Hindustan Aeronautics Limited (HAL) ia an Indian Public sector aerospace and defence company, headquartered in

Bangalore. Established on 23 December 1940, a HAL is one of the oldest and largest aerospace and defence
manufacturers in the world. HAL began aircraft Manufacturing as early as 1942 with licensed production of Harlow
PC-5, curtis P-36 Hawk and Vultee A-31 Vengeance for the Indian Air Force. HAL currently has 11 dedicated
Research and development (R&D) centers and 21 manufacturing divisions under 4 production units spread across
India. HAL is managed by a board of directors appointed by the president of India through the Ministry of Defence,
Government of India. HAL is currently involved in designing and Manufacturing of fighter jets, helicopters, jet engine
and marine gas turbine engine, avionics, software development, spares supply, overhauling and upgrading of Indian
military aircraft. The HAL HF-24 Marut fighter-bomber was the first indigenous fighter aircraft made in India.

HISTORY
 Workers check new fuel tanks during World War II.

 HAL was established as Hindustan Aircraft Limited in Bangalore on 23 December 1940 by Walchand
Hirachand in association with the Kingdom of Mysore.(10) Walchand Hirachand became chairman of the
company. The company’s office was opened at a bungalow called “Eventide” on Domlur Road.
 The organisation and equipment for the factory at Bangalore was set up by Willam D. Pawley of the
Intercontinental Aircraft Corporation of New York. Pawley obtained a large number of machine- tools and
equipment from the United States.
The Indian Government bought a one- third stake in the company and by April 1941 by investing ₹25lskh as it
believed this to be a strategic imperative. The decision by the government was primarily motivated to boost British
military hardware supplies in Asia to counter the increasing threat posed by imperial Japan during Second World War.
The Kingdom of Mysore supplied two directors, Air Marshal John Higgins was resident director. The first aircraft
built was a Harlow PC-5 (11) on 2 April 1942, the government announced that the company had been nationalized
when it bought out the stakes of Seth Walchand Hirachand and other promoters so that it could act freely. The
Mysore Kingdom refused to sell its stake in the company but yielded the management control over to the British
Indian Government. In 1943 the Bangalore factory was handed over the United States Army Forces but still using
Hindustan Aircraft management. The factory expanded rapidly and became the centre for major overhaul and repair
of American aircraft and was known as the 84th Air Depot.
The first aircraft to be overhaul was a consolidated PBY Catalina followed by every type of aircraft operated in India
and Burma. When returned to Indian control two years later the factory had become one of the largest overhaul and
repair organisations in the East. In the post war reorganization, the company-built railway carriage as an interim
activity.

PRODUCTION MANAGEMENT

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Production is the creation of goods and services. The production activity is nothing but the step by step conversion of
raw materials into final product as per customer requirement by value addition. This is done in factories which have
manufacturing process.
“production management is concerned with those processes which convert the inputs into outputs. The input are
various resources like raw materials, men, material, machines etc. and the outputs are goods and services.”
These days, both production and service organisations fall within the scope of production management. Thus,
production management which was earlier considered as manufacturing management only, now after the inclusion of
services within its scope, is broadly known as operations management.
Production is an organised activity of a manufacturing organisation. Every organisation tries to identify and see the
degree of their attainment. The identification of objectives increases the consciousness of personnel working in the
organisation since their performance is to be judged against the objectives.
The globalisation of economies has created intense competition among producers. In such a cut-throat competition,
only those will survive who will produce as per the requirements of the users and at a reasonable cost.

Manufacturing is the value added production of merchandise for use or sale using labour and machines, tools,
chemical and biological processing, or formulation. The term may refer to a range of human activity, from handicraft
to high tech, but is most commonly applied to industrial production, in which raw materials are transformed into
finished goods on a large scale. Such finished goods may be sold to other manufacturers for the production of other,
more complex products, such as aircraft, household appliances or automobiles, or sold to wholesalers, who in turn sell
them to retailers, who then sell them to end users and consumers.
Manufacturing engineering or manufacturing process are the steps through which raw materials are transformed into a
final product. The manufacturing process begins with the product design, and materials specification from which the
product is made. These materials are then modified through manufacturing processes to become the required part.
According to some economists, manufacturing is a wealth-producing sector of a country, whereas a service sector
tends to be wealth-consuming. [1][2] Emerging technologies have provided some new growth in advanced
manufacturing employment opportunities in the. Manufacturing provides important material support for national
infrastructure and for national defence.
The negative costs of manufacturing can also be addressed legally. Developed countries regulate manufacturing
activity with labour laws and environmental laws. Across the globe, manufacturers can be subject to regulations and
pollution taxes to offset the environmental costs of manufacturing activities. Labour unions and craft guilds have
played a historic role in the negotiation of worker rights and wages.

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Indian industry today is on the threshold of entering into a new era where it will assume greater responsibility in
making the nation self-reliant in Defence Production. The resurgence of India’s manufacturing sector has been
remarkable. Not only are the profits soaring, the sector is also making its presence felt abroad as many Indian firms
are becoming transnational companies.
The Indian manufacturing sector is internationally competitive with international quality standards, efficiency and
manufacturing facilities. India is fast developing into a manufacturing hub for world corporations wanting to leverage
the sector’s proven skills in product design, reconfiguration and customization with creativity, assured quality and
value addition.
India, also keen to strengthen its own aerospace industry and has asked major weapon exporting countries to transfer
technology to India.

Indian Aerospace Industry

The Indian Aerospace Industry is witnessing an unprecedented growth. Hindustan Aeronautics Limited (HAL), which
is fully owned by the Government of India, is the premier aerospace company in the country. HAL has played a major
role in the Defence aviation of India through design, manufacture and overhaul of fighters, trainers, helicopters,
transport aircraft, engines, avionics and system equipment. HAL is now ranked 34th in the list of world’s top 100
defence companies.
HAL is a major partner for the Space programmes of Indian Space Research Organization (ISRO) and manufactures
structures and assemblies for the launch vehicles and satellites at its dedicated Aerospace Division in Bangalore. The
civil aviation sector in India is growing rapidly. It has recorded annual growth of over 41% in passenger traffic during
in the last two years. In fact, it has contributed significantly to the growth of international civil aviation sector. The
rapid growth of civil aviation has put extreme pressure on the existing civil aviation infrastructure. As a result, the
thrust is now on modernization of airports, communications, navigation and surveillance systems for air traffic
management, radars and facilities for Maintenance Repair and Overhaul of aircraft and sub systems.
There is a thus enormous potential and huge opportunity for collaboration and creation of joint ventures in the
aerospace sector in India for establishing Maintenance Repair Overhaul (MRO) facilities for civil and military aircraft,
overhaul and maintenance of aero engines and production of avionics, components and accessories both in the civil
and military aviation sectors. Major global aviation industry are already eyeing the local market in India and scouting
for outsourcing aerospace and defence products as India is fast emerging as a centre for engineering and design
services.

Hindustan Aeronautics Limited (HAL)

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HAL, a Defence PSU, is a major player in the global aviation arena. It has built up comprehensive skills in design,
manufacture and overhaul of fighters, trainers, helicopters, transport aircraft, engines, avionics and system equipment.
Its product track record consists of 12 types of aircraft from in-house R&D and 14 types by license production
inclusive of 8 types of aero engines and over 1000 items of aircraft system equipment (avionics, mechanical,
electrical). HAL has produced over 3550 aircraft, 3650 aero-engines and overhauled around 8750 aircraft & 28400
engines besides manufacture/overhaul of related accessories and avionics. The Company has the requisite core
competence base with a demonstrated potential to become a global player.
HAL has 19 production divisions for manufacture and overhaul of aircraft, helicopters, engine and accessories. It has
also 9 R&D Centers to give a thrust to research & development. HAL’s major supplies/services are to Indian Air
Force, Indian Navy, Indian Army, Coast Guard and Border Security Force. Transport aircraft and Helicopters have
been supplied to Airlines as well as State Governments. The Company has also achieved a foothold in export in more
than 20 countries, having demonstrated its quality and price competitiveness. HAL is a major partner for the Space
Vehicle programmes of the Indian Space Research Organization. It has also diversified into the fields of industrial &
marine gas turbine business and real-time software business.
HAL is now ranked 34th in the list of world’s top 100 defence companies. HAL continues its growth with a sales
turnover of 2.1 Billion US Dollars during the financial year 2007-08. It has doubled its turnover in 3 years. It has
declared profit before tax of 538 Million US Dollars. The company has made supplies to almost all the major
aerospace companies in the World like Airbus, Boeing, IAI, IRKUT, Honeywell and Ruag etc.
All the production Divisions of HAL have ISO 9001-2000 accreditation and sixteen divisions have ISO-14001-2004
environment management system (EMS) certification. Six divisions have also implemented the aerospace sector
quality management system requirements stated in As 9100 standard and obtained certification. Four of these
divisions have also obtained NADCAP certification (National Aerospace Defence Contractors Accreditation
programme –USA) for special processes such as NDT, heat treatment, welding etc.
In order to meet with the challenges in the 21st Century, the Company has redefined its mission as follows:
“To become a globally competitive aerospace industry while working as an instrument for achieving self-reliance in
design, manufacture and maintenance of aerospace equipment, Civil Transport Aircraft, helicopter & missiles and
diversifying to related areas, managing the business on commercial lines in a climate of growing professional
competence.”
HAL has successfully designed & developed the Advanced Light Helicopter, which is currently being operated by the
Defence Services of India and private Companies. The Advanced Light Helicopter also has great export potential.
Apart from licence production of front line fighters like Su-30 MKI, HAL is also developing the following products
through design and development:
• Light combat helicopter (LCH)
• Weaponization of Advanced Light Helicopter (ALH)
• Tejas-Light Combat Aircraft

The history and growth of the Hindustan Aeronautics Limited is synonymous with the growth of Aeronautical
industry in India over the past 70 years. The Company which had its origin as the Hindustan Aircraft Company was
incorporated on 23 Dec 1940 at Bangalore by Shri Walchand Hirachand a farsighted visionary in association with the
Government of Mysore with an Authorized Capital of Rs.4 crores (Paid up capital Rs.40 Lakh) and with the aim of
manufacturing aircraft in India. In March 1941, the Government of India became one of the shareholders in the
Company holding 1/3 of its paid-up capital and subsequently took over its management in 1942. In collaboration with
the InterContinental Aircraft Company of USA, Hindustan Aircraft Company commenced its business of
manufacturing of Harlow Trainer, Curtiss Hawk Fighter. In Dec 1945,the company was placed under the
administrative control of Min. of Industry & Supply. In January 1951, Hindustan Aircraft Private Limited was placed
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under the Administrative control of Ministry of Defence. The Company had built aircraft and engines of foreign
design under license, such as Prentice, Vampire and Gnat aircraft. It also undertook the design and development of
aircraft indigenously. In August 1951, the HT-2 Trainer aircraft, designed and produced by the company under the
able leadership of [Link] flew for the first time. Nearly 200 Trainers were manufactured and supplied to the
Indian Air Force and other customers. With the gradual building up of its design capability, the company successfully
designed and developed four other aircraft i.e. twoseater 'Pushpak' suitable for flying clubs, ‘Krishak' for Air
Observatory Post (AOP) role, HF-24 Jet Fighter '(Marut)' and the HJT-16 Basic Jet Trainer '(Kiran)'. Meanwhile, in
August 1963, Aeronautics India Limited (AIL) was incorporated as a Company wholly owned by the Government of
India to undertake the manufacture of the MiG-21 aircraft under license. In June 1964, the Aircraft
Manufacturing Depot which was set up in 1960 as an Air Force unit to produce the Airframe for the HS-748 transport
aircraft was transferred to AIL. Soon thereafter, the Government decided to amalgamate Hindustan Aircraft Limited,
with AIL so as to conserve resources in the field of aviation where the technical talent in the country was limited and
to enable the activities of all the aircraft manufacturing units to be planned and co-ordinated in the most efficient and
economical manner. Amalgamation of the two companies i.e. Hindustan Aircraft Limited and Aeronautics India
Limited was brought about on 1st Oct 1964 by an Amalgamation order issued by the Government of India and the
Company after the amalgamation was named as "Hindustan Aeronautics Limited (HAL)" with its principal business
being design, development, manufacture, repair and overhaul of aircraft, helicopter, engines and related systems like
avionics, instruments and accessories.

GROWTH AND CONSOLIDATION

In 1970, a separate division was set up exclusively for manufacture of 'Chetak' and 'Cheetah' Helicopters in Bangalore
under license from M/s SNIAS, France. A new division was also established to manufacture aircraft instruments and
accessories at Lucknow. License agreements were entered into with M/s Dunlop of U.K. for Wheels and Brakes,
Dowty for under carriages and Hydraulic equipment, and Normal air Garret for cabin air pressurization and air-
conditioning equipment, Smiths of UK, SFENA and SFIM of France for panel instruments and Gyros, Martin Baker
of UK for ejection seats and Lucas for engine fuel systems, for fitment on Marut,Kiran, Ajeet, Chetak, Cheetah and
Jaguar. Similar type of arrangements was agreed with USSR authorities for manufacture of accessories for MiG-21
series of [Link] and Development of Basant agricultural aircraft was undertaken between 1970 and 1974 and
design and development of Ajeet, an improved version of Gnat was undertaken between 1972 and 1980. In 1976
projects were sanctioned for design & development of the HPT-32 elementary piston engine trainer, Kiran MK II (an
improved version of Kiran MK I / IA) and Ajeet Trainer as well as for Advanced Light Helicopter. In 1971,Avionics
Design Bureau at Hyderabad was formed for the development and manufacture of IFF, UHF, HF,Radio components,
Radio Altimeter, Ground Radars etc., During 1973, a Design wing was set up at Lucknow for design and development
of accessories such as under-carriage and hydraulic systems, air-conditioning and pressurization systems, fuel
control/gauging systems, generator control and protection units, static inverters etc.,In 1979, after seeking a license
agreement with British Aerospace, the Company started manufacture of 'Jaguar' aircraft and with Rolls Royce-
Turbomeca for Adour engines. License agreements were also signed with different firms for manufacture of Avionics
and [Link] 1982, the Company entered into an agreement with USSR and started production of Swing-wing
MiG-27M aircraft as a follow on project for MiG-21 BIS at Nasik Division of the [Link] 1982, Korwa
Division of HAL in District Sultanpur (U.P.) was established for manufacture of Inertial Navigation System (INS),
Head Up Display and Weapon Aiming Computer (HUDWAC), Combined Map and Electronics Display (COMED),
Laser Ranger and Marked Target Seeker (LRMTS), Auto Stabilizer and Flight Data Recorder for Jaguar and similar
advanced systems for MiG-27M.
HAL is actively engaged and is contributing to the space programmes of the country. A separate Aerospace division
was established in 1988. This Division is dedicated to space programme to meet the growing requirement of Indian
Space Research Organization.
In order to capture the growing market in the industrial gas turbine engines, a new Division called the Industrial &
Marine Gas Turbine Division, was formed in 1998. Currently the Division is undertaking Repair and Overhaul work
related with Industrial Avon Engines and Allison 501K and 571K series. In addition to this manufacture of LM 2500

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engine is also being undertaken. The Division is doing the overhaul of various existing gas turbines in the country,
thus providing cost-effective services to users such as ONGC, GAIL, TNEB, RSEB etc.,

An independent profit Centre for providing Airport related services was created in May 2000 with a view to synergize
the operation of HAL Bangalore Airport. The main aim of creation of this Airport Service Centre is to restructure the
existing resources to provide focused attention in relation with the exacting market needs of service segment related to
airlines operation.
With the signing of agreement with Russian partners to take up license manufacture of SUKHOI 30 MKI Aircraft the
Nasik Division which had been engaged in manufacture & overhaul of MiG series Aircraft and lately upgrade of
MiGB is aircraft, had to be expanded. Accordingly it was decided in February, 2002 to have two Divisions at Nasik
i.e. Aircraft Manufacturing Division for Su-30 MKI production and Aircraft Overhaul Division for overhaul and
upgrade of existing MiG Series aircraft. Consequent on decision to manufacture AL 31 FP Engine for SU 30 MK1
Aircraft, under license from Russian Manufacturer, it was decided to establish a new Division at Koraput to take up
the project in February, 2002. The project activities under the new Division have accordingly commenced. In order to
facilitate Helicopter Division to dedicate itself exclusively for ALH manufacture and related activities,the
manufacturing and repair / overhaul activities of Chetakand Cheetah helicopters and their variants where transferred to
the Barrackpore Branch Factory and Barrackpore Division was formed and a new MRO Division created to carry out
ALH Overhaul activities in 2006 Composites material is being used extensively in aircraft manufacturing for its low
weight. A new Composite Manufacturing Division was formed in Mar 2007 with a dedicated manufacturing facility
for composite materials for in-house projects such as ALH, LCA etc. Facilities Management Division was created in
Dec 2007 for effective and focused attention towards the common services at Bangalore. In order to boost R & D
activities in-house, Mission & Combat System R & D Center was formed to concentrate on Mission systems, Aircraft
upgrades and technology development in Nov 2008. Additionally, Strategic electronics Factory at Kasaragod, Kerala,
a unit of HAL Hyderabad, was established Nov 2012. The in house development of Light Combat Aircraft (LCA) will
give major boost to the modernization program of our Defense Services. For production of LCA, a separate Division
was established at Bangalore for production of Light Combat Aircraft in Mar 2014.

RESEARCH AND DEVELOPMENT CENTRE

The Company has a comprehensive Design organization in its divisions. Out of 29 types of aircraft produced so far,
15 have been of indigenous design. The Company has long experience in design and manufacture of a diversified
range of aircraft and its systems. For further growth of the Company it was considered necessary for HAL to
strengthen its R&D capability and accordingly the erstwhile Design Bureaus have been restructured and reorganized
into the following R&D Centers:
[Link] R&D Centre, Bangalore Design and Development of Fixed Wing aircraft (LCA, IJT, MTA, FGFA, UAV)
[Link] Wing Aircraft R&D Centre, Bangalore Design and Development of Rotary Wing aircraft (ALH, LCH, LUH,
MLH, NRUAV)
[Link] & Combat Systems R&D Centre, Bangalore Mission systems, Aircraft upgrades and technology
development
[Link] Engine R&D Centre, Bangalore Small, Medium Engines & Test Bed design
[Link] Electronics R&D Centre, Hyderabad Avionics Items.
[Link] Aircraft R&D Centre, Kanpur Development & Modification/ upgrades of Transport Aircraft.

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VISION, MISSION AND VALUES OF HAL
Vision
To become a significant global player in the aerospace industry.
Mission
To achieve self-reliance in design, development, manufacture, upgrade and maintenance of aerospace equipment
diversifying into related areas and managing the business in a climate of growing professional competence to achieve
world class performance standards for global competitiveness and growth in exports.
Values
[Link] satisfaction
They are dedicated to build a relationship with their customers where they become partners in fulfilling their mission.
They strive to understand their customers' needs and to deliver products and services that fulfill and exceed all their
requirements.

[Link] to total quality

They are committed to continuous improvement of all the activities. They will supply products and services that
conform to highest standards of design, manufacture, reliability, maintainability and fitness for use as desired by the
customers.

[Link] and time consciousness

They believe that their success depends on their ability to continually reduce the cost and shorten the delivery period
of the products and services. They will achieve this by eliminating waste in all activities and continuously improving
all processes in every area of their work.

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 [Link] and creativity
They believe in striving for improvement in every activity involved in their business by pursuing and encouraging
risk-taking, experimentation and learning at all levels within the company with a view to achieving excellence and
competitiveness.

[Link] and team spirit

We believe in achieving harmony in work life through mutual trust, transparency, co- operation and a sense of
belonging. We will strive for building empowered teams to work towards achieving organizational goals.
[Link] for the individual
We value our people. We will treat each other with dignity and respect and strive for individual growth and realization
of everyone's full potential.
[Link]
They believe in a commitment to be honest, trustworthy and fair in all our dealings and commit to be loyal and
devoted to the organization. They will practiceself-discipline and own responsibility for their actions. They will
comply with all requirements so as to ensure that the organization is always worthy of trust.

OBJECTIVES OF HAL

• To ensure availability of Total Quality People to meet the Organizational Goals and Objectives.
• To facilitate continuous improvement in Knowledge, Skills and Competence (Managerial, Behavioral and
Technical).
• To Promote a Culture of Learning, Innovation and Achievement with emphasis on Integrity, Credibility and Quality.
• To motivate workforce through empowerment of Individuals and Team- building.
• To Play a pivotal role directly and significantly to enhance Productivity, Profitability and the Quality of Work Life
• To enhance organizational Learning.

ACHIEVEMENTS OF HAL
2009 – 2010
• “MoU Excellence Award” for the top performing CPSEs for the year 2008-09.
• Raksha Mantri's Award for Excellence for the years 2008-09, for Export under the “Institutional” category.
• International Aerospace Awards (instituted by SAP Media Worldwide Ltd) as mark of recognition to the Indian
Industry for excellence in innovation, indigenous technology and entrepreneurship under the following categories:-
Outstanding contribution to the Defense Industry.
Most Influential Company of the year
Excellence in Indigenous Technology
Excellence in Exports
• Golden Award for Quality and Business Prestige from Other ways Management Association Club, France
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• Performance Excellence Award -2009 (Organization) for the year 2008-09 by Institution of Industrial Engineering.
• Foundry & Forge Division, Bangalore conferred with “Casting of the Year 2010” award to Main Gear Box (MGB)
casting of ALH from the Institute of Indian Foundry men.
• Aerospace Division, Bangalore: Runner-Up in “Viswakarma Rashtriya Puraskar and National Safety Award – 2008
“instituted by Ministry of Labor, Government of India
• Engine Division, Bangalore won Rajiv Gandhi National Quality Awards 2009, instituted by Bureau of Indian
Standards, New Delhi for Commendation for Large Scale Manufacturing Industry-Engineering & Others.
• Avionics Division, Korwa conferred with “IMTMA-SIEMENS Productivity Championship Award” for excellence
and outstanding work in the area of productivity.
• Shri G.C Bhagwanani, Chief Supervisor, HAL- TAD, Kanpur, was awarded the Prime Minister’s “Shram Shree”
Award for 2006 on 15th Sept 2010.
• Shri [Link], AGM (Mfg), Foundry & Forge Division, Bangalore was awarded the “Foundry man of the year
2010” by the Institute of Indian foundry men.
• Shri Mohan Lal, Chief Supervisor of Accessories Divison, Lucknow was selected for Prime Minister’s “ShramVir”
for the year 2000

2010 -2011
• RakshaMantri’s award for excellence in performance for 2009-10. The award was handed over by
Hon’bleRakshaMantri, to off. Chairman, HAL on 14 Nov 2011.
• “Regional Export Award” from EEPC India for the year 2009-10.
• Avionics Division, Korwa: RakshaMantri’s award for Excellence 2009-10 in the category of Import substitution.
• Aerospace Division, Bangalore: Gold Medal award by Society of Aerospace Manufacturing Engineers (SAME),
Trivandrum, for the Year 2010 for its outstanding Contributions in the Field of Aerospace Manufacturing.
• Overhaul Division, Bangalore: "UTTAMA SURAKSHA PURASKARA” award from the National Safety Council -
Karnataka Chapter, in recognition of best safety performance and management system for the year 2009-10.
• Aircraft Manufacturing Division, Nasik: Gold Green-tech Environment Excellence award-2011 in the aviation sector
from Genentech Foundation, New Delhi.
• Foundry and Forge Division, Bangalore: -
• First Prize for the Best Exhibition Stall in the International Conference and Exhibition (INCAL) on Aluminum, held
from 6 Dec to 8 Dec 2011 at Hyderabad for displaying high end technologies, Capabilities and its products
• Quality circle team “Super finish” won “Distinguished award” in ICQCC 2011 (International convention on quality
control circles) held in Japan in Oct 2011
• Four Quality Circles won the “Gold Category” Award from CCQC Bangalore Chapter
• Avionics Division, Hyderabad: Quality circle team “Novel” won “Distinguished award” in ICQCC 2011
(International convention on quality control circles) held in Japan in Oct 2011
• Composite Manufacturing Division, Bangalore: Quality circle team “Pragathi” won “Distinguished award” in
ICQCC 2011 (International convention on quality control circles) held in Japan in Oct 2011
• Shri PrashantsinghBhadoria, Manager (Design) of ARDC, Bangalore has been selected for the prestigious Course
Directors Award in the MS Aerospace Vehicle Design course at Cranfield

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• Dr. R RBhat, Chief Manager (Lab) of Foundry and Forge Division, Bangalore was awarded the prestigious “2011
Metallurgist of the year” instituted by the Ministry of Steel, Government of India

2014– 2015
• “MoU Excellence Award” for the top performing CPSEs for the year 2006-07(Top Ten Public Sector Enterprises).
HAL has been receiving awards consecutively since 2001-02.
• RakshaMantri’s Award for Excellence for the year 2007-08 under the “Institutional” category.
• “Regional Export Award” from EEPC, India for the year [Link] award was presented on 21st Feb 2010 in
Maldives.
• “The Supplier of the year 2009” by Boeing, USA.

• Foundry& Forge Division, Bangalore conferred with International Diamond Star Award for Quality in the realm of
customer satisfaction, leadership, innovation and technology as established in QC100 TQM Model.
• Foundry& Forge Division, Bangalore conferred with “GargiHuttenes-Albertus Green Foundry Award” of the year
2008-09 by Institute of Indian Foundry men.

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Aircraft Division Bangalore

Aircraft Division was established in the year 1940. Since inception, the Division has manufactured a variety of
Aircraft both license as well as indigenously designed and developed .Apart from 1st of Hawk Mk 132 Aircraft (66
Nos.), the division has signed contract with Indian Air Force and Indian Navy to supply additional 57 Hawk Aircraft
(40 Nos. Hawk for Indian Air force, Indian Navy).Currently, the Division is manufacturing The Hawk Mk.132, a
transonic tandem-seat ground attack / trainer powered by single Rolls Royce Adour Mk.871 turbo fan under license
from BASE SYSTEMS, UK. The Division has received the approval of CAR-21 from DGCA for manufacture of
CIVIL Aircraft components. The Pilot Project for the implementation of Enterprise Resource Planning(ERP) was
launched in the Division in
July 2004. The ERP system was made operational from Nov-2006. Apart from the existing system, many additional
ERP facilities being integrated.

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OUTSOURCING
Aircraft Division, is looking forward for subcontractors in the area of Machining, Sheet metal forming, welding, Pipe
bending, Aircraft Plastics & Transparencies, FRP mode components, Surface and heat treatment structural assemblies
and detail / assembly tool manufacture for the manufacturing programs for Defence customers as well export
customers. The support will be in the form of:
• Sheet metal forming involving Power Brake, Rubber Presses, Stretch Presses, Drop Stamping, Hand Forming
with Die Blocks etc.
• Welding of Aluminium and steel components with metal arc as well as in inert gas atmosphere, as well as spot
and seam welding
• Pipe line manufacture with conventional as well as CNC pipe bending.
• Plastics / transparencies components manufacture involving vacuum and blow forming of stretched acrylic.
• FRP forming of complex shaped pipe and components.
• Surface / Protective treatment like Electro Plating, Anodizing Cad-plating as well as chemical milling
wherever necessary.
• Head treatment operation for steel and Aluminum alloys like normalizing, tempering, Case Hardening and
carbonizing, Annealing, Solution and precipitation hardening.
• Electrical looms / cables fabrication involving operation like crimping of lugs and soldering of sockets etc.

An IAF BAe Hawk being licence-produced at the HAL Hawk production facility in Bangalore
• The US$35 billion fifth-generation fighter jet programme with the Sukhoi Corporation of Russia.
• US$1 billion contract to manufacture aircraft parts for Boeing.
• Multi-role transport aircraft project with Ilyushin of Russia worth US$600 million.
• Contract to manufacture 1,000 TPE331 aircraft engines for Honeywell worth US$200,000 each (estimates put total
value of deal at US$200 million).
• US$120 million deal to manufacture Dornier 228 for RUAG of Switzerland.
• Manufacture of aircraft parts for Airbus SAS worth US$150 million.
• US$100 million contract to export composite materials to Israel Aircraft Industries.
• US$65 million joint-research facility with Honeywell and planned production of Garrett TPE331 engines.
• US$50.7 million contract to supply Advanced Light Helicopter to Ecuadorian Air Force. HAL will also open a
maintenance base in the country.
• US$30 million contract to supply avionics for Malaysian Su-30MKM
• US$20 million contract to supply ambulance version of HAL Dhruv to Peru.
• Contract of 3 HAL Dhruv helicopters from Turkey worth US$20 million.
• US$10 million order from Namibia for HAL Chetak and Cheetah helicopters.
• Supply of HAL Dhruv helicopters to Mauritius' National Police in a deal worth US$7 million.
• Unmanned helicopter development project with Israel Aircraft Industries.

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Domestic agreements
• 200 HAL Light Combat Helicopters for the Indian Air Force and 500 HAL Dhruv helicopters worth US$5.83 billion.
• US$900 million aerospace hub in Andhra Pradesh.
• US$57 million upgrade of SEPECAT Jaguar fleet of the Indian Air Force.
• US$55 million helicopter simulator training facility in Bangalore in collaboration with Canada's CAE.
• 64 MiG-29s to be upgraded by HAL and Russia's MiG Corporation in a programme worth US$960 million.

HAL Tejas

• HF-24 Marut — Mk1 and Mk1T

• Tejas — Light Combat Aircraft
• Su-30MKI — a derivative of the Sukhoi Su-27, co-developed with Sukhoi Corporation
• FGFA — under joint development with Sukhoi Corporation

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Helicopters
HAL Dhruv of the Indian Army
• Dhruv — Advanced Light Helicopter
• Light Combat Helicopter
• Light Utility Helicopter
• Indian Multi-role Helicopter Rudra - Attack helicopter

Engine

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• GTRE GTX-35VS Kaveri- co-developed with GTRE (DRDO) (under development; developed into following
programmes)
• PTAE-7- For indegeniously designed Lakshya PTA
• GTSU-110 - for starting main engine GE404 or Kaveri of LCA Tejas
• HAL/Turbomeca Shakti - co-developed with Turbomeca for HAL Dhruv Helicopter to be used in light utility
helicopter

Trainer aircraft
HAL Dhruv of the Indian Army
• HT-2 - First Company design to enter production.
• HPT-32 Deepak - Basic trainer in service for more than three decades.
• HJT-16 Kiran — Mk1, Mk1A and Mk2 - Turbojet trainers scheduled to be replaced with IJT like HJT-36 Sitara
• HTT-34 - Turboprop version of HPT-32 Deepak
• HTT-35 - Proposed replacement for HPT-32 basic trainer in early 1990s; not pursued
• HJT-36 Sitara — Intermediate jet trainer (under development)
Transport and passenger aircraft
Saras, developed by HAL Lucknowand National Aerospace Laboratories
• Saras — under joint development with the National Aerospace Laboratories (NAL)
• HAL Multirole Transport Aircraft — under joint-development with Ilyushin Design Bureau.

15
Licensed production

HAL licensed-built Su-30 MKI

• Harlow PC-5 — first aircraft assembled by HAL
• Percival Prentice — 66 built by HAL
• Mikoyan-Gurevich MiG-21 — FL, M, Bis and Bison upgrades variants
• HAL Ajeet — improved version of the poland Gnat
• Mikoyan-Gurevich MiG-27 — M variant
• SEPECAT Jaguar— IS, IB and IM variants
• BAE Hawk — scheduled production run of 42 aircraft
• Sukhoi Su-30 — MKI variant
• Dornier Do 228 — 117 built + fuselage, wings and tail unit for production of the upgraded Do 228 NG variant
• Aerospatiale SA 315B Lama — HAL Cheetah, Lancer, Cheetal Variants
• Aerospatiale SA 316B Alouette III — HAL Chetak, Chetan Variants
• HAL HS 748 Avro — Modified for military usage, includes Series 2M variant with large freight door
• Rolls-Royce Turbo Adour Mk 811 — Engine for SEPECAT Jaguar
• Rolls-Royce Turbo Adour Mk 871 — Engine for BAE Hawk Mk 132
• Garrett TPE331-5 — Engine for Dornier Do 228
• Turbo TM 333 — Engine for HAL Dhruv.

16
Organizational Growth of HAL

1940- HAL was setup by Seth Walchand Hirachand in association with the government of mysuru as a private limited
company.
1941- First product HARLOW TRAINER AIRCRAFT and CURUNESS HAWK AIRCRAFT handed over the
government of India.
1942- Company was handed over to US Airforce. HAL repaired over 100 different varieties of aircraft and 3800
piston engines.
1945- Government of India took over the management of HAL again after the Second World War.
1949- First perceived aircraft assembled.
1951- The control of HAL was shifted to ministry of defence from ministry of industry.
1956- HAL comes under public sector.
1960- HAL India Limited was formed to manufacture MIG-21 aircraft. Three factories at Nasik, Koraput and
Hyderabad were established.
1964- HAIL was dissolved and its assets merged with aeronautics India Limited and company by the name of HAL
was formed.
1969- An agreement with USSR AWS reached for the license production of MIG-21 aircraft.
1970- Aircraft divisions were established to manufacture aircrafts.
1973- Lucknow division was formed for manufacture of more than 500 types of instruments and accessories.
1976- An agreement with USSR for license for MIG-21 and BIS-aircraft.
1979- An agreement with British aerospace for manufacture of JAGUAR aircraft.
1983- Karwa division And Mirage division for HAL formed.
1990- Design and Development of advanced light aircraft.
1998- IGMT a new division was established at Bengaluru.
2000- Establishment of airport service centre for co-ordinating the operations.
2002- Established of Sukhai engine division at Koraput.
2006- HAL ranked 45th among top defence firm in the world.
2006- 19th July HAL Co-operation in aero Structure.
2006- HAL launches newspapers from mink square on 1st September.
2006- 14th October, HAL launches aircraft ambulance, charter service named “vayu vahan”.
2006- 20th December, HAL receives EEPC award for the year 2004-05.
2007- 22nd June, HAL gets Navaratna status.
2007- 22nd June, Ashok Nayak was HAL’s new MD.
2007- 6th August, HAL ranked 34th among top 100 defence firm in the world.
2007- 16th August, DHRUV with SHAKTI ENGINE weapons make maiden flight.
17
PRODUCTS AND SERVICES OF HAL
[Link] 30 MKI: Twin seater ,multi-role, long range fighter/ Bomber.
2. MiG-27 M: Single seater tactical fighter/bomber with variable sweep wings
3. Metallic drop tanks
4. Under carriage: the division has facilities and expertise in the manufacturing and overhaul of undertakings of both
MiG-21 variants.

PROJECTS OF HAL
1. 50 AND 100 SEATER AIRCRAFT
The company has signed “HEADS OF AGREEMENT” in March 1998 with M/s Aero International(regional) France
for the co-production of 50-70 seater aircraft in India and also to export the feasibility of the programme and the
marketing of ATR family of aircraft in India.
2. SARAS
The company has concluded an MOU to participate in the prototype development of a 14seater multi role twin turbo-
prop SARAS aircraft programme of National Aerospace Laboratories (NAL). The company would design and develop
wings, Fuselage and Empennage parts, Landing gear, Hydraulic and Electrical systems for SARAS.
3. ADVANCED LIGHT HELICOPTER(ALH)
This is a Top most helicopter for Military and Civil roles designed and manufactured by HAL after research in
collaboration with Eurocopter. This is a 14 seater helicopter that is useful for Army, Navy, Air Force and Civil roles.
This versatile Helicopter of diverse applications is crafted carefully to meet International requirements and is among
the best in the world in 4.5 ton class.

4. MIG SERIES
MiG is manufactured under license from former USSR, MIG 27M is a single seater, Single Engine, Variable
Geometry Fighter Bomber equipped with advanced high accuracy integrated Nav Attack System and active/ passive
ECM systems. HAL manufactures MIG besides undertaking repairs and overhaul of these aircrafts.

5. CHETAK HELICOPTERS
The Chetak helicopter is a multi role, 7seater helicopters, spacious and simple in design. It is highly maneuverable and
well suited to fly over sea, Tropical and Desert conditions. This helicopter can be used for variety of civil and military
roles like communication, Rescuing operation, Aerial survey, Cargo and Passenger transport, Combat Armed with
missiles and Torpedoes, it also caters to the requirement of Anti-Submarine and Anti-Tank Warfare.

6. CHEETAH HELICOPTER
This light weight high performance helicopters are designed for operations over a wide range of weights centres of
gravity and altitude conditions. This 5 seater helicopter excels in observation, surveillance, logistics support, Earth
resource survey and rescue operation. Cheetah incorporates the latest technologies viz, Hydraulic servo controls, ultra
sensitive constant speed governor and an automatic starting system facilitating starting and take off in less than a
minute.

18
7. MILITARY JET TRAINER AND ADVANCED JET TRAINER
The company has initiated design and development of new trainer (NJT) which would replace aging Kiran Aircraft of
India Airforce due to pace out commencing 2003. The company has also submitted a proposal to the government for
the license production of advanced jet trainer apart from design, development and production of New Jet Trainer
(NJT).

8. DORNIER 228AIRCRAFT
This aircraft is manufactured under license from Dornier GmbH of Germany and this is a 19 seater new generation
aircraft. This aircraft has an excellent short takeoff of or landing capabilities besides serving as corporate transport,
Commuter Transport, Air Taxi, Pilot training, Search and rescue, Target towing, Observation, Communication,
Maritime Surveillance and acting as coast guard.

9. HPT- 32
The HPT-32, and ab-initio, Piston Engined basic trainer aircraft with side by side seats has been completely designed,
developed and manufactured by HAL to cater to the stringent requirement of both military and civil users. This has
been certified by both the civil and military airworthiness authorities of India. This aircraft is used for training,
instrument flying, navigation flying, night flying, formation flying, liaison, sports flying.

10. LIGHT COMBAT AIRCRAFT(LCA)

Government of India has formed aeronautical development agency (ADA) for the design and development of LCA.
The mock- up of this aircraft is by HAL. The major milestone achievement has been commencement of the Engine
ground run on technology demonstration- I (TD- 1) which was successfully carried out in April 1998. Integration
activities are under accelerated progress inclusive of the flight control system. Efforts are being made to accelerate and
ensure the flight of TD- 1 at the earliest. Ground vibration tests were also successfully completed on LCA TD2
aircraft.

11. GARRETT TPE 331- 5 ENGINE

This turbo prop Engine is being manufactured at Engine division of HAL under license from Garrett Engine division
of allied signal aerospace company, USA since 1988 and belongs to one of the most popular series of small turbo prop
Engines powering a large number of commuter and corporate aircrafts such as Dornier Do- 228.

12. ARTOUSTE III B ENGINE

This is being manufactured at Engine division of HAL since 1962 under license from Turbomeca France and is used
to power the Cheetah and Chetak helicopters.

13. ADOUR MK 811 ENGINES

This engine is also manufactured at Engine division of HAL since 1981 under collaboration with M/s Rolls Royce,
USA and is used for Jaguar aircrafts.

14. ADOUR MK 804 ENGINE

19
The Adour MK 804 Engine is being repaired and overhauled under license from Rolls Royce, U.K. This is similar in
construction to the MK 811 Engine.

15. GNOME 1400 IT

The GNOME 1400 IT Engines is being repaired and overhauled under license from Rolls Royce, and is the power
plant for sea-king helicopters.

16. ORPHEUS 70105

ORPHEUS 70105 indigeneously designed by HAL, is a derivative of ORPHEUS 701 at low rating and is a power
plant for Kiran MK II aircraft indigeneously designed by HAL.

17. DART 533-2 AND 536-2T

The Dart series of engines were manufactured since 1966, but at present are being repaired and overhaul under license
from Rolls Royce, U.K and are used for powering HS-748 aircraft.

18. LOW COST ATTACK HELICOPTER(LANCER)

The compant has successfully developed a low cost Attack helicopter demonstrating the inherent design strength and
successfully firing trials at Nasik and subsequently air to ground firing trials in Kashmir.
Aircraft Division ,Bangalore has carried out
[Link]

 Section 41 modification on boeing 747/200aircraft of air India a Mumbai

 SB228 Modification on A300 aircraft of Indian [previously Indian airlines]
 Cargo conversion modification on FOKKER F27 Aircraft
 ‘S’ Band modification on Boeing 737

Aircraft division has sucessfully complied DARIN II modifications on jaguar Aircraft.

After the production of initial Mk.132 HAWK Aircraft,Aircraft division has successfully carried out a number of
mods and CSIs as suggested by the OEM

B. Repairs

 Composite repairs
 Structure repairs
 Welding repairs
 Parts fabrications

C. Design and Manufacture of

20
  Jigs fixtures and templates
 Press tools
 Composite moulding tools
 Forming tools for transparencies
 Acceptance gauges/jigs
 Tooling masters except MTG’S
 Structural assembly jigs
 Ground support equipment for aircraft
 Weld jigs
 Pressure test fixtures
 Sheet metal tools

HAL DIVISIONS

[Link] DIVISION
MANUFACTURE OF HAWK AND PTA AIRCRAFT
[Link] TEJAS DIVISION
MANUFACTURE OF LCA
[Link] DIVISION
MANUFACTUREOFALH,CHEETAH AND CHETAK HELICOPTERS
[Link] DIVISION
MANUFACTURE OF DO-228 AND ROH OF DO-228,AVRO,AN 32 AIRCRAFT
[Link] DIVISION
ROH OF JAGUAR, MIRAGE, KIRAN MK, HAWK, UPGRADE OF JAGUAR
[Link] AND FORGE DIVISION
MANUFACTURE OF CASTINGS, FORGINGS,ALLOY COMPONENTS AND RUBBER ITEMS
[Link] SERVICE CENTRE
MAINTENANCE OF HAL AIRPORT AND AIR TRAFFIC CONTROL
[Link] DIVISION
MANUFACTURE OF ADOUR MK 871,GARRETT,PTAE-7,SHAKTI ENGINES

Human Resource Management is the process of recruitment, selection of employee, providing proper orientation and
induction, providing proper training and the developing skills, assessment of employee (performance of appraisal),
providing proper compensation and benefits, motivating, maintaining proper relations with labor and with trade
unions, maintaining employees safety, welfare and health by complying with labor laws of concern state or country.

Human: refer to the skilled workforce in the organization.

Resource: refer to limited availability or scarce.

21
Management: refer to maximize or proper utilization and make best use of limited and a scarce resource.

Human resource management is the process of proper and maximize utilization of available limited skilled workforce.
The core purpose of the human resource management is to make efficient use of existing human resource in the
organization. The Best example at present situation is, construction industry has been facing serious shortage of
skilled workforce. It is expected to triple in the next decade from the present 30 per cent, will negatively impact the
overall productivity of the sector .Every organizations desire is to have skilled and competent people to make their
organization more effective than their competitors. Humans are very important assets for the organization rather than
land and buildings, without employees (humans) no activity in the organization can be done. Machines are meant to
produce more goods with good quality but they should get operated by the human only.

FUNCTIONS OF HUMAN RESOURCE

• Job Analysis: Job analysis is the process of describing the nature of a job and specifying the human requirements,
such as skills, and experience needed to perform it. The end product of the job analysis process is the job description.
A job description spells out work duties and activities of employees. Job descriptions are a vital source of information
to employees, managers, and personnel people because job content has a great influence on personnel programmes
and practices.
• Staffing: Staffing emphasizes the recruitment and selection of the human resources for an organization. Human
resources planning and recruiting precede the actual selection of people for positions in an organization. Recruiting is
the personnel function that attracts qualified applicants to fill job vacancies. In the selection function, the most
qualified applicants are selected for hiring from among those attracted to the organization by the recruiting function.
On selection, human resource functionaries are involved in developing and administering methods that enable
managers to decide which applicants to select and which to reject for the given jobs.
• Orientation: Orientation is the first step toward helping a new employee to adjust himself to the new job and the
employer. It is a method to acquaint new employees with particular aspects of their new job, including pay and benefit
programmes, working hours, and company rules and expectations.
• Training and Development: The training and development function gives employees the skills and knowledge to
perform their jobs effectively. In addition to providing training for new or inexperienced employees, organizations
often provide training programmes for experienced employees whose jobs are undergoing change. Large organizations
often have development programmes which prepare employees for higher level responsibilities within the
organization. Training and development programmes provide useful means of assuring that employees are capable of
performing their jobs at acceptable levels.
• Performance Appraisal: Performance appraisal function monitors employee performance to ensure that it is at
acceptable levels. Human resource professionals are usually responsible for developing and administering
performance appraisal systems, although the actual appraisal of employee performance is the responsibility of
supervisors and managers. Besides providing a basis for pay, promotion, and disciplinary action, performance
appraisal information is essential for employee development since knowledge of results (feedback) is necessary to
motivate and guide performance improvements.

ORGANISATIONAL STRUCTURE OF HAL

WORK FLOW MODEL

STEP 1

22
Customer places an order to HAL head office for building or fabricating aircrafts engine, pistons and jet engine
trainers, commercial aircrafts, helicopter.
STEP 2
HAL allocates the funds on the basis of the nature of the nature of the order to the respective division.
STEP 3
As per the guidelines of the management each division is required to perform the mandatory budgeting exercise and
present to the head office, the details of the proposed expenditure to process the customer order.
STEP 4
If it is deemed acceptable to the customer, the customer enters into an agreement with HAL and a contract is signed
which specifies the time period of actual delivery of the product and funding structure.
STEP 5
The initial advances are allocated to respective divisions and project gets completed up to the amount that has been
funded by the customer and the process continues till the project is complete. Here the project gets completed part-by-
part basis and finally the finished product is assembled before being sold to customer.
FINANCE
Finance refers to fund or capital or money which acts as an instrument for doing something. It is a field that deals with
the study of investments. It includes the dynamics of assets and liabilities over time under conditions of different
degrees of uncertainty and risk. Finance can also be defined as the science of money management. Finance aims to
price assets based on their risk level and their expected rate of return. Finance can be broken into three different sub-
categories: public finance, corporate finance and personal finance.
Personal finance may also involve paying for a loan or debt obligations. The six key areas of personal financial
planning, as suggested by the financial planning standards board, are:
1. Financial planning
2. Adequate protection
3. Tax planning
4. Investment and accumulation goals
5. Retirement planning
6. Estate planning

Corporate finance deals with the sources of funding and the capital structure of corporations, the actions that managers
take to increase the value of the firm to the shareholders, and the tools and analysis used to allocate financial
resources. The main concepts in the study of corporate finance are applicable to the financial problems of all kinds of
firms. Corporate finance generally involves balancing risk and profitability, while attempting to maximize an entity’s
assets, net incoming cash flow and the value of its stock, and generically entails three primary areas of capital resource
allocation:
1. Capital budgeting
2. Sources of capital
3. Dividend policy
What, how Corporate finance also includes within its scope business valuation, stock investing, or investment
management. An investment is an acquisition of an asset in the hope that will maintain or increase its value over time
23
that will in hope give back a higher rate of return when it comes to disbursing dividends. In investment management –
in choosing a portfolio – one has to use financial analysis to determine much and when to invest.
Public finance describes finance as related to sovereign states and sub – national entities (states/provinces, counties
and municipalities) and related public entities (e.g. school districts) or agencies. It usually encompasses a long-term,
strategic perspective regarding investment decisions that affect public entities. These long-term, strategic periods
usually encompasses five or more years. Central banks, such as the Federal Reserve System banks in the United States
and Bank of England in the United Kingdom, are strong players in public finance, acting as lenders of last resort as
well as strong influences on monetary and credit conditions in the economy.
Financial management refers to the efficient and effective management of money (funds) in such a manner as to
accomplish the objectives of the organization. It is the specialized function directly associated with the top
management. The significance of this function is not seen in the ‘line’ but also in the capacity of ‘staff’ in overall of a
company. It has been defined differently by different experts in the field. The term typically applies to an organization
or company’s financial strategy. It includes how to raise the capital and how to allocate capital, i.e. capital budgeting.
Not only for long term budgeting, but also how to allocate the short term resources like current liabilities. It also deals
with the dividend policies of the shareholders. Businesses make forecast on funds needed in both short run and long
run, hence, they can improve the efficiency of funding. The estimation is based on the budget e.g. sales budget,
production budget.
Capital structure is how a firm finances its overall operations and growth by using different sources of funds. Once the
requirement of funds has estimated, the financial manager should decide the mix of debt and equity and also types of
debt. A good investment plan can bring businesses huge returns.

ORGANISATIONAL CHART WITH REFERENCE TO ACCOUNTS AND FINANACE DEPARTMENT

DIRECTOR (FINANCE)
AGM CORPORATE OFFICE
AGM DESIGN COMPLEX
DGM(F)

BILLS PAYABLE SECTION COSTING SECTIONBILLS

RECEIVABLE SECTION

 BILLS PAYABLE CIVIL

 BILLS PAYABLE FOREIGN
 BILLS PAYABLE
 PAYROLL SECTION
 FINANCE
 BOOK KEEPING SECTION

BILLS PAYABLE SECTION

Bills payable section deals with the payment and accounting towards the services or supplies rendered by inland
vendors or contractors, foreign vendors or contractors and civil contractors to the company.
The functions of Bills payable section is segregated into three different categories:
[Link] PAYABLE-INLAND
24
[Link] PAYABLE-CIVIL WORKS
[Link] PAYABLE-FOREIGN
BILLS PAYABLE-INLAND
This section deals with the following aspect of supplies and services rendered by inland vendors to the contractors:

 Payment and accounting of advances to suppliers Payment and accounting of advances to other vendors or
service bills
 Payment and accounting of final bills
 Bank dealing with relation to suppliers Adjustment or recovery of advances
 Accounting or adjustment of earnest money and security deposit from the supplier Maintenance of
commitment registers for budgetary purpose
 Bank guarantee or performance guarantee register.

2BILLS PAYABLE-CIVIL WORKS

This section deals mainly with the following aspect of services rendered by contractors to the company:

 Payment and accounting of advances to contractors

 Payment and accounting of running bills to the contractors such as sanitation, horticulture and work package
 Adjustment or recovery of advances
 Accounting or adjustment of earnest money deposits
 Capitalization of Buildings
 Refund of earned money deposit and security deposit to contractors

BILLS PAYABLE – FOREIGN

This section deals with supplies and services rendered by foreign “vendors or collaborators” to the company.

 Payment and accounting of advances to suppliers

 Payment and accounting of services obtained from collaborators and others
 Payment and accounting of contractual fees(license fees, TA, royalty)
 Payment and accounting of customs duty, freight bills, agency commission
 Payment and accounting of final bills
A. Adjustment or recovery of advances
B. Accounting and pricing of receipt vouchers
C. Opening of letter of credit and dealings with banks for obtaining Foreign Exchange Release and payments
thereon
D. Maintenance of commitment registers for budgetary purposes
E. Maintenance of deferred liabilities account

PAY ROLL SECTION

In pay roll section there are three sub offices:
a) Time office
b) Pay roll
c) Cash office

25
 A) TIME OFFICE
• Record of attendance of employees and officers
• Maintenance of leave records
• Payment of salaries and wages

B) PAY ROLL
• Disbursement of salaries and wages
• Payment and recovery of advances
• Recovery of dues from employees
• Payment of travel and L.T.C advances and adjustment thereof
• Reimbursement of expenses like medical conveyance, schools fees etc.
• Accounting of all pay roll transactions
• Miscellaneous
• Severance register and accounting

C) CASH OFFICE
This section is responsible for all receipts and payments of cash or cheques and accounting of the same in the books.
The main functions of this section are:
• Receipt of cash, postal orders, cheques, bank drafts etc and issue of official receipt for the same
• Withdrawal of cash from bank to cater for daily needs
• Payment of vouchers by cheque or cash
• Writing of cash or bank book
• Preparation of bank reconciliation statement
• Safe custody of cash, cheque books, bank guarantees, fixed deposit receipts and other investment
• Disbursement of salaries and wages

BILLS RECEIVABLE SECTION

It is mainly responsible for preparation and submission of invoices to customers for the supplies made and services
rendered and follow up for recovery of the amount and accounting of the same. The main functions of this section are:

• Scrutiny of sales orders including export sales

• Preparation of invoices for work done or to be done and services rendered
• Review of closed work orders for which invoices have not been prepared
• Recording of invoice rendered

26
• Accounting for sale of equipment and services rendered
• Compilation of sales tax returns and payment of sales tax
• Customs and excise duty

FINANCE SECTION
The main functions of finance section are:
1. Scrutiny and financial concurrence as per delegation of powers seeking proposals for:

 Capital expenditure
 Revenue expenditure
 Purchase of materials or stores or tools and other services
 Manpower requirements
 Incentives
 Waiver of dues to the company, write off losses
 Cases involving relaxation of rules
 Sales, lease or alienation of company’s assets
 Contracts entered into with suppliers or collaborators or sub – contractors
 Estimates and award of contracts in respect of civil / electrical works, plant orders
2. Fixation of rent and rates of recovery in respect of services / supplies / disposals by the company
3. Certification of availability of funds with reference to capital and performance budgetary and appropriation of
funds for procurement of capital equipments (CARs) for undertaking capital works ( Administrative approvals and
procurement of revenue items (MRPs)

BOOK – KEEPING SECTION

The main functions of book – keeping section are:
• Maintenance of journal and general ledger
• Preparation of trial balance, profit and loss account and balance sheet
• Maintenance of capital assets ledgers and location registers
• Preparation of fixed assets and depreciation schedules
• Furnishing data for determining of income tax liability
• Disposal of surplus / condemned plant and machinery and other assets
• Reconciliation of control accounts of other divisions / corporate office
• Liaison with audit authorities

COSTING SECTION
It maintains the cost books of the divisions and also handles MIS reports. The main functions of costing section are:

• Maintaining of cost records and cost ledger

27
• Computation of man hour rate and preparation of operation statements
• Time recording and labour accounting
• Material cost accounting
• Budgeting

Aviation Industry Supplies Services to:

[Link] Defence Services
[Link] Guards
[Link] Security Forces

Leading Players in Aeronautical Industry

[Link] Charter Services Private Ltd
[Link] Charters India
[Link] India
[Link] Aviation Ltd
[Link] Airways
[Link] Airlines

Our Services
As part of customer services, Technical and Logistics supports including training are provided technical support is
rendered to the customer in the following areas.
a) Maintenance and repair of aircraft
b) Compliance of modification and technical instructions
c) Accident and incident investigation
d) Training of customer personnel

On the logistic side, the support is rendered in the following areas:

1. Supply of spares and ground handling and ground services equipment.
2. Supply of items against priority demand like AGO, USR/URR demands.
3. Repairs of machines.
4. Landing Gaels/retardation, jack repairs and overhaul.
5. Forecasting spares requirement.
Customers operating personnel are provided training servicing and maintenance of aircraft manufactured by the
division through in plant training courses workshop and operators conferences.

28
Future Prospectus of the Aeronautics Industry
The Indian aviation industry has shown continued growth in recent years with key drivers being positive economic
factors (including high GDP growth), Industrial performance, corporate profitability/expansion, higher disposable
incomes and growth in consumer.

HAL has made substantial progress in its projects like:

• Advanced Light Helicopter- weapon system integration (ALH-WSI)
• Tejas - Light Combat Aircraft (LCA)
• Intermediate Jet Trainer (IJT)
• Various Military and Civil upgrades
DOMESTIC CUSTOMERS
 Air force
 Air Sahara
 Airport Authority of India
 Border Security Force
 Coal India
 Government of Andhra Pradesh
 Government of Jammu & Kashmir
 Government of Karnataka
 Government of Rajasthan
 Government of Uttar Pradesh
 Government of West Bengal
 Indian Airforce Force
 Indian Airlines
 Indian Army
 Indian Coastal guard
 Indian Navy
 Indian Space Research Organisation
 Jet Airways, Nalco

INTERNATIONAL CUSTOMERS
 Airbus Industry, France
 Chelton, UK
 Coast Guard Mauritius
 Cosmic Air,Nepal
 Dassault Aviation, France
 Dowty Aerospace Hydraulics, UK
 EADS, France
 ELTS, Israel
 Gorkha Airlines Nepal
 Royal Airforce Oman
 Royal Airforce Malaysia
 Royal Airforce Nepal
 Royal Airforce Thailand

29
SWOT ANALYSIS

STRENGTHS

1. Enjoys monopoly
2. Highly skilled labours
3. More than 50 years, it has achieved experience in technology
4. It is the only supplier for maintenances of aircraft
5. It has big research and development unit and also fonder y and forge unit
6. HAL is India’s only aeronautical manufacturer, must also lead in creating a suitable developmental framework
for building the military aircraft of the future.

WEAKNESS

1. All major decisions are taken by the government

2. Since it is a public sector retrenchment is not very easy
3. Higher inventory cost
4. Delay in decision due to procedures and authority
5. Lack efficiency, major working people are above age of 45 years

OPPORTUNITIES

1. HAL can compete in global market

2. Increase in demand for small and medium range equipments
3. Develop tenders for detail parts and assemblies
4. Increase outsourcing efforts for detail parts and assemblies

30
CHALLENGES

1. Overhaul of aircraft and light maintenance is open for private

2. Change of technology
3. Facing competitions with international market because of license
4. Changing foreign policies also effect the industry
5. Resignation of trained employee.

FINDINGS

 We can observe that most of the employees are satisfied with the pay scale when it is compared in the
industry.
 It shows that the majority of the employees are not satisfied with the pay scale / salary structure provided by
the company.
 It can be found that the majority of the employees are of the opinion that the compensation should be fixed
based on employees performance and experience.
 The collected information shows that majority of the employees are not satisfied with the performance award /
increments given by the company.
 Majority of the employees feel that the organization based on performance and not on experience.
 It shows that the employees are partially satisfied about the benefits / allowances given by the company.
 It is observed that there is a poor recreational benefit given to the employees in the organizational.
 It shows that the employees are partially satisfied with the medical reimbursement, travel allowance, and
housing facilities provided by the company.

SUGESSTIONS
The company needs to undertake the industry norms time to time regarding the pay scale paid for the service.
 Organization need to revise the pay structure based on the job profile as the employees feel it is not judged
properly.
 Performance awards / increments are a source of economical motivation for an employee the organization
needs to enhance the increments paid for performance.
 Performance of an employee increases confidence and organization production but neglecting experience
might lower the loyalty of the employee, hence performance and experience should be equally given
importance.
 Benefits and allowances compensation the basic salary of an employee with the cost of living.
 Recreational allowance is a stress management tool used to break the monotony of work, hence the
organization needs to think on including the benefits to employees.
 Basic benefits such as Medical reimbursement, Travel allowance and housing facilities have to be revised
time to maintain employee job satisfaction.
 The organization follows good provision in canteen, Leave and Over Time allowances which is a good sign
and need to maintain the same.
 Recognition and appreciation motivates the employees psychologically, hence organization needs to give due
recognition through non monitory benefits.

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CONCLUSION
As mention earlier the present generation employees are seeing there carrier as there first potion and compensation as
the second option while deciding to work in a company or not.
 The “Hindustan Aeronautics Ltd” should conduct some Research in the employees at least six months once so
that the employees can come out with their problems and grievances, according to that the company can take
decision.
 Most of the employees is Hindustan Aeronautic Ltd suggest that it’s better to follow performance based salary
package and also when deciding the benefits and Increments.
 In the present world that to in a Aeronautic Industry the people will play a vital role, the person who is well
experienced and qualified in the field can do a better job than anybody else, but in the present world the
availability of experienced people is very less, so each and every company is competing to attract them for
there betterment of the organization, so in this case compensation and Rewards will play a vital role, so the
Hindustan Aeronautics Ltd or any other companies pay scale should be accordingly to the industry pace then
only attraction can be curbed out and talent can be captured.

BOOK NAME AUTHOR PUBLICATIONS

Financial Management [Link] Himalaya Publication
Financial Management Shashi.K. Gupta Himalaya Publication
Management Accountancy SA. Siddiqul Himalaya Publication

WEBSITES
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