Navayuga

November - December - 2010

NAVAYUGAnews Special Edition

AN ISO 9001-2008 COMPANY

1259, Lakshmi Towers, Rd # 36, Jubilee Hills, Hyderabad - 500 033.

Tel: +91-40-2355 7196 Fax: +91-40-2355 7190 www.necltd.com

NAVAYUGAnews special edition

November - December - 2010

Message by Mr. C. Sridhar, Managing Director Good morning, and welcome to this important get-together!

I am glad Jagadish and team have put this 2-day programme together and it is wonderful to see all of you here. Thank you for joining us on Christmas Day and on Sunday and I am confident this will be time well spent.

I was very keen to be with all of you here today and to address this team together and wanted to share some important thoughts regarding the future.

As you are all aware, Navayuga has achieved a remarkable growth trajectory and we are amongst the top infrastructure organisations in the country. It is important to note that we are in what is not only the most critical but perhaps the most exciting industry in the country today. In the last 15-20 years, from the mid-90s onwards, the most exciting industry in the country was ICE – Information Technology, Communications and Electronics. We are now in the NEW ICE – Infrastructure, Construction and Engineering!

Recent surveys among various sections of society, students of engineering and management, all levels of management, and comments from senior leaders in government, have confirmed that infrastructure is most for the emergence of India as a global super power. This also places a huge responsibility on us.

Navayuga is committed to the highest standards of excellence and quality and we believe we are playing an important role in nation building.

The last few years have seen Navayuga achieve rapid growth – and we have maintained our track record of excellent quality and on-time delivery of projects – ALWAYS. These continue to be the guiding philosophies and as emphasized by our Chairman, these are non-negotiable. We will deliver excellent quality and well within the committed time lines.

We have transitioned from a small company to one of the largest companies in the country, and we will continue this rapid growth and will soon be counted among the finest infrastructure conglomerates in the world. Some key changes have taken place: First – the scale of our work has increased. Most of our projects are above 500 Cr, going upto over 2000 Crores Second – the complexity and diversity of work we handle has increased and we are able to take on far more difficult projects now Third – our geographical foot print has expanded and we have projects underway across the country, many in far off locations like Arunachal and J&K

Fourth – and importantly – most of our work is now on BOT basis, as against EPC, which essentially means we are building these assets for ourselves, for 20 years or more. These roads and bridges are assets to us just like factories are to product companies.

If we take only the works we have in hand, and say we take 5 years to complete them [obviously we have to complete in much less time], as a team, on average, we need to complete over Rs. 20 crores of work per day, everyday! This scale up has also meant that the value of the work managed by our Project Managers and Coordinators – which is all of you in this room – has gone up substantially! Now this kind of scaling up is possible only if our team can also scale itself up to this new scenario and acquire new skills and competencies and implement suitable management techniques.

As explained to you earlier, we aim to become a globally known and recognized player. A globally competitive company is built on three pillars – PEOPLE, TECHNOLOGIES AND PROCESSES PEOPLE We have continued to invest in people. Delegation of authority and decision making to project managers is almost complete. Most of our team has been with us for many years and has grown with us – and will also be with us as we achieve newer and higher milestones. As each of you have grown, it is the responsibility of each and everyone of you to develop the next level of engineers and managers such that they are ready to independently handle future projects as project managers. Developing,

Coming together, sharing together, working together, succeeding together

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NAVAYUGAnews special edition

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motivating and growing your people is the most important contribution to the organisation’s and to your own future.

this because I am convinced about the benefits of doing this – to each one of us as individual project leaders and to the company as a whole.

TECHNOLOGY

Let me assure you that this is not difficult to do, will not take too much time, but will add tremendous value. We have all got used to our own separate ways of doing things which has worked well so far. Going forward, we need to build the most efficient way of taking care of most elements of the project. Thus implementing SIMS is the most important initiative for the company. It will mean only a slight change in the way you run your projects but it will need discipline in ensuring it is implemented successfully.

As all of you have known and seen over the years, we have always invested in the latest technologies. All our equipment decisions are based on productivity, efficiency, speed, accuracy and engineering parameters, with acquisition cost as only one of the factors, and never the most important factor. We believe technology is a competitive advantage and we will always have modern and contemporary technology. In addition to technology and equipment at sites, we have continued to invest in all other areas too, like in IT and computing and telecom. I am also pleased to inform you that very soon all our sites will be connected over video conferencing and a high speed data network to ensure real time decision making is possible in an environment similar to that of global corporations.

This will further help in information sharing, ongoing reviews and central inputs for all projects. This is another example that we will remain at the cutting edge of technology adoption across all aspects of our business.

PROCESSES As you know we have excellent people and as I just explained, we are highly competitive on technology. The area where we have most opportunity for improvement is processes.

In simple terms, a process is the way a defined activity is performed, disaggregated into small, discrete steps. As management techniques get applied to activities that are routine or repetitive, a process map can be defined. These can then be outsourced as happened in the BPO – or Business Process Outsourcing revolution from which the Indian economy gained so much. The guiding purpose for such management decisions is usually cost optimization. In addition to the routine or repetitive activities, critical activities or processes are identified and these are at the very heart of a company’s business. By building strong processes around these critical areas, companies can assure themselves of efficiency and economic benefits, as also sustainable success. In preparation for the next phase in the growth of our company, we will invest in creating, implementing and strengthening critical processes without which we cannot achieve our objectives.

In our company’s business, project management and monitoring is the most important aspect. We have done an outstanding job so far in managing to build such a large portfolio of work. We can now go to the next level by putting in place a successful set of processes, and that is the primary objective of this event – to work towards speedy and full implementation of SIMS. I wanted to be the one setting the ball rolling on

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I also want all of you to know that SIMS is intended to help the company take better decisions and improve our efficiency and should not be viewed like a check on performance. Regular and timely updation on SIMS will enable us to improve the managerial capacity of this team, as it will help free up more time and will also make us much more competitive. Much like we are putting in place processes for the health and safety and environment management [HSE], compliant with ISO requirements, SIMS will also be implemented and I am counting on all of you for your complete support.

Over these 2 days, you will receive comprehensive training on SIMS – but we did not want to lose the opportunity of having all of you here together and so two notable elements have been included in the agenda. This afternoon, there is workshop on change management and team building, and tomorrow afternoon, we will delve into the scriptures for an inspirational address relating to morality and ethics.

I am sure you will benefit from these sessions as they will complement your all round development. I am looking forward to building the Navayuga of tomorrow with all of you and want to assure you that you can count on me – as much as I count on all of you!

The power of 1 You would have seen the line behind me – The power of 1 – this is meant to inspire us all to come together and work as one team; across all locations; across all functions – be it finance, HR, purchase, or any other; across all projects; across all businesses; across the Group, and unleash the power of 1, and that will help us achieve even greater heights! While on the one hand it denotes individualism, on the other it represents oneness, teamwork, unity…with respect for each individual. It is our aim to empower employees at all levels, and to build a collective passion for long term success. Let us come together and unleash the Power of One! Thanks you for everything you do for the Company and all the very best.

Follow your bliss and the world shall open doors for you

Welcome Notes and Introductory Speech

By G. Srirama, President (Projects) Dear friends, This meeting has been called to review the overall status of the company and to chalk out a strategy to face the challenges ahead due to the changed circumstances. It may be appreciated that the nature of forthcoming jobs will be on BOT basis. Therefore, there will not be a Benchmark available to measure our performances unlike the previous years where we had a defined BOQ and defined quantities. Now, we have to set our own benchmarks on all the aspects like quality, safety, and rate of progress and the cost of execution. We also have to execute the jobs without constant supervision of clients or consultants.

Therefore, our responsibility has multiplied since we will be responsible for the quality and safety of the structures we are going to build. Our stakes are also very high on the cost aspects since we are investing our own funds in these projects. Self regulation will be the key if we have to succeed in BOT Projects. We have assembled here to discuss the necessary changes required in our attitudes based on the changed circumstances. Unless we have a system of reporting each and every aspect of the work to a monitoring team at Head office, it will be difficult to monitor the overall performance of the project.

For this, Monitoring cell has come out with certain formats to be filled regularly some daily, some weekly and some monthly. Each one of us has to understand the importance and relevance of these formats and impress upon our planning engineers to put their mind in to filling these formats in a correct manner. Any mistake or casual attitude in filling these formats will defeat the very purpose of monitoring and the Project schedule will go haywire resulting in uncontrolled costs and blame game at a later stage.

To avoid these, each project has to prepare a prestart costing of the project which shall be reviewed after all the drawings are released. This shall become the base to monitor the cost of the project. Any major changes in the cost parameters assumed in the beginning have to be brought to the notice of the monitoring cell immediately as and when such changes are observed and the costing revised accordingly. This will help to avoid surprises at a later stage. This will also give us enough time to think of any rectification measures if any to reduce the losses. Major component of the cost is of material. Our main focus should be to reduce the wastage of materials. Proper stacking of the materials and regulation of issue of materials and regular reconciliation of the materials issued versus consumed. To monitor this, there is a format of material reconciliation statement which if religiously filled will give a rough idea about the percentage of wastage of materials. Similarly, formats of cost codes have also been designed which if filled correctly will show us a mirror on the cost of the project. Though, it may seem cumbersome in the

beginning to fill these forms, if these are filled duly understanding the importance attached to them, will be beneficial to the Project. Second aspect of the success of the project is grooming and nurturing of talent among our engineers, foremen, supervisors and other skilled workmen.

Success of the project depends on the constant presence of the same team of engineers, foremen and supervisors throughout the period of the project. For this, it is necessary to have a cohesive and harmonious atmosphere in the project site. There should be constant interaction among the team members on the day to day activities of the project. Talent should be identified and nurtured among young engineers and supervisors. In this regard, I would like to emphasize the policy of the top management. During an informal discussion with our Chairman, he likened the relation between the employer and the employees in our Company to that of a Jeweller and a housewife where the housewife will have an unquestioning trust in the jeweler. The Jeweler has built this trust by his honest gestures and the care for the Gold kept with him without any bond or receipt. The top management expects that similar relation has to develop between the Project in charge and the team under him since the Project in charge is the representative of the Owner of the company at the project sites. Therefore, it may be observed that the functional freedom enjoyed by our Project in charges is unprecedented compared to those in other companies. Therefore, responsibility of the Project in charges in this regard is very high. To my knowledge, I am not aware of any case wherein an employee has left this organization due to ill treatment or harassment or witch hunt by the top management. Similar policy should flow down in all

Life is a Journey not Destination

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NAVAYUGAnews

November - December - 2010

of our project sites. Sub-contractors are also one of the important members of our team and play a very important role in success of the project. It is very common to see nowadays projects suffering for want of good sub-contractors. For this, it is necessary to develop our own group of sub-contractors and make them part of our company. Regular measurement of the work done by the sub-contractors as per the terms of the work order, clear unambiguous terms while issue of work orders, regular payments of the bills, giving a patient hearing whenever they have a genuine problem, prompt finalization of rates of any extra items which were not foreseen at the time of issue of work orders, helping them and guiding them in optimum utilization of materials and man power will go a long way in retaining sub-contractors who will stand by the company even

during adverse hours. Continuity of the same team of engineers, foremen and supervisors and sub-contractors for the entire duration of the project will help the project manager to have better control of the project and for early successful completion of the project. We also have sessions of mutual interaction wherein we can share our problems and solutions. We also have some expert HR counselors giving us tips on how to overcome negative tendencies, how to reduce stresses and other aspects of human psychology which helps us to bring some positive changes in our attitudes. All are requested to participate in the session of these two days with an open mind and return back to our respective project sites with new vigor and enthusiasm.

I wish you all a very successful and happy new year 2011, Thank You.

MESSAGE BY Mr. P.B.G.TILAK, GM (MCD) Mr. A.S.R.Murthy has requested us at MCD to give a lecture on Material Management. I have politely suggested to him that all our Project Managers are Men of Action. They may appreciate poetry but certainly they will not be happy or inclined towards Prose and it would be appropriate to have interaction/ interactive session that will be helpful to all concerned. He insisted upon lecture only if possible with power point presentation and the speech should confine to Part-1, what is expected by MCD from Project Manager and later give an opportunity to the Project Managers to say what is expected by them from MCD. Stress is really no laughing matter and neither is maintaining mental health or balance of mind in a world that often moves too fast, changes too often and gets downright frustrating.

May be our learned colleague desires that we all need HUMOUR BREAKS in our lives and have an opportunity to be able to have a hearty laugh at ourselves. It appears he has therefore chosen Christmas Holidays to schedule this conference. MERRY CHRISTMAS to all of you.

We all share the common objective of achieving success by ever improving our level, rate and scale of efficiency.

Chairman Sir has once called me and a very Senior Project Official to his chambers and told us in one simple sentence “I want both of you“.

Nothing else has been said. But the message conveyed is loud and clear and that too in telling effect. In this context “Both of you“ means Project Management Team on one hand and Supporting Teams on the other hand. Both of us have to have trust in each other, both of us have to cooperate with each other, both of us have to coordinate with each other and above all both of us should have respect for each other. These four vital elements i.e., Trust, Cooperation, Coordination and respect are really 6

required to achieve our goals. Honesty and integrity are key ingredients in developing trust. Trust is a key element in establishing credibility. If we imbibe these qualities we are on the right path to success.

One other important factor is “understanding”. Any person can complain, criticize and condemn but it takes a man of character and self control to be understanding and forgiving. Life is the first gift, love is the second and understanding is the third. The one who understands does not speak and the one who speaks does not understand. Well, may be to convey to us that we are not understanding the difficulties faced by the project Managers that Mr. Murthy wanted me to speak. I will avoid Text book

Anything that does not kill you just makes you stronger

lecture and will try to keep it simple and general in nature. I will also skip topic of the day and other related simple issues such as deployment of Store Personnel, Indent, receipt, maintenance of recordsl, dispatch and stock taking since you all have excellent knowledge and you are well versed in carrying out all these activities. We have compiled simple notes.

Copies will be distributed to you. You are already aware of most of these things however a plain reading will certainly refresh, inspire and motivate you.

From the point of view of MCD we hold Project Managers in high esteem.

We sincerely believe that Project Manager is a Key Person, stationed at the site of operation marshalling his team against forces of nature, god made, and client/consultant made and manmade. It is our bounden duty to extend all support to the Project Manager in all matters related to procurement of materials and supply of same to the Project site. The motto of MCD is 2,3,4,5,6 re-arranged. We mean 24 hours x 365 days at your service.

Management directed that internal Audit should be conducted at regular intervals. Audit schedule is intimated to the project sites well in advance.

After completion of Audit, MCD prepares an Audit Report with analysis, appraisals, recommendations and information concerning the activities audited. The copy of the Audit report is also submitted to the Project Manager for information and necessary action. In this connection we would like to stress the point that the purpose of audit is not just to find fault with the Project Manager. This is to pave way for setting right procedures, system of accounting, maintenance of records and exploring the possibility for reducing the cost. The object of internal auditing is to assist the senior management in the effective discharge of their responsibilities and to ensure that there is no deviation in respect of systems /procedures that have been laid down by the Company.

We have forwarded Format to be filled up for Final Stock Taking Report upon closing of a site. So far no report has been submitted by the sites that have closed operations. This report is essential and will be of great help to the reviewing cell.

You all have good knowledge of history. We have heard of stone age, prehistoric age medieval age, modern era, space age computer age etc.

Right now the age we are now living can be best described as Taxation age. There is lot of apprehension that the world is coming to an end in 2012. Many believe that this may be due to climate change, environmental pollution, or alien invasion etc. But the truth is if ever the world is going to come to an end it shall be only due to excessive over dosage of taxation. Taxes and Duties have off late become a very important factor and therefore we need to gain fundamental knowledge regarding the same. We have to understand that we will be at an advantage if we procure the material from the same state where we are executing the project or against VAT paid billing. Only when it is not possible to supply from within the state for whatever reason that we will be opting for purchase against ‘C’ form. In the course of execution of construction several precast activities are carried out resulting in production of segments, parapet walls, precast drains, cover slabs etc. In respect of all goods manufactured duty is required to be paid at the time of

clearance of the goods from the place of manufacture. Earlier there was exemption from payment of Excise duty for the goods manufactured at the site of construction. This exemption was lifted by the Government in March 2006. After hard lobbying and much persuasion Government have restored the exemption with effect from July 2009. Builders Association have not availed services of Nira radia otherwise construction industry could have dominated all other sectors. Central Excise Department is after us regarding goods manufactured at various project sites during the interregnum period.

There are times when it is not possible for us to confine our activity to the construction site alone, we may have to rent out a premise elsewhere and carry out manufacture of minor goods required for execution of the project. This is where we are vulnerable. Excise department is after us in respect of goods manufactured away from construction site. It is pertinent to note that Duty can be demanded only on finished goods. Therefore our version should be that whatever manufacturing activity is undertaken is resulting in production of semi finished goods only. There is still some more activity required to be done on the object at the construction site.

We may have a brush with the department. Therefore we must be prepared. Off late some of you have been harassed by the Officials of Excise Department. You might have been issued with summons. You don’t have to fear since we are law abiding and do not propose to do anything against established rules, regulations, provisions laid down under the law. We are engaging reputed consultants and advocates to argue our case.

To sum up, hope is one of the most powerful sources of energy. It is this dynamic power that mobilizes individuals and teams to make the improbable possible. Team spirit is the catalyst every organization needs to achieve outstanding performance. Strategic plans, Technology, marketing among others are important but emotional commitment of the people with the tools and executing the plans is what determines whether we are taking the company forward. All members of Navayuga family are a disciplined, devoted and committed lot. They all take pride in identifying themselves with the company.

There are no success secrets. However there are success systems, success habits and success principles applied to discipline and persistence.

It will be worthwhile for all of us to remember that The men who gets the most satisfactory results is not always the man with the most brilliant single mind but rather the man who can best coordinate the brains and talents of his associates.

Now coming to the interactive section, I would like to know what Project Manager expects from MCD. You may please feel free to express your views, suggestions on the topic here or in person at any time convenient to you. We promise to give a patient hearing and act upon on the suggestions given by you.

Follow your bliss and the world shall open doors for you

Wishing you all the best.

THANK YOU. 7

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Presentation on the functions of ECD and Equipment Management

By Col. CAJ Swamy, GM (ECD) Col. Swamy explained in detail about the functions of Equipment Control Department and the role of PMs in effective and efficient management of equipments in the organization.

The major functions of the ECD as outlined by Col. Swamy are: • • • • •

• • • • • • • • • • • • • •

Render technical advice for Right Equipment/Tool for the Job. Inter-site Transfers of Equipment.

Hiring of Equipment & issue Hire Orders.

Entry of newly procured equipment data in SIMS and subsequent Monitoring of equipment data in SIMS .

Training of Personnel in Equipment management system(EMS) and Vehicle Management System (VMS) of SIMS. Back Office Support for Maintenance of equipment .

Assist/Advice sites on trouble shooting identification of faults and faulty components .

Procurement of Imported Spares & Tools .

Stocking of essential imported spares of Hydraulic Piling Rigs (planned) .

Coordination with OEM including Service Engineer Visits .

Tracking of Imported Spares/ Customs Clearance and subsequent movement to site.

Approvals for Scraping of Equipment .

Periodic Auditing of Equipment of all sites.

Monitor Timely Payment to suppliers.

Training and improvement of skills .

Monitoring & Scrutiny of F- P&E and ISO Audit reports.

Maintaining/ Monitoring records for registration certificate.

Fitness, permit and insurance for all applicable equipment.

Monthly hire charges of own equipment .

Role & Responsibilities of the Project Managers as outlined by Col. Swamy with respect to the Equipment are: Equipment Planning: Selection of Right Equipment/Tool for Right Job; Assessment of Optimal Equipment for the Work ( details to include the qty and Tentative Time period); Duration of the equipment based on targets / quantities planned to be achieved; Indenting - Projection of Requirement to meet the Technical specifications of the Work. Indent to specify the basic details – For e.g. Indent for Hydraulic Rig to specify depth of the pile, dia of the Pile.

Soil Strata reports to facilitate identification of suitable tool such as core bucket, augers, etc. Indent for Tools to specify bore dia, bucket head size.

Prioritization of the Equipment: Time line for Equipment; Timely Remittance of payments including custom duty to HO/ Suppliers; Coordination with Dispatching Site; Monitor equipments transit movement; Receipt & Proper Storage Commissioning.

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Maintenance of Records: Equipment Log Books / Monthly ISO Reports (F-P&E)/ List of Operational Equipment available for transfer to other Sites/ List of NOP Equipments recommended for Scrap; Daily Log Book Updation in SIMS; Timely Reporting to HO (Receipt & Dispatch of Equipment, MM/MR Details); Registration and Renewals ( Registration with RTO/Fitness/Permits/ Insurance).

Action on Receipt of New Equipment: Opening of new Log Book; Recording Essential data – Name, Make, Model, Engine, S.No, Machine S.No, Engine Arrangement No, Chassis No, Date of Receipt, Date of Commissioning and equipment history; Manufacturer’s Contact Information that includes Name , Address, E-mail id, Tele/ Mobile No, Fax No Service Engineer Contact Details ( E-mail id, Tele/Mobile No); Operation & Maintenance Manuals , Spare Parts Manuals , Periodic Service/ Maintenance Schedules, Sub Assembly Wise List of Maintenance Spares/ Oils & Greases; Warranty Validity, Safety Certification and Renewal Details.

Equipment Maintenance: Systematic and Routine Maintenance such as cleaning, greasing, free play adjustment, tightening of nuts & bolts, replacement of damaged/unsafe parts; Periodic maintenance – Based on equipment usage scheduled maintenance to be carried out. This includes change of Oils/Filters & Greasing, Functional Safety Check of the machine ( Checking for permissible Engine Oil Pressures/ Temperature/ Hydraulic Oil Pressure etc., and initiate timely remedial action) - Maintenance schedule for Hydraulic Piling Rigs formulated and forwarded to all; Immediate action on various alarms generated by the equipment; Servicing of the equipment.

Fear does not exist anywhere except in the mind

Benefits to site: Safety of Equipment & Personnel; Uninterrupted work progress and improves; Up-time of the equipment; Minimizes Break Downs; Minimizes Repair Cost; No need of reserve equipment; Continued Maintenance of production standards; Reliability of expected results; Increase in equipment life; Builds user confidence.

Equipment Disposal: Repair Cost exceeding 60% of the value of new equipment (uneconomical for repairs); Outdated equipment and not in use at sites; Giving inaccurate results/ results not acceptable; Unsafe for use; Transportation cost of NOP equipment exceeding repair cost; Even after repairs, if its services do not meet project requirements (to be sent to any other project site for better utilization or disposal); If the consumption of HSD or Lubricants is uneconomical ( causing Environmental pollution ISO14001).

Overall Expectations from Site: Monitoring the Movement of Equipment to Site by the Receiving Site in case of Inter-site Movements; Monitoring the Movement of equipment by the dispatching site in case of Inter site Movement of Equipment; Preparations at the Site to receive the

Equipment (Proper unloading/Leveling the Ground/ Shelter to protect from Atmospheric effects); Procurement of required Oils & Lubricants as specified in the user manual; Segregation & Storing to facilitate easy assembly of all the components of an equipment; Installation, Commissioning & Calibration of equipment; Submission of commissioning report along with copies of Invoice/MM to HO; Updation of Records in SIMS ( Receipts and Releases of equipment); Training of the Staff; Daily Log Book entries in SIMS - working/idle/ breakdown hours & HSD Issues; Daily reporting of Breakdowns to HO; Remission of funds (Including Custom Duty) to HO in case of Imported Spares Procurement or Local Procurement of spares; Monitoring the maintenance/ repairs of equipment/ Servicing; Submission of maintenance/ Service report to HO immediately; Timely Submission of Monthly P&E reports to HO along with lists of equipment available to transfer to other sites and list of equipment recommended for scrap/ disposal; Tentative release dates of equipment to be specified in the F-P&E - 01 Report.

Mr. R.L. Srinivas briefed about PM’s role in SIMS Implementation, Project Planning & Monitoring.

Stock Balances of major materials are reflected correctly in SIMS.There is no backlog of entries in SIMS. All the available equipment are visible in SIMS. Equipment Log Books are entered regularly.No equipment is sent from Site or received at Site without an entry in SIMS. For planning and costing functions, no special training is necessary as all the PMs are already planning the schedule and costing in sufficient detail.

PM is totally responsible for effective implementation of SIMS at site. PM’s responsibilities include provision of necessary infrastructure like computers, internet, etc. and necessary manpower for data entry. PMs should provide necessary assistance and infrastructure for the installation of VPN network at their respective sites. If necessary PM, in consultation with the SIMS support cell, shall arrange for training to the selected employees. The responsibility for timely entry of all the data in SIMS and the authenticity and accuracy of the data entered lies with the PM.

PM should ensure that this plan is entered in SIMS and updated / revised whenever required. All the items of work are cost coded. Material Issue Requisition slips must state the cost code of the consumption item. All the unassigned material issues, equipment logs, manpower, subcontractor measurements are suitably allocated to their cost codes. All the material reconciliation reports are prepared and sent to the Corporate Office by 15th of every month. Budgets indicating the funds required for the next month should be submitted by 25th of this month. All the Leave Statements, Overtime, Recruitments, Transfers and Relieving should be submitted to HR Department at Vizag in time for Payroll generation. Copies of certified RA Bills are sent to PMC. The performance certificates are taken from the client on regular basis. The Bank Guarantees are released after they outlive their utility. Procedures and Documentations are followed as regards to Quality, Safety, Health & Environment standards in line with the ISO requirements. All applicable licenses and insurances are obtained.

For every dark night, there is a bright day after that

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Opening Remarks on Day-2 By Mr. K.V. Rambabu, Vice President

Honorable M.D. and respected Colleagues, It is a great opportunity to be a part of this esteemed organization Navayuga Engineering Company Limited. Our Company has grown in leaps and bounds for the last few years and extended to various fields of Construction. I want to explain regarding the benefits of the SIMS system explained yesterday.

Site Information Management System: As already stated the other day, SIMS is one of the most important part of a Project in execution and by adopting the same there are numerous advantages right from the inception of the work till its closure and its implementation for a successful Project is a must, which spreads over the entire activities of Construction right from planning, role of equipment, material management, budget and financial resources etc., In other words, the entire project can be monitored at various levels right from the start to the end. The activities and site information is most necessary to monitor a project for its successful completion. The information is more useful in making planning, the optimum usage of equipment, the availability and necessity of the material, proper budgeting and financial resources.

In addition to site information management system, we have to concentrate on the following main items: •

Planning

•

Utilization of machinery

•

Material control

•

Project cost.

I firmly believe that with our dedicated and hardworking team, we can achieve our goals and take the company forward to newer heights.

Thank you

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Making good decisions is a crucial skill at every level

Developing HSE Culture in Construction Projects

By Mr. Chandrashekar, Consultant The organization is going for certification in Health, Safety & Environment viz., ISO:14001 & OHSAS:18001. In the highly competitive Infrastructure industry, HSE certification and implementation has become an important milestone and requirement. Further, implementation of HSE at sites will benefit the organization and employees in the long run as safety and health are of utmost importance for everybody.

An HSE management system will be established, implemented, assessed and continually improved. It will be aligned with the goals of the organization and will contribute to the overall achievement. The best-known health impacts are related to ambient air pollution, poor water quality and insufficient sanitation. The safety and well-being of our employees and care of our environment are at the heart of our business principles.

Our goals are •

No injuries to our employees

•

No accidents

•

No negative impact to our environment.

Navayuga is committed in achieving Zero HSE incidents. We will be successful: when no-one is hurt, when others copy us… and we remain committed to continuous improvement

Demo on SIMS By Mr. Guruprasad, Project Manager, Navayuga Infotech SIMS is not new system. It is just computerized version of existing procedures being followed all over Navayuga Project sites.

SIMS has been in use at Sites since the past one and half years and glitches have been identified and eliminated. The present version can be used in regular day to day activities without any problem. -Complete work plan along with planned costs is recorded in beginning of work.

-Actual cost and progress are monitored against the Plan. -Can project the shortfalls and Runaway costs in time to the project Coordinator/Management. -Can monitor consumption of high value materials like steel ,cement etc . -Can be informed of the excess consumption of HSD etc by some equipment. -Can project the future requirements of materials and equipment. -Any errors which have escaped scrutiny & developments in future shall be tackled on priority as and when identified & conveyed by NEC Family.

Thanks

To think only of the best, to work only for the best and expect only the best

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November - December - 2010

Concluding Message By Mr. K. Jagadiswara Rao, Vice President I take this privilege to thank you all for coming to Hyderabad and participating actively in the “POWER OF 1 SUMMIT” The main objective of this gathering was to launch the “POWER OF ONE” concept indicating an excellent blend of uniqueness and oneness amongst the Navayuga family members. With unity, we can overcome difficulties with ease and scale new heights. The second objective of the meet is the need to request and ensure your commitment in SIMS implementation at all sites which would not be possible without active and total cooperation from the Project Teams.

By making this request the PMC and SIMS TEAM are taking on a huge responsibility of meeting your requirements. For successful implementation of the system, the most important requirement is trained manpower to operate SIMS at site. We request you all to identify suitable persons from the existing manpower at your site or recruit new persons and send them for training.

For ECD and MCD functions, training will be given at Vizag and for PMC and network administration functions, training will be given at Hyderabad. Further training shall be given by SIMS teams at regular intervals at site / regional office level. I request you all to ensure timely submissions of all the reports like cost sheets, reconciliations, budgets, etc.

You are aware that VPN network is being established at major sites to enable video conferencing. I request you to provide all help necessary for establishing the network. Once established I am sure that this facility will provide an efficient, communicative and interactive tool across the organization and will surely help in improving the performance.

As we are moving forward with bigger projects stiffer targets, I request you all to motivate and galvanize your sub-ordinates into action with pride and commitment and I believe you will surely make it. In considerations with the requests made by some of our colleagues, the management has decided to invite you all with families for an interaction class with Mr.Pattabhiram and the date would be communicated to you shortly.

Lastly I thank Mr. Murthy and his team for their commitment in making this event a success.

Thank you

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Nothing great was ever Achieved without Enthusiasm

Guest Speakers on 25th and 26th December – 2010 Work shop on Change management By Prof. B.V. Pattabhiram:

Prof. B.V.Pattabhiram is a well-known Psychologist, Hypnotist, Magician and author of many books on personality development, stress management, parenting, etc. He has presented an innovative and interactive program on change management, positive attitude and stress management. He interacted with all the PMs present and has lauded their efforts and achievements in executing many difficult projects. All the participants have participated actively in the program with enthusiasm and received appreciation and token gifts from Prof. Pattabhiram.

The program emphasized on the need to develop right attitude to deal with the ever-changing world: Change is the manthra all around – changes are happening everywhere – at home, at college, at the workplace, and all over the world – values are changing, cultural changes are happening, relationships are changing but the only thing that should not change is that of the man. To be successful one has to be objective, one has to develop a positive attitude and one should develop right way of communication. One should treat others – right from the top management to the lowest grade worker with respect, and develop right kind of relationship with each and everybody. One should prioritize the tasks on hand according to their importance and attend to the tasks whole heartedly. Then only one can succeed in his career and life. One should take right kind of food, should develop right kind of habits, should exercise regularly and should meditate every day to help gain the mental and physical strength to deal with the stress and strain of the modern life.

The program apart from being highly informative and at the same time entertaining. Those who were present craved for more and expressed their desire to have such program again. Prof. Pattabhiram advised that next time more time should be allotted and preferably the participants should come with their spouses so that the program would be useful for them also.

Spiritual talk on Ethics & importance of the Mantra AUM originating from the ancient scriptures By Mr.Barenya Sen, Retired Chief Engineer ,MES Aum: Often spelled Om. The mystic syllable of Hinduism, placed at the beginning of most sacred writings. As a mantra, it is pronounced aw (as in law), oo (as in zoo), mm. Aum represents the Divine, and is associated with Lord Ganesha, for its initial sound "aa," vibrates within the muladhara, the chakra at the base of the spine upon which this God sits. The second sound of this mantra, "oo," vibrates within the throat and chest chakras, the realm of Lord Murugan, or Kumara, known by the Hawaiian people as the God Ku. The third sound, "mm," vibrates within the cranial chakras, ajna and sahasrara, where the Supreme God reigns. The dot above, called anusvara, represents the Soundless Sound, Paranada. Aum is explained in the Upanishads as standing for the whole world and its parts, including past, present and future. It is from this primal vibration that all manifestation issues forth. Aum is the primary, or mula mantra, and often precedes other mantras. It may be safely used for chanting and japa by anyone of any religion. Its three letters represent the three worlds and the powers of creation, preservation and destruction. In common usage in several Indian languages, aum means "yes, verily" or "hail.”

One should spend most of his time improving himself that he has no time to criticize others

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NAVAYUGAnews

November - December - 2010

INTERACTIVE SESSION WITH THE MANAGING DIRECTOR Opinions /suggestions expressed during interaction in the meeting held on 26-12-2010 1)

Organize similar gathering once in a year.

2)

Organize similar gatherings at one of the project sites.

3)

To have similar gathering of second and third rung managers at site.

4)

Each Project Manager or Dy.Project Manager have to train a person down the line so that things will be smooth even in his absence.

5)

All the Project Managers and above have to communicate with each other at least once in a fortnight.

6)

To have a similar gathering with families.

7)

To invite ex/retired employees of the company to such gatherings.

8)

To carry out training of basic knowledge on computers to some of our engineers.

9)

To share knowledge/technology/special skills with each other.

10) Any special achievements at individual sites have to be circulated to other project sites.

11) Each site should have frequent interactions among its staff and workers.

12) To have a central station on quality control & quality audits.

13) We have to recruit new talents/skills ensure that they are retained.

14) New joiners have to be enlightened about the projects executed and being executed at sites.

15) Each site must have a planning engineer to co-ordinate with PMC. 16) Project Managers have to arrange frequent get together’s at sites at least once in a month.

17) Project Managers have to identify the skills of the team members to assign jobs.

18) Project managers have to focus on wastage of materials to be accounted.

19) Project managers have to keep their doors open to everybody and have to talk with all workers.

20) Sub contractor to be treated as a partner.

21) Training and implementation of SIMS at site levels to be done. 22) Project Managers have to make visit to other specialized sites.

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Teamwork: Simply stated, it is less me and more we.

Interactive Session Pictorials

Col. S.B. Puri (Executive Director)

Ajay Kawlekar (Project Manager)

M. Srinivas Rao (Project Manager)

Y. Ramesh (Deputy General Manager) Forgive ness is the key to Action & Freedom

Birendra Choubey (Chief Manager)

N.S.N. Raju (Asst Manager)

D.K. Sahay (Vice President) 15

NAVAYUGAnews

November - December - 2010

Interactive Session Pictorials

N. Raghupathi (Chief Manager)

M.D. Sirajuddin (Asst. General Manager)

E. Srinivas Rao (Project Manager)

C.H.S.N. Raju (Chief Manager) 16

B. Divakar Rao (Sr. General Manager)

G. Shashidhar Reddy (Chief Manager)

Action is the Foundational Key to all Success

Power of 1 Pictorials

Faith is a Passionate Intultion

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NAVAYUGAnews

November - December - 2010

Power of 1 Pictorials

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Speech is Silver Silence is Gold

Power of 1 Pictorials

A man sees in The World what He carries in his Heart

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NAVAYUGAnews

November - December - 2010

Power of 1 Pictorials

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Don't find fault, find a remedy

Musical Concert

Music is a tonic which gives the required solace to our tired brains which will be functioning always. It is defined as ‘Organized Sound’ by Edgard Varese. There are different types of music viz: Classical, Rock, Jazz, Folk, Light etc. Each variety of music is a choice of different set of people and is patronized by their fans. The classical music lovers have little option to swallow its melody as it’s patronize is very limited compared with other varieties. Our beloved Chairman Sri C.V.Rao, an ardent lover of classical music mooted the idea of providing an excellent classic music to all classical music lovers. He has rightly chosen the versatile Carnatic music artistes Dr Nithyasree Mahadevan and Padmasri Aruna SaiRam for giving performance in Hyderabad and arranged a classical music concert. M/s Krishnapatnam Port Company Ltd, a company of Navayuga group organized the programme very successfully.

The festival of classical music was organized on 6th and 7th November 2010 at convention centre, Hyderabad Marriott Hotel. The programme on 6th Nov. was by Dr Nithyasree Mahadevan. Sri M.S. Jayanth, IRTS, General Manager, South Central Railway was the Chief Guest. The programme on 7th Nov. was by Padmasri Aruna SaiRam. His Excellency, the Governor of Andhra Pradesh Sri E.S.L. Narasimhan was the chief guest of the day. On both days the musical concert was started from 7 P.M and concluded at 10 P.M. All the elite audience who were specially invited for the programmes were enthralled and appreciated the organizers for arranging such a wonderful programme. His Excellency, the Governor of Andhra Pradesh Sri E.S.L.Narasimhan even extended his stay at the venue despite he has to attend some other important function and expressed his happiness to be one of the audience of the day and congratulated the artiste for her exceptional performance. The Musical concert on both days was telecast live by TV1 and TV9 channels.

Dr Nithyashree Mahadevan

Music can alter moods & talk to you

Padmasri Aruna Sairam

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NAVAYUGAnews

November - December - 2010

Dhola - Sadia (Assam)

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The best way to find yourself is to lase yourself in the service of others

Kundapur - Suratkal Road Project (Navayuga UDUPI Tollway Pvt. Ltd.) NH - 17 Major Bridge at CH: 313+072 (Kalyanpur)

Forgiveness is the Virtue of the Brave

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NAVAYUGAnews

November - December - 2010

Sports The winter National Bridge championship was conducted at Kolkata by West Bengal Bridge Association under the aegis of Bridge Federation of India from 10th to 17th December 2010. 175 teams from all over the country participated in this Mega event. The team led by our Chairman Sri C.V. Rao performed extremely well throughout the event of Team of Four Duplicate for Ruia Gold and reached the Semi-Finals. The team Consisted of Sri C.V.Rao ( Captain), S.N.D.Sarkar, Alok Sadhu, Swarnendu Banerjee, Badal Das and P.Bardhan. This is a considerable achievement considering the total number of teams participated in this year’s championship. Navayuga news wishes the team to achieve more laurels in the year 2011.

Good Achievement Master Sayantan Chakraborty S/o Mr. Alok Chakraborty, Jr. Accounts officer, NEC Vizag office is studying 5th class in D.A.V. Public school, Butchirajupalem, Visakhapatnam.

He was awarded a Green Belt, an Yellow Belt and an Orange Belt by Japan Karate Association of India.

He was also awarded a Gold Medal in Avantika Talent search colouring competition in the year 2009, ‘A’ grade in painting by Hind Art Education Academy, Aurangabad, and stood 1st in the School level painting Competition organized by the Bureau of efficiency, Ministry of Power, Govt. of India in 2009. Navayuga news wishes him a bright future.

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To win without Risk is to triumph without Glory