99th Meeting of Board of Directors held on 31st May 2005

MINUTES OF THE 99th MEETING OF THE BOARD OF DIRECTORS OF GHRSSIDC HELD IN THE CHAMBER OF SECRETARY INDUSTRIES ON 31ST MAY, 2005 at 3.30 P.M

The following members were present

1) Mrs. Jayashree Raghuraman, IAS Secretary (Industries) Chairperson
     
2) Mr. Dharmendra Sharma Secretary (Finance) Director
     
3) Mr. Yetindra Maralkar, Director of Industries, Trade & Commerce Director
     
4) Santosh A. Borkar Managing Director

Agenda No.1

Chairman briefed the Board on the communication received from Under Secretary (Industries) vide order No.15/40/2004-IND(part) dated 31st May, 2005 in connection with all 14 employees appointed on contract/daily wages by the Corporation may be terminated as per laid down procedure and or they may be given one month's salary in lieu of notice.

Chairman further briefed the Board that this order is. based on a complaint received by H.E. the Governor of Goa on 5th May, 2005 and information provided by M.D. GHRSSIDC vide letter No.GHR/GEN/556 dated 20th May, 2005 to the Office of the Governor.

Chairman further felt that clarification needs to be sought from the M.D. on the following.

1) Procedure followed and financial implications involved while appointing the staff.
   
2) The need and justification for recruiting and appointing the staff.
   
3) The need for recruiting on contract basis without following Recruitment Rules, if any or alternating in the absence thereof.
 

M.D. in his clarification placed the following documents on record

1) Copy of the Recruitment Rules
   
2) Board Resolution NO.912, 89th Board Meeting held on 6th September, 2001
  Resolution No.942, 93rd Board Meeting held on 17th February, 2003
  Resolution No.959 under Any other item, 95th Board Meeting held on 23rd Aug.2003
  Any other item, 95th Board Meeting held on 30th Aug.2004
   
3) Copy of the paper ads released in various Newpapers.
   
4) The Starred LAQ No.5, Starred LAQ No.26, Starred LAQ No. 32 and Starred LAQ No.35 and reply sent by the Corporation in the Legislative Assembly.

M.D. further clarified that Corporation had incurred Rs.25 lakhs and Rs.75 lakhs losses during the financial year 2001-02 and 2002-03 respectively and the financial position of the Corporation was not good at that time. Handicrafts Development Plan prepared and approved by the Board was sent to the Government. Keeping this fact in mind and not to have any further financial burden, Corporation with the consent of the Board decided to recruit employees on a contract basis for a period of six months so that in case there is no turn around in the performance of the Corporation, their services could be terminated within 24 hours.

M.D. said that even though sufficient number of sanctioned posts (as shown below ) were available as per RRs, however, due to economic constraints all the posts were not filled up.


Position available in RRs No of posts approved No. of posts Filled No of posts vacant
General / Manager 1 Nil 1
Company Secretary   Nil 1
Manager   2 3
Asst. Manager   1 6
Supervisor Marketing   4 1
Asst. Sup Marketing 8 - 8
Asst. Marketing 8 - 8
Sr. Salesman/salesgirl 4    
Salesman/Salesgirl 14 10  
Jr. Artist 1 1 -
Supervisor Accounts 4 -  
Accountant 8 8 -
Asst. Accounts 8 2 6
Jr. Typit/Asst. 5 2 3
Ps to MD/Chairman
Sr. Steno
3 3 -
Jr. Steno 2 2 -
Driver 7 6 -
Helper/Watchman   16+2 7
Storeskeeper 2 1 1
I/c cum Salesman 1 - 1
  122 64 58

M.D. also further clarified that as the recruitment were not regular appointments and were on contract basis, therefore, there was no need to strictly follow RRs. However, while recruiting these contractual appointees, the process required to be followed was taken care. In the interest of the Corporation and to keep efficiency level high these appointees were given break every six months and those who completed 240 days in a year were paid retrenchment benefit so that they do not claim for regularisation.

Handicrafts Development Plan was being implemented and massive renovation of emporia and opening of new emporia was undertaken. We renovated 6 emporia and opened up 3 new emporia. All tee 14 new recruits were placed as follows

Name of the employee Emporia Weigh-bridge at Verna Yard Handicrafts Marketing Steel Marketing Handicrafts stores Common Facility's Center Bichokim Remarks
Sulaksha Shirodkar         1    
Santoshi Pandit 1            
Tanuja Shirodkar 1            
Rupesh Keni 1            
Lalita Desai 1            
Manisha Naik 1            
Shanta Kantak 1            
Manda Naik 1            
Sanjay Naik   1          
Pravin Naik   1          
Pradeep Pandit   1          
Prasad
Paranjape
          1  
Krishna Desai       1      
Sandeep Shet     1        
  7 3 1 1 1 1 14

The results for the first year i.e. 2003/04 were very encouraging, handicrafts sales shot up to 68.4 lakhs as compared to Rs.32.33 lakhs, average since 1980. In other words, handicrafts sales which had never crossed Rs. 30 to 35 lakhs in the last 23 years, saw a new growth of 100%. This has also helped in creating self employment to local artisans, directly and indirectly benefiting around 1000 artisans in Goa.

For the financial year, 2004/2005 Handicrafts sales touched a new height and crossed Rs. 1 Crore business. And the indications are, that this can grow still further and our target for the financial year 2005/06 is Rs. 1.5 Crores.

 

To support the requirement of all the 11 emporia in Goa and to make it more convenient for poor artisans a full fledged Handicraft Store was established which apart from keeping required Handicrafts inventory, was asked to place MRP sticker on all the Handicrafts items. One new recruit was posted in the Stores to assist storekeeping.

Corporation also runs a Common Facility Centre at Bicholim. Centre is now renovated and is providing free service to most of the artisans in nearby area. Around 10/15 artisans use this facility to make clay/terracotta items and Corporations buys such items from these artisans and sells through the emporia. This has provided self employment to the locals.

This center also conducts skill upgradation training programmes to old and new artisans on Terracotta/ Clay and Ceramics. One contract labour is employed here to process clay and for other casual work of the Centre. He is paid daily wages.

To achieve our targets and growth, we have plans to implement following initiatives.

  1. New avenues, increase availability.
  2. Modernise Handicrafts stores to support the emporia.
  3. Increase the Marketing activity and promotion on handicrafts.

This needs more young manpower with different marketing and selling skills. Recruitment was therefore done keeping above objective in mind and the results have shown that the recruitment and the cost was justified.

M.D. said that it is important to note that although this Corporation is known as Handicrafts Corporation, 60% of the revenue of the Corporation comes from the sale of Steel to SSI & Other units. 28.2% of the revenue comes from suppliers of various SSI products made to Govt. depts. 3.8% of the revenue comes from Handicrafts. On the other hand 61% of the employees are working for Handicrafts, 12.87% employees for Steel, others in Accounts and for the other sections. Steel therefore remains as a bread earner for the Corporation.

Since 1998, the sales of steel started dropping from Rs.1165 lakhs to 627.27lakhs in 2002/03. So also the profits of the Corporation from Rs.6 lakhs to a loss of Rs.26 lakhs and 74.17 lakhs in the year 01/02 and 02/03 respectively.

Following initiatives were therefore planned and implemented to increase the sales of steel.

  1. To increase the customer base.
  2. To make all the variety of steel available to SSI & others.
  3. To make steel available at 3 different points.

Steel Yard was opened at Verna Industrial Estate. As Weighbridge was a must to weigh incoming and outgoing steel vehicles at Verna, we installed a 40 MT Weighbridge. Apart from our own use, it was decided to keep weighbridge open for other SSI units in the Industrial Estate 24 hours and also generate some extra revenue. Therefore 3 new recruits were placed, to work in 3 shifts at the weighbridge. This was also a great relief to SSI Units in the Industrial Estate who could now get authentic weighment done on a Govt. Weighbridge.

One new recruit, Marketing Trainees was directed to visit all the old and new Steel customers and assess their requirement and availability with us and also to make available all the range in the Stockyard. In the meantime, a Sr. Marketing Manager who was looking after steel for a long time also retired. So some organizational changes were made. Better services, reasonalble prices and credit facilities were offered to some good customers.

Results were encouraging,the downward trend in Steel turnover from 1998 from Rs. 11.65 Crores to 6.27_Crores in 2002/03 increased to 11.14 Crores in 2003/04 and record turnover of Rs.18.07 Crores in 04/05. This has brought the Corporation in a sound financial base


Total turnover of the Corporation for the. year 03 / 04 touched 16.69 Crores and a record turnover of Rs. 26.54 Crores in the financial year 2004/05. Corporation recorded a profit of Rs.4.12 lakhs and around Rs.25 lakhs during the year financial year 03 /04 and 04/05 respectively.

This performance of the Corporation for the financial year 03/04 and 04/05 has proved without any doubt that the Corporation has made huge progress and is now on a sound financial base and contribution of the young new recruits cannot be neglected.

On the issue of different Salaries paid to different employees, M.D. brought to the notice of the Board that all the positions were on Contract basis and on experimental basis and on condition that if the Corporation performs, these employees could be regularized/ absorbed. The salaries paid therefore, were consolidated and based on past experience, last salary drawn and nature of work.

  • In case of emporia staff the consolidated salary paid is Rs.2500/p.m.
  • In case of Weigbridge staff, consolidated salary paid is Rs.3000/p.m. These staff work in 3 shifts.
  • Daily wages were paid Rs.87/ day
  • Marketing Trainee in Steel was a fresh graduate and was paid Rs.3750/p.mL and incentive on achieving target.
  • Marketing Trainee for Handicrafts was paid Rs.8000/- and had a 14 year experience with Companies like Videocon, Samsung and was drawing Rs.1,60,000/p.a. in his last employment.

Board, however, reviewed all contractual appointments made in each area of operation i.e. Emporia, Weighbridge and critically examined the need for such appointments. Board also assessed the impact on the functioning/finance in case of the services of all these contractual appointees is terminated with effect in compliance of the Govt. order. M.D. briefed the Board on the issue. Chart showing placement of new recruits was also discussed at length as given below.

Name of the employee Emporia Weigh-bridge at Verna Yard Handi-crafts Market-ing Steel Market-ing Handi-crafts Stores Common Facility Centre Bichokim Remarks
Sulaksha Shirodkar         1    
Santoshi Pandit 1            
Tanuja Shirodkar 1            
Rupesh Keni 1            
Lalita Desai 1            
Manisha Naik 1            
Shantaa Kantak 1            
Manda Naik 1            
Sanjay Naik   1          
Pravin Naik   1          
Pradeep Pandit   1          
Prasad Paranjape           1  
Krishna Desai       1      
Sandeep Shet     1        
  7 3 1 1 1 1 14

M.D. also said in view of the good performance of the Corporation for the past two years, Board decided in the month. of October 2004 to regularize the services of some of the new recruits. Therefore proposal for their regularization was sent to Govt. for approval, and proposal is pending before the Govt.

Looking at the criticality of the position and not to have any negative financial impact on the Corporation and to avoid closure of some of the emporia, also taking interest of 1000 artisans, Board thought that the services of 7 emporia staff , stores, one steel Marketing staff if removed would have an adverse impact on the functioning of the Corporation. After discussion and deliberations, it was felt that 3 Weighbridge Staff and one Marketing Trainee in Handicrafts may be terminated and compliance report may be sent to the Govt. by 2/6/2005. The functioning of the Weighbridge could be outsourced to a private party.

Board also felt that in view of the critical position of the Corporation brought out in preceding paras, Govt. may be requested to review its decision and take a lenient view to terminate the remaining contract appointees.

Agenda No.2

The M.D. placed the draft RRs for the post of M.D. for the perusal of the Board and the same was discussed at great length.

Following modifications were suggested to the draft keeping in mind the requirement of the post.

  1. Basic Educational qualifications MBA in Marketing & Finance with 10 to 15 years of experience in any Consumer product company.
  2. Minimum 5 years experience at a Senior Level Management.
  3. Experience of managing a minimum Rs.50 Crores turnover Company.
  4. Position to be left open for deputation from Central and State Govt. employees with a 15 year experience as G.M. or equivalent position with MBA in Finance & Marketing as educational qualifications.
  5. First class graduate with overall 20 years experience in any consumer company with a national marketing base with turnover of more than Rs.50 Crores, 5 years out of which should be at a Senior Level Management
  6. 15 years experience as GM in the GHRSSIDC Corporation with MBA in Marketing & Finance.
  7. Selection may be with approval of the Board and Govt. of Goa.

Board also suggested that M.D., GHRSSIDC should discuss this issue with Fr. Ronald of Goa Institute of Management, as Goa Institute of Management is undertaking a project on H.R. Policies of 5 other Corporations. The Board also suggested to place the RRs for Govt. approval within 2 months.

Item No. 3

Disposal of old vehicles was discussed and Board approved the proposal for the disposal.

Item No. 4.

Renovation of Office at Craft Complex Tender was discussed and Board advised to re tender the same.

As there were no other points for discussing, the meeting ended with a vote of thanks to the Chair.