CHAPTER-1

INTRODUCTION
To guarantee development and advancement of suprajit car, the productivity of individuals
must be increased in the correct point of view. Without HR, the other assets can't be
operationally powerful. The first strength of the association is shown by the human conduct
factors, similar to bunch unwaveringness, expertise, inspiration and limit with respect to
powerful association, correspondence and dynamic. Men, materials, machines, cash and
techniques are the assets required for an association. These assets are comprehensively
characterized into two classifications, viz., invigorate and lifeless (human furthermore,
physical) assets. Men, also called the HR, are considered to be vitalize assets. Others, to be
specific, materials, machines, cash and strategies are viewed as in quicken or physical assets.
The achievement or in any case of an association relies upon how best the scant physical
assets are used by the human asset. The physical assets should be actuated by the HR as the
physical assets can't follow up on their own. Subsequently, the proficient and compelling use
of lifeless assets relies to a great extent upon the quality, gauge, abilities, observation and
character of the individuals, that is, the HR working in it. The term Human asset at large scale
level shows the entirety of the considerable number of parts, for example, aptitudes, inventive
capacities, creative reasoning, instinct, creative mind, information and experience controlled
by all the individuals. An association had with bountiful physical assets may here and there
pitiably bomb except if it has corrected individuals, human assets, to deal with its issues.
Accordingly, the significance of HR can't be overlooked. Lamentably, till now commonly
acknowledged arrangement of bookkeeping this significant resource, viz., the HR has not
advanced. For an extensive stretch, the significance of human asset was not paid attention to
by the top administration of associations. In this way, at this crossroads, it gets basic to give
due consideration on the best possible advancement of such a significant asset of an
association.
INDUSTRY PROFILE
HISTORY

Suprajit bunch incorporates Suprajit Engineering Co., Suprajit Automobile Co., Ltd. What's
more, Suprajit Europe Limited. The Group is a worldwide innovator in car link industry. The
most serious assembling in India and its specialized and calculated help worldwide to give
the best item advancement and assembling answers for the gathering, its household and
global customers. With over 30% CAGR Group has the world's biggest assembling limit, one
of the links 150 million every year.
Suprajit Engineering Limited is an open constrained organization in India and offer to settle
the Companies Act 1956, the organization was incorporated was begun by original business
people, Mr.Ajit Kumar Raijin 1985. This year the organization occupied with the assembling
and deals of car links and segments. The organization takes into account both local and global
markets.
Suprajit is a client driven undertaking to take testing item improvement and assembling of a
wide scope of worldwide standard control and instrumentation links.
Suprajit has almost certainly that the vehicle's interface with 15 plants is carefully assembled.
With a yearly limitation of 150 million associations, Suprajit is extraordinary contrasted with
the other 5 vehicle associations dependent on the planet. Suprajit is in like manner the world's
biggest bike associate producer and the biggest exporter of vehicles. Affiliation plants are
purposely found in Tn 6 states in India. The UK has an improvement system to help the US
and Europe on specialized exchange issues. Suprijeet did a blended appraisal - the most
recent year's game plan was in overabundance of $ 100 million ((600 core interest)). Supreet
has her advancement set up in Atlanta and Detroit and has a solid workforce in Europe. It has
limit limits in the UK, Hungary, US and has a securing office in China.
Suprajit Representative Quality is around 2000 and has made its units through Oracle ERP.
All units are TS 16949 ensured. Suprajit has performed firmly on a CAGR premise in
abundance of 30% + since initiation in two systems and advantages.
The association has been started through moving gratefulness and regard. He was associated
with "Auto Unskilled of the Year 2006" and "SME of the Year 2006" by
CNBC/ICICI/CRISIL, "Best IT Client-2017" in the Car Division by NASSCOM and "States
Extraordinary Entertainer" by KSFC. 2010. It got different client grants, including General
Motors' long-standing "Provider Excellence Award".
The Suprajit Foundation, a philanthropic trust, progressed by the Suprajit Group, is heading
the group's corporate social responsibility. The Foundation's activities are as follows,
guidance, prosperity and rural unpredictable development all around.
The company aims to build around. Composite unions made up 30% of the arrangements in
the latest year, compared to 2% of the arrangements 3 years earlier.

COMPANY GROWTH
Suprajit has two Detroit-based performing partners - Donald J. Ulrich Associates for
Automotive Advancing and Global Synergy for Non-Vehicle Promotion. Suprajit's sugar is
also a purchasing place. The association is successfully looking after the possible
consequences of mobilizing workplaces in China for the cost reality in the overall market, for
which it has moved to Mau with a Chinese cable manufacturer.
Suprajit is currently conducting overseas acquisitions as per region-based technology to
strengthen its superiority in the global market.
Suprajit has a specialist quality of around 1500, operating at 8 units in India and 1 unit in the
UK. All units are added via Oracle ERP execution. Each and every Indian unit is TS 16949
ensured and has top tier workplaces.

GROUP
The quality of Suprajit Agent is around 2000 and Oracle has joined its units through ERP. All
units are TS 16949 guaranteed. Suprajit has performed dependencies on a CAGR basis of
more than 30% + from the source of both the arrangement and profit. The company's
proposals are listed on the Mumbai Stock Exchange (BSE) and the National Stock Exchange
(NSE).
The introduction of the company has been seen through various accolades and accolades.
They fuse "Auto Ancillary of the Year 2006" and "SME of the Year 2006" by CNBC / ICICI
/ CRISIL, "Best IT Customer in the Vehicle Sector - 2007" by NASSCOM and "State's
Amazing Entrepreneur" by KSFC. 2010. It garnered Distinguished Customer Awards from
General Motors for a long time in progress, including the "Supplier Excellence Award".
Suprajit Pack Suprajit Engineering Co., Ltd., in addition, consolidates Suprit Europe Limited.
The group is an overall trend-setter in the vehicle interface industry. The most genuine
collection in India and its exclusive and determined support around the world, the best thing
is to offer social opportunities, improvements and great responses to your family and
customers around the world.With more than 30% annual turn of events, Social Opportunity
has the world's largest gathering limit, one of 150 consecutive connections.

GROUP OF ASSOCIATION
The Suprajit group consists of three associations:
Betel Europe Limited
Supara Automotive Limited
Suprajit engineering ltd

SUPRAJIT GROUP FACILITIES

Suprajit uses its different data and experience, making the best of the entire workspaces and
imaginative work spaces used in its construction workplace.
In private constrained obligation organization built up in 1985, Suprajit Engineering Co., Ltd.
begun delivering excellent inside links in 1987 severe Japanese measures for the car
At present, to meet the wide scope of necessities car and non-car links, Suprajit venture has
accomplished huge development and united itself as India's biggest car link creation
organizations can every year in excess of 150 million link with a turnover of $ 10 billion.
Suprajit now recorded in the Indian securities exchange, and among the main five link
producer on the planet.
 SUPRAJIT AUTOMOTIVE
Close to Bangalore Suprajit Automobile Co., Ltd. (SAL) in India, 100% fare arranged
Suprajit building auxiliary. SAL is had practical experience in link Rolls-Royce client's
overall large-scale manufacturing. In a monstrous 100,000 square feet of assembling space
setting, this plant all-inclusive serious assembling highly esteems close participation and
Suprajit Europe, offer types of assistance for clients.
CAPACITIES
 Car Cables
Suprajit car link maker in India for a large portion of the main producer, with plants
deliberately situated in the South, West and North India. Plants near clients, making it
Suprajit, to meet requesting creation plans and the capacity to meet the particular
improvement needs of clients.
Suprajit further creation line through its 100% fare situated auxiliary, Suprajit Automobile
Co., Ltd. sends out. Suprajit has various worldwide auto goliath's clients.

AUTOMOTIVE PRODUCTS
Assembling
Suprajit Group is focused on giving the link by household and abroad clients to become
world-class associations in both car and non-car enterprises. It is situated around India and
the UK propelled fabricating offices state. Suprajit additionally utilizes the most exceptional
assembling innovation and exacting quality framework, the improvement of world-class
items in the entirety of its manufacturing plants. Like moving, winding, covering, expulsion,
forming key procedures, pass on throwing and link gatherings in-house - makes it one of the
world's biggest completely coordinated link maker.
Suprajit by two 100% fare arranged processing plants, a link vehicle and other non-car link
works in assembling for send out. The two plants are situated in Bangalore, India. Suprajit
likewise exceeds expectations from its base camp in the United Kingdom Tamworth
manufacturing plant represent considerable authority in the creation of little size and
amazingly complex link.

SUPRAJIT GROUP fACILITIES

Suprajit utilize their different information and experience, the best out of the entirety of its
assembling offices and innovative work habitats in the creation procedure used.
OFFICES
Suprajit link producing plants deliberately situated all through India. Plant in Bangalore to
take into account the necessities of clients in the south, while Suprajit Manesar lodging,
Chakanand Vapiplant adequately meets the prerequisites of India's northern, western and
eastern districts. The Suprajit bunch in Bangalore, two100% fare situated plants. These plants
are to meets the car and non-car organization's fare needs.
Best in class of convey sequential construction systems and cell producing framework in all
Suprajit Group's 12 plants are utilized. This guarantees the quality; cost and process duration
has been adequately controlled so as to augment consumer loyalty, so Suprajit producers have
gotten comprehensively serious.

COMPANY PROFILE

 Incorporated as a Private Limited Company in 1986.

 Suprajit Engineering Limited started manufacturing, supplier & exporter high quality
liner cables to exacting Japanese standards for the automotive industry in 1987.

 Currently catering to a wide spectrum of automotive and non-automotive cable

requirements, Suprajit Engineering has achieved phenomenal growth and has
cemented itself as India's largest manufacturer of automotive cables with a capacity of
over 150 million cables a year with a turnover of 100 million USD.

 Suprajit is now listed in the Indian bourses and is amongst the top five cable
manufacturers in the world. The firm not only manufactures but has a good niche in
exporting and supplying of Automotive Cables, Non-Automotive Cables, Mechanical
Gauges, Two Wheeler Cables, Automotive OEM Products and Cable Parts.

 The firm has observed unprecedented success in last few years and has marked global
presence in the market.

 All this has happened under the perfect guidance of Mr.Ajit Rai who is our Chairman
& Managing Director.

 His understanding of global market condition is unmatched and the organization has
reaped huge benefit from the same.

 GDP current rate in india is 7% and in karanataka 17%.

 Our excellent infrastructural facility in Bengaluru, Karnataka caters to our entire

business needs in efficient manner. We have provisioned sufficient place for all the
departments to facilitate their functioning, these departments have all the amenities
which provide enormous support.
  Our manufacturing plant is huge and has capacity to carry out bulk production with
complete comfort.

 We believe in carrying out our business tasks in a very organized manner and thus
have a very organized warehousing system wherein all our manufactured products are
kept in a systematic manner till the time they get dispatched to clients.

 We being a client centric organization lay huge stress on quality of our products as the
same has huge implications in the area of their application.

 We ensure to test the entire range on various quality parameters during the process of
manufacturing and also when they take a final shape.

 We are very particular about quality and will never compromise on it at any cost.
Clients are facilitated with various easy payment options so that do not face any
inconvenience while making the payments, they can pay us through DD, cheque,
cash, online and RTGS.

 We make sure the products reach the doorstep on time through our efficient
distribution network.

1.Nature of Business -Manufacturer

2.Year of Establishment-1987

3.Legal Status of Firm -Limited Company (Ltd./Pvt.Ltd.)

4.Annual Turnover-Rs. 1000 - 5000 Crore

5.GST Number-29AADCS1638L1Z0

6.Type-Unlisted company

7.Category-Limited shares

8.Sub category-Non-govt company

9.Addresss-No.100&101,
Bommasandra industrial area
Bangalore
Bangalor 560099
Karanataka - India
 Vision and Mission
Vision
To design, bulid & sell the world’s best vechicles.
Mission
To be passionate and anticipate and providing the best vehicles and experiences that excite
our customers globally.
Quality Policy
Suprajit is committed to being a World Class Organization and supplies cables and
components to overseas and domestic customers in the automotive and non-automotive
sectors. It strives to comply with the highest possible quality standards and practices a
philosophy of continuous improvement. It adopts processes that ensure fool proof & defect
free manufacturing. Suprajit also seamlessly and efficiently satisfies its customer needs by
optimizing production cycles. Continuous improvement through Kaizan, lean manufacturing
practices, quality circles, employee training, suggestion schemes and environment
management systems are the hallmarks of suprajit's success in customer retention and growth.
Its TPM initiatives further ensure customer satisfaction and superior product quality.

Our Certifications

 ISO/TS 16949 - All Units

 ISO 14000/18000 - Select Units

Board of Directors:

NAME DESIGNATION

1. B S Patil Director

2. Bharati Rao Independent Woman Director

3. Ian Williamson Director

4. J Medappa Gowda CEO & Company Secretary

5. K Ajith Kumar Rai CEO & Chairman

6. M Laxminarayan Independent Director

7. N S Mohan Managing Director & Group CEO

8. Supriya A Rai Director

Our Milestones

 Capacity of more than 150 million cables annually.

 India's largest cable Manufacturer in two, three & four wheeler segments.
 Continued product development and diversification.
 30% compounded annualized growth rate.

2011 - Gills Cables Limited renamed as Suprajit Europe Ltd.

2011 - Commercial Production at Bangalore - Unit 12
2011 - Formation of Suprajit Foundation, a Trust for CSR activities
2010 - Commercial Production at Haridwar - Unit 10
2010 - Awarded by KSFC as “Best Enterprise of the State”
2009 - Commercial Production at 100% EOU in Bangalore - Unit -9
2007 - Best IT User Award -2006 in Automotive Sector by NASSCOM
2007 - Commercial production at the second plant in Manesar - Unit -4
2007 - Commercial production at Pantnagar plant - Unit -7
2006 - Twin Awards by CNBC / ICICI Bank / CRISIL : SME & Auto Ancillary of the
Year
2006 - Acquisition of CTP Gills Cables, U.K. through subsidiary, Gills Cables Ltd, U.K.
2006 - Acquisition of J.V. stake of Carclo PLC, U.K. by Suprajit Automotive Pvt. Ltd
2006 - Successfully implemented Oracle ERP across all units
2005 - Listing of Shares at The National Stock Exchange of India Ltd, Mumbai (NSE)
2004 - ISO 14000 & 18000 Certification for Manesar Unit
2004 - Launch of CTP Suprajit Automotive Private Limited
2003 - Listing of Shares at The Stock Exchange, Mumbai (BSE)
2003 - State of the Art cable plant at Chakan, Pune-Unit -5
2003 - Implementation of TS-16949 at all units
2002 - India’s largest cable Manufacturer
2002 - Acquisition of Shah Concabs Pvt Ltd, a Cable Manufacturer at Vapi - Unit -6
2002 - State of the Art cable plant - Unit -4, Manesar
1998 - Commercial Production at Unit -3
1997 - “Enterprise of the State” award by KSFC
1996 - Public issue of Equity Shares at premium
1994 - Commercial Production at Unit -2
1987 - Commercial Production at Unit -1
1985 - Incorporated as a Private Limited Company.

Product
 Suprajit motion control solution
 Suprajit bike halogen bulb
 Suprajit Auxiliary lamps
 Suprajit speedometers
 Suprajit car halogen bulb
Services
Suprajit has the ability to deliver proto samples to customers for fit and function trials. With
protoshops setup in multiple locations, Suprajit has a cutting edge advantage to meet any
customers expectations or short notice requirements at lightning speed.

Competitors

1.BMW
2.Maruthi Suzuki
3.TATA
4.Jagur
5.IFB

Infrastructure & Facilities

Suprajit’s success has largely been due to its ability to do cutting edge research and
development for its customers and products. With multiple development centers across India
and Europe, Suprajit can focus on rapid development of cables for a large variety of projects
and customer requirements.

Suprajit excels in a high quality and quick development cycle through highly skilled staff
with experience in the latest range of design software. Rapid prototyping results in quick
turnaround times for sample development, giving Suprajit a cutting edge in the industry.

Suprajit uses a variety of the latest software for its development including ProE, Autocad,
Catia and Unigraphics.

Suprajit has multiple development centres across India and one in Tamworth, UK. The major
centers process Suprajit Group’s most significant cable and instrument development projects
for leading OEMs worldwide.

In addition, each manufacturing plant has a development cell that caters to the day to day
requirements of its customers. This ensures high quality and efficient development for all
customers.

Manufacturing Unit
Suprajit Group is committed to being a World Class Organization by supplying cables to
overseas and domestic customers in both the automotive and non-automotive sectors. It has
state of the art manufacturing facilities located around India and in the UK. Suprajit also
adopts cutting edge manufacturing processes and stringent quality systems to develop world
class products at all its plants. Critical processes like rolling, coiling, coating, extrusion,
moulding, die casting and cable assembly are done in house - making it one of the largest
fully integrated cable manufacturers in the world.

Suprajit specializes in export manufacturing through its two 100% export oriented plants, one
for automotive cables and the other for non-automotive cables. Both plants are located in
Bangalore, India.
Suprajit also excels in producing specialized small volume and extremely intricate cables
from its Tamworth facility based in the United Kingdom.

Manufacturing Facilities
Suprajit's cable manufacturing plants are strategically located across India. Plants in
Bangalore cater to requirements of customers in the South while Suprajit's Manesar, Chakan
and Vapi plants effectively meet the requirements of Northern, Western and Eastern regions
of India.

The Suprajit Group has two 100% export oriented plants in Bangalore. These plants cater
separately to the automotive and the non-automotive export needs of the company.
State-of-the-art convey or assembly lines and cellular manufacturing systems are used across
all of Suprajit Group's 12 plants. This ensures that quality, costs and cycle times are
effectively controlled to maximize customer satisfaction and enable Suprajit to be a globally
competitive manufacturer.

Manufacturing Process
Suprajit uses fully integrated manufacturing facilities. Finally finished cables are
manufactured from the basic raw material, completely in house. The company utilizes its
extensive industry knowledge to tightly control all processes involved in cable manufacturing
including rolling, coiling, coating, extrusion, moulding, die casting and final cable assembly.
Suprajit adopts the latest quality systems and has in depth process knowledge to manufacture
cables to any exacting customer specifications.

Process List:

1. Injection Molding: Suprajit In-house Injection Moulding for cables and speed
meters.
2. Sleeves Extrusion: Cable sleeve extrusion at Suprajit.
3. Cable Coating: Suprajit boasts cable coating facilities of the highest quality and
finish.
4. Rod Rolling: Suprajit Rod Rolling for cables
5. Double Winding: Suprajit double winding for cables
6. Hot Stamping: Hot stamping for cables at Suprajit
7. Autowinding: Autowinders for Efficient and reliable autowinding throughout all
plants
8. Die Casting: Suprajit die casting for cables
9. Dial Assembly: Dial assembly for speedometers, various gauges and other
instruments Conveyorized Assembly Lines
10. Suprajit utilizes the high efficiency of modern conveyor lines to produce cables.
11. Inner Cable Armoring: Cable Inner Armoring is another niche process Suprajit excels.
12. Planetary Stranding Machine: Suprajit specializes in using planetary stranding
machines and similar processes.
SWOT ANALYSIS
The analytical technique of SWOT analysis helps companies to determine and define several
critical characteristics: Strengths, Weaknesses, Opportunities, and Threats – SWOT
analysis.
Moreover, by comparing one’s performance with that of the competitors using the SWOT
analysis framework, companies can begin crafting a strategy that helps distinguish
themselves from the competitors and compete successfully in the market.

Strength
Evolving industry: The automobile industry is a highly growing industry, continuously
contributing to growth and development. Automobiles give people the opportunity to live,
work and travel in ways that were unimaginable a few decades ago. The ease and quality of
life improvements the automotive industry brings will only increase the demand for vehicles
in the future.
Constant product innovation & technological advancement: With the advent of E-
vehicles & alternative fuel such as Shell gas, CNG, and others, automobile companies are
increasing R&D expenditure to drive the next phase of growth through the use of renewable
sources of energy which may be solar, wind, etc.
Manufacturing facilities in Asian nations to control cost: To monitor cost and to manage
shrinking margins, automobile companies like Harley, Volvo, Bharat Benz, etc. are building
their manufacturing facilities in developing nations like India and China. These nations have
a cheap workforce, are high in resources, and are nearer to developed economies. These are
ideal conditions for an emerging market.

Weakness
Bargaining power of consumers: Over the last 3-4 decades the automobile market has
shifted from a demand to a supply market. Availability of a considerable number of variants,
stiff competition between them, and a long list of alternatives to choose from has given power
to customers to decide whatever they like.
Government regulations: Regulations like excise duty, no entry of outside vehicles in the
state, decreasing number of the validity of registration period, and volatility in the fuel prices
pose considerable challenges to automobile companies. These factors also affect the growth
of the industry.
High employee turnover: The employee turnover in the automobile industry is found to be
higher when compared to several other sectors. Furthermore, attracting and retaining
employees in the automotive industry can be very challenging, especially in the case where
competitors are doing what they can to lure the best talent.

Opportunities
Fuel-efficient vehicles: Optimization of fuel-driven combustion engines and cost efficiency
programs are excellent opportunities for the automobile market. Emerging markets will be
the primary growth drivers for a long time to come, and hence fuel-efficient cars are the need
of the hour.
Changing lifestyle & customer groups: The increased availability of data and information,
shift in consumer demand, and expanded regulatory requirements for safety and fuel
economy will fuel the growth of this industry.
Market expansion: Entering new markets like Asian & BRIC nations will skyrocket the
demand for vehicles. Furthermore, other markets are also likely to emerge soon.

Threats
Rising competition: Presence of a large number of players in the automobile industry results
in intense competition and companies eating into other’s share, leaving little scope for new
players.
Sluggish economy: Macroeconomic uncertainty, recession, unemployment, etc. are the
economic factors which will daunt the automobile industry for an extended period.
Volatility in fuel prices: For the consumer segment, fluctuations in fuel prices remains the
determining factor for growth. Also, government regulations pertaining to the use of
alternative fuels like CNG and Shell gas is also affecting the inventories.
CHAPTER 2
CONCEPTUAL BACKGROUND AND LITERATURE REVIEW

Meaning and Definition of Human Resource Accounting:

The idea of human asset bookkeeping better comprehended in the event that one experiences
a portion of the significant definitions.
Human Resource Accounting is the action of realizing the expense contributed for
representatives towards their enrollment, preparing them, installment of compensations and
other benefits paid and consequently knowing their commitment to association towards its
benefit.

American Association of Accounts [AAA] –

"HRA is a procedure of recognizing and estimating information about HR and
imparting this data to invested individuals"

As indicated by Flamhoitz characterizes HRA as-

"Representing individuals as a hierarchical asset it includes estimating the costs brought
about by associations to initiates, select, recruit, train and creates human assists.
It likewise includes estimating the monetary valve of individuals to the association".

Stephen Knauf-
HRA is the estimation and capability of human hierarchical info, for example, enlisting,
preparing, experience and commitment‟.

American Accounting Society Committee-

"Human Resource Accounting is the way toward distinguishing and estimating information
about human asset and imparting this data to intrigue parties "In basic terms, it is an
expansion of the bookkeeping standards of coordinating expenses and incomes and of
arranging information to impart important data in budgetary terms.
Importance of human Resource Accounting:

Human Resource Accounting gives valuable data to the administration, budgetary experts and
workers as expressed beneath:

 HRA helps the administration in the business, finding and usage of human assets.
 It helps in choosing the exchanges, advancement, preparing and conservation of human
assets.
 It gives a premise to arranging of physical assets [human resources].
 It helps with assessing the use brought about for bestowing further training also,
preparing in representatives as far as the advantages inferred by the organizations.
 It assists with distinguishing the reasons for high work turnover at different level and
taking preventive measures to contain it.
 It helps in finding the genuine reason for low rate of profitability, as inappropriate or
under-use of physical assets or HR or both.
 It helps in comprehension and surveying the internal quality of an association and
encourages the administration to guide the organization well through generally
antagonistic and negative conditions.
 It gives significant data to individual keen on making long haul interest in the firm.
 It gives a premise to labor arranging and enrollment
 It helps workers in improving their exhibition and dealing power. It makes every it to
comprehend his commitment towards the advancement of the firm the consumption
brought about by firms on him.

Advantages of Human Resource Accounting.

Human Resource arranging foreseen the necessary kind and number of representatives what's
more, decides the activity plan. The significant advantages of HR bookkeeping are:

 It is utilized to checks the corporate arrangement of the association. The corporate

arrangement focusing on extension, enhancement, changes in mechanical development
and so forth, needs to be worked out with the accessibility of HR for such positions or key
positions. In the event that such labor in not prone to be accessible, HR bookkeeping
recommends change of the whole corporate arrangement.
 It balances vulnerability and changes, as it empowers the association to have the
privilege individual for the correct activity at the perfect time and spot.
 It gives degree to headway and improvement of representatives by successful preparing
and advancement.
 It helps singular representatives at aim for advancement and better advantages. It expects
to see that human association in the association isn't squandered and brings significant
yields to the association.
 It assists with finding a way to improve worker commitment as expanded efficiency. It
gives various strategies for testing to be utilized, talk with procedures to be received in
the determination procedure dependent fair and square of aptitude, capabilities and
experience of future HR.
 It can anticipate the adjustments in esteem, fitness of HR and appropriately change the
strategies of relational administration.

Methods of Human Resources Accounting:

There are three ways to deal with HRA. The cost approach, additionally called the "Human
Asset cost bookkeeping techniques" and the worth methodology.

Human Resource Accounting

1 • Cost Approach
2 • Replacement cost Approach
3 • Value Approach
Chart 1.1 HRA Methods

A way to deal with human asset bookkeeping was first evolved in 1691; the stage was during
1691-1960, and third stage post-1960. For esteeming HR, various models have been created.
Fundamentally, three Approaches to HRA.
Cost Approach.
This method is additionally called the purchase price model. Under this technique, the
interest of unions in labor is estimated using five limits; Recruitment, Formal Preparation,
and Preparation, Contingent Preparation and Contingency Familiar, and experience and
improvement. Here it is recommended that instead Charging expenses to clarify, they should
be promoted to an important position sheet.
The direction of granting the status of profit to the commodity of consumption is called
capitalization. In Human Property Board, it is important to have more than one promoted
amount of amortization time limit. In this way, a person here will take the age of the
representative at the time of enrollment. Of these, one can leave the association before
obtaining a pair of workers Retirement. This technique is the main strategy for human asset
bookkeeping in view of sound bookkeeping standards and system.
For instance, if an organization burns through one lakh taka on a worker selected at 25 years,
what's more, he leaves the association at the age 50, he serves the organization for a long time
(his real retirement age was 55 years). The organization has recuperated TK 83333.33 so the
unamortized measure of TK 16666.66 ought to be charged to benefit and misfortune account
that is
100000/30=3333.33
3333.33*25=83333.33
100000-83333.33=16666.67
This technique is the main strategy so for proposed of human asset bookkeeping which
depends on sound bookkeeping standards and strategies.

LIMITATIONS
 The valuation technique depends on the bogus estimate that the money is constant and
thus does not give importance to the estimation of cash time.
 Because the benefits of human property cannot be sold Free evaluation of their
evaluation.
 This technique determines the association, not just the expenses Think about association
assessment. It is also very scary to think about collecting related data regarding human
Values.
 It can be inferred that the representative is now fully prepared and there No compelling
reasons to use any diversion of events, preparation, enrollment costs. it will make Trouble
for an organization to discover CTC (cost to cost) as indicated by the procurement model.

Replacement Cost Approach

This methodology gauges the expense of supplanting a representative. As per likes (1985)
substitution cost incorporates enlistment, determination, remuneration, and preparing cost
(counting the salary predestined during the preparation time frame). The information got
from this technique could be valuable in concluding whether to excuse (or) supplant the staff.

LIMITATIONS:
In practice, the expense of substitution of representative is very monotonous and costly
process. Besides, visit substitution of representatives shows the helpless administration and
maintenance of HR.

VALUE APPROACH
According to this approach classified into 4 different models
a) Present Value of Future Earnings
b) Value to Organization
c) Expenses Model
d) Model on Human Resource Accounting

Present Value of Future Earnings:

As indicated by lev and Schwartz (1971) proposed a financial valuation of representatives
dependent on the current estimation of future profit, balanced for the likelihood of
employee’s passing/detachment/retirement. It considers the time estimation of cash and aides
in figuring out what an employee’s future commitment is worth today.

LIMITATION:
 As indicated by lev and Schwartz• The measure is a target one since it utilizes broadly
based insights, for example, statistics pay return and mortality tables.
 The measure doles out more weight to midpoints than to the estimation of a particular
gathering (or) person.
(B) Value to the Organization:
As indicated by Hekimian and Jones (1967) recommended that when an association had a
few divisions looking for a similar worker, the representative ought to be designated to the
most noteworthy bidder and the offer cost consolidated in to that divisions venture base. For
instance, an estimation of an expert athlete’s administration is frequently controlled by how a
lot cash a specific group, acting in an open serious market, is eager to pay him (or) her.
Impediments:
The adequacy of the valuation relies completely upon the data, judgment, and unprejudiced
nature of the bidder.

(C) Expenses Model:

As indicated by Mirvis and Mac, (1976) this model spotlights on appending dollar gauges to
the social results created by working in an association. Standards, for example, non-
attendance, turnover, and employment execution and estimated utilizing customary
authoritative device, and afterward costs are evaluated for every measure.
For instance, in costing work turnover, dollar figures are joined to partition costs, substitution
expenses, and preparing costs.

(D) Model on Human Resource Accounting:

This model recommended by Ravindra Tiwari. This model recommends the human asset
bookkeeping approach for two classes of workers:
 Employees, who are at key, key dynamic positions, for example, MD (Overseeing
Director), CEO (Top Chief Executive Officer).
 Employees, who execute the choice taken by top officials.

Model show up estimation of HR as entirety of beneath referenced three sections.

 Genuine Capital Cost Part.
 Present estimation of Future Salary/Wages Payments.
 Execution Evaluation Part.
Impediments:
 Computation forms is long and cumber a few.
 Lev and Schwartz valuation standards have been utilized at one purpose of time, so this
model contains a shortcoming from the Lev and Schwartz model.

How to Treat Human Resource as an Assets of an Organization:

Dr Trading and Profit and Loss Account

Particulars Amount Particulars Amount

To Wages (remove from it) xxxx
To Gross Profit
xxxx

Total xxxx Total xxxx

(Remove below costs from

P&L Account)
To Recruitment cost xxxx
To Training &
Development cost xxxx
To Operational salaries xxxx
To Net Profit xxxx
Total xxxx Total xxxx

Cr
 Balance Sheet

Liabilities Amount Assets Amount

Capital xxxx Human Resource xxxx

Assets (It is Current
+Net Profit xxxx
xxxx Assets)
General Reserve
(If there any net xxxx

loss then this

reserve use to human
resource assets)

Total xxxx Total xxxx

HR value in P&L A/C & Balance Sheet

As indicated by Kalanam, how to regard human asset as a benefit of an association. At the

point when you treat human as an advantage, we need to consider some point that is
ordinarily totally cost of relating human we demonstrated charge side of the exchanging and
benefit and misfortune account. At the point when human treat ass an asset we need to expel
all expenses of relating human from Trading and benefit and misfortune account. That time
the net benefit likewise increments consequently. We realize that net benefit adds to owner’s
capital, at that point asset report is consequently shows like an advantage and liabilities are
equivalent. In the event that the association had overall deficit we utilize general hold for
human asset assets. Presently observe above table cautiously and see how to regard human
asset as assets of an association. See above table assets are equivalent to liabilities, as a result
of when treat human asset as an advantage then the benefits esteem is increment.
Simultaneously we need to evacuate all expenses of relating human from exchanging and
benefit and misfortune account. That time the net benefit likewise increments naturally. We
realize that net benefit includes to owner’s capital, so liabilities likewise increment similarly
to resources.
"At long last Kalanam demonstrate that is a likelihood to indicated human asset resources as
an asset by utilizing above procedure".
 Investment in Human Resources
There is a lot of discussion with regards to whether the human asset of an association can be
considered as an asset and rewarded in like manner in the bookkeeping framework. In
addition, organization law likewise doesn't think of it as an asset. As per R.L.Woodruf Junior
saw that regarding individuals as assets and bookkeeping them is legitimate and agreeable to
the desire for the future financial benefits.
The investigation bolsters the view the human asset is an asset as they are important asset to
an association and interests in such assets will help association to improve.

Now, what is Investment?

Any asset squeezed in to support for creating products and administration is called ventures.
In this way, speculation alludes to use on new plant and apparatus, capital types of gear
physical development of new structures along with any adjustments in the stock of products
created. The degree of speculation is guided by the degree of anticipated benefits. Firms will
contribute, just if is productive.

Cost of Human Resource:

As human asset is considered as an asset, any consumption caused in the obtaining and
aggregation of human asset will be treated as a venture. Cost of HR speaks to forfeit that
should be caused today to obtain and create individuals in future. The expense of human asset
in any case called chronicled cost of HR is the interest in human asset which has both income
(costs) and capital (resources) parts.
This expense might be delegated follows:
 Procurement Cost
 Preparing (Development) Cost
 Government assistance cost and
 Different Costs
 Cost of Human Resource

A) Acquisition Cost B) Training D) Other cost

C) Welfare cost
(Development) cost

1. Recruitment 1. Formal 1. Medical 1. Safety

cost Training Cost. Expenditure Expenditure.
2. Selection 2. On The Job 2. Canteen 2. Ex-gratia
cost Training cost Expenditure 3. Multi-trade
3. Placement 3. Special 3. Specific 4. Incentives
cost Training cost &General 5. Rewarding
4. Campus 4. Development Allowances 6. Suggestions
Interview Programmes 4. Children
Welfare
Expenditure
5. Other
Welfare
Expenditure

Historical costs of Human Resources

The company sections give a nitty gritty identification of the different expenses engaged with
the human asset bookkeeping.
(A) Acquisition Cost:
It alludes to the expenses caused in obtaining the correct man for the correct activity at the
opportune time and right amount. It incorporates the costs caused on enrollment,
determination, whole expenses are taken in to thought including the individuals who are not
chosen.
a) Recruitment cost:
It is the expense caused to distinguish wellsprings of HR both from inside and outside the
association. For instance, cost of enrolling materials, regulatory costs, publicizing costs,
office expenses, recruiter’s pay and travel and outstation costs.
b) Selection cost:
It relies upon a few factors, for example, the kind of work force being enrolled and the
technique for enrollment. The expense of choice relies upon the situation for which an
individual is being chosen. The higher the position, the more noteworthy is the choice
expense. It incorporates cost of utilization spaces, managerial expense of preparing
applications, directing tests, talk with, clinical assessment and materials and counseling
charges of the selectors.
c) Placement cost:
In settling on the arrangement, the individual’s capacity, demeanor, intrigue, disposition and
goals are contemplated concerning the activity prerequisites. The expense of arrangement can
be gathered with the end goal of human asset bookkeeping.

(B) Training and Development Cost:

This is the way to deal with starkness that an individual ought to be set up to give either
Foreseen level of execution (or) to improve an individual's aptitude. Planning improves
Productivity capability of both the individual and the affiliation. Planning cost Contains:
A) Formal preparing cost
It moves toward the cost of getting ready consistently for one's heading the individual with
the objective that he can work. Remuneration to preliminary staff and Arranged spending of
schools is essentially human resource venture things.
B) On the activity preparing cost:
At the point when the specialist is set to work, he ought to be prepared to convey the
obligation Capably and effectively and along these lines the laborer learns while he is on his
own action. In Procedure, cost of abusing movement, portion over agent He who really
contributes plays a part in setting up the expense. It is an enthusiasm for thusly Human
property.
C) Special preparing cost:
Presently to meet the presentation rules and afterward obviously the arrangement program
Can be readied. Such arrangement gives the affiliation an extraordinary human resource.
Such readiness costs are called explicit arrangement costs that fall under human property.
Venture of Association.
D) Cost of improvement program:
Laborers might be permitted to check out a combination of changes Ventures to improve your
assets. These tasks can run from conventional Exchanges for widespread gatherings and
courses. Individuals get an opportunity to collaborate with different officials on national and
worldwide level. Such affiliation includes cost, for example, delegate charges, the movement
cost, loss of yield during the turn of events programs and so on which are to be represented as
a human asset venture.

(C) Welfare Cost:

The executives are after all creation and upkeep of a situation. Consequently, it is an
indispensable capacity of a business to give a climate to the workers to play out their work in
solid, suitable atmosphere helpful for good wellbeing and high assurance. The costs acquired
for this reason will encourage the worker to expand the nature of his metro life. These
government assistance expenses can be named follows:
a) Welfare and luxuries inside the association:
Crèches, rest safe houses and flasks, toilets and urinals, washing and washing offices,
drinking water and word related security and so forth are the government assistance offices
gave by the business inside the association.
b) Welfare outside the association:
Social protection measures, maternity advantage, clinical offices, training offices, lodging,
recreational offices, occasion homes and leave travel offices are a portion of the government
assistance measures gave outside the foundation.
(D) Other Costs:
There are some different costs which remember use for worker security, ex-gratia, multi-
exchange motivating forces and others. In India, Factories Act 1948 has made legal
arrangements with respect to representatives' wellbeing, security and government assistance
as follows:
a) Health of Worker:
 Cleanliness, Disposal of Waste and Effluents
 Ventilation and Temperature
 residual and Smoke fake moisture
 progressive herd
 Light
 drinking water
 Toilets and urinals, spit, etc.
B) Protection of workers:
 Fencing Equipment’s
 working at the speed of the structure
 Young personal business
 Cover of new machines
 Commentary and lift
 lifting machines
 pressure plant
 Eye assurance, safeguards against dangerous applause
 Strength test, etc.
C) Worker Government Assistance:
 Washing Office
 Facilities for capacity and section on articles of clothing
 Seating Facility
 First Guide Hardware
 Restaurant
 crèche
Rate of Return on Human Resources.
Estimating the speed of profit is key for HR at an exceptionally large total the enterprise is
taking a shot at human property by not advancing such use, The advantages of affiliation are
minimal. The Pace of Return can be used as a presentation measure. Can be solved based on
increased speed Premises:
A) Measurement of profits on association building.
B) Measurement of advantages for hierarchical use
Subsequently, to discover the level of profit, a change in HR is important Decided and
recorded. Full premium.

(A) Measurement of Return on Organization Building:

In fact, when an enterprise is involved with HR, it is with the definite purpose of both
Affiliation development and use of affiliation. Compare HR Hypotheses for an individual's
affiliation, liking and planning in addition, the social opportunity of individuals should be
resolved. Further development bearing costs When doing this type of computation, one
should look at the work force.

(B) Measurement of Return on Organizational Use:

Profit should be assessed using HR done. Also, one should be happy with the use of human
resources Thought in this way should be given to the assessment of usage. After club Assess
affiliation and official use of HR Will give quantitative benefits.

Quality of work and organizational performance:

Workforce participation for agents in a relationship in general structure or get together. The
idea of work force in affiliation should be high, because this force is performed Serve
meeting official goals. If this task encounters a feeling of intensity for example,
disillusionment due to any factor, low wages, defenseless working conditions, negative terms
of work one-sided special arrangements, helpless preparing and terrible treatment by their
directors, the out of line states of business, entomb individual clashes, job strife, work
pressure and so forth, it can't shape a quality work power. The nature of work power brings
about 'high efficiency'.
Purposes of Quality of Work Life [QWL]:

Coordinating the socio-mental necessities of individuals in the association, the one of a kind
of necessity of a specific innovation, the structure and procedures of the association and
socio-social milieu are the motivations behind QWL.

What is Quality of Life [QOL]?

Scuttle has characterized nature of work life as "how much individuals from a work
association can fulfill significant individual needs through their encounters in the
association". Richard E. Walton alludes to nature of work life as far as eight wide conditions
of work which are additionally the estimating components of QWL. They are:
 Satisfactory and reasonable remuneration.
 Sheltered and sound working conditions.
 Open door for profession development.
 Chance to utilize and create human limits.
 Social reconciliation in work power.
 Constitutionalism in the work association.
 Work and personal satisfaction.
 Social significance of work.

How to improve Quality of Work Life [QWL]:

Seen from the abovementioned, the idea of nature of work life is to make an atmosphere at
the work environment with the goal that human – innovative - hierarchical interface prompts
a superior nature of work life. Atmosphere is a lot of ascribes explicit to a specific association
that might be incorporated from the manner in which the association manages its individuals.
There are a number of variables associated with QWL, and these elements can be gathered in
three classifications: singular variables, work factors, and hierarchical elements. The
attributes of these factors influence the individual association in the activity, his feeling of
fitness which lead to work fulfillment lastly to work execution and efficiency.
The Human Resource Manager needs to make the accompanying strides for keeping up
high request of QWL:
 Adaptability in Work Schedule: Employees need adaptability in work plan.
 Self-ruling Work Group: Creation of self-governing work bunch helps in making positive
sentiments among workers.
 Occupation Enrichment: The level of employment enhancement decides the level of
QWL.
 Open door for Growth: If the work gives him chance to individual development and to
build up his character, he will feel focused on the-work and the association.
 Giving Stability of Employment: Good compensation and diverse elective methods of
giving better wages and security of strengthening will enable the work to power to work
better.
 Investment: Higher level of interest expands the QWL and generally speaking
hierarchical atmosphere.
 Acknowledgment: Awarding and compensating for their accomplishment, work
advancement, giving very much outfitted and average work places are the approaches to
perceive the workers.
 Obedient Relationship: Harmonious Worker Creates Directive Relationships The worker
feels a sense of alliance and belonging.
 Objection Process: When affiliation allows workers to express Addresses their objections
and their issues, their trust in the organization Makes it better.
 Word related stress: Stress is a state of stretch on one's inclination. This badly Affects the
representative's productivity. The Director of Human Resources needs to be identified
and restrained Weight.
 Progressive Healthy Program: Effective Use Programs reduce hospitalization, non-
attendance, exceptional occupation Business, powerlessness, etc.
Efficient Use of Human Resources.
Efficient use of human resources depends on effective human resources Administrator. HRM
is an approach that is able to manage a people's organization Required Gauge.
 The most important asset on human resource affiliation is and is Appropriate organization
is the best way to advance.
 This achievement is most likely to occur according to individual methodology and
strategy Undertakings are linked to the achievement of corporate purpose and significant.
 Corporate culture and characteristics, fixed climate and managerial Direct who comes out
of the lifestyle will have a huge impact Vishal’s achievement. Lifestyle should be
regulated so that the fixed value must change or be constant and be constant Attempting
to start from above, they will be required to gain recognition and move forward.
 Emphasis is placed on HRM coordination - getting all people by affiliation Formulated
with definite practice and helped to elicit a sense of common motivation to achieve
various level goals. According to Peters and Witten, achieving efficiency through people
is Required "Treat them as adults, treat them as baggage, approach them with respect and
tact They with concession ". Both the boss and the workers must be persuaded to obtain it
They have mill purpose and eagerness to increase yields.

Exercising to improve the use of HR will be dynamically beneficial with:

 Lead a productivity drive
 Improvement of working order and controlling strategies.
 Current Work Estimate.
 Use appropriate part strategy by results, rewards and profit-sharing schemes.
 Improve motivation.
 Remember laborers for progress programs.
 Introduce new progress
 Mastermind Valid Productivity Program.
 Present planning programs based on productivity needs assessment.

Hypnotic use of HR can be fully organized when Workers are made to plan, to appreciate the
objectives of affiliation. Their own calling in affiliation that will ensure and progressively
involve them Workforce all of them together.
Review of Literature:

1.Dasari, Pandurangarao; DR .S.Chand basha, Devarapalli; Rajasekhar (2013) in this paper

figuring of the HRA practice in chosen open endeavors like BHEL, SAIL, ONGC, NTPC,
Infosys Technologies Ltd and 10 different organizations and so forth . This examination
proposed a model for estimating the estimation of HR valuation action could be useful in
improving the proficiency of HR in the changing industry situation

2.Jacob Cherian: Serine Farouq (2013) in this article the primary point is to be study the
advantages of HR practices to the firm. This article features the hypothetical definitions for
HRA challenges looked during execution of HRA estimation model anticipate the
organization‟s execution and HR is the one of the greatest assests in the association assest
with the case of bill doors.

3.Md.Mustafizur Rahaman: Md.Amzad Hossain: Tabassum Akter (2013) in this paper speaks
to the idea of HRA for why we favor (or) Argument against HRA and what are the
techniques for HRA for Valuating the HR in the association. Thus, this paper proposes an
answer in accordance with existing system of bookkeeping that could be received by the
standard setters. The examination, nonetheless, suggests that more intrigue ought to be agreed
to the idea of HRA so as to invigorate more far reaching investigates planned for improving
the idea and boosting its appropriateness.

4.DR.Lakshmaana Rao (2004) The current examination paper focused on the treatment of HR
with a valid and reasonable view, as different components associated with money related
bookkeeping and the consideration of HR not just from the consumption viewpoint yet in
addition from the speculation perspective is contended to portray the valid and reasonable
perspective on money related records and monetary reports. Further, this paper expected to
talk about setting up of a zenith body for valuations and treatment of HR and different
concerns which confines the act of human asset bookkeeping. At long last, it closed with the
future guide for money related bookkeeping to consider it as "Human Asset Financial
Accounting".
5.Danaei etal: Abolfazal Danaei: Hossain Abdi: Hus hang Mohagheghi: Majid Bajlan (2014)
this article examined the importance of inside and outside announcing in an association.
Request beginning and favor of HRA on the planet. The shared reliance of estimations and
choices was characterized by considering a few models and found that the interior detailing
was applicable of powerful dynamic. HRA measures proposed for budgetary revealing ought
to be founded on the broadly useful of money related announcing [IFRS].

6.P.o. Okpako, EN.Atube and O.H. Olufawoye (2014) this investigation has endeavored to
explain this assumption with respect to making causal inferences and to giving experimental
information to investigate a portion of these issues. In view of a far-reaching writing audit,
this paper estimated that the accompanying HRA factors are decidedly identified with firm
development: (a) Training and Development (b) Welfare Cost (c) Safety Cost. Experimental
discoveries bolster the view that human asset bookkeeping has encouraged the presentation of
firms.

7.V.kalpana (2016) in this paper considers the differentiation between cost approach also,
esteem approach as to human asset bookkeeping. It was discovered that both approaches have
a valuable commitment to make however prescriptive methodology ought not be mistaken for
low quality distinct methodologies and that while the last are to be feel the previous have a
significant spot in the executive’s research with significance, future and constraint of human
asset bookkeeping.

8.Anjana Rani (2016) in this paper surveys the impression of human asset bookkeeping. In
worth, past investigation have appeared and discussed different sizes related to esteeming
human asset for bookkeeping human asset, various models have been created which are
useful to distinguish and report speculation made in the human asset of an association that are
not directly represented under regular bookkeeping rehearses.
9.Ifath Shaheen, Amathun Noor, Asra Sultana (2016) in this paper to assess the HRA
practices of Infosys Technologies Limited (ITL) and BHEL alongside its convenience in HR
choices. A few recommendations have additionally been given to improve the HRA
rehearses, which will at last add to guarantee the splendid eventual fate of HRA in India. In
this paper to assess the HRA practices of Infosys Technologies Limited (ITL) furthermore,
BHEL alongside its convenience in HR choices. A few recommendations have likewise been
given to improve the HRA rehearses, which will at last add to guarantee the brilliant eventual
fate of HRA in India.

10.Remi Okeke (2016) in this investigation is finished up by expressing that the experimental
import of human capital (human asset bookkeeping) will be hard to convincingly set up and
all around perceived. This examination has additionally featured these challenges what's
more, suggests that further examinations be proceeded from here, in firmly deciding past
appealing speculations, the exact significance of human capital bookkeeping.

11.Neerja Kashive in his article audited that HRA estimation model like Lev also, Schwartz
model and immaterial assest screen that Many Indian organizations like BHEL, NTPC and
ONGC have comprehended the significance of estimating human capital also, unveiling it
esteem in their monetary record.

12.Brummet, Flamholtz, and Pyle (1968) carried out one of the earliest works on human
resource measurement. The authors developed a number of methodologies for human
resource valuation and also examined the usefulness of human resource accounting. They
concluded that human resource accounting is useful as a managerial tool.

13.The Report of the Committee on Human Resource Accounting (1973) formed by the
American Accounting Association mentioned that the purpose of HRA is to improve the
quality of financial decisions made both internally and externally concerning an organization.
The HRA data widens the scope of decision-making with respect to internal decisions as it
permits the consideration of a large set of variables and improves the basis on which the
variables are considered in decision-making. The report specified that the availability of
quantitative data on human resources should permit their impact to be readily incorporated in
the decision-making structure. It confirms that an HRA system would improve decision
making by allowing consideration of a wider number of variables.
14.Dobbins and Trussel (1975) in their article provided a background of research in human
resource accounting, presented an analysis of various valuation methods, and considered the
implications of human resource financial reporting for the personnel function. The authors
concluded that the philosophy of human resource valuation enhances the status of the
personnel function.

15.Elias (1976) attempted to provide framework for analyzing the behavioral aspects of
accounting methods. It was found that HRA due to its behavioral impact had a distinct effect
on decision making. It had a potential impact for both functional and dysfunctional
consequences which were different depending on the circumstances and management
philosophy. All expenditures related to HR were considered to have been made for the
acquisition and maintenance of human assets and are therefore capitalized. It was suggested
to consider sunk cost in the various analysis of the company.

16.Stephenson and Franklin (1982) gave a macro level perspective to human resource
accounting by analyzing different HRA models which reinforced the practical implications of
HRA in terms of real dollars and common sense for management. It was found that many
companies have recognized the need for systematic assessment of the human element of the
organization in quantitative terms for internal management purposes. It was invented that in
the near future maximum corporations will be recording their human capital in the balance
sheet.

17.Ogan (1988) carried out a field experiment to assess the impact if human resource
accounting information on managerial decisions.

18. R.L.WoodruffJr (1989) defined ―Human Resource Accounting is an attempt to identify

and report investment made in human resources of an organization that are presently not
accounted for in conventional accounting practice.

19.Dawson (1994) studied the distinction between prescriptive and descriptive approaches
with regard to human resource accounting. It was found that both approaches have a useful
contribution to make but prescriptive approach should not be confused with low quality
descriptive approaches and that while the latter are to be deplored the former have a valuable
place in management research.
20.Vakharia (1995) in his paper remarked that the goal of human resource management is to
increase the value of organizations by transforming human inputs into useful and valuable
outputs and the role of human resource accounting is to provide the information necessary to
perform this in the most efficient manner possible According to him HRA has two major
functions- one that it is paradigm, or a way of viewing human resource issues, and second it
is a set of measures for quantifying the costs and benefits of human resource decisions. In this
study, HRA was considered as an attempt to measure the costs incurred by business firms and
other organizations to recruit, select, hire, train, and develop human assets, and it also
involved measuring the economic value of people in organizations.
CHAPTER 3
RESEARCH DESIGN
Title of the Study:
“Analytical study of human resources accounting Practices at Suprajit Automotive,
Doddaballapur”.

RESEARCH DESIGN
Exploration configuration is the game plan of conditions for assortment and examination of
information in a way that expects to consolidate significance to investigate reason with the
economy in methodology. Exploration configuration, represents early arrangement of the
techniques to be embraced for gathering the important information and the methods to be
utilized in their examination. The paper work actually, has an incredible bearing on the
unwavering quality of the outcomes showed up at end as such establish the firm
establishment of the whole building of the exposition work.

Problem Definition
The most imperative resources of any firm are its representatives since all exercises of
association that decide execution rely upon the exertion of the representatives. It is hard for
firms to quantify information identifying with human asset. Consequently, this examination is
expected to address the accompanying inquiries:
 The serious issue related to HR Accounting is estimation of the estimation of HR and
guaranteeing successful use of HR.
 What will be the impact of preparing and improvement cost on firm execution?
 What amount cost will be distributed to the Placement Cost?
 Regardless of whether HR can be appearing in the Profit and Loss Account.

QUESTIONNAIRE DESIGN
Questions being used in questionnaires are both open and close ended questions.
Objective of the investigation
This examination intends to analyze the connection between Human Resource Accounting
Practice in Suprajit Automotive, Doddaballapur explicitly the target of the examination as
follows
 It will get ready significant and intentional venture with important data.
 It will examine the effect of preparing and situation cost on firm execution.
 It will give the recommendation for improving HRA practice in suprajit car.
 It will recognize Specific reference in Profit and Loss Account for Human Asset.
 It wills examination the discoveries and recommendation.

Scope of the investigation

 The investigation is essentially worried about the Human Resource Accounting Practice
in Suprajit Automotive.
 All The viewpoints including cost Relating to the Human Resource for paid pay, different
advantages paid and Training and improvement cost for the Human Resource
 The feelings will be considered from the Human Resource Manager for the examination.

Methodology of the examination

System is characterized as "a specific or set of methods the investigation of these standards
(or) techniques of enquiry in a specific field". An enlightening report was attempted to
examine the Human Resources Accounting Practice in the association. The examination
expected information to be gathered from essential and optional information.

Sources of data
Primary Data
 Primary data was collected by the questionnaire’s method along with my observation
during the visit to Suprajit Automotive.
 Having Discussion with Human Resource Manager of the Company to get the general
information about the company and its Practice of HRA activities
 By taking guidance from the company guide
Secondary Data
In this study, the secondary data has been collected from various sources such as
 Old project report
 Books
 Different HRA websites
 HR magazines Etc

Research tools
The information has been acquired from optional source like Payroll, Annual Reports

Inspecting Techniques
Inspecting methods is one were given for the Human Resource Manager.
 Primary information was gathered by the poll’s strategy alongside my perception during
the visit to Suprajit Automotive.
 Having Discussion with Human Resource Manager of the Company to get the general
data about the organization and its Practice of HRA exercises
 By taking direction from the organization control
In this investigation, the optional information has been gathered from different sources, for
example,
 Old task report
 Books
 Different HRA sites
 HR magazines Etc.

Time frame: 6 weeks

Limitations
 The examination won't been detailed because of time limitations.
 The investigation will limit to HR director as it were.
 The investigation will be finished inside the restricted timespan.
 The investigation will be arranged uniquely for scholarly reason which was not been
explained because of time limitations.
 The examination will limit just to 26 representatives in Suprajit Automotive.
 Some of the employees were unwilling to fill the questionnaire.
Plan of Analysis:
The information assortment has been composed, classified and dissected with the assistance
of talks also, inductions are drawn dependent on it.
CHAPTER 4

Data Analysis and Interpretation

What does Data mean?
Data is a wellspring of data and aides for the investigation and defines the understanding of
the examination.

Meaning of analysis?
Investigation alludes to the way toward building up the important relationship between the
thing of two fiscal summaries with target of recognizing the budgetary what's more,
operational quality and shortcoming of the firm.

What does interpretation mean?

Understanding alludes to the examination of the different parts and clear end might be drawn
about the procuring limit, productivity, benefit, liquidity, pattern, dissolvability and so forth.
Examination is a lot of basic for significant translation. It is deciding the importance and
reaching surmising or determination with raised to aftereffects of critical connection between
the things corresponded.

Instruments for information investigation and understanding:

Tables
Graphs

Table 4.1: Gender-wise distribution in the organization

Classification %
Male 22 31
Female 4 69
Total 26 100

Source: Primary Data

Analysis:
The above table indicates the classification of data according to their gender (male/female).
In the organization for considering 26 employees in that 22 employees i.e., 31% of work
force is male but 4 employees i.e., 69% of work force is female employees.

Chart 4.1: Gender-wise distribution in organization

Gender

21%

79%

Male Female

Interpretation:
From the above chart, it can be interpreted that the majority of the employees in the
organization are male compare to the female candidates.

Table 4.2: Location wise placed in the organization

Location %
Karnataka 37.5
TamilNadu 25
Andra Pradesh 25
Mumbai 12.5
Total 100
Source: - primary data
Analysis:
From the above table, it can be analyzed the in location wise placement in Karnataka 37.5%
employees placed; Tamilnadu 25% employees are placed, Andhra Pradesh 25% employees
are placed and Mumbai 12.5% employees are placed.

Chart 4.2: location wise placement in the organization

Location Wise Placement

30

25

20

15

10

0
Karnataka TamilNadu AndraPradesh Mumbai

Location Wise Placement

Interpretation:
From the above chart, it can be interpreted that those location wise employees placed in the
organization is more in Karnataka i.e.,37.5% as compared to others regional areas in India.

Table 4.3: Age wise classification of employees

Particular Ages %
Below 18years 5 19.23
18-20years 5 19.23
21-25years 6 23.08
Above 25 years 10 38.46
Total 26 100
Source: Primary Data
Analysis:
From above table analyzed the employees in the organization of their age-wise distribution
that considering 26 employees 5 belong to age group of below 18 years,5 employees belong
to 18-20 years age group, 6 employees belong to 21-25 years age group and 10 employees
belong to above 25 years age group.

Chart 4.3: Age-wise distribution of employees

Age-Wise
25

20

15

10

0
Below-18yrs 18-20yrs 21-25yrs Above-25yrs

Age-Wise

Interpretation:
From the above chart, it can be interpreted that at Suprajit Automotive experienced workforce
is in greater proportion but opportunities are also available for younger workforce. The
38.46% is above the 25 years’ workforce more in company but below 18 and 18-20 years
19.23% workforce in the organization.
Table 4.4: Designation-wise distribution of the employee in the organization
Designation Members %
Store Executive 2 7.69
Testing Engineer 5 19.23
Laboratory Assistant 1 3.85
Receptionist 1 3.85
Office Assistance 2 7.69
Trainee Engineer 1 3.85
Fitter 8 30.77
Power Coating Operator 2 7.69
Technician Operator 4 15.38
Total 26 100

Analysis:
From above table analyses the designation wise distribution in the organization store
executive 2 members i.e., 7.69% are worked, 5 members i.e., 19.23% in testing engineer, 1
member i.e., 3.85% in Laboratory Assistant, 1 employees i.e., 3.85% in Receptionist,
2employees i.e., 7.69% in Office assistance, 8 employees i.e., 30.77% in fitter, 2 employees
7.69% in power coasting operator and 4 employees i.e., 15.38% in technical operator in the
organization.

Chart 4.4: Designation-wise Distribution in the organization.

DESIGNATION

TECHNICIAN OPERATOR
POWER COATING OPERATOR
FITTER
TRAINEE ENGINEER
OFFICE ASSISTANCE
RECEPTIONIST
LABORATORY ASSISTANT
TESTING ENGINEER
STORE EXECUTIVE

0 5 10 15 20 25 30 35
Interpretation: From above table interpreted that designation wise distribution in the

organization considering that fitter more as compared to other designation in

organization more employees place for other designation.

Table 4.5: Positive effect of training in the organization

Particulars Respondent

Yes 100

No 0

Analysis: from the above table analysed the considering the HR manager that training
program in the organization was successful to increase the employee efficiency in the
organization.

Chart 4.5: Effect of training in the organization

100

80

60
EFFECTIVE OF
40 TRAINING PROGRAM
20

0
YES NO

Interpretation: From the chart , it can be interpreted that training program in the
organization effective to increase the work efficient in the organization.
Table.4.6: Effectiveness of training program as recived by the employees

Particulars Number Percentage

POOR 1 3.85

AVERAGE 5 19.23

GOOD 9 34.62

EXCELLENT 11 42.30

Total 26 100

Analysis: from above table analysed the effectiveness of training program as recived by the
employee in the organization considering 26 employees 1 employee is poor, 5 employees is
average,9 employees is good and 11 employees are excellent in their work after training
program.

Chart 4.6: Rating on effective training program

EFFECTIVENESS OF TRAINING PROGRAM

RECIVED BY THE EMPLOYEES
100%
80%
EFFECTIVENESS OF
60% TRAINING PROGRAM
40% RECIVED BY THE
EMPLOYEES
20%
0%
POOR AVERAGE GOOD EXCELLENT

Interpretation: from the above chart,it can be interpreted that 42.30% of the employees who
under taken the training program rate it as excellent and founded as great value whereas only
3.85% analysed as minimum value.
Table 4.7: Salary wise distribution of employe in the organization

Particular Employees Percentage

Less than 5000 3 11.54

5000-10000 14 53.85

10000-15000 5 19.23

More than 15000 4 15.38

Total 26 100

Analysis: from the above table it can analysed that (consideration of 26 employees in the
company) 11.54% of the salary is taken by 3 employees in the salary range of less than
5000,53.85% of salary is taken by 14 employees in the salary range of 5000-10000,19.23% of
salary is taken by 5 employees salary range of 10000-15000 and remaining 15.38% of
employees salary is taken by 4 employes salary range is more than 15000.

Chart 4.7: Salary wise distribution in the organisation

salary distribution
60

50

40

30

20

10

0
less than 5000 5000-10000 10000-15000 more than 15000

Interpretation: From the above chart ,it can interpret that out of 26 employees at
suprajit,53.85% of the employee were paid salaries more than Rs.5000-10000 and about
11.54% of the employees were paid salaries less than Rs.5000.
Table 4.8: Other benefit provided to employees in the organisation.
Particular Other benefits Percentage

DA 26400 26.83
HRA 27600 28.05
CCA 27600 28.05
Conveyance 16800 17.07
Total 98400 100

Analysis: From the above table analysis the employe gets other benefits like DA,HRA,CCA
and Conveyance. From that Rs 22000 DA for each employee in the range of 5000-10000,
Rs 2300 HRA and CCA for employees in the range of 5000-10000 and Rs 1400 Conveyance
for each employees in the range of 5000-10000.

Chart 4.8: Other benefit provided to the employees in the range of 5000-10000.

Salary range of 5000-10000

30

25

20

15

10

0
DA HRA CCA CONVEYANCES

Interpretation: From above chart ,it can be interpreted that for each employee will get HRA
and CCA are the more beneficial than compare to other benefits and conveyance is less
beneficial compare to other benefit
Table 4.9:Office expenses cost provided by the organisation
Particular Office expenses cost For 26 employees Percentage
2020-21 6747309.77 259512 36.74
2019-20 5782612.04 222408 31.49
2018-19 5833255.22 224356 31.77
Total 18363177.03 706276 100

Analysis: above table analysed the organisation contribution towards office expenses to
employes that year 2020 Rs 259512 was allotted, year 2019 Rs 222408 was contributed and
year 2018 Rs 224356 was contributed to office expenses cost in the organisation.

Chart 4.9 :Office expenses cost incurred for organisation

Office expenses
38
37
36
35
34
33
32
31
30
29
28
2020-21 2019-20 2018-19

Interpretation: Above chart, it as interpreted that the office expenses provide to the
organisation to employees increased year on year.
1.in 2019:cost decreased by 0.28% compare to 2018
2.in 2020:cost increased by 5.25% compared to 2019
2018-19:cost increased by 4.09%.
Table 4.10: Computer maintance cost provided by organisation.
Particular Computer For 26 employees Percentage
maintance cost
2020-21 1014367 39014 26.44
2019-20 1462051 56233 38.11
2018-19 1360101.52 52312 35.45
Total 3836519.52 147559 100

Analysis: from the above table analysed the computer maintance cost provided to employees
in the year 2020 Rs 39014 cost incurred, in the year 2019 Rs 56233 cost incurred and in year
2018 Rs 52312 cost incurred.

Chart 4.10 :Computer maintances cost provided by organisation to employees.

computer maintenance cost

45

40

35

30

25

20

15

10

0
2020-21 2019-20 2018-19

Interpretation: Above chart, it as interpreted that the computer maintenance cost provide to
the organisation to employees fluctuated year on year.
1.in 2019:cost decreased by 2.66% compare to 2018
2.in 2020:cost increased by 11.67% compared to 2019
2018-19:cost increased by 9.01%.
Table 4.11:Postage/courier charges /telephone cost.
Particulars Postage/courier/telephone For 26 employees Percentage
cost
2020-21 5894929.79 226728 33.57
2019-20 6384437.33 245555 36.35
2018-19 5282706.12 203181 30.08
Total 17562073.24 675464 100

Analysis: From the above table analysed the postage/courier/telephone cost in the year
2020 Rs 226728 incurred,in the year 2019 Rs 245555 cost incurred and in the year 2018 Rs
203181 cost incurred.

Chart 4.11: Postage /courier charges/telephone cost.

Postage/courier charges/telephone cost

40
35
30
25
20
15
10
5
0

2020-21
2019-20
2018-19

Interpretation: From the above chart interpreted that the postage /courier charges/telephone
cost provided by the organisation to employee it fluctuated year to year .
In 2019:cost decreased by 33.37% compared to 2018.
In 2020:cost decreased by 1.74%compared to 2019.
2018-2020:cost decreased by 35.11%.
Table 4.12: Placement cost
Particulars Cost Percentage
Booking of conference hall at 15000 24.86
hotel
Technical expert 10000 16.57
conversation charges
To and flow expenses of 10000 16.57
candidates
Hotel booking expenses 10000 16.57
Boarding and loading 10000 16.57
Arrangements of internal 2500 4.14
commutation
Cost of arrangement of paper 850 1.41
and documents
Sojan expenses of candidates 2000 3.31
Total 60350 100

Analysis: From the above table analysed that the placement cost incurred for the organisation
is booking of conference all at hotel is 15000,Technical export conversation charges is Rs
1000,To and flow conversation charges is Rs 1000,hotel expenses of candidates rs 10000,
Boarding and larding is Rs 10000, arguments of internal communication is Rs 2500,cost of
arguments of paper and documents Rs.850 and sojan expenses of candidates Rs 2000.
Chart 4.12:Placement Cost

Placement cost

booking of conference hall at hotel

technical expert conversation charges

to and flow expenses of candidates

hotel booking expenses

boarding and loading

internal communication

cost of arrangement of paper and documents

sojan expenses of candidates

0 5 10 15 20 25

Interpretation: From the above chart interpreted that the placement cost can be classified
into different costs. The booking of conference hall was the most significant element of cost
incurred, at 24.86% and the cost of arrangement of paper and document was found to be least
at 1.41%.

Table 4.13: Training Cost

Particulars Cost Percentage

Cost of training center 20000 32.79
Profession charges of trainers 30000 49.18
Statistical ,hand book,and arrangement 3000 4.92
charges
Food arrangement charges 2000 3.28
Commutation facility offices to trainees 5000 8.20
centre(to &fro)
Implementation at placement work 1000 1.63
Total 61000 100
Analysis: From above table analysed that the training cost incurred in the organization

is cost of training centre is Rs 20000, profession charges of trainers Rs 30000, Statistical

Hand book kit cost Rs 3000, food Arrangement charges Rs 2000, commutation facility

Rs 5000 and Implementation at placement work Rs 1000 is incurred.

Chart 4.13: Training cost

Training cost

cost of training center

profession charges of trainers

statistical ,hand book,kit and arrangement

charges

food arrangement charges

communication facility offices to trainees

center(to & fro)

implementation at placement work

0 10 20 30 40 50

Interpretation: from the above chart interpreted that the training cost incurred for the
company placement is classified to different cost that helps new employees and trainers will
train the employees with good intension. In profession charges of trainers is 49.18% in
placement cost and implementation at placement work cost is 1.63% in training cost.
CHAPTER 5
FINDINGS
 It was discovered that most of the workers in the association are male contrasted with
the female competitors.
 It can be seen that an area insightful worker set in the association is more in
Karnataka i.e., 37.5% when contrasted with other territorial zones in India.
 It can be seen that Suprajit Automotive, experienced workforce is in more prominent
extent yet openings are additionally accessible for more youthful workforce.
 It saw that assignment shrewd dispersion in the association thinking about that fitter
more when contrasted with other assignment in the association more representatives
place for other assignment.
 It can be seen that the preparation programs in the association are successful in
expanding the productivity of the workforce.
 From above graph, it tends to be deciphered that 42.30% of the workers who
experienced the preparation program evaluated it as fantastic and discovered it of
incredible esteem while just 3.85% discovered it of least worth.
 It was seen that there is a year on year increment in the all-out compensation paid to
 representatives essentially on account of an expansion in the quantity of workers.
 It was seen that out of the 26 representatives at Suprajit, 53.85% of the representatives
were paid pay rates more than Rs. 5000-10000 and about 11.54% of the
representatives were paid pay rates under Rs.5000.
 It was seen that the HRA and CCA benefits are increasingly gainful when contrasted
with different advantages and transport is the least gainful contrasted with all other
advantage.
 It was seen that the postage/messenger charges/phone cost gave by association to
employee’s varied year on year changed. In 2018: cost diminished by 33.37%
contrasted with 2017 In 2019: cost diminished by 1.74% contrasted with 20182017-
2019: diminished by 35.11%. It was seen that the power and water charge cost gave
by association to representatives expanded year on year. In 2018: cost expanded by
0.94% contrasted with 2017 In 2019: cost expanded by1.16% contrasted with 2018
2017-2019: expanded by 2.1%
 It was seen that the fix and support cost gave by association to representatives
diminished that year on year. In 2018: cost diminished by 33.37% contrasted with
 2017 In 2019: cost diminished by 1.74% contrasted with 2018 2017-2019: diminished
by 35.11%
 It was seen that the arrangement cost can be characterized into various expenses. The
booking of gathering corridor was the hugest component of cost acquired, at 24.86%
and the expense of game plan of paper and report was seen as the least at 1.41%.
 It was seen that the preparation cost can be arranged into various expenses. The
proficient charges of coaches were most critical component of cost brought about, at
49.18% and the expense and execution at arrangement work cost was seen as least at
1.63%.
SUGGESTIONS
 The association need to give more chances to female representatives moreover.
 The Suprajit needs to recruit more workers both in experienced just as more youthful
workers.
 There is just a peripheral change that was seen in the pay paid out to representatives.
There is a degree for a more profound examination of the reasons in contrast with the
development watched and arranged by Suprajit.
 Through the investigation, it was seen that fitters are more in the Suprajit, so expand the
operational action by giving work openings.
 Since, it was discovered that preparation programs are consistently successful in
improving the exhibition and proficiency of the workers the preparation programs need
to be deliberately arranged and executed for improved representative execution and
effectiveness.
 Since, it was discovered that a few workers don’t esteem the preparation programs as
much; Suprajit needs to make an endeavour to urge the workers to apply what they realize
during the preparation and impart the criticalness of such projects to the individuals who
underestimate them and support more noteworthy association what's more, investment.
 The Suprajit spends more on the inns for position, so cost can be enhanced by opening
own instructional hub for position.
 The Suprajit ought to give every single fundamental prerequisite to their workers which
can lessen the turnover of the workers and diminish the expense of enlistment of new
workers.
 The instructional hub and expert charges of specialists is more, so the Suprajit should
concentrate on diminishing those expenses and distribute the assets for other preparing
charges. Along these lines keeping up soundness in costs.
 EPF is useful for the representatives and useful to the Suprajit so the Suprajit ought to
proceed with same. ESI gives wellbeing and security to representatives at the hour of
outcome, so focus on security measure.
 The voyaging charges will build year on year, so give quarters to representatives close to
the Suprajit to evade the voyaging cost.
Conclusions:

The study has enabled me to understand Human Resources Accounting Practices in Suprajit
Automotive. In general, such a study will enable to know the HR accounting practices of
Suprajit Automotive during the study it was observed that salaries of employees were
satisfactory and hence there was less employee turnover. It also helps to run the operational
activities smoothly. But it was observed that the placement cost was classified into eight
different cost - each one incurred at different costs which is showed in study and it was
observed that the training cost are incurred to train the new employees as well as existing
employees hence organization can avoid the losses by making mistakes while operating
activities. It was evident that Human Resources are very important for organization, without
using human resources properly, organization cannot achieve goals / objectives /aims of the
organization.
QUESTIONNAIRES

I am PRIYA of 4th semester MBA Sir MVIT . I am conducting research on

“Analytical study of human resources accounting prectices at suprajit
automotive company doddaballapur ”. I am very grate ful to you could spare
few minutes to help me in filling the questionnaire which is the part of my
project report. Your co-operation will be highly appreciated and I assure you
that this information will be used for the study purpose only and it will be kept
very Highly confidential.

NAME:___________________

ADDRESS:_______

Q.1) GENDER : FEMALE: ______ MALE:_______

Q.2) LOCATION:

a.Karanataka ( )

b.Tamil nadu ( )

c.Andra Pradesh ( )

d.Mumbai ( )

Q.3)AGE ________

Q.4) WHAT KIND OF DESIGNATION OF THE EMPLOYEE IN THE ORGANISATION?

a.techician operator b.power coating operator c.fitter d.trainee engineer

e.office assistance f.receiptionist g.laboratory assistant h.testing engineer

_______________________________

Q.5)IS THE ORGANISATION GIVES THE POSITIVE EFFECT TRAINING ?

a.Yes ( ) b. no ( )

Q.6) WHAT KIND OF EFFECTIVENESS TRAINING PROGRAM RECIVED BY THE

EMPLOYEEE?

a.Poor b.Average c.Good d.Excellent

Q.7) WHAT KIND OF SALARY DISTRIBUTION GIVEN IN THE ORGANISATION?

a.less than 5000 b.5000-10000 c.100000-150000 d.more than 15000

Q.8) WHAT ARE THE OTHER BENEFIT PROVIDED IN THE ORGANISATION?

a. DA b. HRA c. CCA d.Conveyance

Q.9) HOW MUCH DOES THE ORGANISATION PROVIDE OFFICE EXPENSES?

a.36.76% b.31.49% c.31.77%

Q.10) HOW MUCH COST MAY OCCUR FOR COMPUTER MAINTENACE?

a.26.44% b.38.11% c.35.45

Q.11) HOW MUCH IT COST FOR POSTAGE/ COURIER CHARGES/TELEPHONE

COST?
a.33.57% b.36.35% c.30.08

Q.12)HOW MUCH DOES THE PLACEMENT COST OCCUR IN THE ORGANISATION?

__________________________________________________________________________

Q.13)HOW MUCH DOES THE TRAINING COST OCCUR IN THE ORGANISATION?

_______________________________________________________________________

Q.14)ARE YOU AGREED OR DISAGREED WITH THE FOLLOWING FEEDBACK?

a. agree b.disagreed