To study E. R. 1 form of central excise. ) To study various rule of the central excise. 4) To study journey of Cenvat credit. 5) To study process of Cenvat credit taken. 6) To the study drawbacks of central excise. The central excise tax one of the most important aspects. Every manuf act