2003-2004 - Cgglobal.com

the Company’s interest coverage ratio which, has improved from 2.7 times last year,
to 4.7 times this year. During the year under review, several treasury actions were
initiated for proficient management of cash flow surpluses and also leveraging its
exposure in foreign currency which has resulted in substantial forex earnings of Rs. 6
crores. Efficiency in working capital management reduced the net working capital
from Rs. 283 crores at last year end to Rs. 246 crores at this year end, despite an
enhanced level of operations during the year.
The above treasury management actions will be further strengthened by long term
loans from foreign lenders which have already been negotiated at attractive interest
rates, to meet the Company’s funding requirements for prospective growth
opportunities.
Human Resources
To consolidate the performance culture across the Company, the Performance
Management System thus far applicable to Executives, has also been extended to
Staff. To improve the capability profile of new Executives, the Company has focused
on recruiting only professionals. Towards receiving Executive feedback on a variety of
issues, for the first time, an Executive Engagement Survey was conducted in
partnership with the Gallup Organisation, an International firm specialised in this
area. This survey manifested strengths as well as weaknesses. The Company is in the
process of initiating actions for addressing weak areas of Executive Engagement.
During the year, the methodology for Grading of Divisions has been strengthened,
and also extended to include Financial Parameters as well as Non-Financial Enablers.
In addition to its efforts last year, this year witnessed a further emphasis on filling up
key vacancies with professionals in the younger age groups. To improve its
performance capabilities, the scrutiny and quantum of sub-optimal performers has
intensified.
Net working capital
declined from
Rs. 283 crores to
Rs. 246 crores
despite an
enhanced level of
operations during
the year.
In furtherance of its philosophy to induct professional youth, this year, the Company
recruited 48 Engineers, from Institutes of repute. The Company’s training initiatives
during the year included Programmes on Marketing Strategy and Execution, Six
Sigma for its Divisional and Regional teams, Appraiser Training, Executive
Engagement Training and Behavioural Event Interview Techniques, to strengthen the
Executive promotion process. In the area of CGPS, the training initiatives were
extended to strengthen Applicator capabilities across the Company and productivity
enhancement through engineering methods. During the year, through the cooperation
of its workers and Unions, the Company concluded long term Wage
Settlements at five of its Divisions, with a unified emphasis on increase in labour
productivity.
Six Sigma
The Company has made considerable progress towards integration of the Six Sigma
methodology in its manufacturing processes, with the ultimate objective of achieving
"Product Quality As Perceived By Customer". This methodology was actively pursued
during the year under review for 10 of the Company’s products for which, Critical To
Quality (CTQ) characteristics were identified based on market feedback. In addition to
Divisional teams, for authenticity of data, Regional teams have also been trained in
the Six Sigma methodology for proper capture of the Customer’s Voice. In addition,
for these selected products, stringent control measures have been introduced with
suppliers, to ensure that inputs support the Six Sigma quality. These efforts have
resulted in a manifold improvement in the CTQs with a substantial reduction in
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