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1.1 INTRODUCTION
1.2 LEGAL FRAME WORK OF REPORTING
1.3 HUMAN RESOURCE REPORT: OVER VIEW
1.4 A CASE STUDY ON BHEL
1.5 FINDINGS AND SUGGESTION
1.6 CONCLUSION
1.1INTRODUCTION
REPORTING:
Literally reporting means to communicate information to outsiders. Business reporting is
the set of documents prepared usually by companies at the end of an accounting period.
It
generally
contains summary of accounting data for
that period,
with
background notes, forms, and other information. These corporate financial reports are
income statement, balance sheet, cash flow statement, statement of retained earnings and
financial policies explanation. Corporate financial reporting is not only to show the
financial statements of corporate but it includes to highlight important financial data and
to show the application of financial policy which will helpful for different stakeholders
to take appropriate business decision. Corporate financial reporting may be shown at the
end of month or at the end of each quarter or at the end of year.
IMPORTANCE:
The reports prepared by the company disclose both financial and non-financial
information about the operation of the company. This information is very much helpful
to different stake -holders for taking important decisions. Lets see how these reports are
important to different stake holders.
1 Management-To know the operational efficiency.
2 Board of Directors - To take important financial, investment and dividend decisions.
3 Government-To access firms compliance with regulatory frame work and tax.
4 Investors and shareholders To assess the earning capacity and profitability of the firm.
5 Creditors and Bankers To assess short-term as well as long term solvency position of
the company.
6 Society-To find out whether the company properly discharges its obligations towards the
society
HUMAN RESOURCE REPORTING
As environmental organizations prepare for the retirement of the baby boomer
generation and struggle to retain top talent in a competitive industry, the need to develop
effective recruitment and retention practices is becoming a top priority.
Human resources (HR) are the most important resources for nations and organisations.
The Indian Planning Commissions India Vision 2020 visualises that By 2020 the
people of India will be better educated, healthier and more prosperous than at any time in
its long history. This report also projects HR as the most important determinant of
overall development, and promotes human development in all its dimensions as the
highest strategic priority of India, at present as well as in the future. These views are in
line with the philosophy of the United Nations Development Program (UNDP), which
states that People are the real wealth of a nation (United Nations Development
Program, 2010).
1.2LEGAL FRAMEWORK UNDER COMPANISE ACT 2013
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The earlier discussion points to the importance and benefits of HR disclosures for the
organisations, as well as the need for such disclosures. Theories explaining companies
decisions to disclose HR information voluntarily in their annual reports include agency,
stakeholder, legitimacy and resource dependence. Many researchers working in the CSR and
IC fields have argued that the stakeholder theory explains the mechanism for corporations
HR disclosures. Used stakeholder and legitimacy theories to explain HR disclosures.
Demonstrate that stakeholder theory and the closely linked legitimacy theory suggest that
organisations, as part of their legitimating processes, voluntarily disclose HR information
over and above mandatory requirements, in order to meet real or perceived stakeholder
expectations defined a stakeholder as someone with a right to account. Companies should
fulfil expectations and work for the gain of all the stakeholders, and the efforts made by these
companies are conveyed to various interested parties asserted that companies disclose HR
issues because investors, employees and society value such information. Several empirical
studies explain and support this assertion.
OTHER LAW GOVERNING HUMAN RESOURCE
Factories Act, 1948
Industrial Disputes Act, 1947
Employees Compensation Act, 1923
Payment of Wages Act, 1936
Minimum Wages Act, 1948
Payment of Bonus Act, 1965
Payment of Gratuity Act, 1972
Employees State Insurance Act (E.S.I) Act, 1948
Employees Provident Funds and Miscellaneous Act, 1952
The Child Labour (Prohibition and Regulation) Act, 1986
1.3 HUMAN RESOURCE REPORT: OVER VIEW
With the growth of knowledge-based industries around the world, HR are an increasingly
important and critical component of the operational efficiency of all businesses. Human
capital is viewed increasingly as a value driver asset in leading industries in an era of fast
growing technological innovations and service sector growth. Therefore, the accounting
profession has been under pressure from various stakeholders such as investors, creditors,
suppliers, financial analysts and employee groups to provide financial and non-financial
disclosures regarding human capital-related accounting issues, such as executive and
employee salary information, stock-based compensation and employee health and safety
provisions. Considering the importance of HR for the companys growth and a need for HR
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related disclosures in the corporate sector, this study aims to investigate the nature and level
of HR information provided by the top performing Indian companies in their annual reports.
The study also explores the differences in HR disclosures across various industrial sectors.
Using stakeholder theory perspective, the focus of this study is on how corporations project
the importance of HR to various stakeholder groups by exploring the answers to the
following research questions:
1.4CASE STUDY ON BHARAT HEAVY ELECTRICAL LIMITED
About the organization
Embarking upon the 50th Golden Year of its journey of engineering excellence, Bharat Heavy
Electricals Limited (BHEL) is an integrated power plant equipments manufacturer and one of
the largest engineering and manufacturing company of its kind in India engaged in the design,
engineering, manufacture, construction, testing, commissioning and servicing of a wide range
of products and services for the core sectors of the economy, viz. Power, Transmission,
Industry, Transportation (Railway), Renewable Energy, Oil & Gas and Defense with over 180
products offerings to meet the needs of these sectors. Establishment of BHEL in 1964 was a
breakthrough for upsurge in Indias Heavy Electrical Equipment industry. Consistent
performance in a highly competitive environment enabled BHEL attain the coveted
Maharatna status in 2013.
MANAGEMENT APPROACH
Labour Practices & Decent Work BHEL has been a frontrunner in the area of human resource
management (HRM) and among the pioneers to have documented the HRM policies and
rules in the form of a Codified Personnel Manual. The purpose of this document is not just to
give information on the benefits and entitlements but also to ensure transparency and
uniformity of implementation which is the cornerstone of corporate governance. BHEL has
formed HR Committee and Remuneration Committee on Performance related pay to take
care of interest of the employees. Documented HR Policy is To ensure availability of
competent, motivated and effectively contributing human resource and to facilitate
achievement of full potential of employees at all times to realize the organizational mission.
The Company strongly advocates elimination of all forms of forced and compulsory labour. It
neither subscribes to nor indulges in such coercive practices. Towards this, it never asks its
employees to deposit their original documents pertaining to their education qualifications or
Date of Birth. Uniform set of rules are mentioned in The Personnel Policy of BHEL, which
apply equally to all employees, irrespective of factors such as sex, caste, religion, race etc. All
recruitments are conducted in a transparent and impartial manner, giving equal opportunity to
all eligible candidates, without any discrimination whatsoever.
TRAINING
The Human Resource Development Institute (HRDI) situated in Noida, is the cornerstone of
BHELs learning infrastructure along with the Advanced Technical Education centre at
Hyderabad and Human Resources Development Centres (HRDC) at different Units.
Consistent with the HRD mission statement to promote and inculcate a value based culture
utilizing the fullest potential of human resources for achieving the BHEL mission, the HRDI
through a step by step long term training process and short term need based programs,
enables human resources to hone their potential.
Women
5.56
Disabled person
2
Minority group
8.4
3.5
0.3
5.7
It has been BHELs endeavour always to act as a responsible corporate citizen committed to
working for welfare of the society through inclusive growth aimed at capacity building,
empowerment of communities, environment protection, development of backward regions,
and up-liftment of the marginalized and underprivileged sections of the society. Company has
supported various social initiatives across the country by undertaking projects in diversified
areas like Community Development, Health & Hygiene, Education, Environment Protection,
Disaster Management, and Talent Up gradation/Skill Development. BHEL undertakes CSR
initiatives for implementation through various NGOs/Trusts/Social Welfare Societies engaged
in social activities throughout the country.
1.5 FINDINGS
This study shows that
1. The Policy of the company provides facilities for all round growth of individuals by
training in-house and outside the organization, reorientation, lateral mobility and selfdevelopment through self motivation.
2. The Policy grooms every individual to realize his potential in all facets while contributing
to attain higher organizational and personal goals.
3. The Policy implements equitable, scientific and objective system of rewards, incentives
and control.
1.6 CONCLUSION
Although human resource reporting is non mandatory as per companies act 2013 still BHEL
has report all the relevant facts and figure relating to its human recourses to its various stake
holders and society at large .