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TABLE OF CONTANT

Contents
INTRODUCTION.........................................................................................................3
Engro Foods’ History...................................................................................................3
Mission Statement.......................................................................................................3
Vision.............................................................................................................................4
Our Dreams..................................................................................................................4
Safety Health & Environment................................................................................5
Ethics and Integrity................................................................................................6
Leadership..............................................................................................................6
Quality and Continuous Improvement...................................................................6
Enthusiastic Pursuit of Profit.................................................................................6
Candid & Open Communication............................................................................7
Innovation..............................................................................................................7
Individual Growth & Development........................................................................7
Teamwork & Partnership.......................................................................................7
Diversity & International Focus.............................................................................7
Product and Services..................................................................................................8
Functional Areas..........................................................................................................8
Administration........................................................................................................8
Finance and Accounts.............................................................................................9
Human Resource....................................................................................................9
Marketing...............................................................................................................9
Milk Procurement...................................................................................................9
MIS.......................................................................................................................10
Production............................................................................................................10
Quality Assurance................................................................................................10
Supply and Distribution.......................................................................................10
Organization Structure..............................................................................................11
HUMAN RESOURSE DEPARTMENT...................................................................12
HUNAM RESOURCE PLANING..........................................................................12
Recruitment and Selection.......................................................................................12
Parent country national.........................................................................................13
Host country national...........................................................................................13
Third country national..........................................................................................13
Recruitment Policy of EFL..................................................................................13
Internal movement................................................................................................14
Online-portal........................................................................................................14
News Paper Ads...................................................................................................14
Walk-ins and Write-ins.........................................................................................14
Customize Hunting...............................................................................................15
Recruitment and Selection.......................................................................................16
De-recruitment.........................................................................................................16
TRAINING AND DEVELOPMENT..........................................................................17

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EFL Orientation/Induction.......................................................................................17
Engro Foods’ Training Policy..................................................................................19
Types of Training in EFL.....................................................................................19
PERFORMANCE MANAGEMENT.........................................................................21
PADP in EFL............................................................................................................21
REWARDS AND REMUNERATION.......................................................................23
EFL Compensation Program....................................................................................23
Salary....................................................................................................................23
Incentives/ Allowances.........................................................................................24
Benefits................................................................................................................24
Employee Benefit after Retirement..........................................................................25
Span of Control........................................................................................................25
Planning....................................................................................................................26
Motivation Plan........................................................................................................26
Communication in the Organization........................................................................26
Six Sigma at ENGRO...............................................................................................26
360 Feedbacks..........................................................................................................27
INDUSTRIAL RELATION.........................................................................................28
REFRANCES.............................................................................................................28

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INTRODUCTION

Engro Foods’ History

Engro Foods (Pvt.) Limited (EFL) has been established in 2005 as part of a
diversification process at the Engro Group. The plant located at Sukkur on 23 acre land,
has the raw milk reception capability of 300,000 liters per day and UHT milk capacity of
200,000 liters per day. The plant has been established at a cost of Rs. 1 billion which
provides direct employment to 750 people. Engro Foods has entered the Food business
through milk processing and sale with the company’s vision to pursue growth
opportunities based on country fundamentals and own strength. It also positions the
company to influence its corporate social responsibility initiatives and work closely with
rural communities to promote integrated farming and livestock development. This effort
is expected to play a pivotal role in poverty alleviation and improving livelihoods of the
poor in the milk collection areas.

Another plant near Sahiwal in the Punjab is completed. The EFL plan envisages growth
by innovative launches to command a product range across the dairy spectrum backed by
milk collection infrastructure and top end in the distribution of products. EFL is well
positioned to become a substantial player in the dairy sector.

Mission Statement

“To help farmers maximize their farm produce by providing quality plant
nutrients and technical services upon which they can depend. To create wealth by
building new businesses based on company and country strengths in
Petrochemicals, Information Technology, Infrastructure and other Agricultural
sectors. In pursuing the mission we shall at all time be guided in our conduct and
decision making by our Core Values.”

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Vision

"Our vision is to become a fast expanding mega foods company. To achieve our vision,
the company will initially focus on dairy by investing a substantial amount in plant, milk
collection capability and marketing. We are making concrete efforts to expand in and
beyond Pakistan; through strategic international alliances, to eventually become global."

Our Dreams

EFL dreams to be BIG. We want to be a major player in the food industry which is also
evident in our vision, "Elevating Consumer Delight Worldwide". EFL wants to challenge
the industry norms and surprise whoever has eyes on EFL.

Core Values

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Safety Health & Environment
We will manage and utilize resources and operations in such a way that the safety and
health of our people, our neighbors, our customers and visitors in ensured. We believe our
safety, health and environmental responsibilities extend beyond protection and
enhancement of our own facilities, and we are concerned about the distribution, use and
after-use disposal of our products.

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Ethics and Integrity
We do care how results are achieved and will demonstrate honest and ethical behavior in
all our activities. Choosing the course of highest integrity is our intent and we will
establish and maintain the highest professional and personal standards. A well-founded
reputation for scrupulous dealing is itself a priceless asset.

Leadership
We have leaders of high integrity, energy and enthusiasm who have the necessary
managerial, professional and people skills to inspire a group or organization to set high
goals and achieve them willingly. We believe that leadership skills need to be
strengthened at all levels within our organizations and that managerial and
professionalism is a necessary foundation.

Quality and Continuous Improvement


We believe that quality and relentless commitment to continuous improvement are
essential to our ongoing success. To this end, we define quality as understanding the
customer’s expectations, agreeing on performance and value, and providing products and
services that meet expectations 100% of the time. Our motto is, “Quality in all we do”.

Enthusiastic Pursuit of Profit


Successfully discharging our responsibilities to our shareholders to enhance the long-term
profitability and growth of our company provides the best basis of our career security and
meaningful personal growth. We can best accomplish this by consistently meeting the
expectations of our customers and providing them with value.

Candid & Open Communication


We value communication that are courteous, candid and open and that enable each of us
to do our jobs more effectively by providing information that contributes to the quality of
the judgment and decision making.

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Innovation
Success requires us to continually strive to produce break through ideas that result in
improved solutions and services to customers. We encourage challenges to the status and
seek organizational environment in which ideas are generated.

Individual Growth & Development


We strongly believe in the dignity and value of people. We must consistently treat each
other with respect and strive to create an organizational environment.

Teamwork & Partnership


We believe that high performing teams containing appropriate diversity can achieve what
individuals alone cannot. Consciously using the diversity of style, approach and skill
afforded by teams is strength we must continuous building into our organization.

Diversity & International Focus


We value differences in gender, race, nationality, culture, personality and style because
diverse solutions, approaches and structures are more likely to meet the needs of the
customers and achieve our business goals.

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Product and Services
1. Olper’s milk
2. Olper’s cream
3. Olwell
4. Omore
5. Tarang
6. Tarka Ghee

Engro Foods Limited is subsidiary of Engro Chemical Pakistan Ltd. which is one of the
most reputed enterprises in Pakistan with more than 40 years of diversified business
operations in the areas of fertilizer and chemicals. Engro Foods started its business
operations in March 2006 and with the successful launch of Olpers Milk, Tarang, Olwell,
and Olpers cream, recent launched Omore ice cream and recently it has established itself
as a major player in the foods business. Engro Foods has already set up two processing
plants at Sukkur and Sahiwal. With the ever expanding milk collection network and
processing facilities, the Supply Chain has geared us for the growing sales of our
products.

We believe that our recent successes will take us to our goal: To be one of the biggest
players in the food business. Our aim is to dominate the food business, and to achieve this
we will settle for nothing less than the cream!

Functional Areas

Administration
Efficient management of all administrative affairs of Engro Foods (Pvt.) Limited is the
job of the Administration department. From legal matters to general day-to-day
operations of the office, the Administration department ensures that all affairs run
smoothly.

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Finance and Accounts
The Finance and Accounting departments at Engro Foods are responsible for the total
financial management of the different businesses of the company. From the usual
accounting statements and sheets to risk and portfolio management, the team ensures that
every rupee coming into and out of the Companies' pockets is properly documented and
audited.

Human Resource
The Human Resource department at Engro Foods (Pvt.) Limited spearheads the
recruitment process to ensure that the finest human resource is taken on board at Engro
Foods. Resumes of candidates are carefully filed and documented for current or future
reference. The department, besides carrying out succession planning, maintains and
implements HR policies pertaining to employment, retention and superannuation.
Assessing training needs of employees and ensuring adequate training is also carried out
by the professional HR team at Engro Foods.

Marketing
Consisting of leading marketing professionals of the industry, who are graduates of top
business schools of Pakistan, the Marketing Department ensures that from product need
identification to product development, launch and post-launch, all strategic decisions are
made based on authentic information and research. Identifying the target markets,
effectively communicating to them and building the image of the brands as well as the
Companies, is the job of the professionals running the marketing at Engro Foods.
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Milk Procurement
As all of our food products are milk based, the entire Milk Procurement department plays
a critical role in defining the quality of the end product that reaches our customers.
Ensuring regular collection of fresh and pure milk right from the farmer to the factory
and ascertaining the freshness of milk all across the milk procurement process, is the

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responsibility of Milk Procurement department, consisting of food technologists working
at the collection centers and veterinary doctors providing service to the farmers.

MIS
The MIS department at Engro Foods ensures that all automation is running error-free at
all times. Regularly modifying and updating the Company's accounting software is also
the MIS team's responsibility.

Production
Modern technology is part and parcel of Production at Engro Foods. The state-of-the-art
plant set up near Sukkhar has a processing capacity of more than 300,000 liters of milk
per day, making it one of the largest in the country. Professionally qualified human
resource efficiently works night and day to maintain highest hygiene standards.

Quality Assurance
Quality Assurance is strictly followed in Engro Foods. Qualified food technologists at
this department ensure that highest quality parameters are adhered to through all steps of
production and that the products reach the consumers as per promise.

Supply and Distribution


This department ensures timely and effective distribution of the products to different
shops and stores spread all across Pakistan. From transportation management to obtaining
route permits and approvals, is done by this department.

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Organization Structure

CEO

GM FARM GM GM Manager GM Manager


Production Technical Business Modle Milk Pocket Finance and Admin HR

GM Farm
Production

Manger Farmer Manager


Model Farms
Training Commercial Forming

GM
Technical

Cooling tanks Biogas Processor training

GM
Business models

Mobile milk Farms input


Animal Importers Ruler contractors
Collection Stores

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HUMAN RESOURSE DEPARTMENT

HUNAM RESOURCE PLANING

It is the process of forecasting demand & supply and making comparison. Or creating
balance between demand & supply. In the Engro foods they forecast it by two ways;

1. Business orientation
2. Expert opinion

The forecasting is done on the above two basis. In the expert opinion the selection is done
on the basis of the opinion of the experts. Basically the bench of experts selects that how
many employees are required to them in the particular department. And they also decide
that what quality and what quantity of employees they are going to hire in the particular
department.
And the other thing Engro foods adopts is the business orientation, the management of
the organization planed about the hiring of employees on the basis of the new work
started in the organization. For example as the Engro foods has started its 2nd production
unit at Sahiwal so that’s why they are adopting the business orientation technique.

Recruitment and Selection

Recruitment and selection are the processes through which an organization takes in new
members. Recruitment involves attracting a pool of qualified applicants for the positions
available. Selection requires choosing from this pool the candidate whose qualifications
most closely match the job requirements.

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In companies like Engro that function in a global environment we have to distinguish
different types of employees. Traditionally, they are classified as one of the three types:

Parent country national


The employee’s nationality is the same as the organizations. For example, an American
citizen working for an American company in Pakistan.

Host country national


The employee’s nationality is the same as the location of the subsidiary. For example, a
Macedonian citizen working for a Slovenian company in Macedonia.

Third country national


The employee’s nationality is neither that of the organization nor that of the location of
the subsidiary. For example, an Albanian citizen working for a Slovenian company in
Macedonia.

Recruitment Policy of EFL


There are five recruitment channels of EFL.
1. Internal movement
2. Online-portal
3. News paper ad
4. Write ins & walk ins
5. Customize hunting

Internal movement

HR departments become involved when internal job openings are publicized to


employees through job positioning programs, which informs employees about opening
and required qualifications and invite qualify employees to apply. The notices usually are

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posted on company bulletin boards or are placed in the company newspaper.
Qualification and other facts typically are drawn from the job analysis information.

The purpose of job posting is to encourage employees to seek promotion and transfers the
help the HR department fill internal opening and meet employee’s personal objectives.
Not all jobs openings are posted .Besides entry level positions, senior management and
top stuff positions may be filled by merit or with external recruiting. Job posting is most
common for lower level clerical, technical and supervisory positions.

Online-portal
Now today no body thinks anything without internet. So EFL give advertise on internet.
EFL most of the times use the online-portal for the recruitment of the employees.

News Paper Ads


EFL also place their ads in news papers for the recruitment of the employees.

Walk-ins and Write-ins

Walk-ins are some seekers who arrived at the HR department of EFL in search of a job;
Write-ins are those who send a written enquire .both groups normally are ask to complete
and application blank to determine their interest and abilities. Usable application is kept
in an active file until a suitable opening occurs or until an application is too old to be
considered valid, usually six months.

Customize Hunting
EFL prefer foreign qualifier and students of LUMS.

Selection Procedure in EFL

The selection procedure in EFL consists of 7 steps;


1. Test (aptitude)

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2. Interview (3 to 7)
3. Medical evaluation
4. Reference & background check
5. Offer
6. Placement

The selection in the EFL is done on the basis of above 7 steps. First of all an aptitude test
is conducted and the successful candidates are called for the interview and most of the
times 3 to 7 interviews are conducted. The successful candidates in the interview are
called for the medical evaluation, that they do not have any serious medical problem.
After it any reference of the employee is checked, and the background of the employee is
checked, they he or she doesn’t have any criminal background or have any problem in the
background. If everything is clear then he or she is offered for the job and if the offer is
accepted the person is called for the job.

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Recruitment and Selection

Resume Short Listed

Interview Selection

1st Interview

2nd Interview

Medical Test

Final Interview

Offers

Select

De-recruitment
EFL do not de-recruit because our business is started newly and It only recruit new
employees for the expansion of our business.

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TRAINING AND DEVELOPMENT

The overall aim of the development function is to provide that adequately trained
personnel in a company are capable to fulfill their goals, as well as to contribute to better
performance and growth with their work (Armstrong, 1996). The development of
employees can be treated as a special field of human resource
management that includes planned individual learning, education, organization
development, career development and training.

EFL Orientation/Induction
EFL make a plan for the orientation and induction of its new employees, most of the
times a 15 to 30 days plan is created for the new employees. The new employee has to
work with the managers of the different departments in the organization. And the work of
the different departments is told to the employee. After the completion of the plan the
feedback is taken from all the managers and also from the employee. If the feedback is
satisfactory then the person is assigned its seat and he or she start doing his/her work. On
the other hand if the feedback is not satisfactory then the entire plan is repeated.
At the organization, human resource development professionals are responsible for:
1. Training and development of employees located in subsidiaries around the world,
2. Specialized training to prepare expatriates for assignments abroad, and
3. Development of a special group of globally minded managers.
Creation and transfer of international human resource development programs may be
carried out in two ways:

1. Centralized
2. Decentralized
With a centralized approach, training originates at the headquarters and corporate trainers
travel to subsidiaries, often adapting to local situations. This fits the ethnocentric model.
A geocentric approach is also centralized, but the training develops through input from

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both headquarters and subsidiaries staff. Trainers could be sent from various positions in
either the headquarters or subsidiaries to any other location in the company.

In a decentralized approach, training is on a local basis, following a polycentric model.


When training is decentralized, the cultural backgrounds of the trainers and trainees are
usually similar. Local people develop training materials and techniques for use in their
own area.
EFL most of the time use the decentralized approach in its organization.
To maximize training effectiveness, it is important to consider how trainees learn most
effectively. Cultural factors have a strong impact on training practices in different parts of
the world. For example, in North America, where power distance is small, the
relationship between the trainer and trainees tends toward equality. The trainer and
trainees use first names, and the trainees feel free to challenge or question what the
trainer says. In Malaysia, where power distance is large, a trainer receives greater respect.
Students use his surname and title, and he is an expert that students rarely challenge.
As global competition increases, it is increasingly important for successful companies to
have a group of managers with a global perspective. Companies must identify managers
with global potential and provide them with various training and development
opportunities. For example, having one or more international assignment(s), working on
cross-national teams and projects, and learning other languages and cultures contribute to
making a manager more globally minded. In addition, an organization should include not
only parent country nationals, but also host country nationals and third country nationals
in this group.

Engro Foods’ Training Policy

There are three main policies for the training of the employees;
1. In house
2. External

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3. Training need assessment

EFL most of the times use the external training for its current employees. The current
employees of the company are sent to the different seminars and organizations for the
training purposes.

Types of Training in EFL


There are two main types of training in EFL:

Technical Training
It is given to the persons who work in the labor force or doing any type of technical work.
Due to change in the technology or any type of change in machinery, technical training is
required to those persons.

Soft Skill Training


It is given to those persons who are working in the office. It is also called the
development of the persons. It is given to the middle level managers in the organization.

Training
To get the outbreak team building experience, we send our employees abroad. Engro
foods bear many expenses for the training of the employees.

Training Need Assessment

Training need assessment

Department manager PADP Top management

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Training and Development

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PERFORMANCE MANAGEMENT

In companies, the performance evaluation is most frequently carried out for


administration or development intentions (Cleveland and others, 1989). For
administration purposes, performance evaluation is called for when the decisions on work
conditions of employees, promotions, rewards and/or layoffs are in question.
Development intention of performance evaluation is oriented to the improvement of the
work performance of employees, as well as to the enhancement of their abilities on the
ground of the adequate training program and advising employees regarding behavior in
the work environment.

PADP in EFL
In Engro Foods Ltd the performance evaluation is done on the basis of performance
appraisal development process. In EFL it has two parts;

1. In the first part at the start of the year the employee himself define the objectives
for the whole year and then lock these objectives to his or her supervisor and then
start doing work on that.

2. In the second part at the end of the year the employee firstly define the objectives
for the next year and secondly performance evaluation is done by him self before
it present in front of the supervisor. That person evaluate that whither he has
achieved his goal or not and then held a detail meeting with the supervisor. They
made a discussion on that objective and try to meet each other points if the person
is not satisfied or the supervisor is not satisfied then that person goes to the top
level management.

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In EFL, performance appraisals are usually done yearly and use a standarized evaluation
form. Sometimes, the organization also requires supervisions to discuss the results of the
appraisals with each employee.

Performance evaluation is challenging for any organization. At the international level, the
complexity is greater because the organization must evaluate employees from different
areas working in different subsidiaries. The need for consistency across subsidiaries for
performance comparisons conflicts with the need to consider the cultural background of
employees to make the evaluation meaningful. Consequently, the delivery of a balanced
performance review, including both strengths and weaknesses, requires tact and delicacy.

As with other functions, the approach to performance evaluation depends on the


organization’s overall human resource management strategy. A company with an
ethnocentric approach is likely to use the same performance evaluation process used at
the headquarters for its subsidiaries. Some companies translate evaluation forms into
local languages, whereas others use the original language everywhere. A company with a
polycentric approach develops local procedures within each country. Finally, a company
with a geocentric approach uses the same performance evaluation system worldwide, but
it has universal applicability. Developing a global system is the most challenging.

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REWARDS AND REMUNERATION

Remuneration of employees has a key role in acquiring new employees and is important
for employees as well as for the employers. Pay is the basic resource of living of the
employees, while benefits cover better health care, the possibility of spending holidays in
the company’s holiday facilities at a favorable price and also other advantages. The
decisions the employers make concerning remuneration are a factor that has an impact on
the expenses of their company as well as on the ability of selling the products at a
competitive price in the market (Treven, 1998). The decisions about remuneration may
also enhance the ability of the employer to compete for employees on the labor market.
The rewards he warrants make the standing personnel either want to keep their jobs or
quit.

EFL Compensation Program


The compensation in EFL has two parts;
1. Salary
2. Incentives

Salary
Salary in the EFL has the following components,
1. Basic pay
2. Home rent allowance (45% of the basic pay)
3. Utilities allowance (10% of the basic pay)
4. Conveyance allowance (10% of the basic pay)
5. Supplementary pay (23% of the basic pay)
The supplementary pay is the special pay given by the EFL to its employees.

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Incentives/ Allowances
EFL gives incentives to the employees of the field. Mean the field based employees are
given the incentives on the basis of there performance in the related sector. Greater is the
performance greater will be the incentives.
Then the second thing is the allowances which are given to the office based employees.
Normally the allowances are fixed. From grade 11 to 19 it is Rs. 3000 and for 20 and up
it is Rs. 8000.

Benefits
The benefits which are given to the employees by EFL are as follows;
1. Provident fund (10% of the gross basic pay)
2. Gratuity fund (10% of the gross basic pay)
3. VPP (variable pay plan) (10% of the gross basic pay) it is paid on the yearly basis.
4. Compensation cars
5. Field car + bike
6. OPD cover (medical)
7. Hospitalization cover (50% by employee + 50% by the company)
8. Life insurance (50% premium by employee + 50% premium by the company)
9. Death benefits (12 basic salaries)
10. House rent advance (4 gross salaries)
11. Out breaks
In developing an international system of compensation and benefits, EFL has two
primary concerns.

The first is comparability. A good compensation system assigns salaries to employees that
are internally comparable and competitive within the marketplace. For example, the
salary of a senior manager is usually higher than that of a supervisor, and each position
should receive an amount within the local market range. The EFL must also consider the
salaries of people who may transfer from other locations.

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The second major concern is cost. Organizations strive to minimize all expenses, and
payroll is one of the largest.
Remuneration and benefits in EFL are closely tied to local labor market conditions, even
when an organization takes an ethnocentric or geocentric approach. The availability of
qualified local people to fill positions, prevailing wage rates, the use of expatriates, and
local laws interact to influence the level of remuneration and benefits. For example, if
there are few applicants available for positions, the remuneration for those positions
generally increases. To reduce expenses, the human resources manager might then
consider bringing in an expatriate.

Employee Benefit after Retirement


As this Organization is private limited so they do not provide as much retirement benefits
as the Govt. organizations do.
1. Final settlement
2. Provident Fund (10%)
3. Gratuity
4. Pension

Span of Control

Engro has a wider span of control. As it believes in diversity of opinions. Engro believes
that wider span of control can increase communication among employees that helps in
improving its production.

Planning

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Engro do planning on short term and long term basis simultaneously. Engro is mostly
having long term plans and for achieving these long term plans it gains support of short
term plans.

Motivation Plan

For the motivation of our employees we gave those provident funds, yearly bonus, and
medical facilities.

Communication in the Organization

They provide wireless system in every plant for fast communication. They also do video
conferences at higher level. And they have Two-way communication system in their
organization.

Six Sigma at ENGRO

Engro is among the first Pakistani companies implementing six sigma across all areas and
utilizing it as a management system to execute our strategic objectives. Six sigma was
launched in February 2006. Among the focus areas, employee development is the most
critical and six sigma will be leveraged to help bring out the best in our people.
Employees will drive improvements in other areas: speed, innovation, perfection and
becoming world class. Six sigma’s robust problem-solving methodology and statistical
toolkit allows the company to benchmark processes against global standards in a
language that is comparable across any industry or function. It helps ensure that we
sustain our promise of delivering high quality products and services to our customers –
on time, every time. Communication is critical and Engro conducted six sigma launch
events country wide as well as two internal conferences and electronic and print updates

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throughout the year management and non management employees were trained
extensively during 2006 on six sigma principles, with further plans for learning in 2007.

360 Feedbacks

Motivation, work ownership and fair evaluation are some of the defining attributes of
staff management practices at Engro. Our commitment to continuous improvement in the
performance management systems for employees at all levels was reflected in adoption of
the 360 Degree Feedback System. This system ensures better employees accountability,
at the same time providing the employees with chances to make use of their
competencies. The 360 Degree mechanism became fully operational for senior
management in 2006.

INDUSTRIAL RELATION

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The labor relations function identifies and defines the roles of management and workers
in the workplace. The concept of labor relations varies greatly in different parts of the
world. In the United States, for example, labor relations are often a formal relationship,
sometimes antagonistic, between labor and management defined by a union contract. In
Japan, the relationship between management and unions is cooperative, and management
often appoints union leaders (Hodgetts, Luthans, 1994).
In many countries, the government regulates labor relations practices. Consequently, in
this function EFL has more than other human resources management functions, an
organization may have to be polycentric. However, even though labor relations are local
level issues, it is good corporate strategy to coordinate a labor relations policy across
subsidiaries.
But, there is no union exit in EFL. EFL hire labor through consultancy agencies like
UNIVERSAL and SS (solution security). UNIVERSAL provide labor like plant
technician, packing technician and other labor. And security guards through SS.
These consultancy agencies are responsible for their compaction reward and other
benefits. EFL only pays lump sum amount to these agencies.

REFRANCES

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