A

PROJECT REPORT
ON
WORKING CAPITAL MANAGEMENT &
FINANCIAL STATEMENT ANALYSIS

AT

INDIAN RARE EARTH LTD.

WITH SPECIAL REFERENCE TO (OSCOM)
ORISSA SAND COMPLEX
CHATRAPUR, DIST.GANJAM, ORISSA

INDUSTRY GUIDE:
MR. SATYABRAT BALA
MR.B SRIRAM SRESTY
SR.MANAGER (FINANCE), OSCOM.

PREPARED & SUBMITTED BY:

SANTOSH KUMAR SAHU
PGDM (FINANCE)
SINHGAD INSTITUTE OF BUSINESS
ADMINISTRATION & RESEARCH
KONDHWA (BK.) PUNE-48

DECLARATION
 I am Mr. SANTOSH KUMAR SAHU, student of SINHGAD INSTITUTE OF
BUSINESS ADMINISTRATION & RESEARCH, KONDHWA (BK.), PUNE do hereby
declare that, this project report entitled “Working capital Management & Analysis of financial
statement” with special reference to IREL (OSCOM) submitted as a partial fulfillment for the
degree of Post Graduate of Diploma in Management. Is a work of my own is not submitted to
any other institution or published anywhere else before.

Place: SANTOSH KUMAR SAHU

Date:

ACKNOWLEDGEMENT
The report entitled “WORKING CAPITAL MANAGEMENT & FINANCIAL
STATEMENT ANALYSIS” a study in INDIAN RARE EARTH LIMITED (IREL),
OSCOM represents the guidance and co-operation of a few individuals, to whom I would like to
express my deep sense of gratitude.
I express my sincere and heartiest gratitude to my PROJECT GUIDE, Prof. DEEPALI
KULKARNI of Sinhgad Institute of Business Administration And Research (SIBAR) Pune for
their valuable suggestion and guidance, which have given a finite shape to this report.
I am also grateful to Mr.SRIRAM SRESTY, (SENIOR MANAGER OF FINANCE)
INDIAN RARE EARTH LIMITED (IREL), OSCOM for giving me this opportunity to
conduct the project study in INDIAN RARE EARTH LIMITED (OSCOM) ,mines & sand
complex Chatrapur, dist. GANJAM, ORISSA.
I am also obliged to Mr. SATYABRAT BALA (JUNIOR MANAGER OF FINANCE)
of the finance department for his help and assistance.

Finally, I am also thankful to my parents & friends for their support and Lord Ganesh for
his blessings.

DATE- SANTOSH KUMAR SAHU

EXECUTIVE SUMMARY
Indian Rare Earth Limited - the largest mining & beach sand process company in the
country. The Company has registered highly satisfactory performance within the year and also
right through inception

IREL is a pioneer in the field of mining and processing of beach sand minerals such as
illmenite, rutile, zircon, monazite, garnet, & Sillmanite etc. It is operating three mining and
mineral processing units via, at Chavara (Kerala), Manavalakurichi (Tamilnadu) and
Chatrapur (Orissa). It is also operating a chemical plant, Rare Earth division at
Udyogamandal, Aluva (Kerala) for processing monazite and producing various rare earths
compounds.

The company is poised for further growth from its current level of sales turnover of
approx. Rs 2900 million with foreign exchange earnings of approx. Rs1000 million. Apart from
meeting the domestic demands, IREL caters to the international markets viz. USA,UK,FRANCE,
NORWAY, GERMANY, JAPAN, SOUTH KOREA, CHINA, UKARIN etc., even under severe
Global completion.

To understand the Working Capital Management and Financial Health of the company
various financial statements and annual report of IREL from the financial year 2006-07 to 2009-
10 has been used.

PREFACE
Finance as a subject of study, has received wide-spread support from both academic and business
segment people.

The topic “WORKING CAPITAL MANAGEMENT AND FINANCIAL STATEMENT

ANALYSIS” in IREL was selected as to understand the financial need and importance with
special reference to IREL (OSCOM), Mines and Processing of beach sand Complex, Chatrapur,
Ganjam.

As the working capital refers to the administration of all the analysis of working capital, ratios
and sources and application of funds and the company by studying, interpreting various financial
statements using various techniques such as comparative statements analysis, cash flow analysis
etc.

Even efforts have been made to collect the relevant information about the topic. The present
study about “WORKING CAPITAL MANAGEMENT AND FINANCIAL STATEMENT
ANALYSIS” in IREL (OSCOM), Chatrapur, it based on my 60 days project study in Finance
and Account Department in NALCO.

This training gives me an opportunity to make a study and analysis the system adopted by the
organization. It enables me to build the practical knowledge acquired during the class study with
practical training received during my project.

CONTENT
1. INTRODUCTION
 OBJECTIVE OF THE STUDY
 SCOPE OF THE STUDY
 METHODOLOGY
 TECHNIQUES OF DATA COLLECTION

2. COMPANY PROFILE

 ORIGIN & HITORY OF IRE LTD

 LOCATION & ACCESSIBILITY OF OSCOM

 VISION & MISSION STATEMENT

 OSCOM OBJECTIVES

 PRODUCTS OF OSCOM

 AWARDS & ACHIEVEMENT IN IRE LTD

 CATEGORY WISE MAN POWER STATEMENT

3. CONCEPTUAL FRAMEWORK

 CONCEPT OF WORKING CAPITAL

 FINANCIAL STATEMENT ANALYSIS

 RATIO ANALYSIS

4. DATA COLLECTION AND ANALYSIS

 BALANCE SHEET

 P/L ACCOUNT

 RATIO ANALYSIS & FINDINGS

 CASHFLOW STATEMENT ANALYSIS &

INTERPRETATION

5. SUGGESTIONS

6. BIBLOGRAPHY

CERTIFICATE
THIS IS TO CERTIFY THAT MR.SANTOSH KUMAR SAHU STUDENT OF SINHGAD
INSTITUTE OF BUSINESS ADMINISTRATION & RESEARCH, PUNE HAS
COMPLETED HIS FIELD WORK REPORT AT INDIAN RARE EARTH LTD (OSCOM)
ON THE TOPIC WORKING CAPITAL MANAGEMENT & FINANCIAL STATEMENT
ANALYSIS AND HAS SUBMITTED THE FIELD WORK REPORT IN PARTIAL
FULFILLMENT OF POST GRADUATE DIPLOMA IN MANAGEMENT OF THE
SINHGAD INSTITUTE OF BUSINESS ADMINISTRATION & RESEARCH, PUNE FOR
THE ACADEMIC YEAR 2009-2011

HE HAS WORKED UNDER OUR GUIDANCE AND DIRECTION. THE SAID

REPORT IS BASED ON BONAFIDE INFORMATION.

PROJECT GUIDE NAME D.G.M (FINANCE)

DATE:-

PLACE: - CHATRAPUR