SUMMER TRAINING REPORT

ON THE TOPIC
“A STUDY OF FINANCE DEPARTMENT AND COST CUTTING
AT REALTY ADVANCE STRUCTURE”

Submitted in partial fulfillment of the requirements for the award of the

degree in Bachelor of Business Administration (general)

Submitted by:
ADITYA CHOUDHARY
00414901720
BBA- SEC A (GEN) 1ST SHIFT 3RD YEAR

DEPARTMENT OF BUSINESS ADMINISTRATION

MAHARAJA SURAJMAL INSTITUTE
Affiliated to GURU GOBINDH SINGH INDRAPRASTHA
UNIVERSITY
Approved by BCI & AICTE and recognized U/s 2(F) of UGC act
C-4, janakpuri, New Delhi -58
CERTIFICATE

1
I, Mr. aditya choudhary, roll no.- 00414901720 hereby certify that the Summer
Training Report (Paper Code: BBA 311) entitled “A STUDY OF FINANCE
DEPARTMENT AND COST CUTTING AT REALTY ADVANCE STRUCTURE ”
is done by me and is authentic work carried out by me. The matter embodied in this
has not been submitted earlier for the award of any degree or diploma to the best of my
knowledge and belief.

Signature of the Student

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 CERTIFICATE

This is to certify that the Project Report on “a study of finance department and cost
cutting realty advance structure” which is submitted by Aditya choudhary in partial
fulfilment of the requirement for the award of degree Bachelor in Business
Administration (General) to Maharaja Surajmal Institute, Affiliated to Guru Gobind
Singh Indraprastha University, C-4, Janakpuri, New Delhi-110058 is a record of the
candidate’s own work carried out by him under my supervision. The matter embodied
in this report is original and has not been submitted for the award of any other degree.

Signature of the Guide

Name of the Guide:
Designation

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4
 DECLARATION

I, aditya choudhary hereby declare that, this project titled “A STUDY OF FINANCE
DEPARTMENT AND COST CUTING AT REALTY ADVANCE SRUCTURE ”
is an original work carried out by me, under the guidance of Ms. Parul deshwal The
report submitted by me is a Bonafede work carried by me of my own effort and it has
not to be submitted to any other university or published any time before.

Date: Aditya choudhary

Place: 00414901720

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 ACKNOWLEDGEMENT

It is my proud privilege to express my profound gratitude to my project guide Ms.

Parul deshwal (faculty of management) and the entire faculty of department, Maharja
Surajmal institute and teachers of department for providing me with opportunity to
avail the excellent facilities and infrastructure. The knowledge and values inculcated
have proved to be of immense help at very start of my career.

I would like to express my gratitude to all my friends for their invaluable support and
cooperation during the project.

Aditya choudhary

00414901720

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 TABLE OF CONTENT

s. no topic page no.

1. Title page 1

2. certificates 2

3. acknowledgements 6

4. chapter-1 introduction 8

5. chapter-2 profile of the industry and organization 21

6. chapter-3 conceptual framework 34

7. chapter-4 data analysis and interpretation 37

8. chapter-5 conclusion and recommendation 54

9. BIBLIOGRAPHY 57

10. ANNEXURE 59

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CHAPTER – 1
INTRODCUTION

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CHAPTER 1.1 INTRODUCTION

a finance department is the unit of a business responsible for obtaining and handling
the and any monies on behalf of the organization. The department controls the income
and expenditure in addition to ensuring effective business running with minimum
disruption.

Besides the traditional role of handling the payroll, income, expenses, finance
department responsibilities also include economic analysis to improve key business
strategies.

A companies finance department serves a fundamental role in making financial

decision for internal and external affairs. A business’s activities depend on the
competence if a company’s finance department and the individuals who comprise it. A
finance department is organized by, and runs according to, specific role and duties.
Finance department just as the other business departments is coherently dependent on
each other and the top executives. The interdependent functioning department cannot
take decision independently, each of the department consults with each other just to
make minor decisions as even a minor decision can also create a great ripple effect and
can create distress in the whole of the organizing.

As the we have understood that all the department are interdependently but the finance
department can have an upper hand, with the major decision in their hand like
allocation of the resources.

 the finance department plans and manages company money, making sure a business
can access cash in sustainable ways. This department can be as simple as a few people
managing invoices or as complex as a team of hundreds with multiple levels of
management.

Finance Department manages a firm's long-term and day-to-day monetary operations

and strategy. Finance groups oversee incoming and outgoing payments, budget
creation, cash management (treasury), accounting, financial reporting and many other
tasks related to the finances of the company. Finance organization size varies based
upon total company-wide head count, company revenue, industry, and overall business

9
strategy. The finance department plans and implements the company's financial year
budget also conducts research and collects data that assists in the organization's
temporary and permanent financial forecast. The information is essential in planning
and providing informed decisions critical to expansion, such as staff training and asset
procurement.

1.1.2 Roles and responsibilities of the finance department

The contributions of finance department to any company and how these contributions
positively affect organisational performance will greatly depend on factors such as the
extent to which the owner/ manager is involved in his company. The roles and
responsibilities of a finance department include but are not limited to:

Bookkeeping:

This is the most basic function of the finance department. It involves the day-to-day
recording, analysis and interpretation of a company’s financial transactions. This will
include the tracking of all expenses (purchases, payments etc.) and sales of finished
products. In some start-up companies, this role is often carried out by a bookkeeper
who might be replaced by more specialized payables and receivables clerks as the
company grows or expands its operations.

Management of company’s cash flow:

It is the duty of the finance department to manage all cash flows into and out of a
company and ensure that there are enough funds available to meet the day-to-day
running of the company.  This area also encompasses the credit and collections
policies for the company’s customers, to ensure that vendors and creditors are paid
correctly and on time; and that the company is also paid correctly and as when due.

Budgets and forecasting:

In this function, the finance department works with managers to prepare the
company’s budgets and forecasts and also give feedback with regards to the financial
standing of the company. This information can be used to fulfil the cash needs of each

10
department, plan company staffing levels, plan asset purchase and expansions at
minimum cost before they become necessary.  The finance department can also use
past records from respective departments to make better budget and forecast over long-
term and short-term time horizons.

g. Financial Reporting and analysis

Financial reporting and analysis are the function that takes raw accounting entries and
transforms them into meaningful, usable and comparable financial statements. The
finance department contributes to organizational growth by measuring and reporting
on regular bases, key numbers that are vital to the success of the company. This will
likely include a summary of all funding sources, expenditures and reserves available
for future use (excluding those already committed and budgeted for current period)
some non-financial information.  And are usually communicated to managers in a
logical and understandable format.

1.1.2 Skills of the employees in the finance department.

You may have to react to financial problems within a company or pay off liabilities
using available assets and other methods. Problem-solving means you have the

expertise to approach difficult financial situations and resolve them. A finance

department role may mean you have to communicate and work with others within and
outside the department. It is important to communicate and concisely so you can keep
everyone properly informed.

Analytical thinking is how you can review data to identify patterns, discrepancies or
additional funds within the company's finances. This skill shows employers you can

view numbers in a more complex way. You might be in a position where you need to
persuade your co-workers or higher-ups about strategies and budgeting tactics you
believe will be beneficial to the company. You should be able to provide them with
evidence to support your claims.

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1.1.3 COST CUTTING

Cost cutting refers to measures implemented by a company to reduce its expenses and
improve profitability. Cost cutting measures are typically implemented during times of
financial distress for a company or during economic downturns. They can also be
enacted if a company's management expects profitability issues in the future, where
cost cutting can then become part of the business strategy.

cost cutting measures may include laying off employees, reducing employee pay,
closing facilities, streamlining the supply chain, downsizing to a smaller office, or
moving to a less expensive building or area, reducing or eliminating outside
professional services, such as advertising agencies and contractors, etc.

1.1.4 relation between cost cutting and finance department

Finance department performs various roles but one of the functions that took the
audience in grasp was the practices of cost cutting. Being a firm it is very likely that
market will fluctuate vigorously and some time the company might get into loss or is
about the face the loss period the finance department is the saviour in the said situation

the finance department use one if he infamous method “COST CUTTING’, while
trying to no go into loss period the department tries to lay off few employees, lower
the price raw material, lower the production cost. But the practice of laying the
employees off is very intimidating and fearsome but the company sometimes have to
make hard decisions just make the company survive.

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1.2 IMPORTANCE OF THE STUDY

In past finance department was rather associated with the money handling of firm but
with the upgradation and the modernization of the industries the finance department is
now serving many purpose and is now one the most important functioning department

in the company. Compliance with accounting and financial standards and

consolidation of financial data

Ensuring the proper execution of strategic planning processes. The profitability of the
company through its ability to maximize profits. The solvency of the company based
on its ability to repay its loans and debts. Good management of the company’s cash
flow. The coordination of all the financial actors around the company: suppliers, legal
and administrative advisors, tax services.

Many of the importance are regarding the financial matter of the company but one
major importance is that it saves the company from the solvency and bankruptcy it
could do anything to make the company more profitable. It dost so with many means
necessary such as cost cutting.

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1.3 SCOPE OF THE STUDY

This study covers the scope of the cost cutting practices in the Indian companies and
hoe the Indian firms and the construction companies are giving importance to the
finance department.

The report should show the effect of cost cutting on the employees who are not
permanent and the further idea of laying off the employees done by the company.

This reports arguably suggest that after the training in a construction company the very
efficient method of the saving the company going into loss and avoiding the stoppage
of any project is to cut cost. Cost cutting is a large aspect which includes the laying of
and lowering of production cost but in case where the production cost cannot be
reduced the companies start to lay off the employees whose input can avoided and was
not much effective.

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1.4 OBJECTIVE OF THE STUDY

 Analysing the role of finance department in a company

 Evaluating is the finance department is now changed fundamentally
 Responsibilities of the finance department
 Ro study the evolution of the finance department
 Understanding the decision making in the departments
 Cost cutting practices adapted by the Indian companies
 Analysing the ripple effect of laying off employees
 To study the understanding of finance department with other departments while
taking the major decision of laying off of the employees

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1.5 RESEACH METHODOLOGY

Research methodology is the specific procedures or techniques used to identify, select,

process, and analyse information about a topic. In methodology, researchers use
various techniques to arrive at a solution of the given problem. In this report, we shall
understand the importance of digital marketing. Alongside this, the data is taken from
A general group of consumers who were selected to study their digital media
marketing preferences as well to better understand the impact of it. The data shall be
analysed and interpreted to form the results.

1.5.1 Data Collection and its methods:

Data collection is a process of collecting information from all the relevant sources to
find answers to the research problem, test the hypothesis and evaluate the outcomes.
Data collection methods can be divided into two categories: secondary methods of data
collection and primary methods of data collection.

Primary data
Primary Data is the data which is originally collected by an investigator or agency for
the first time for specific purpose. The source from which the primary data is collected
is called the primary source. Such data is original in character as it is collected for the
first time. It is first-hand information. Primary Data once collected and published
becomes Secondary Data. There are many methods to collect primary data and the
main methods include:

 Questionnaires
 Interviews
 Focus group interviews
 Observation

Secondary data

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 The data which is not directly collected but rather obtained from the published or
unpublished sources is known as Secondary Data. It is also known as Second Hand
Data. These are not original data since the enumerators or investigators themselves do
not collect these data. They simply make use of the data collected by the others.
Common sources of secondary data include:

 Census
 Large surveys
 Internet
 Journals
 Books
 News papers
 Organizational records

Thus, the data for the study is collected through primary sources (questionnaire)
and also through secondary data as well. The research is descriptive in nature.
The study was conducted among 100 respondents. The data has been collected in
the form of questionnaires from these 100 respondents.

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1.6 REVIEW OF LITERATURE

The extensive literature review was performed upon our literature search in field of
finance department and cost cutting extensively. The literature review was procured
from the search engine of Google scholar ([Link]
Various paper that was reviewed for the purpose of understanding and getting a overall
knowledge of the working and functions of finance department and the practices of
cost cutting adopted by the Indian companies.

Literature reviewed:

1.6.1 Leadership and organizational structure

by MW Meyer - American Journal of Sociology, 1975.

In the research they conducted he talked about the leadership qualities and
organizational
structure and how the departments are interdependent. In the research Meyer stated
that finance department is most important department and the reason is that it handles
cash the research of the Meyers is quite old but it perfectly shows how the finance
department works and its role, function, responsibilities. It particularly does not really
talk about the finance department. But the way description of finance department is
provided is really insightful and relatable in the real life industry.

The research paper has been cited 158 times, it has 2 versions,

1.6.2 the value of a finance journal publication

by SW swidler, Goldreyer - The Journal of Finance, 1998

in the research conducted by the them is extensive and coherent. In the said research
paper they argued that the finance department is very important and the roles they
perform is quite relative to the responsibilities they have and a very unique feature that

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they provided in the research paper is that the finance department has an indirect
control over other departments, The reason being the financial department allocates the
resources i.e., funds. The research paper has been cited 100 times, 2 versions

1.6.3 employees downsizing strategies : market reaction and post announcement

financial statement

By peter chalos, Charles j.p. chen, journal of business finance and accounting, 2003

in the research conducted by the them is extensive and coherent. In the said research
paper they argued that the finance department is very important and the roles they
perform is quite relative to the responsibilities they have and a very unique feature that
they provided in the research paper is that the finance department has an indirect
control over other departments, The reason being the financial department allocates the
The research paper has been cited 129 times, 3 versions

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1.7 LIMITATION OF THE STUDY

The study has certain constrains which has limited to its scope and object of the study

 The opinion provided in conclusion and recommendation part may be biased

 The quantitative data is but a sample of the population. So, the results may
prove to be inaccurate.
 Limited industries are only covered in the study
 the time frame was quite short to understand the whole concept.
 Insightfulness of the study is limited to the firm I worked in and the research
paper that has been reviewed so it may by limited to the company.

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 CHAPTER-2

PROFILE OF THE INDUSTRY &

ORGANIZATION

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2.1 INDUSTRY PROFILE

Construction industry refers to the industrial branch of manufacturing and trade related

to building, repairing, renovating, and maintaining infrastructures. It is a determinant
of the country's technological and technical advancement, often regulating the growth
of the country's infrastructural development that often directs to the country's
advancement in terms of sustainability assurance. The Construction industry in India
consists of the Real estate as well as the Urban development segment. The Real estate
segment covers residential, office, retail, hotels and leisure parks, among others. While
Urban development segment broadly consists of sub-segments such as Water supply,
Sanitation, Urban transport, Schools, and Healthcare. 

 Policy Support - In March 2021, the Parliament passed a bill to create a $ 2.5
Bn development finance institution called National Bank for Financing
Infrastructure and Development (NaBFID) to fund infrastructure projects in
India.

 FDI in the construction development sector (townships, housing, built up

infrastructure and construction development projects) and construction
(infrastructure) activities stood at $26.24 bn and $28.96 bn respectively,
between April 2000 and September 2022.

 Cement production (weight: 5.37 %) increased by 12.1 % in September 2022

over September 2021. Its cumulative index increased by 10.9 % during April to
September 2022-23 over the corresponding period of previous year.

00% Foreign direct investment in the construction industry in India under automatic
route is permitted in completed projects for operations and management of townships,
malls/shopping complexes, and business constructions. 100% Foreign direct
investment in the construction industry is allowed under the automatic route for urban
infrastructures such as urban transport, water supply, sewerage, and sewage treatment.

History

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The period from 1970 to mid 60's witnessed the government playing an active role in
the development of these services and most of construction activities during this period
were carried out by state owned enterprises and supported by government departments.
In the first five year plan, construction of civil works was allotted nearly 50 per cent of
the total capital outlay.

The first professional consultancy company, National Industrial, development

corporation (NIDC), was set up in the public sector in 1954. Subsequently, many
architectural, design engineering and construction companies were set up in the public
sector (Indian railways Construction Limited (IRCON), National Buildings
Construction Corporation (NBCC), Rail India Transportation and Engineering
Services (RITES), engineers India limited (EIL), etc.) and private sector (M N Dastur
and Co., Hindustan Construction Company (HCC), Ansals, etc.).

India Construction has accounted for around 40 per cent of the development
investment during the past 50 years. Around 16 per cent of the nation's working
population depends on construction for its livelihood. The Indian construction industry
employs over 30 million people and creates assets worth over ₹ 200 billion.

India's Construction Market is expected to register a CAGR greater than 10% during
the forecast period (2022–2027). As COVID-19 expanded across the country in April
2020, the face of the Indian construction industry, which was already battling with
inadequate management and a lack of tracking of its labour force, lost its central grip

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complete.

The Indian construction market is highly competitive, owing to the presence of major
local and international players. However, the market holds opportunities for small and
medium players due to increasing government investments in the sector. The Indian
construction market presents opportunities for growth during the forecast period,
which is expected to further drive market competition. Large players are competing
with each other for a large share of the Indian construction market. This makes it hard
to see any consolidation in the market.

Key market trends in the industry

 As part of the Sagarmala Program, more than 610 projects with a total cost of
USD 10.5 million will be carried out between 2015 and 2035. These projects
will focus on modernizing and building new ports, improving port connectivity,
boosting port-linked industrialization, and building up coastal communities.

 Bharatmala Pari yojana is a new highway umbrella program that focuses on

improving the efficiency of freight and passenger movement across the country
by bridging critical infrastructure gaps with effective interventions such as the
development of Economic Corridors, Inter Corridors and Feeder Routes,

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 National Corridor Efficiency Improvement, Border and International
Connectivity Roads, Coastal and Port Connectivity Roads, and Green-field
expressways.

 In 2022–2023, the PM Gati Shakti Master Plan for Expressways will be

implemented, allowing for faster transit. The National Highway network would
be expanded by 25,000 kilometres in 2022–203, at a cost of INR 20,000 crore
(USD 2417670).

 In 2022, India's road sector experienced enormous growth as additional

stretches of national highways were constructed, as well as the approval and
completion of several projects and fundraises, making it a better year than the
previous one. an integrated multi-modal national network of transportation and
logistics, connectivity with isolated and difficult terrains; and decongestion of
key sites on the road network.

 The government approved the development of 21 greenfield airports in the

country in January 2022. The country's largest airport will be built in Uttar
Pradesh's Gautam Buddha Nagar area. The Ministry of Civil Aviation intends
to build 21 additional airports across India in the next few years.

 In the next four to five years, the Airports Authority of India (AAI) plans to
create new airports as well as expand and upgrade many existing airports at a
cost of USD 338 million. This comprises the expansion and alteration of
existing terminals, the construction of new terminals, the expansion or
strengthening of existing runways, technical blocks, aprons, and the control
towers of the Airport Navigation Services. In addition, by 2025, three PPP
(Public-Private Partnership) airports in Delhi, Bengaluru, and Hyderabad will
have invested INR 30,000 crore in expansion plans.

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In order to meet India’s aim of reaching a US$ 5 trillion economy by 2025,
infrastructure development is the need of the hour. The government has launched the
National Infrastructure Pipeline (NIP) combined with other initiatives such as ‘Make
in India’ and the production-linked incentives (PLI) scheme to augment the growth of
infrastructure sector. Historically, more than 80% of the country's infrastructure
spending has gone toward funding for transportation, electricity, and water& irrigation.

 India’s ambition of sustaining its relatively high growth depends on one important
factor: infrastructure. The country, however, is plagued with a weak infrastructure
incapable of meeting the needs of a growing economy and growing population. S&P
Global Ratings projects India's GDP to grow around 8% for the next three fiscal years,
among the fastest in large, growing economies. The government also aims to
significantly boost the manufacturing sector

Highway construction would be done, with 2500 km of access control highways, 9000
km of economic corridors, 2000km of coastline and land ports roads, and 2000 km of
strategic highways among the highways that would be built. The FASTag system
promotes greater highways authority of India(NHAI) to raise more funds. Before 2024,
it was projected to monetize at least 12 lots of roadways bundles totaling more than

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6000 km. the government has set aside rs. 1,963,943 crore in the budget for the road
infrastructure.

Infrastructure spending creates jobs involved in the planning and implementation of

various projects. These include both white-collar and blue-collar jobs—for example,
both engineers and day laborers are needed. Infrastructure projects often take months
to years to complete, meaning that the jobs will stay. These workers then spend their
income locally and help stimulate the economy. Moreover, once the projects are
completed, citizens can more efficiently use transportation and utilities to improve
their worker productivity.

contribute an all-time high of about 25% of GDP by 2025, from below 16% currently.

2.2 ABOUT COMPANY

REALTY ADVANCE STRUCTURE ENTERPRISES PVT. LTD.

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 “Building nation” their motto being this they are focusing towards building strong
buildings, bridges, bus station. the company is based in Bihar (Patna), registered in the
same state and mainly works under the Bihar infrastructure development and road,
bridges construction and the buildings of road department such as the bus stands. He
company is the registered government contractor has done various road developments
and infrastructure development for the Bihar government, one of the greatest and
biggest project done by the company is the construction of bridge and the maintenance
of the same in govindpur district, Rajouli of Bihar state. the company took a boom
after the project as it gained it much popularity in the construction industry and it also
helped the company in getting the tender in the government sector. Company having
87 employees aggregated is now trying to get more staff to get a much bigger projects
and is looking to take the project outside the Bihar state.

The company Is a non-government company, incorporated on 31st January 2011, it’s a

private unlisted company and is classified as company limited by shares.

The company is majorly in construction business from last 11 years and currently,
company operation are active. Current board members and directors are SUDHIR
KUMAR, DILIP KUMAR and SMITA KUMARI.

Company’s authorized capital stands at Rs. 20lakhs and has 50 per cent paid up capital
which is Rs.10 lakh.

Company have be indulged in construction sector for 11 years now and is having
steady growth with steady profits, With 25 employees in office and 62 on ground.

CIN U45200BR2011PTC016518
Date of Incorporation 31 Jan, 2011
Status Active
Company Category Company limited by Shares
Company Sub-category Non-govt company
Company Class Private
Business Activity Construction
Authorized Capital 20.0 lakhs
Paid-up Capital 10.0 lakhs
Paid-up Capital % 50.0

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Registrar Office City Patna
Registered State Bihar
Registration Number 16518
Registration Date 31 Jan, 2011
2.2.1 COMPANY INFORMATION:

With more than Rs. 1.5 crore profit per annum following are the projects that
company has completed.

1. Building construction, BC hajipur, engineering college(govt):

Hajipur city in Bihar is developing in terms of education and roads. The
company having its clause deep intact in the city got the tender of government
for the construction of an engineering college. The whole construction of the
building comeds under the realty advance structure enterprises pvt. Ltd.

2 HLRCC bridge, bandhu Ganj, NH division

Bandhu Ganj tender was one of the starting tender got and the bridge work was
completed in 1.5 yrs., bandhu Ganj still hasn’t came under the influence of the
company this project is the only one completed in bandhu Ganj as the
competitors has good reputation in the area

3 Construction and maintenance of bridge, govindpur, rajouli

Construction and maintenance of bridge means the complete construction of
bridge (fkyover) and afterwards the complete maintenance of the said bridge
till the tender gets passed again and the company also get that too.

4 Construction and maintenance of bridge, madhuban, nawada

29
 Company being dominant in bridge construction got another tender in Madhu
ban Nawada and the construction and the maintenance of the bridge was done.

5 Construction of HLRCC, ratan bigha, Gaya, under Bihar raj pul nirman
nigam (BRPNM), Gaya
Bihar Rajya Pul Nirman Nigam is the statutory body regulating the
construction of the bridges (pul) in the state of Bihar all the bridge tenders get
passed from the BRPNM of the bridges.

Chart Title
2.5

1.5

0.5

0
project 1 project 2 project 3 project 4 project 5

Series 1 Series 2 Column1

*
Y axis- profit in crores

2.2.2 COMPETITORS
Bihar is now focusing on construction of bridges and what they call “pul” as the realty
advance structure enterprises pvt. Ltd. Has established good and healthy relationship
with the government. Other construction giants quite bigger than the realty advance
structure enterprises pvt. Ltd they also pose competition to it. 5 of the main
competitors which I learn while training in the company are:-

1. Muskan construction pvt. Ltd.

Muskan Constructions Pvt. Ltd. is a Real Estate Development Company
incorporated in the Year 2001 and since then it has been operating in the entire
range of Civil Engineering works and development of Housing Scheme for all

30
 income group of people. The Company is well known in Housing sectors for its
commitment to quality and timely completion of its projects. This company has
the motto to expand its real estate business not only in Bihar but also to other
parts of the country. Muskan Constructions has an experience of almost two
decades with effectively completed various projects, both residential and
commercial in nature.

2. Saakar construction pvt. Ltd.

Saakaar Constructions has been building dreams since 1996. Being one of the
most trusted Construction Companies in Patna, we have built a standard brick
by brick, home by home, and dream over a dream, and are today undeniably a
name for commitment, quality & trust.

3. Nutan construction
Nutan Construction was incorporated in the year 1990 by Mr. Sanjay Kumar
Sinha, the first-generation entrepreneur. Today, the company enjoys a strong
presence in Patna & NCR and has made its position as one of the largest
companies in the Real Estate Industry. The company is one of the fastest
growing entities in the realty sector with a difference that offers luxury for
reasonable costs, excellent customer care levels with highest customer
satisfaction.

4. Pragya engicon & property

Pragya Engicon And Property Private Limited is a Private incorporated on 21
January 2014. It is classified as non-govt company and is registered at
Registrar of Companies, Patna. Its authorized share capital is Rs. 100,000 and
its paid up capital is Rs. 100,000. It is involved in Building of complete
constructions or parts thereof; civil engineering.

5. Karnveer singh Yadav enterprises pvt. Ltd.

Karnveer Singh Yadav Enterprises Private Limited is a Private incorporated on
26 August 2009. It is classified as non-govt company and is registered at
Registrar of Companies, Patna. Its authorized share capital is Rs. 10,000,000

31
 and its paid up capital is Rs. 10,000,000. It is involved in Building of complete
constructions or parts thereof; civil engineering.

SWOT ANALYSIS
A SWOT analysis is a tool used to evaluate the strengths, weaknesses,
opportunities, and threats of a particular company. Here is a SWOT analysis of
an infrastructure company in India:

Strengths:
 Strong reputation: The company has a strong reputation in the industry for
delivering high-quality projects on time and within budget.
 Experienced management team: The company's management team has a wealth
of experience in the industry, which enables them to make informed decisions
and navigate the challenges of the sector.
 Strong relationships with government and other stakeholders: The company has
strong relationships with the government and other stakeholders in the industry,
which allows them to secure contracts and permits more easily.
 Strong financial position: The company has a strong financial position, which
allows it to take on large and complex projects.

Weaknesses:
 Limited geographical reach: The company operates mainly in a specific region
or state of India, limiting its potential for growth and expansion.
 Dependence on government contracts: The company is heavily dependent on
government contracts, which can lead to fluctuations in revenue and
profitability.
 Lack of diversification: The company may be heavily focused on one type of
project or sector, making it vulnerable to market fluctuations.
 Limited expertise in new technologies: The company may lack expertise in
new technologies and innovations that are being adopted in the sector, which
could put it at a disadvantage.

Opportunities:

32
 Growing economy: India's economy is growing at a steady pace, which is
likely to increase demand for infrastructure development in the country.
 Government initiatives: The government has launched several initiatives, such
as the Smart Cities Mission and the Sagarmala project, which provide
opportunities for infrastructure development.
 Increasing urbanization: India's urban population is expected to grow rapidly in
the coming years, which will create opportunities for infrastructure
development in cities.
 Opportunities to expand overseas: The company may have opportunities to
expand overseas, where it can tap into new markets and generate additional
revenue streams.

Threats:
 Economic slowdown: A slowdown in the Indian economy could negatively
impact the infrastructure sector and the company's revenue and profitability.
 Political instability: Political instability could lead to delays in infrastructure
projects and make it difficult for the company to operate.
 Increased competition: The company may face increased competition from
other infrastructure companies, both domestic and international.
 Environmental concerns: Environmental concerns could lead to delays in
infrastructure projects and make it more difficult to acquire land for
development.
It's important to note that this is a general SWOT analysis of an infrastructure
company in India, and the situation may vary depending on the specific
company and its operations. Additionally, the infrastructure sector is a broad
and diverse one, and different sub-sectors may have different strengths,
weaknesses, opportunities and threats.

33
34
 CHAPTER -3

CONCEPTUAL FRAMEWORK

FINANCE SECTOR AND COST CUTTING

Cost reduction is the process of decreasing a company's expenses to maximize profits.

It involves identifying and removing expenditures that do not provide added value to
customers while also optimizing processes to improve efficiency. Cost reduction
typically focuses on generating short-term savings.

The finance department in a company in India is responsible for managing the

financial resources of the organization. This includes tasks such as budgeting,
forecasting, financial analysis, and reporting. The finance department also plays a
critical role in the decision-making process by providing financial information and
advice to management. They also handle the compliance of all the financial regulations

35
that the government of India has laid down. They also play a vital role in fundraising
and managing the company's cash flows. The finance department is typically headed
by a Chief Financial Officer (CFO), who reports to the CEO or the board of directors.

the finance department also plays a key role in the overall decision-making process of
the company by providing financial information and advice to management. They also
work closely with other departments, such as operations, sales, and marketing, to
ensure that the company's financial resources are being used efficiently and effectively.

The finance department in a company may play a role in identifying areas where the
company can cut costs, such as reducing the number of employees. However, this is
typically a decision that is made by management in consultation with the finance
department.

When a company is looking to cut costs, one of the options that is often considered is
reducing the number of employees. This can be done through layoffs, which involves
terminating the employment of a group of employees. Layoffs can be a difficult and
controversial decision, as they can have a significant impact on the employees who are
affected, as well as on the company's morale and reputation.

The finance department may be involved in identifying areas where layoffs may be
necessary and in analyzing the financial impact of layoffs. They may also be
responsible for providing the necessary data and information to support the decision-
making process.

It's important to note that layoffs are not the only way to cut costs, and companies may
explore other options such as cutting expenses, streamlining processes, and improving
efficiency. The finance department plays a vital role in identifying areas where costs
can be reduced and making recommendations to management on the best course of
action.

The finance department in Indian companies has evolved significantly over the years.
In the past, the finance department was primarily focused on traditional accounting and
financial reporting functions, such as maintaining financial records, preparing financial
statements, and ensuring compliance with accounting standards and regulations.

However, in recent years, the role of the finance department has expanded to include a
wider range of responsibilities. The finance department is now seen as a strategic

36
partner that plays a critical role in the overall decision-making process of the company.
They are involved in various aspects of the company's operations, such as budgeting,
forecasting, financial analysis, and risk management.

One of the key changes that has occurred in the finance department in Indian
companies is the increased use of technology. With the advent of digitalization,
companies are now able to access a wide range of financial data and analyze it in real-
time. This has allowed the finance department to move beyond traditional accounting
and financial reporting functions and focus on providing strategic insights and advice
to management.

37
 CHAPTER-4

DATA ANALYSIS AND INTERPRETATION

Q 1. ) Age of the respondents.

AGE RESULTS

>18 0%

18-23 55 %

23-28 20 %

38
 28< 25 %

INTERPRETATION :

 The data shows that 0 respondents out of 100 respondents are below the age
of 18.

 The data shows that 55 respondents out of 100 respondents are in the age
group of 18 – 23. Meaning the vast majority of respondents are youngsters
and that they are starting their career.

 The data shows that 25 respondents out of 100 are of the age group above
28 hat interprets that 25 % of respondents have some working year
experience.

Q 2 .) profession of the respondents .

39
 profession response

student 45 %

Service men 45 %

business 5%

unemployed 5%

INTERPRETATION:

 the collected data shows that 45 respondents out of 100 are students which
means they are not well aware of the corporate sector yet but have the enough k
knowledge to know about the finance department and there work

 the collected data shows that the 45 respondents out the remaining 55 are
service men but as we saw above in the age group a lot of respondents are of
28-23 of age. So the respondents are not much aware about the finance

40
 department or have some knowledge about the responsibilities of the finance
department.

 the collected data shows that 5 respondents in the remaining 10 respondents are
in the business sector which shows that 5 % people know about the working of
business and their different departments which includes finance department.

 The collected data shows that 5 of the respondents are unemployed and may or
may not have the proper knowledge about the finance.

Q3.) How important is the finance department for the company?

range Allocation Response

1 very important 40 %

2 Important 15 %

3 Neutral 5%

4 less important 20%

5 Least important 20 %

41
INTERPRETATION:

 the collected data shows that 40 people out 100 thinks that finance department
is very important in corporate sector
 the collected data shows that 15 people in respondents think the finance
department is so important in the corporate sector.

 The collected data shows 5 people are neutral about the opinion on the finance
department

 He collected data shows that 20 respondents feel like the finance department is
less important in the corporate sector.

42
  The remaining 20 respondents think the corporate sector can work without a
finance department is doable and it is the least important.

Q 4 . ) has the finance department evolved over the period of time ?

options response

Yes 70 %

no 30 %

INTERPRETATION:
 The collected data shows that 70 respondents out of 100 thinks that finance
department has evolved in the period of time and it does more than it did in the
past and the respondents responded to the extent of their knowledge.

43
  The collected data shows that the 30 respondents do not think he the finance
department has evolved even a bit over the period of time and it is still
functioning as it did in back in the days

Q 5 .) Do you agree that finance department is just not handling money

anymore ?

range allocation response

1 Strongly agree 40

2 Agree 5

3 Neutral 20

4 Disagree 30

5 Strongly disagree 5

44
INTERPRETATION:
 The data collected shows that 40 people out of 100 respondents agree that
finance department is doing more than the money handling part of the company
which proves that finance department is now evolved and is functioning with
more responsibilities.

 The data collected shows above that he 5 % of people thinks that yes the
finance department are doing more than money handling but they are not sure
that what exactly the finance department is doing nowadays which is different
from the back in days.

 The data collected data shows that 20 % people/respondents are no sure about
he evolving of the finance department and does it handle more than the money
department.

 The collected data shows 30 % of respondents disagree with the fact that
finance department is now doing mor than money handling is still working with
traditional ways

 The collected data shows that 5 % respondents thinks that the finance
department does nothing more than the money part and is just consumed with
money handling is not developed or evolved at all.

Q 6 .) is cost cutting part of the finance department ?

option Responses

Yes 35 %

No 30 %

maybe 35 %

45
INTERPRETATION:

 The data collected above shows that 35 respondents out of 100 agrees that cost
cutting is he part of finance department. And it is one of the responsibilities to
stop the company going into loss and.
 The collected data above shows that 30 respondents do not agree that cost
cutting is the part of finance department. And the department should just not
handle the cost cutting part.

 The collected data above shows that the 35 % respondents do not know that is
he finance department is able to practice finance department.

46
Q 7 .) how effective is the cost cutting in Indian companies to save them from
being in loss ?

scale allocation Response

1 Very much 25 %

2 Good amount 5%

3 Nil 30 %

4 Not so much 20 %

5 Not very much 20 %

INTERPRETATION :

 The data collected above shows that 20respondents out of 100 thinks that
laying off employees for the purpose of the cost cutting and saving the
company from and keeping it in profit. They think that to save the business
sometimes department has take major decision and hard ones

47
  The data collected above shows that 15 % respondents think that it is effective
to lay off employees for the purpose of saving the company and making it
profitable.

 The data collected above shows that 20 % of respondents are not sure about the
cost cutting and the laying off employees

 The data collected above shows that 40 % does not think that laying off
employees is the top most solution for the cost cutting.

 The data collected above shows that 5 % of respondents is not even a option of
laying off of employees to save the company. And he company should be loyal
towards their employees and they must see them as family

Q8 .) Has your institution ever laid off employees for cost cutting ?

options Response

Yes 30 %

No 25 %

Not aware 45 %

48
INTERPRETATION:
 The data collected above shows that 30 respondents ‘s institution has observed
the employees lay off for the benefit of company and is aware of the fact what
lay off is with respect to the cost cutting

 The data collected above shows that 25 % pf respondent’s institution has never
observed the laying off of the employees with respect to cost cutting

 The collected data above shows that 45 % of the respondents are not aware that
if there institution ever observed the cost cutting and laying off of the
employees so they do not first hand have the knowledge of what exactly
happens in the lay off of the employees .

49
Q 9.) do you think that behavior after lay off should be supportive of the still
working employees ?

options Responses
Yes 75 %
no 25 %

INTERPRETATION:
 The data collected above shows that the majority of respondents are thinking
that the still remaining employees after the shedding of employees should show
supportive behavior as the company sometimes has to take tough decision to
save the company.

50
  Remaining says that employees should not show the supportive behavior and
the company is being disloyal and they fear for their own job security and their
thoughts about the lay off is negative.

Q 10.) Is laying off employees should be part of cost cutting ?

Options Responses

Yes 40 %

No 20 %

maybe 40 %

INTERPRETATION :

 The data collected above shows that 40 respondents out of 100 are in the favour
of laying off employees and including the lay off in the cost cutting practices.

51
 They understand the tough decision that a business has to make to survive in
the market. And its not personal to fire employee while the company is about
to go into the loss

 The data above collected shows that the 40 % of respondents are not sure if the
cost cutting practices should include the employee shredding and the company
should do I while recession or not

 The data above collected suggest that the 20 % respondents say that laying off
employee should not be included in the cost cutting techniques and rather then
that the production cost should be get down and the employee should not have
to lose their job.

Q 11.) do you agree laying off employees is effective in cost cutting

scale allocation Response

1 Strongly agree 25 %

2 Agree 5%

3 neutral 30 %

4 Disagree 20 %

5 Strongly disagree 20 %

52
INTERPRETATION:
 the data collected above shows that the 25 respondents out of 100 agrees he
laying off employees is very cost effective and is a very good method of cost
cutting and saving company from being in loss. The data is proof that the
mixed feeling ss about the lay off conducted by many companies.
 The data above shows that the 5 % of respondents are agreeing about the cost
cutting and the effective affect of lay off.

 The data above shows that 30 % of respondents are not sure about the lay off
being effective cost cutting.

 The data collected shown above shows that the 20 %of respondent disagrees
the lay off being effective cost cutting method.

 The data shown above shows that 20 percent people thinks that lay off is very
bad and is not effective at all in saving cost and being in the profit.

4.1 FINDINGS
53
The data collected is of 100 respondents and it is collected on the platform called
google forms. Being the data is of very small population It may be not exact.

According to the results of questionnaire formed it is very clear that the finance
department is a very serious importan part of an organisation and it has evolved over a
period of time the repondents has clearly shown thhat they have knowledge of the old
finance department regime and they obsereved the evolution of finance by the it secor
and AI technology being introduced in the corporate sector.

Finance department is not amymore the money handlin g room but that is not it
anymore the corporate sector has bestowed many more fuction,roles, responsibilities
upon it and the. The science off financial department has been a revolutionary for
finance sector a corporate being a government, no government, NPO all is required a
finance division

COST CUTTING is now infamous among the corporate employees as it mostly

means the shredding of employees to make much more profit and help company get
out of loss.

After doing the study/research I found that people have mix emotion towards lay off
but they understand that it is necessary for the company to do [Link] it helps it in
surviving. Our economy does agree too as if more and more companies got shut down
or got Into bankruptcy the economy will collapse but that does not mean he company
have the right fire anyone, anytime.

54
 CHAPTER-5
CONCLUSION, RECOMMENDATION

55
5.1 CONCLUSION

The conclusion this study is simple but yet complex as the time period and the sample
size small the exact findings and the accurateness of the study may differ.

The finance department being an important part of the organization has a lot of roles
responsibilities and functions increased with respect to that of past and one of those
responsibilities is cost cutting which includes the practice of laying off of employee.
people don’t like it but they understand that it is an inevitable part of function of
finance department.

After the study and gathering results from the respondents I came to a conclusion that
the finance works with the money handling and with the people on whom the money is
being spend on and when the responsibility of saving company from being in loss and
making it more profitable the finance department has undertaken the cost cutting. In
India and in construction industry and the infrastructure sector of the company is
blooming and being a developing country it is going to boom in future.

India being overpopulated it is easy to replace the workforce with another so the
employees has made unions but private sector is till facing the capitalistic behavior.

n conclusion, cost cutting is an important aspect of the finance department's role in

managing a company's financial resources. Cost cutting measures can include reducing
the number of employees, cutting expenses, streamlining processes, and improving
efficiency. The finance department is responsible for identifying areas where costs can
be reduced and making recommendations to management on the best course of action.
Cost cutting can help a company increase its profitability and competitiveness, but it
must be done in a strategic and thoughtful manner to avoid negative consequences
such as low employee morale and lack of innovation. The finance department plays a
vital role in ensuring that a company's financial resources are being used efficiently
and effectively, and cost cutting is one of the tools it can use to achieve that goal.

56
5.2 RECOMMENDATION

The corporate sector needs to come with alternatives and like lay off that can at least
ensure the future of employees.

While training in the realty advance structure construction pvt. Ltd. I observed that
company shredded some of its employees to get out of loss and to get more and more
tender as being in loss shows that company lacks somewhere which affects the tender
passing chances of the company.

Employees were no happy about it but they at the end understood why company did
this and the company y also paid a handsome amount of money to them for securing
their future.

Companies should at least give them a amount of money which they can use to create a
carrier for themselves and their spouse.

57
BIBILIOGRAPHY & REFERENCES

58
4.3 BIBILIOGRAPHY & REFERENCES

Journals:
 the value of a finance journal publication
by SW swidler, Goldreyer - The Journal of Finance, 1998
 Leadership and organizational structure
by MW Meyer - American Journal of Sociology, 1975.
 employees downsizing strategies: market reaction and post announcement
financial statement
By peter chalos, Charles j.p. chen, journal of business finance and accounting, 2003

Websites:
 [Link]
 [Link] can infrastructure really stimulate
countries economic growth
 [Link] construction sector in india
 [Link] cost cutting
 [Link] bridges of india
 [Link] finance department
 [Link] organization structure

59
 ANNEXURE

Goggle form question –

Q.1) name-
_______________________

Q.2) age-
<18
18-23
23-28
28<

Q.3) profession-
Student
Service
Business
Unemployed

Q.4) how important is finance department for the company –

Very important
1.
2.
3.
4.
5.
Least important

Q.5) has finance department evolved in the period of time-

60
Yes
No

Q.6) do you agree that finance department is just not money handling anymore-
Strongly agree
1.
2.
3.
4.
5.
Strongly disagree

Q.7) is cost cutting part of finance department –

Yes
No
Maybe

Q.8) how effective is cost cutting in Indian companies to save hem from being in
loss-
Very much
1.
2.
3.
4.
5.
Not very much

Q.9) is laying off employees should be part of cost cutting-

Yes
No
Maybe

61
Q.10) do you agree that laying off employees is effective in cost cutting-
strongly agree
1.
2.
3.
4.
5.
Strongly disagree

Q.11) has your institution ever laid off employees for cost cutting-
Yes
No
Not aware

Q.12) do you think behavior after lay off should be supportive of the still working
employees-
Yes
No

62