2010

Cash and bank Management

Submitted By: Meghal Shah Exam Set No. M.B.A Semester II ANAND INSTITUTE OF MANAGEMENT M.B.A PROGRAMME OPP.TOWN HALL, NR. GRID, ANAND

JUNE 2010
Submitted to

FACULTY GUIDE
Krishna Gor (Anand Institute of Management)

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COMPANY GUIDE
Mr. Amar Petiwale Excicutive RIL,(VMD) (Finance Depatment)

10/7/2010

A SUMMER TRAINING REPORT ON
“CASH AND BANK MANAGEMENT”
FOR

“RELIANCE INDUSTRIES LTD (VMD)”

Submitted To

ANAND INSTITUTE OF MANAGEMENT
IN PATIAL FULLFILLMENT OF THE REQUIREMENT OF THE AWARD FOR THE DEGREE OF

MASTER OF BUSINESS ADMINISTRATION

Submitted By

MEGHAL SHAH

EXAM SEAT NO:- _____

M.B.A-SEMESTER II

Under The Guidance Of

FACULTY GUIDE KRISHNA GOR

COMPANY GUIDE MR. AMAR PETIWALE

ANAND INSTITUTE OF MANAGEMENT M.B.A PROGRAMME OPP.TOWN HALL, NR. GRID, ANAND JUNE 2010

2

CERTIFICATE

3

Anand gives the students an Opportunity to have an insight of any large scale unit so that we get the exposure to an actual managerial environment of company.PREFACE The Anand Institute of management. I am lucky to have summer training in a company like RIL which is considered to be one of the “largest establishments” in India. It was a thrilling experience while studying working of RIL and understanding it. I present this project which consists of a brief study of inventory management in RIL. I am grateful to the senior executives of RIL for their cooperation and interest in my project without which it could not have been possible to go ahead with my assignment. During this period. I had overview of the finance department within which I could make a detail study of all the section comes under the roof of finance in RIL. This program has led me to realize the contribution of RIL to the Petroleum Industry of India. With great pleasure. 4 . This training will help me to correlate theoretical knowledge and its practical applications.

Meghal Shah 5 .K RASTOGI. His systematic way of working and incomparable guidance has inspired the pace of the project to a great extent. This project would not have been successful without the help of these personalities. I am very grateful to Mr.P. I am really thankful to. B. This project would not have been successful without the help of Mr. Being a part of this project has certainly been a unique and a very productive experience on my part. I am very thankful to Krishna Gor lecturer of ANAND INSTITUTE OF MANAGEMENT for her useful guidance and advice. This project would not have been successful without the help of Mr. NARESH PATEL (CASH) AND SUNIL PATEL (PAYMENT). Last but not least I would like to thank all the employees of RIL VMD who have directly or indirectly helped me with their moral support for the completion of my project.for making all kinds of arrangements to carry the project successfully and for guiding and helping me to solve all kinds of quarries regarding the project work. Shah General Manager (Training Officer). Mr. & give me guidance to make my project.Acknowledgement Words are indeed inadequate to convey my deep sense of gratitude to all those who have helped me in completing this summer project to the best of my ability. who has given me the opportunity to do this project in the Reliance Industries Ltd. A. AMAR PETIWALE. General Manager (Finance & Accounts). General Manager (GM Finance).

have been duly acknowledged. Place: Anand Meghal Shah Date: 10/07/2010 6 . if any. meghal shah.DECLARATION I. hereby declare that the report on “Summer Training” entitled “CASH & BANK MANAGEMENT” is a result of my own work and my indebtedness to other work publications.

have completed summer training as a part of MBA program of 6 weeks at RIL Vadodara. finance department. The report totally depends on the secondary data and it may be possible that the data from which the report is made may not appear in the report because some data is confidential for the company. In the end. website. I undertook a unique. In the second part. I have focused on my core project regarding the procedure followed for the cash and bank management at RIL. board of directors. RIL internal portal. Meghal P Shah student of Anand Institute of Management. In this report first I have given the general information regarding the company. step-by-step methodology for preparation of the report. stores. marketing department and human recourse department etc. and the products. financial position of the company.EXECUTIVE SUMMARY I. I have completed my training at material (finance) department. I have also given the functional department of the company like Production department. the conclusion and the bibliography are given. milestones. Reference books. It includes the history of company. its disinvestments. Anand. My area of work was on Cash and bank management. 7 . quality policy.

3 4 5 6 7 8 8 .TABLE OF CONTENTS SR. NO 1 2 PARTICULARS PART-I GENERAL INFORMATION About the Company About the Functional Departments  Production Department  Human Resource Department  Finance Department  Marketing Department  Purchase and Stores  Quality Assurance  Dispatch and Logistics PART-II PRIMARY STUDY Introduction  Why cash management?  Why bank management?  Introduction of the subject  Importance of Studies  Objective of the project  Analysis of data Cash Management  Theoretical Perspective  Cash management in RIL  Cash Register  Cash Budget  Expense Register  Investments  What is New? Bank Management  Theoretical Perspective  Type of Bank maintain in RIL (VMD)  Bank Reconciliation Statement  Payment Method at RIL (VMD)  What is New? Account receivables and payables # Vendors Selection at VMD # Vendor Management at VMD # Debtors management at VMD # Ratio Analysis and Interpretation # Cash Flow Statement Analysis # Accounting System # SWOT Analysis of RIL Limitations of the Study Results and Findings PAGE NOS.

PARTICULARS TABLE NOS. 1 2 3 4 5 6 7 8 9 10 11 12 Milestones Table of Product Capacity of Plant of VMD Major Competitors Classification of Materials in SAP Types of movement commonly use in mm model Six Sigma Cash Account Book Expense Register Different between Bank Balance and Bank Overdraft Ratio Analysis Cash Command in SAP 1 2 3 4 5 6 7 8 9 10 11 12 9 . PAGE NOS.9 Bibliography LIST OF TABLES SR. NO.

10 .LIST OF DIAGRAMS SR. NO PARTICULARS 1 2 3 4 5 6 Finance Department Product Line Purchase Procedure Purchase to Issue Cycle Oder process for solid product Distribution Channel DIAGRAMS NOS. 1 2 3 4 5 6 PAGE NOS.

NO PARTICULARS 1 2 3 4 5 6 7 8 9 10 11 12 Current and Acid test Ratio Cash Cycle Operating Cycle Net Current Assets Collection and Payment Period Debtor to Sales Creditors Turnover Net Profit Margin Total Assets Turnover Fixed Interest coverage Ratio Expense Ratio Net Worth Turnover Ratio CHARTS 1 2 3 4 5 6 7 8 9 10 11 12 PAGE NOS. 11 .LIST OF CHARTS SR.

in the background of production. performance appraisal system. CHAPTER IV –FINANCE DEPARTMENT:In this chapter includes theoretical concepts relating to subject of project it focuses theoretical knowledge in financial management books related to topic and structure of finance account management CHAPTER V: MARKETING DEPARTMENT:This Chapter includes the Theory background of marketing management. capacity of plant of RIL (VMD). structure. CHAPTER VI: PURCHASE AND STORE:- 12 . It also include the historical developments and changes in the company. CHAPTER III –HUMAN RESOURCE DEPARTMENT:This chapter focuses on Introduction of HRM. CHAPTER II – PRODUCTION DEPATMENT:This chapter starts with the defining the plant layout.PART-I GENERAL INFORMANTION CHAPTERISATION The research project has been articulated with the help of eight chapters as follows_ CHAPTER I – COMPANY PROFILE:Company profile it focus on introduction of company. Learn at theory background and the practical appearance . Progress of company in past few years. HR planning requirement and selection of employee. product. how many RIL competitors and customer.

This chapter includes the Theory background of purchase and store. bank management and how to invest in bank. It also includes the importance of studies and presentation of data. CHAPTER II: CASH MANAGEMENT:This Chapter includes the Theory background of Cash management. CHAPTERISATION The research project has been articulated with the help of five chapters as follows_ CHAPTER I – INTRODUCTION:This chapter starts with the introduction of cash and bank. Learn the six sigma technology in RIL (VMD). CHAPTER III: BANK MANAGEMENT: This chapter includes the Theory background of Bank management. defining the objective of the project and ends by defining the limitation of this project. purchase the material practical implication. Flow the process. PART-II PRIMARY STUDY 2. CHAPTER VIII: DISPATCH AND LOGISTICS: This chapter includes the theory background of the logistics and the dispatch of product. how RIL makes manage the bank. CHAPTER IV: ACCOUNTS RECEIVABLES & PAYABLES:- 13 . CHAPTER VII: QUALITY ASSURANCE:This Chapter includes the Theory background of Quality of product. Cash management in RIL and the ratios related to the inventory management of RIL (VMD). how RIL makes optimum utilization of cash. how RIL makes manage the store.

Procedures of dealing with the debtors & creditors at RIL. vendor selection and management techniques and ratios related to the Receivables & payables of RIL. This contains the balance sheet and profit and loss accounts with help of this researcher has done research work & bibliography give the information about the books magazine & websites used by the researcher to complete the research work. Last by the report contains appendix & bibliography. 14 .This Chapter includes the Theory background of Receivables & Payables. It includes our findings. CHAPTER V: FINDINGS AND CONCLUSIONS: This chapter is based on analysis and interpretation.

MISSION. VISION. History of IPCL.PART-I GENERAL INFORMANTION Company Profile Introduction of RIL. Reliance Acquisition. VALUE & MILESTONES COMPANY PROFILE COMPANY LOGOS Organization Chart 15 .

It also shows the future of RIL as a growing organization.6 % of the Government of India’s indirect tax Revenues. This symbol is the evidence of the trust of people towards the Reliance. 5. RIL is MUKESH DHIRUBHAI AMBANI GROUP.7% of the total market capitalization in India Weightage of 12.1.1 Introduction of RIL The Symbol of ‘R’ reflects our global Indian personality. We at Reliance committed to meeting Customer requirements through continual improvement of its quality management systems. 5. Reliance shall sustain organizational excellence through visionary leadership and innovative efforts.6% in the S&P CNX Nifty Index (Position as on the march 2010) Growing importance across the globe • • • • • Largest refining capacity at any single location Largest producer of Polyester Fibre and Yarn 4th largest producer of Paraxylene (PX) 5th largest producer of Polypropylene (PP) 7th Largest producer of Purified Terephthalic Acid (PTA) and Mono Ethylene Glycol (MEG) 16 .8% in the BSE Sensex Weightage of 10. Significant contribution to India’s economic growth      14.5 % of India’s total exports.

The government reconstituted the IPCL Board by nominating four part-time directors on November 23. 2001. This means the company belongs to the select group of blue chip PSUs that are given additional autonomy in matters related to administration and finance. thanks to the Entrepreneur Development teams that went out with their “magic lanterns. 1972. Hence they were doubtful about the prospects in the industry and were unwilling to invest. involved development of nascent markets and managing new technologies with a skill base that was inadequate.(Position as on the march 2010) 1. a fully integrated Disinvestments The Government of India declared IPCL as one of the Navaratna companies on February 28. the Prime Minister of India laid the foundation stone for the Gujarat Olefins Project (Naphtha Cracker) on January 29. 1978. By March 15. 1997. petrochemical complex Today.000 plastic and detergent processors in the country almost 12.1979. On the other hand.2 HISTORY OF IPCL HISTORY (1969-2002) Indian Petrochemicals Corporation Limited (IPCL). Gujarat Refinery of Indian Oil Corporation on the outskirts of Vadodara in Gujarat.04 billion.” guiding. Indira Gandhi. The petrochemical revolution was thus set in motion by IPCL in India. The industry was highly capital intensive. Government of India issued the 17 . out of the 15. 1969.1998 so that the additional freedom granted under the Navaratna package becomes operative. the government realized the importance of integrated nature of the entire project. The Government decided to retain only 26 per cent of its holdings by Government of India finally decided not to pursue the sale of Vadodara complex to Indian Oil Corporation and decided to divest 26% equity in favor of strategic partner with a commitment of divesting atleast a further 25% equity from IPCL on November 12. developing and showing the path to prosperity to the willing but unaware entrepreneurs.000 owe their existence to IPCL. involved handling and processing of hazardous material. IPCL achieved the unprecedented feat of commissioning 11 plant in quick succession. A company under the Companies Act with Registered Office at Jamnagar (near Vadodara) in Gujarat was registered in March 22. Thus. at a capital investment of INR 3. It was assigned the responsibility of setting up two upstream mother units and two downstream units near an established public sector refinery. The plant was commissioned on March 28. Mrs.

2002.advertisement for this in December 2000. 131 per share). The physical and cultural integration began from the word go. Chairman. 90% jump over the previous year’s profit of INR 1.3 2002 Onwards-Reliance Acquisition The government of India handled over management control to Reliance group on June 4. This announcement attracted three companies Reliance Industries Ltd. Mukesh Ambani. This brought an end to one of the most keenly watched disinvestment by Government of India. was the highest at Rs. The offer from Indian Oil Corporation was Rs. said “we are delighted with the complete turnaround in IPCL’s performance in the very first year of acquisition by reliance. Nirma Chemical Works Ltd and Indian Oil Corporation Limited. 128 per share) and that from Nirma Chemical Works Ltd. 231 per share) around 74% higher than the closing price of IPCL's shares at National Stock Exchange. The Evaluation Committee constituted by the Government of India to arrive at reserve price recommended a price of Rs. 2002 to evaluate the bids found that the bid submitted by Reliance Petro investments Ltd.. and are confident of further improvement in the company’s performance in the future”. Interested investors submitted their financial bids on April 29. both IPCL and Reliance started adopting “Best Practices” from each other.04 billion. This led to optimal utilization of available resources for enhancing productivity. All over efforts are being made to enhance productivity and control cost for superior value addition. The new management team has reendorsed the company’s mission to create value for all stakeholders. was Rs.07 billion. 110 per share). 711 Crores (Rs. The successful absorption of Reliance’s best practice by IPCL in all areas of operations. The profit for the first financial year(2002-03) under the reliance management stood at INR 2. The cabinet committee on disinvestment which met on May 28. The Company's operations can be classified into four segments namely:    Petroleum Refining and Marketing business Petrochemicals business Oil and Gas Exploration & Production business 18 . and positive impact of measures introduced for cost reduction and productivity and efficiency gains. We have great confidence in the capabilities of IPCL and its people. 826 crores (Rs. Commenting on the results for 2002-2003. 2002. 845 Crores for 26% equity (Rs. 1. since then the company is being managed by reliance. 1491 crores (Rs. Mumbai. Mr.

7. 6. Responsibility. society and stakeholders value” RIL VALUE “Integrity. All deficiencies must be Corrected promptly. All injuries and illness can be Prevented and all operations exposures can be All accidents must be Reported and analyzed. Respect. 10. Off the job safety is also important. Purposefulness. Safety and Trust. controlled. Integrity. Management Audits are must.) 1. 19 . All employees must be Involved. 4. Citizenship. 3. PROACTIVE MANAGEMENT 1. Others (Textiles. retail. Training employees to work safely is essential. Value & Milestones RIL MISSION Continuously innovate to remain partner in human Progress by harnessing science and technology In the petrochemicals domain RIL VISION “Be a globally preferred Business associate with responsible concern for ecology. Honesty. 5.4 Mission. Vision. 2. etc. 9. Respect for people unity of purpose outside – in focus Agility and Innovation” RIL growth and success are based on the ten core values of Care. 8. All levels of Management are responsible. Working safety is a condition of continual Employment. Safety is our Value not just a Priority. Fairness.

Maharashtra Third petrochemical complex at Gandhar. Reliance petrochemical Ltd. Construction of first petrochemical complex commenced at Vadodara. to explore opportunities of setting up petrochemical plant in feedstock rich countries outside India RPL merger with RIL and 6.MILESTONES YEAR 1969 1970 1973 1979 1992 1992 1996 2000 2000 2002 2004 2004 2005 2006 2007 2008 2008 2009 2009 (TABLE NO: 1) KEY EVENTS IPCL was incorporated Under company’s Act. of India withdraw its nominee directors from the board of director of IPCL Amalgamation of six polyester companies RIL completed a land mark acquisition of IPCL During the year.. of India disinvested 26% of our equity share capital to the strategic partner Amendment agreement between the GOVT. Govt. Malaysia Reliance also signed MOU with GAIL (India) Ltd. Gujarat Entered into joint venture agreement for implementing GCPTCL Completion of second phase of Gandhar complex GOVT.5 Company Profile 20 .92 crore new equity share of RIL have been allotted to the share holder of RPL RIL joins the league of global deep water oil and gas operators 1. of India disinvested its balance shareholding Govt. Reliance signed an agreement to acquire certain polyester assets of Hualon. Gujarat Commenced commercial operation at Vadodara Commissioning of the first Naptha cracker at Vadodara Initial public offering and listing on the Vadodara stock exchange Second petrochemical complex commissioned at Nagothane. and Strategic partner. a Reliance group company.

Raighad.com b) Site office:  Vadodara: Vadodara manufacturing unit. Jamnagar. maker chambers IV.O. Gujarat. Petrochemical. 0265. Mumbai: .ril. 222. 3rd floor. Nariman Point.  Nagothane: Nagothane manufacturing unit. Gujarat. Maharashtra.391346 Vadodara. India. COMPANY DETAIL: NAME: Reliance Industry Ltd.1.6696000/ 669700  Jamnagar: Jamnagar manufacturing unit. COMPANY INFORMATION: a) Head office: Reliance industries Ltd. P. Maharashtra. Ph. Website: www.400021. 2. 21 .

Ambani (Chairman and Managing Director) Shri Nikhil R.  Dahej P.392 130 Gujarat. O. Surat. India 3. Hazira: Hazira manufacturing unit. Maharashtra. India  Gadimoga Tallarevu Mandal Gadimoga – 533 463 Andhra Pradesh. Gujarat. Dahej. India  Jamnagar SEZ Village Meghpar / Padana. Patalganga. Meshwani (Executive Director) Shri PMS Prasad (Executive Director) 22 . Bharuch . Industrial Area. India  Patalganga B-4. Board of Directors of Reliance Industries Limited • • • • Shri Mukesh D. Meshwani (Executive Director) Shri Hital R. Near Panvel. Jamnagar 361 280 Gujarat.

K.6 Company Logos The first logo. This decision of the government. DGTD award for Biotechnology Process 1994. Ambani Shri Mansingh L.representing the molecular structure of the simplest organic chemical. Corporate Performance Award ET HBSAI: 1994-95 Sward of Honor from British safety council. which consisted of a tetrahedron . methane . 1. Deloitte Haskins & Sells Rajendra & Co.P. 1985. Company Secretary 5. and 1991.V. Ashok Misra Dr. “Every thing under one roof” inspired the second logo of IPCL. Modi Prof. Chaturvedi & Shah. Dipak C Jain Dr Raghunath Anant Mashelkar Vinod M. D. 4. Ambani Kanga & Co. Trivedi Dr. Solicitors & Advocates 6. 23 . London) ICMA award for Forward technology development: 1981.• • • • • • • • • Shri P. Auditors ACHIEVEMENT • • • • • Best Petrochemicals Company World-wide: 1990 (Cl . Kapil (Executive Director) Shri Ramniklal H. Kapur Shri M. IPCL took up the challenge of setting up the entire integrated complex at Vadodara.in a circle. Bhakta Shri yogendra P.

The lines flow upwards and outwards from a common base into infinity. as a corporate entity. reaching for unending growth. Manager Nagothane complex Gandhar complex 24 .7 Organization Chart Chairman Mukesh Ambani Whole Time Director Baroda complex President Senior Vice President General Manager Dty. The green colour used in the design reinforces the theme aspiration and growth. universal goodwill. light. emerging from one sourceand branching out in different directions. 2002. rooted in the earth and in harmony with the other elements .water. or logo.IPCL. reflects what IPCL is a single matrix of the many. This symbol. is and what it shall strive to be. yet retaining its unity and identity. General Manager Senior Manager Dty. since then the company is being managed by reliance. air and space The government of India handled over management control to Reliance group on June 4. general prosperity and excellence in everything. 1. a diversity of activities and products.

Asst. Manager Officers Staff Production Department Plant Layout of VMD Organization Structure Table of Products Products at a Glance Capacity of plant at VMD 25 .

1 Plant Layout of Vadodara Manufacturing Division Flow Diagram – Vadodara Complex 26 .2.

Vice President. etc. Vice President Vice President Asst. Sr.3 Table of Products Acetonitrile Benzene Butyl Acrylate Caustic Soda Lye Ethylene 2-Ethylhexyl Acrylate (Table No: 2) Commodity Chemicals: 27 . Manager Manager Operators 2. Polyvinyl chloride.2 Organization Structure: The following chart shows the structure of the Production Department Sr. Acrylic Esters. General Manager General Manager Sr.The Vadodara Complex houses 21 plants on over nearly 500 hectares of land and produces large variety of products consisting of Linear Alkyl Benzene. Polyethylene. The company's registered office is located in Vadodara Complex and that was the first manufacturing facility setup by the company. Ethylene Glycol. Acrylic Fibers. 2. polypropylene. Butadiene rubber.

Orthoxylene Propylene (Polymer Grade) Ammonium Sulphate Butadiene Caustic Soda Flakes Carbon Black Feedstock Ethyl Acrylate Methyl Acrylate Propylene (Chemical Grade) Solvents: CIXON HEPTON Solvent CIX Surfactants: Ethylene Oxide Linear Alkyl Benzene Commodity Plastics: Indothene Indothene LL Indothene HD Koylene Koylene CP Koylene ADL and Koylene ADL .CP Indovin Rubber and Hydrocarbon Resin: Cisamer 01 Cisamer 1220 Petrez 28 .

Cement packaging. milk & shopping bags. heavy-duty bags. cables. storage bins etc. garbage bags. engineering polymers. polyester filament yarns. Acrylates. cable coatings. crates. extrusion wires. Polyester staple fibers. ropes. cartons. knitting yarns. Water pipes. conveyor belts. footwear. footwear. polyester. electrical conduit/wires. flexible films Automobile tires & tubes. sheets. paints. HDPE PP PVC PBR Main uses of fiber & fiber intermediates: Products AF/DSF MEG ACN DMT Uses Textiles.Catalysts and Adsorbants: Catal Catsiv Speciality Catalyst Fibers and Intermediates: Acrylonitrile Ethylene Glycol Demethyl Terephthalate APPLICATION OF PRODUCTS Solid Products Main uses of polymers: Product LDPE/LLDPE Uses Consumer packaging/film. monofilament yarn. woven sacks. 29 . luggage. pipes. Polyesters. Acrylic fiber. Fertilizers/household packaging. sweeter. Anti freeze. fishing nets.

2. unprecedented applications have been possible for acrylic fiber namely range of suiting/dress materials/hosiery/carpets/blankets/upholstery. These have been produced for the first time in India by IPCL.Liquid Products Main uses of chemicals: Products LAB EO/BENEZENE/TOLUENE Caustic Soda Caustic Soda Uses Raw material for household. Having developed a wide range of applications. IPCL decided to expand the acrylic fiber manufacturing capacity to 24. Alumina/paper. not only by virtue of the quantity and multiplicity of grades but also because of the very number of small-scale customers spread all over India. Phenol. caprolactum Alumina/paper. USA. Fibres and Fibre Intermediates: Some quantities of Acrylic fiber being imported earlier were mainly for hand knitting yarn. Polypropylene and Polybutadiene rubber are new to Indian market. industrial paints. 30 .000 MTA. thus making Indacryl (brand name for Acrylic Fiber) the fiber for all seasons. Due to the developmental activities undertaken by IPCL. dyestuff. detergents. personal care products. to meet the growing demand for acrylic fiber. The expansion is with the technical know-how from ElDu Pont Nemours.4 Product at a Glance The products manufactured and marketed by the Corporation could be classified into the following 3 major groups: Polymers: Polymers that include plastic and rubber is a major product-line. industrial uses. pharmaceuticals.

about 31.|| CAPACITY (MT) 130000 110000 20000 57300 60000 25000 75000 30000 10000 54000 20000 30000 31 . 2. different chemical products are being marketed. and the growth in the product line has been possible mainly due to the development of value added products from the return streams.5 Capacity of plant at VMD (TABLE NO: 3) NAME OF PLANTS Naphtha cracker (ethylene) LDPE plant Ethylene glycol VCM plant PVC plant PPCP plant PP4 plant Acrylonitrite plant Acrylates plant Butadiene extraction plant Poly butadiene rubber plant -| Poly butadiene rubber plant .Chemicals: At present. Chemical intermediaries find wide and diverse applications in various industries.

Recruitment & selection Performance appraisal system Promotion and Transfer Policy Welfare activities Functions of Time Office 32 .Human Resource Department HRM Organizational HRM Structure of HR DEPARTMENTS OF VMD (RIL) HR Planning.

The programs are conducted at three centers: Petrochemical Management Development Institute (PMDI). transport. Training of manpower happens to be an integral component of the development strategy.3. The Corporation follows a planned approach to human resources development. Nearly a third of its employees receive training each year. schools. medical and other such facilities ensure a better quality of life for its employees. Nagothane and Dahej. Today VMD possesses one of the best pools of talents in the petrochemical industry in India. 3. and at training centers at Vadodara. Vadodara.2 Organizational Structure of HRM Senior Vice President Vice President HR IR Canteen Centre Training Establishment Disciplinary Method Time keeping 33 . recreational centers.1 Human Resource Department For VMD its real wealth is over 4100 employees. Well maintained residential complexes. Other aspects of its employee related programs include: Training programs conducted on regular basis. paving way for healthier industrial relations.

3 HR Departments of VMD(RIL) SAP-HR DEPARTMENT LIBRARY LEARNING CENTER SALARY DEPARTMENT HR SECTION: IR SECTION: LEGAL DISCIPLINARY DEPARTMENT UNIONS ESTABLISHMENT SECTION: PERFORMANCE DEPARTMENT ADVANCE DEPARTMENT DEPARTMENT OF PROMOTION CELL GENERAL ADMINISTRATION: SECURITY TELECOM CANTEEN TRANSPORT ADMINISTRATION SERVICE: REPAIR & MAINTAINANCE LEVERIES CENTRAL REGISTRY PRINTING HOLIDAY HOME MEDICAL DEPARTMENT CENTRAL TIME OFFICE WELFARE DEPARTMENT • The various H.R.3. subsystems are 34 .

RIL generally goes to the reputed campuses for recruitment purpose. the key result areas are listed down and the performance is evaluated and rated keeping in view these core areas. The vintage period is generally 6 years. Here annual confidential reports are filed wherein the details of the work done by the employees are entered. For supervisors. Recruitment and Selection Human Resource Planning is one of the most primary activities carried out at RIL. 3. In this. 3. It is regularly reviewed by the top management. For supervisors the vintage period is 4 years.6 Promotion and Transfer Policy The promotion at RIL is time bound. Setting up of development centres for assessment of competencies. It does not go for advertisement in the newspapers or media or any such other ways of recruitment.4 Human Resource Planning. Filled and Vacant’ (SFV) File. Planning is done by maintaining a ‘Stock of Sanction. Once an individual is promoted to General Manager Post he gets 35 . arrangements are made for the recruitment of the personals. In this way. Generally. This file maintains a track of the requirements of personnel’s in the organization. Thus the performance appraisal system in RIL is contributing its full-fledged efforts to improvise the performance of its employees. Reliance is doing centralized recruitment from Mumbai.Recruitment Training and Development Performance management Career planning Career counseling/ mentoring Assessment and development centre Compensation and rewards 3. a track of the performance of individuals in the organization is maintained. RIL’s one of the foremost criteria for selection of employees is competent and knowledgeable enough to perform their duties effectively and efficiently. As and when the need arises.5 Performance Appraisal System RIL undertakes performance appraisal at regular intervals without fail. identification of gaps and charting out further interventions is in progress. Performance Management System is in practice.

RIL also carries out community welfare activities in the villages surrounding its three complexes at Vadodara. maintaining the records and documents. These matters include allotting supervisors. Here all Head of Departments are supposed to evaluate the performance of the staff under them and on this basis the ACR is prepared. Nagothane and Gandhar through various initiatives in the areas of education. towel. If there is no vacancy available the employees are simply upgraded. providing the minimal working conditions to the employee etc. The transfers are done as per needs of the company. employment generation and infrastructure development. gumboot. The department also prepares the Annual Confidential Report (ACR). raincoat. RIL has adopted the latest software called SAP that makes the work easier for the HR personnel and so now the information is easily accessible to the employee. the dining hall services are the subsidiary services. etc. Car loan at subsidized rate of interest Benevolent Fund Free provision of uniform. Apart from its welfare activities towards its employees. jersey.2 years residence period. satisfying the basic needs.8 Functions of Time Office The role of HR begins right from manpower planning in discovering vacancies to training and evaluating the employee after hiring and selecting him/her. apron. the declarations and all the benefits 36 . 3. 3.The expenses beared by the employees on medical Accident Insurance Scheme. safety shoes. napkins. The most important is that the MTO also maintains the personal file. soaps. The welfare activities at RIL include the following: treatement (including the family members) is reimbursed as per the company policy. This file has all the details of the employee like the appointment letter. Time materials office (MTO) maintains R-matrix (Registered Matrix). health. agriculture. In RIL there is a material times office which looks into all the matters concerning the employee. R-matrix is the channel of communication which follows from an employee to his supervisor and upwards. the employees are promoted as per the requirement of the company policy.7 • • • • • Welfare Activities Medical Benefit. House Building Advance.MTO provides administrative services like providing coupons etc. And if vacancies are available.

The most integral part of the personnel file is the service book. scheme of RIL Finance Department Finance Organizational Structure Finance Department Accounting Policies of 37 . This book has all the details of the employee.taken by the employee. The book also contains as to when the employee has availed any loan.

Effective financial management is the outcome of proper management of investment of funds in business. renovation or modernization of plant and machinery and development.4.1 Finance Department Finance is the life blood of any business undertaking. payments of wages. For a manufacturing unit one has to manage the procurement of raw material. for current operation of business. Funds are also needed for short term purpose. Funds can be invested for permanent or long term purpose such as acquisition of fixed assets. The finance Department is divided in to 8 different section (DIAGRAMS NO: 1) Account Receivable Central Accounting Reliance Finance Department Account Payable Taxation Section Cash & Bank Procurement Section Pay Roll Section Costing Section 38 . and salaries to employees and for meeting routine expenses. diversification and expansion of business. that is.

Difference between the actual result and the estimates are recognized in the period in which the are known/materialized. All costs. less accumulated depreciation. net charges on foreign exchang contracts and adjustment arising from Exchange rate variations attributable to the fixed assets are capitalized.2 Organizational structure of Finance Department:- 4. including financing costs till commencement of commercial production.3 • Accounting Policies Basis of preparation of financial statements The financial statements have been prepared under the historical cost convention in accordance with the generally accepted accounting principles in India and the provision of the companies act. 39 . 1956. • Use of estimates The presentation of financial statements requires estimates and assumptions to be made the affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during reporting period. • Own fixed assets Fixed assets are stated at cost net of modvat/cenvat.4.

1956. excise duty and sales during trial run period.• o o Leased assets Operating leases: rentals are expensed with reference to lease terms Finance leases prior to 1st April. • Excise duty Excise duty has been accounted on the basis of both payments made in respect of goods cleared as also provision made for goods lying in bonded warehouses. terms and other consideration • Depreciation on fixed assets has been provided on straight line method at the rates and in the manner prescribed in schedule XIV to the companies Act. services. Cost of inventories all cost of purchase. • foreign currency transactions Transactions denominated in foreign currencies are normally recorded at the exchange rate prevailing the time of the transaction. adjusted for discounts. family pension fund. cost of conversion and the other cost incurred in bringing them to their respective present location and condition. • Inventories Items of inventories are measured at lower of cost or net realizable value. gratuity and leave encashment benefit are charged to profit and loss account • Research and development expenses 40 . • Turnover Turnover includes sale of goods. 2001 : rentals are expensed to lease Depreciation and other considerations. • Employees retirement benefits Company’s contribution to provident fund. • Investments Long-term investments are stated at cost.

• Provision for current and deferred tax Provision for currents tax is made taking into consideration benefits admissible under the provision of the income tax act. Revenue expenditure is charged to profit and loss account of the year in which they are incurred.VMD Product Line List of Competitors Major Customers Department of 41 . • Contingent liabilities These are disclosed by way of notes on the balance sheet. 1961. Marketing Department Introduction Marketing RIL. Deferred tax resulting from “timing difference” between book and taxable profit is accounted for using the taxrates and laws that have been enacted or substantively enacted as on the balance sheet date • Miscellaneous expenditure Miscellaneous expenditure is amortized over a period of five years on a pro-rata basis. • Borrowing costs Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets.Expenditure relating to capital items is debited to fixed assets and depreciated at applicable rates.

Head Office .    Strategic market development.Mumbai 5Regional Offices 11regional Sales Centers 130 As 93 Stock Points 5. Marketing Objectives:  of the firm. “consumer is the king”. Formulation of marketing plans/cash flow plans.1 Introduction Marketing is inevitable in the present era as. Competitor’s strategy updated and co-operative strategic responses. Allocate resources to the marketing mix to maximize the long run profitability 42 . defining and measuring which target market the organization can best serve. Marketing activity includes identification of fulfilled needs and wants.

Strategic integration of development plans with National plans. It has 5 Regional offices and also 6 sales offices in different cities in India The Marketing VMD department is divided in: A. which is. 5. VMD. Floating various tenders and preparation of tender documents. which has its network spread all over India. (A). The Marketing department is one of the biggest departments in the VMD. It is the most vibrant and dynamic part responsible for the distribution of the products produced by an organization.2 Marketing Department of RIL. It includes  International Business Group [IBG] 43 . Products Management: The product management is further divided into two sub groups. B. VMD: Marketing department is the nerve center of any organization. C. Support Management: VMD’s Marketing group has three support groups viz. Prepare all necessary production and sales report.     Set of an effective and efficient system for expenditure. Report marketing as a tool of value addition. market driven it is its marketing department that has to be at its serving all the time. They are:   Polymers Business Group [PBG] Chemicals Business Group [CBG] PRODUCTS MANAGEMENT SUPPORT MANAGEMENT SALES MANAGEMENT (B). For an industrial goods manufacturing company like.    Strategic Marketing Group [SMG] Product Application Group [PAG] Marketing Operations and Planning Group [MOP] (C) Sales Management: The Sales Management group comprises export and domestic market.

Caustic Soda. In other words. Solvent.. Ethylene. PP. it means a threat to the firm in terms of acquiring the market share. etc 5. Benzene. etc Ethylene Oxide.3 • • • Product Line of RIL Polymer Chemical Rubber Above products can be further classified as follows: (DIAGRAMS NO 2) PRODUCT LINE VMD has following major product lines viz. which is India’s largest petrochemicals company Major Competitors (TABLE NO: 4) 44 . Domestic sales group 5. Dutch. Chemicals Solvents Surfactants Rubber Polymers Ammonium Sulphate. Royal. RIL & their domestic competitors face competition from products manufactured by global manufacturers like Dow chemical. The largest company of Reliance group is RIPL. Hepton. which is part of the Reliance group. These are GAIL & HP. Shell & SABIC. etc Polybutadie ne. HDPE. Carbon Black. PVC. The petrochemicals industry in India is dominated by two large producers in addition to RIL. since petrochemical products can be freely imported in to India. Exxon Mobil. Moreover. Propylene.4 Li st of Competitors Competitors are those firms or individuals playing in the same industry i. Linear Alkyl Benzene. etc Cixon. producing a similar product. RIL has changed significantly after the management control was transferred by government to RIPL.e. etc LDPE.

Goodyear. JK Tyre. Supreme etc. Ceat etc. Vikrant. Goodyear Bridgstone Exxon mobil Basell Dow chemical Autofina BP-Amoco Equistar Philips-Chevron Sabic. Nirma Chemical Foreign Sanghai petro. HPCL IOC SAIL Tamilnadu Petroproducts Ltd. Methodology Purchase Procedure Purchase to Issue Cycle 45 . HPL BPCL. Borealis Exxon mobil Dow chemical Basell Sabic 5. Rubber: Appollo. Rainbow. Purchase & store Department Organizational Structure of Purchase & store.5 Major Customers: Plastics: Nilkamal. MRF. GAIL.Product group PBR Domestic NIL Polymers Chemicals HPL GAIL Finolex Supreme petrochemical NOCIL Chemplast DCM Shriram Vardhaman Acrylic ltd.

1 Organizational Structure Gen. Manager Deputy GM (Purchase) Deputy GM (Stores) Sen. Manager Manager Manager 46 .6. Manager Sen.

Dty. Manager

Dty. Manager

Officers

Officers

Assistants

Stores Keepers

To

run

any

manufacturing

company,

all

you

need

at

the

first

stage

is

raw

material. At VMD, the basic raw material is Naptha along with many other materials. Purchase of raw material is basically done by: • • Domestic Purchase International Purchase (Import)

The function of receiving and physically handling delivered material, together with verifying that the deliveries correspond exactly to those specified in the Purchase Order is done by a specialized group in the Receipt Section of Stores. Purpose of this Procedure is to describe the methods employed for receipt and inspection of incoming materials, properly accounted for the purpose of payment, user information, and fast retrieval of information.
6.2

Purchase Procedure
(DIAGRAMS NOS: 3) TPN (TRUCK PARKING ENTRY)
ENTRY OF TRUCKS

WB (WEIGH BRIDGE)

TOL (TRUCK ORDER LINKING) TRUCK ENTERS THE WAREHOUSE

WBN (WEIGH BRIDGE ENTRY) ENTRY TRUCK IS WEIGHTED

47

PICKING UP NOTE

INV (INVOICE)

WBX (WEIGH BRIDGE EXIT)

MGX (MAIN GATE EXIT)

6.3

Purchase to Issue Cycle
(DIAGRAMS NOS: 4) Purchase Requisition Note (When plant require material)

Request Quotation (Company ask for quotation from vendor)

Quotations comes

Selection of vendor (On basis of terms and conditions expected by the company)

48

Put Purchase Order

Material comes

Material goes to the excise section (Capture the invoices)

Material goes to security keeper (They check the material are as per unit mention in invoices or not)

Material goes in stores Receipt Ward (Here the material check against P.O.and labeling is done)

Material goes to the Inspection Ward (They do quality check and prepare Inspection Report) On the basis of the Inspection Report they prepare Goods Receipt Note and also check Test Certificate send by vendor and then Inspected Material

Go to Issue Ward (If goods accepted)

Go to vendor (If goods rejected)

Before sending goods to the Issue Ward goods are insured. And for rejected goods they prepare Goods Rejection Note and also prepare O.G.P. (Out Goods Note) and sent to the vendor. For the liquid chemicals used as raw material storing process are as follows Liquid chemical comes in tanker at gate

Tanker goes to excise section

49

Codification RIL Vadodara complex is huge manufacturing division having different continuous manufacturing production processes. The items are known from the codes and not from the name. design number. color. name of manufacture. This is the whole procedure for storing to issuing of the raw material. 50 . Then checking of the data is been done for the existing inventory if any existing inventory’s sub part is there. After getting the form inventory management department will check for the data validation of the inventory. First of all the codification request is been made for the new product. Materials are entered in the system with complete specification and details like size. the form is to be filled with all the information of the inventory and where it is used.(Capture the invoices) Tanker goes to store (Weight of the tanker with liquid and quality check of the chemical is done) Unloading (Tanker is unloaded to respective plant) /Tanker again comes to the store after unloading (Again weight of the tanker is done without liquid) Difference between weight of tanker before and after unloading the chemical is the actual quantity comes from the vendor. these information needed for the separation of the products and to assign different codes for different type of product. Codification helps in identifying the items individually. In VMD they are maintaining around 67000 items as the inventory having approximate value of Rs. if any manipulation is there then they have to again fill the form. height and width of product etc. Thus stores department works with the materials. The code is been given of 10 numbers. model number.225 crores.

1 indicates include the group the groups from 001 to 999. • Next 3 digits are known as sub-subgroup. This number must be 1 or 3. • • Next three digits are showing the serial number assign to a particular part or item. These codes are maintained centrally so the same codes are used for a single product in all departments of RIL. In the time of recession management of RIL decides to go for centralization and manage the all departments from the head office. SAP generates the unique serial number for each and every item as soon as RMMCS accepts the code. Suppose the Vadodara department needs the ‘bearing of 14 inches of flag co. it include 01 to 99 number of group. It represents the similar items in a single group. • Next two digits are known as the subgroup. the group is formed with the numbers from 01 to 99. E. RMMCS is linked with the SAP system. It Last digit shows the origin of the product.g. Up this six numbers code is known as “CODING SCHEMA”.e. This system is managed centrally by a team and prevents the duplication of purchase or over stocking of similar kind of goods in the RIL.g. E. RIL has its own system to manage the inventory i. that this product is indigenous and 3 indicate that the product is imported. 68 – it contain all types of pumps and its spares. 6804 – It shows the pumps of ----company. Flagging System: RIL has 167th rank in ‘FORTUNE 500’ companies and one of the largest company in the world. Flagging prevents the management from purchasing the goods if the similar goods are available in other department so it avoids the unnecessary blockage of money. It shows the manufacturer codes.• The first two digits are known as the main group. With this RIL generates the unique number for each and every product or spare. In such a huge company it becomes necessary to give more attention towards the inventory. These numbers are indicating the model number or identification or design number or blueprint number. RMMCS and one of the best techniques of managing the inventory is known as Flagging. It contains similar products and its spare parts. Management is also looking for minimum human efforts in the management work by using the technological changes. E. 680401 – this number is for the pumps of ---.’ and if the similar bearings are available with any other department of RIL than 51 .company having the design number ‘CNU465’. If the manufacturing code is not available than this group shows the design number. SAP numbers are just a serial number. again it include groups from 01 to 99.g.

03 flag for slow moving material not move for more than 2 years.5000 per unit . Once the flag has been removed. 013 flag for material not moved within one year. In this case system shows the name where the similar bearings are available. 05 flag for material stock more than the maximum limit. (TABLE NO. Vadodara department can enter a purchase requisition in the system to purchase those bearings. 08 flag for moderate material not moved since last 2 years.RIL is using the flagging system and with this system RIL able to reduce the investment in the inventory. This system really helps in managing the inventory and reduces the cost associate with the inventory and ultimately all these results in increase in profit by reduction in cost. If That department did not need that bearings or that bearings are not in regular use than Vadodara department has to get those bearings by generating STO (Stock Transfer Certificate). with this code system identify each material easily.4 Classification of Material in SAP RIL is centrally managed with the help of SAP system. In SAP system every material name is identified with the code.if the Vadodara department could not enter purchase requisition order in the system as that item contain the flag. • • • • • 02 flag for duplicate material available. System generates the flags only for those materials having cost more than RS. Vadodara department needs to contact the responsible person in the department having stock of those bearings. System generates the different type of flag for different reasons depending on the days of storage of that item. 6.: 5) CODE SPAR CACH PAMA MATERIALS SPARES CHEMICALA& CATALYSTS PACKAGING MATERIAL 52 . Suppose those bearings are of regular use or they need it and not an over stock item than they have to conform it and department having the similar stock needs to remove the flag from that item.

2.FTRM LABC FINISHED TRADABLE RAW MATERIALS LAB CHEMICALS Purchasing Groups          Feed Stock Chemicals & Catalysts Packaging Administration Consumables Electrical Instrumentation Pumps and Spares Heavy Equipment PR Creation            Account Assignment Delivery Date Plant Purchasing Group Requisitioner Code Quantity Value MRP Control Valuation Fund Center PO Creation Mandatory Fields 1. VENDOR CODE PURCHASE ORGANIZATION 53 . 3. PR NO.

4. 9. 10. In the master window one has to enter the code for the activity which he wants to perform. 8. 6. User of SAP needs to remember the codes for smooth functioning in system. List of such activities are given below. YGR1. (TABLE NO. In this movement numbers are for the activity wants to perform and T-CODE are used for identification of type of goods. 6. 7. 5.5 PURCHASING GROUP DELIVERY DATE PLANT RATE INCO TERMS TAX CODE FUND CENTER Types of Stores CENTRAL STORES CHEMICAL STORES BULK CHEMICALS GAP STORES SCRAP YARD/ DISPOSAL Receipt of material at Material Gate Excise Capturing Verification by RGHS Weighment GRN preparation by Receiving Section Offering material for inspection User Decision Stocking of material in respective wards Issue of material to users • • • • • Stores Cycle          6.6 Various Types of Movements Commonly Used In MM Modules In the SAP system not only the material but the activities are also known from the codes for this movement numbers are given to each activity.: 6) Movement 101 991 Activity Goods Receipt Goods Receipt without Einvoice T Code YMGR. MB01 MB01 54 .

Billing address and shipping address of purchaser. and date (as the case may be) of both sellers and purchasers. 2) Address of purchaser to be mentioned in invoice. 7) (Stores) to enable us to arrange transit insurance. 4) Freight charges extra. 3) As the designated banks do not have branches at all the places across India and so many vendors are to open a/c. 6) Please inform dispatch details to our material manager. WE have a e-payment (direct electronic credit to vendors a/c) facilities with three banks. / TIN no. So we explode the bank netuaral . they are HDFC.O User’s Decision Issue against Cost center Issue against Pm order MB01 MB01 MB01 QA11 MB1A MB1A Purchase Order Terms 1) Packing forwarding charges: extra 2% 2) Excise duty (as applicable)s 3) CST: Extra as applicable presently at 4% against form”c”. / VAT no. input tax credit (ITC) will not be allowed and invoice become defective.7 Goods Receipt without P. In supplier invoice must be of the came state in case of local 55 . M/S Time to share hanlus to its address of correspondence.501 122 502 321 201 961 6. 5) Insurance by RIL as same as the goods are dispatched. However e-payment through this route are free of cost. Without this. return to vendor Removal without P. kindly arrange to dispatch the goods through our authorized transporters. in there is connection we have issued service of communication to all vendors.We have a mission to convert all vendors into e-payment route.O Rejection. 8) Manufacturer test certificate. 4) Liquidated or Damages will be charged weekly 11% subject to maximum of 5% of order value will be leyeied in case of delayed supply. ICICI. Payments Terms 1) Our standard payment terms is 100% payment within the 30 days of receipt subject to acceptance of materials at RIL stores Vadodra by: E-payment only as under: . CITI Bank. 2) Terms of Value Added Tax (VAT) 1) Please vote while preparing the invoice it is mandatory to mention sales tax no. The bank will charge vendor a fee for receiving RTGS / SEFT facility. RBI operated electronic payment system (RTGS) Real Time Gross Settlement to SEFT Special electronic Fund Transfer where the vendor can have a/c in the any bank but its branch should RTGS / SEFT enabled. The major requirement here is that you have to open a/c with this banks. guarantee certificate submitted along with the supply.

Suppliers are sending the quotations. after this purchase department fetches the data from the inventory module and search for the suppliers of the same material. 6) 7) 6.purchaser for VAT state for ITC purpose. 3) However supplier may submit the invoice to purchasers account department at RIL Baroda complex. On the basis of comparative statement management decides the supplier who is tendered a lower price and easy terms and conditions. RIL has its approved suppliers and maintained relationship from a longer period so they are not worried about the quality but price matters here and lower quoted supplier gets the advantage. as per the prevailing practice. RIL has predefined loyal suppliers and if the supplier is not available in this case they are looking for the new suppliers. It means plant requires the material for smooth functioning of production but if the material is not available with the stores they need to show the requirement in the system. They are sending the requirement to all the suppliers. if they are accepting the terms & conditions or wants to negotiate with the terms and conditions or send the regrets letter if he is not ready to supply the same material. 4) During the movement of goods if any of the designated check port or barrier is encouraged.8 Format of the form 403 is attached with PO Clarification if any then pleas get it confirmed before dispatch of goods General Terms of Quotations Purchase procedure actually starts with the demanding of quotations but prior this plant needs to generate purchase requisition (PR) before some days depending on the types of goods. Selection of Supplier: Once the quotations are demanded from the suppliers they need to respond for the same. and ask the quotations for same. 56 . After collecting the quotations management are scrutinize the suppliers with the terms and condition and prepare a comparative statement of the suppliers which are suitable for the same. 5) Duplicate of the form 403 shall be forwarded to the consigner of the goods to Triplicate copy of the form 403 shall be retained by the carrier of the vehicle through its journey in the state of Gujarat. the “original” form 404 shall be deposited with the check port officer and “duplicate” to “triplicate” of the form403shall be got endorsed by the check port officer. Here the work of purchase department starts. The carrier of the entering into the state of Gujarat shall carry dully filled in form 404 in triplicate along with log book. a bill of sale of delivery note to addition carry a goods vehicle record shut to tripshit. with the terms and conditions. At the end order has been put to the selected supplier if needed after selecting the supplier management may enter in to negotiation for the price and terms and conditions.

First of the plant manager has to prepare MRV (Materials Return 57 . First of all the gate security will check the truck number and they will provide them the TPN number after taking that number the truck will go for the excise clearing where it will get the excise ID from there. Each plant has to make a reservation for the material that they required and also to show how much stock they have and how long it will last. The excise person will make a entry of excise. not only the materials but also any type of inventory like spares and mechanical will go Obsolescence with the time passing and will be useless for the plant that has to be scraped. where due care is been taken for the material so that they are not damaged or Obsolescence. Scrap and disposals After the use of the materials some materials may turn to wastages or useless due to some reasons. Stores department will send the goods for the inspection and on that base the inspection note is to be prepared of acceptance or rejection of the goods. Issue Issue of the materials is done as per the reservation made by the particular plant. the goods have been transferred by the supplier. the materials department will make the verification of the reservation and as per the past consumption record they will allot the materials to the plant. If all the criteria are ok then they will accept the material and will send to stores or at the where it is required. Storage and preservation After the materials are checked they are kept in stores or at the plant site.Receipts After the order has been placed. Plant engineers are responsible for preservation of heavy machineries and specific goods. And if the material is inferior then they will reject that material and will quote the reasons for the rejection of the materials. That is also known as user decision and the goods will be consider as the RIL’s property and if the goods are rejected then they will make the MMX exit entry Inspection Inspections of all the materials are to be done on the basis of the purchase order that have been placed. So they are to be scraped. after that the MMN entry is done and then they will sent the goods to the stores department where the GRN (Goods Receipt Note) will be made. they will check for the quality and the quantity of the material as per the purchase order. Chemicals and other hazardous material are kept well preserved so that they may not prove vital for the health of the employees. Plant has to give the fund center as well as profit center number it helps in costing computation of a particular plant.

with its code and type of inventory and where it is been used with the approval of the head that this is not usable now should be scraped. the acceptance of the tender will be done by the Mumbai office. Each department has an authority to sell the scrap but the price of scrap is decided by the head office only. For the disposal of the scrap they will invite the tender and ask them to visit the scrap yard. and then in electrical each item at specific place like fans at different place. motors at different place. In scrap all the materials are to be kept as per their type if they are of electrical then at different place and so as on. The disposal of the scrap is done once or twice a year. Quality Assurance Department Introduction Six-Sigma Technology Use in VMD 58 Clean Development Mechanism .Voucher) which include all the details of inventory.

Sigma is the symbol for standard deviation. Sigma has a history and is: 1." 7. A Vision A Philosophy 59 .1 Introduction 7. a measure of variation. 2. We shall sustain organizational excellence through visionary leadership and innovative efforts.7.1.1 Quality Policy "We at RIL are committed to meet customers' requirements through continual improvement of our quality management systems.2 SIX-SIGMA Technology Used in VMD What is Six-Sigma? The 18th letter of the Greek alphabet.

Sigma is an (TABLE NO. RIL has set up state of the art facilities at all its manufacturing sites for the management of all emissions in liquid. All manufacturing sites of RIL have also instituted Environmental Management System based on the internationally accepted ISO-14001 standards.2. waste generation and encouraging of reuse and recycle of products waste are our prime initiatives in this direction. Major emphasis is given on conservation of natural resources like water. To conserve the precious water resource all sites of RIL have taken special steps such as rain water harvesting.537 66. reducing water consumption. cooling water systems. A Management System An Aggressive Goal A Benchmark A Disciplined Date Based Methodology for improvement A tool Box A vehicle for Customer Focus 7. 7. recycling and reusing the treated water to the maximum extent in process. and horticulture and gardening programs.807 6210 233 3. one such initiative is the innovative "Green Card Rating System" to integrate manufacturing with environment. 60 . In line with this approach.1 Aggressive Goal SIX-SIGMA TABLE Sigma Level 2 sigma 3 sigma 4 sigma 5 sigma 6 sigma Six. 4.3. energy.4 7. All RIL manufacturing sites have also taken many pro-active steps to go beyond compliance in the area of environment. where in all manufacturing plants of sites are rated / benchmarked for their environmental performances.3 Clean Development Mechanism RIL professes the doctrine that any economic activity should not erode the very foundation of such activity. Development should therefore be with due regarded to environment protection. 5. 8. raw material. Reduction in raw material consumption. green belt development etc.:7) Defects Per Million Opportunities (DPMO) (Long Term) 308. 6. gaseous or solid form.

61 . The company carried out detailed investigation of soil and weather conditions and selected trees.Apart from this all sites have instituted ISO-18001. The Vadodara Complex has a 'Living Museum of Trees' with 70 species grown over 40 acres of land. safety of person overrides all the production Targets. which can adapt to hostile conditions associated with high salinity and scanty rainfall. An artificial lake created from treated wastewater at RIL-Vadodara attracts over 100 species of birds from all over the region. Apart from this RIL has formulated a clear and focused Safety. At Nagothane. Health and Environment policy. The company encourages people residing in neighborhood of Nagothane complex to plant economically attractive and environment friendly trees by providing saplings and grafts. over 7 Lac trees cover more than 260 hectares of land. Federation of Indian Chamber of Commerce and Industry (FICCI) for environment conservation and pollution control. RIL believes that all injuries. Green Tech Foundation. RIL shall strive to be a leader in the field of management of Health. At Gandhar. Zero garbage concept is adopted for environmental conservation. At RIL . which reinforces the corporate commitment to these facets of business. occupational illness as well as safety and environmental incidents are preventable. Occupational safety and Health management systemRIL has been a recipient of many prestigious awards from Federation Gujarat Industry (FGI). Safety and Environment. there is an ongoing wasteland development program that is expected to provide tree cover in the barren salt ingress land. This bears a testimony to the quality of treated effluents.

Dispatch & Logistics Introduction Type of logistics 62 .

1 Introduction Definition: “Logistic means management of the flow of goods or material from point of origin to point of consumption and in some cases even to the point of disposal. 2.e. (Cost and freight) or from company warehouses to the C&F warehouse. effective flow of and storage of goods.in which materials flow would be from C&F agents to the end users (customers) or wholesaler or retailer. 8. 63 . implements and controls the efficient.8. to the production houses. (B) OUTBOUND LOGISTICS It is mainly concerned with 3 types of logistics. 1.2 Types of Logistics INBOUND LOGISTICS (A) In inbound logistics. services and related information from the point of the point of consumption in order to meet the customers’ requirement. Primary logistics: . Secondary logistics: . then transportation of raw material from ware houses to the plants i. the material moves from the supplier to the company’s raw material warehouses.” The Council of Logistics Management (CLM) defines: Logistics is that part of supply chain process that plans.in which materials moves from plant area to C&F agent.

The customer places the order at their respective Regional offices. After checking the availability of materials. to release the dispatch plan to the concerned transporters and to see that the respective loading for the day gets over well in advance. The major functions of Business group are to decide the prices of different materials. The major functions of different Regional offices are to receive payment. to make the dispatch plan.: 5) Order CUSTOMER PRODUCT DELIVERED THROUGH TRANSPORTERS PTD TTTTT (WAREHOUSE) PLACE THE ORDER (ADVANCED PAYMENT BY CHEQUE OR DRAFT) REGION AL OFFICES RELEASES DISPATCH PLAN PLACE THE ORDER IN SAP PENDING ORDER RELEASES Explanation The customers of the VMD are located all over India.in which material flow from the retailer to the customers. customer wise allocation and region wise allocation of the materials. operation & planning department) The major function of MOP is to check the availability of material in different warehouses. The final dispatch plan is prepared and given to the transporters in the previous day evening.3. Business group releases the pending order through SAP system to MOP (Marketing. to make the sales orders and to calculate relevant taxes and discounts and attend to customer complaints. The customer has to make advance payments through the cheque. DD or cash. At the head office the concern Business group receives the customer orders from five Regional offices located all over the India. MOP also gives some additional dispatch plan HEAD OFFICE (BUSINESS GROUP) MOP DEPARTMENT 64 . If all conditions are satisfied then Regional offices enters the customer order in SAP system.  OUTBOUND LOGISTICS AT RIL Block diagram of order procedure for solid products:(DIAGRAM NO. Tertiary logistics: .

Nevertheless. 2) Order Processing Order processing cost tends to be minor as compared to transportation or inventory maintenance costs. Transporters have to place their trucks for the additional plan given throughout the day. making inventory maintenance a key logistics activity.  Prime Activities of Logistics The key activities of logistics are: 1) Inventory Maintenance It is usually not possible or practical to provide instant production or instant delivery to customers. which again depends on the order that comes from the head office. “Transportation” refers to the various methods for moving a product. Management of the transportation activity usually involves in making choices regarding the method of shipment. inventories need to be maintained as buffers between supply and demand. Also it is the primary activity that triggers product movement and service delivery. The Product Transfer Department (PTD) releases the material to the respective transporters and in turn transporters deliver the material to customers. 3) Transportation For most firms. Road. the routings. rail.throughout the day. transportation is the most important logistics activity.  Marketing Operations and Planning (Logistic Group) RIL has achieved considerable progress in the area of logistics in terms of its selling strategies. approximately two thirds of logistic costs. 65 . it is a primary logistics activity. In order to achieve a reasonable degree of product availability. Its essential nature comes from the fact that there is a critical time element in getting goods and services to customers. they account use of approximately one third of logistics costs. water and air are just a few of the popular choices. simply because it absorbs. and the utilization of vehicle capacity. on the average. The extensive use of inventories results in the fact that. on the average.

Daman. Therefore. Indore. The Sales Offices are situated at Rajkot. liquid materials and some gaseous materials arrive through tanks. The other activities include processing freight bills for payment. The MOP group undertakes all the logistic activities.MOP is the backbone of the whole organization which is responsible for warehousing and movement of the product from different plants to various customers. Hyderabad and Bangalore. Thus. Kanpur. Gradually RIL realized that the regional offices were not enough to meet the demands of its customers. CBG respectively. There are 5 Regional Offices situated at Ahmedabad. Jaipur. The dispatches of materials at VMD are mainly through trucks for hard material and. New Delhi and Chennai. appointment of surveyor etc. Pune and Nagpur. RIL distribution and supply channel are as follows: (DIAGRAM NO. The logistic movement of solid. gaseous products is done either by roadways. Some materials are also transported through pipeline. liquid. hiring of warehouses. Thus RIL has a well coordinated network of distribution channel which takes care of satisfying the customers in most effective manner. many sales centers and sales offices were opened at various places for the convenience of the customers. coverage of insurance policies. Ludhiana. RIL serves its customers through the regional offices situated in various parts of the country. Kolkata. railways or even by pipelines. Therefore the major modes of dispatch are• • • • • Truck Tankers Pipelines Ship Rail Generally contracts are given to the transporters for the transportation of the materials or bookings are done for rail bogies. Sometimes the materials are transported from Dahej port to Madras by ship. The respective business groups then send the requirements to the MOP.  Distribution Channel RIL (VMD) has a network of 64 distributors all over India. RIL has contract with 21 transporters to transport its goods to various destinations. The sales centers are situated at Vadodara. The regional offices collect the orders and submit their requirements to PMG. distributors etc. Mumbai.: 6) 66 .

 Direct Marketing Channels: RIL’s direct marketing channel addresses requirement of large customers.  Indirect Marketing Channels: RIL’s indirect marketing channels addresses requirement of small customers. 67 . while Del credere agents do not store the products. Indirect marketing efforts are conducted through approximately 130 consignment & Del credere agents located throughout the country. Consignment agents store & sell products to the customers.Customers RIL Plants & Sales Centers Warehouse Customers Distributors Customers Scenario . Direct marketing efforts of RIL are conducted through its regional offices. sales centers & head office. Both consignment & Del credere agents are responsible for collecting the amounts due from customers & agree to compensate in the even customers fail to pay for the products.Feedstock and Polymers Exports Customers  Distribution Channel RIL distribute its products through direct marketing channels & indirect marketing channels.

PART-II PRIMARY STUDY Introduction Why cash management? Why bank management? Introduction of the subject Importance of Studies Objective of the project Analysis of data 68 .

221 million) Rs. 33.Highlights • • • • • • Turnover : PBDIT : Cash Profit : Net Profit : Net Profit 10 years CAGR : Total Assets : Rs.236 Crore ($ 3. for this management needs the availability of each and every component of 4M i.e.903 million) (Position as on the march 2010) 9. Day to day management of money components is known as “CASH MANAGEMENT”.632 million) Rs. Cash management is an important activity for any organization as it maintains the continuous flow. Money and Material. Man.616 million) 21% Rs. Maintaining the smooth and continuous flow of organization is the challenging task for each organization. Machine. 27.933 Crore ($ 6.006 Crore ($ 55. 2.400 Crore ($ 44. 16. Purchase of fixed assets decisions are taken 69 .359 million) Rs.041 Crore ($ 7. 2.00.51.1 Why Cash Management? In the any organization numbers of activities are performed and each activity has its own importance.

high interest rates. Day to Day management of bank related adjustment can be defined. vast demands on bank funds. Cash is the base for any organization especially for manufacturing organization. His prime attention is devoted to maintain sufficient liquidity in the form of cash. marketable securities. there is shortage of funds. Bank can save on day to day basis. In the bank give grantee to vendor. It is to balance between these two conflicting objectives of liquidity and profitability. organization can earn profit. In any organization one of the part of the bank they can manage the whole cash. Company needs to maintain balance within the organization as well as outside the organization. accounts receivables and inventories to grease the operations of business adequately. In bank new technology introduce all the activity on sitting one place. For the organization it is a continuous process. At of time every organization can be payment and collection of money thought bank. 9. pressure from the government to obey some unnecessary obligations. shortage of goods and services luring both business houses and consumers to hoard and maintain large inventories and existence of parallel black economy. In developing countries generally. 9. frequent changes in the monetary policy as an instrument of controlling inflation. as these are inversely related to each other. Management maintains the financial balance within the organization with the help of Cash capital and Bank balance. 70 . especially for routing or day to day activities.2 Why Bank Management? In the any of the organization maintain the cash in bank and each of the activity has its own importance. Too much liquidity is a burden on profitability. A large part of finance manager’s is devoted in managing cash and to get day-to-day needs of an organization. But at the same time he is to take care of the profitability of the organization.3 Introduction of the Subject Management of cash and bank is a challenging task particularly in developing countries like India.once and it continues for a longer period of time but the decisions relating to the Cash are taken on each day based on the circumstances. Bank are introduce new investment plan to organization.

OBJECTIVES OF THE PROJECT The objectives of the study were –   To understand and study the Cash and Bank management. they are practically imply do analysis of future expanses. Also the various types of ratios were studied which helps in analyzing company’s position & status. To analyze the management of Bank and cash in the organization. how they are practically implemented. hence. Management becomes able to this purpose such financial statement are necessary to be analyzed. The study is useful to understand the Cash and Bank Management at ‘Reliance Industries Limited’ [Vadodara Manufacturing Department (VMD)]. To study the bank and cash transaction in the organization To learn about the practical methodology of cash stock kept in the organization.9. financial tools are used to analyze data and charts or diagrams are used for easy interpretation. 71 . It is useful in understanding all theoretical concepts. investment strategy learn at RIL (VMD).e. which called ‘Financial Statements’ such as Profit and Loss Account and Balance Sheet.    ANALYSIS OF DATA In this project data are used to calculate ratio i. To study the different kind of payment kept in the organization. Also the studies the cash budget and controlled day to day expenses. the Financial Statements are prepared for the decision-making.4 Importance of the Study In every business organization its financial transactions are recorded in the systematic term. Financial Statements shows the financial strength and weakness of the firm. by applying it into practical work.

Cash Management Theoretical Perspective Cash management in RIL Cash Register Cash Budget Expense Register Investments Ratio What is new? 72 .

These are conflicting and mutually contradictory and the task of cash management is to reconcile them.1  Theoretical Perspective Objectives The Basic objective of cash management is twofold: (a) To meet the cash disbursement needs (payment schedule). At the same time it also seeks to achieve liquidity and control. Cash management is concerned with managing of: i) ii) iii) Cash flows in and out of the firm Cash flows within the firm Cash balances held by the firm at a point of time by financing deficit or inverting surplus cash. 73 . (b) To minimize funds committed to cash balances.10. Therefore the aim of Cash Management is to maintain adequate control over cash position to keep firm sufficiently liquid and to use excess cash in some profitable way. The surplus cash has to be invested while deficit cash has to be borrowed. Sales generate cash which has to be disbursed out. Cash management seeks to accomplish this cycle at a minimum cost.

customer payments are delivered to a special post office (PO) box. The bank of the customers opens and processes the payments for direct deposit to the bank account. 2. Instead of all the payments being collected at the head office of the firm. (3) floats 74 . the cheques for a certain geographical areas are collected at a specified local collection centers.1. slow disbursement represents a source of funds requiring no interest payments. 3. In fact. It is only the customers' payments that are delivered in the PO Box and the company's own bank collects the amount and delivers them to the banks of the customers. Managing the cash flows. Cash Planning. if any. There are several techniques to delay payment of accounts payable namely (1) avoidance of early payments. Slowing disbursements: A basic strategy of cash management is to delay payments as long as possible without impairing the credit rating/standing of the firm. Funds beyond a predetermined minimum are transferred daily to a central or disbursing or concentration bank or account. Under this arrangement the customers are required to send their payments at local collection center covering the area in which they live and these are deposited in the local account of concerned collection. instead of being delivered to business address. (2) centralized disbursements. Investing surplus cash  Cash Management Techniques & Processes The following are the basic cash management techniques and process which are helpful in better cash management: Concentration Banking: In this system of decentralized collection of accounts receivable. Lock-Box System: Facilitates the cash improvement where. Lockbox contents regularly removed and processed. after meeting local expenses. Optimum cash level 4.

They collect the money early and payment of vendor after the collection of money. In the case of a decentralized arrangement. the credit standing may be adversely affected so that the firms would find it difficult to secure trade credit later.2  Cash management in RIL Daily Fund Requirement: VMD has a centralized management so they needs to generate the daily cash demand to head office. RIL has a PULL ACCOUNT SYSTEM to manage the daily cash requirement. It entitles a firm to cash discounts. But if the firm pays its accounts payable before the due date it has no special advantage. Avoidance of early payments: One way to delay payments is to avoid early payments. a minimum cash balance will have to be maintained at each branch which will add to a large operating cash balance. If however payments are delayed beyond the due date. There is time lag between the issue of a cheque by the firm and its presentation to its bank by the customer’s bank for payment. a firm is required to make a payment within a stipulated period. 3. The term float refers to amount of money tied up in the cheque that have been written. Centralized disbursements: Another method to slow down disbursements is to have centralized disbursements. According to the terms of credit. All the payments should be made by the head office from a centralized disbursement account.1. float represents the difference between the bank balance and book balance of cash of a firm. a relatively smaller total cash balance will be needed. The difference between the balance as shown in the firm’s record and the actual bank balance is due to transit and processing delays. but have yet to be collected and en-cashed. Firstly it involves increase in the transit time. Float: A very important technique of slow disbursements is float. Under this system VMD management ask for the cash to the head office a day before and send the 75 . The remittances from the head office to the customers in distant places would involve more mailing time than a decentralized payment by a local branch. 2. Cash operating cycle In the RIL (VMD) they can adopt these types of stagey. Alternatively. 10. The second reason for reduction in operating cash requirement is that since the firm has a centralized bank account.

357 1 25 - 1 - 105 1 - - 14.3 Cash register In below the cash register to made in RIL on the daily basis.to –day entry enter in register.637 39.605 32 1. 10.: 8) 28.425 32 30 1. R. And cash maintain.50. They maintain Stamp 2000rs. For general use VMD maintain Rs.605 32 1.357 - - - - - - - - - - - - TOTAL (A) OPENING BALANCE CASH WITHDRAWAL CASH RECEIPT 1 25 - 1 - 105 1 - - 14. Major transactions relating to the cash is managed by the head office.2010 DATE : Particulars DENOMINATION OF RS. In early morning head office transfer the required cash in the VMD account at HDFC bank through the RTGS system. They can tally all this items are required in the cash register. In the SAP they can recoded but Stamps are not enter in SAP and they can made day.requirement to head office. STAMPS Particulars OPENING BALANCE CASH WITHDRAWAL CASH RECEIPT 1 1000 500 100 50 20 10 5 2 1 TOTAL COINS G TOTAL 25 1 - 105 1 - - 14. At the end of the day Excess amount with this account was pull by the head office it means management maintains the zero balance at the end of the day.605 37.000 as a cash balance.720 16.720 14.06.175 76 . Company can own purpose they prepare manually.357 - - - - - - - - - - - - - TOTAL : (B) CLOSING 1 - 25 - 31 1 100 - 105 102 1 1 - - 14. First of the recorded the opening balance and recorded the cash payment and cash collection on the daily bases. Cash Account Book (TABLE NO.605 32 16. On the same day again management has to send the estimation to head office.720 16.

425.00 5 . 00 5.082.257.425 30 1.00 Misc.00 37. Of Officer Sign.175 31 BALANCE (A-B+C) 4 100 102 1 37.175. payment (13.720 39. 00 30 .00 FINAL ACCOUNTS 1.720 39.257.00) 20 10 Total : ( B ) (13. NO.000 .020 . FROM RECEIPT NO: PAYMENT VR. of Cashier TO 00 39. CREDIT VR. REVENUE STAMPS GRAND TOTAL RS.175.000 500 100 50 314 100 102 1 - 31.00 1.425 30 1.00 52. Sign.720.0 0 77 . NO.400.00 1 TOTAL : COINS 1.00) 5 2 Closing Balance : A – B 39.082.BALANCE 4 31 - - TOTAL : ( C ) CLOSING - - 4 100 - 102 1 - - 37.175 SUMMARY Opening Balance Withdrawal Receipt Total : ( A ) RUPEES 52.

In whole RIL can work on GL basis.4 Cash budget Company made cash budget on the monthly and the six monthly they can control on the expanses they can accrued. 10.:9) All figures should be duly reconciled with respective GL Codes FOR THE BARODA MFG. The entire monthly they submitted and the analysis on the cash budget which of the plant expense are more and the how to controlled it. cash on the uses on the day to day.5 Expenses Register In expense budget format as under company work on the monthly made expense budget and all the detail they fill up and submit to the corporate office in Mumbai. SITE DAY EXPENDITURE HEADS ► Raw Material ► Chem Cats ► Stores & Spares ► Packing Material ► Excise ► Sales Tax ► Service Tax ► TDS / Income Tax ► Customs Duty ► Salaries ► Repairs & Maintenance ► Rent ► Water Charges(GC) ► Electricity Charges/Duty ► Telephone 78 . And second month plant required so another time they made cash budget for 200cr Rs. If any plat future expense is 200cr Rs. in RIL (VMD) monthly cash budget submit to Mumbai they transfer fund. They can made another time made cash budget for next month. They made cash budget in case fund are as it not utilize it. (TABLE NO. Funds are as it is. In SAP can be work on the GL code. In the last month fund can’t utilize plant can control the expenses.10. In the RIL (VMD) they made cash budget and send to the corporate office in Mumbai. RIL (VMD) works on the monthly and six monthly compare to the expanse.

Gas GAIL Ind.Domestic Travel . 79 .(If funded by sites) Naptha Imported PROPANE Imported C2C3 Ind. LPG Ind Others (LDO.Foreign Other Administrative Expenses(Vendor Payments) (If not included above) Supplies Contractual Services Non-PO based Lease Rent Railway Freight Furniture Others (specify) > GCPTCL STOREGE TANK RENT > PIIPL Transportation charges > Others Fund Transfer Capex Refunds (If any) SUB TOTAL Scrap Sale Collections Other Collections Fund Transfer Total Major Raw Materials . PMT Gas BC Ind. METHANOL Imported CAUSTIC SODA Ind. Lean Gas Ind. EDC Imported VCM Imported BUTENE Imported OCTENE Imported ACETIC ACID Imported ACETIC ACID Ind. CBFS etc) Ind.► ► ► ► ► ► ► ► ► Travel . PMT Gas GC Ind.

m similarly the selling activity should be made before 3p.6 Investments: RIL manage the huge amount of daily cash in such situation it needs to manage it efficiently. Treasury department evaluates the investments opportunities and then invest in such a way that it gives maximum return to company. RIL manage the cash and its investment simultaneously the excess cash pull from the different divisions are invested simultaneously in the different investment avenues. Investment of cash takes part as regular activity. Investing activity should be made before 12p.10.7 • • • What is new? Daily cash budgeting and analysis. Expense budget monthly and six monthly prepare. 10. RIL has its own treasury department which mainly handles the investing activities. Daily investment. If the excess cash available in the begging of the day it will be invested in the different avenues similarly if there is shortage of cash than the cash should be balanced by selling the investments. Bank Management Theoretical Perspective Type of Bank maintain in RIL (VMD) Bank Reconciliation Statement Payment Method at RIL (VMD) Ratio 80 What is New? .m.

the balance is called overdraft. 2. either directly or through capital markets. there When a trader withdraws more money is a bank balance. 81 . Different between Bank balance and Bank overdraft. nce Bala than the money he has deposited. than the money he has deposited. it is called bank balance. ning Mea Bank balance Bank overdraft When the trader’s money is lying in his When the trader has withdrawn bank’s bank account. statement shows debit balance. the cash book shows debit balance and bank book shows credit balance and bank statement shows credit balance. money.1 Theoretical Perspective A bank is a financial intermediary that accepts deposits and channels those deposits into lending activities. his bank stamen shows debit When he has withdrawn fewer amounts balance and it is called bank overdraft.11. (TABLE NO. A bank connects customers with capital deficits to customers with capital surpluses.:10) 1. When there is a bank balance the cash When there is bank overdraft.

If any balance is credit or debit balance they transfer to the head office. End of the day corporate office transfer the balance to Mumbai accounts. it is the income of bank and the is an expense of the trader and the bank bank balance increase.50000 To swift to HDFC bank Mumbai a/c  Bank a/c Dr. When is paid in bank account. It is recorded on debit side of cash book in bank column. RIL (VMD) can issue cheque and payment they recorded in the SAP.3. ement Rela a creditor and bank is a debtor.50000 Rs. • Transitions are the bank account like this. the trader is When there is bank overdraft.1 1. ct paying Effe When there is a bank balance increase When there is bank overdraft and money money is withdrawn. When there is bank balance. and yet account. Effe ct interest allowed of balance. of when money or cheque is paid. HDFC Bank. The can adjust the amount and the credited to VMD bank account. money agreement is necessary to withdrawn money is to be withdrawn from bank 11. it money 4. the balance decreases.in case VMD wants this much amount this 1days early they can communicate e-mail trough Corporate office at Mumbai. When interest is the overdraft increases. an agreement has to be made with the bank and some security has to be given to the bank. RIL (VMD) banks every day null balance. 2. Agre When there is bank balance. 3. on bank When interest is charged on overdraft. the trader is a debtor and bank is the creditor no When there is no bank balance. It is recorded on overdraft increase.2 Bank Reconciliation Statement 82 .00clock. payment side of cash book in bank column. Every transition is follow by only two banks 1. Rs. 5. the overdraft decreases. Type of bank maintain account in RIL (VMD) SBI Koyali SBI Madvi HDFC. In this bank day to day transaction maintain in this account. 11. Transfer the credit or debit balance of daily at 6. tion 6. When money or withdrawn.SBI Koyali 2.

4. Amount 3. "Gross settlement" means the transaction is settled on one to one basis without bunching or netting with any other transaction. RTGS system is suited for low-volume. Company directly payment to customer or purchase of the vendor they can use Electronic payment. 83 . Settlement in "real time" means payment transaction is not subjected to any waiting period.Bank reconciliation is the process of comparing and matching figures from the accounting records against those shown on a bank statement. 2. Initially there were no restrictions on the amount to be transferred through RTGS system. Entry is match and correct of the amount. only to popularize the aforesaid payment mechanism. Company pays any taxes by e-payment. 2. 5. Sender to Receiver information. Safely transfer.1 lkhs. high-value transactions. 3. Account Number of the Beneficiary Customer. The result is that any transactions in the accounting records not found on the bank statement are said to be outstanding. Name of the Beneficiary Customer. The IFS Code of the receiving bank branch. The RTGS system is primarily for large value transactions. Balance can be null. 1. His account Number which is to be debited. All are tally than they can be removing. 2. Both the side the equal balance they nullify otherwise they are not removing in this account. besides giving an accurate picture of an institution's account at any point of time.3 Payment Method at RIL (VMD) E-payment: 1. Systems RTGS: (RTGS) are funds transfer systems where transfer of money takes place from one bank to another on a "real time" and on "gross" basis. In the BRS company can be see the 1. It lowers settlement risk. One is debit entry and another credit both are match. In the ril daily basis of the BRS and they maintain the account. Effective minimum amount to be remitted through RTGS is above Rs. 7. 11. The transactions are settled as soon as they are processed. Amount to be remitted. Name of the Beneficiary Bank. No paper work can do. There is no upper ceiling for RTGS transactions. 6. References. many customers prefer to e-payment. Direct bank to bank transaction. if any. Cheque Number. 0balance can do the BRS.

For small transactions.80Lkhs. bank give to the credit advice. Credit advice: • • Any of the customers the direct deposit in the bank. Salaries management and payments.000. VMD one bank gives to cash credit.4 • • What is new? Quick payment through new techniques like RTGS and E-PAYMENT. 4. NEFT: (NEFT) is an online system for transferring funds of Indian financial institution (especially banks). Fund From: Fund transfer to one department to another department. The new rule came into effect on 1 January 2007. Mention in the form company submitted bank with a two copy one hard copy and another is soft copy. The Reserve Bank of India has instructed banks that they should not use RTGS for amounts below Rs 1 Lkhs (100 thousand). VMD can withdraw up limit. 00. Any of the charges debit in the bank. the business that receives the loan can continuously draw from the bank up to a certain specified amount. They mention which of the customer company can be payment. HDFC can give to Rs. Demand Draft: DD can be advance payment or another bank account they can be transfer on dd.49%interest they will taken. in case any of the balance are credit had office can be transfer fund day to day activates.In RIL (VMD) all employee salary paid by RTGS. In the made dd bank can be taken a charges they can be pay by cash or deducted from the account. 84 . This facility is used mainly to transfer funds below Rs. account can be debited up to Rs. 6. Cheque is only 6month valid. 3.  Cash Credit A cash credit is a short-term cash loan to a company.80Lkhs cash credit. but only after the required security is given to secure the loan. in case money can’t be deposit on the due date bank can be charge on daily base 2. Once a security for repayment has been given. Cheque: Cheque is one of the papers. A bank provides this type of funding. RBI has asked banks to offer National Electronic Fund Transfer (NEFT) 5.1. bank give to debit advice. Debit advice: 11.

Accounts Receivables and payables Vendors Selection at VMD Vendor Management at VMD Debtors management at VMD Ratio Analysis and Interpretation Cash Flow Statement Analysis Accounting System 85 SWOT Analysis of RIL .• BRS in SAP.

In every purchase the same procedure is followed.1 Vendors Selection at VMD RIL is a huge organization and it needs to purchase various materials and items from the open market. these vendors are already selected by the head office after properly analyzing them.2 Vendors Management at VMD 86 . this procedure is followed only once in the begging of the year and material is purchased from the same vendor throughout the year.12. In case of material which are used in continuous production. At the time of selection of vendors. 12. After collecting the quotation from all the interested vendors. There is a particular procedure to purchase the goods and material. less price quoted vendor has a higher chances of getting selected as quality are fixed by the management and the vendors are reliable as they are existing vendors for RIL. management analyzes the terms and conditions of vendors and prepares the comparative statement of vendors. When the purchase department needs to purchase the material first they have to send the request for quotation to the vendors. On the basis of comparative statement management decide the vendors and enters in to negotiation with them for price and terms and conditions for supply of material.

94% 18. They are focus in centralized payment to avoid the any kind of misappropriation.85 58. Before the payments due of vendors of VMD management needs to send the details to head office.03 0.20% 18.00 0.30 (1. if large amount.44 (7.:11) Current Ratio Acid test Ratio Cash Cycle Net Current Assets to Sales Operating Cycle Average Payment Period(in days) Average Collection Period(in days) Debtors Turnover Ratio (in times) Creditors Turnover Ratio (in%) 16. It means that management focus on central disbursement.95 0.08 61. If the vendors are not paid or vendors that are shown in open items even if the payment due.27 23. 12.79 26.18 12. VMD can also stop payment or can release payments early.51) 7.39 87 . 12.67 0.46 59.90 69.07% 20.05 83.81 60.86) 8.76 62. management at VMD reminds the head office to make payment. VMD maintain the details related to the vendors and also solve the issues relating to the vendors. Management of VMD can also access the vendors accounts manage by the head office in SAP system.38 (5.75 (24.43 2009-10 1. managed by the head office. Debtors are paid by the head office only and VMD has no interfere in managing the debtors.38 1.06 73.62 (15.46 (TABLE NO.70 2007-08 2008-09 1.9 13.3 Debtors Management at VMD RIL manage most of the transaction from the head office of VMD.00 68.29 26.14% 13.34 2006-07 0.57 78. debtors are one of that transactions.At the time of purchase VMD decides the payment terms in this management have a credit of around 30 days but payments.21) 10.89 15.29 0.39) 7.4 Year Ratio Analysis and Interpretation 2005-06 1.17% 14.62 13.07 28.71 18.89) 9.

95 0.Net Profit Margin(in%) Total Assets Turnover Fixed Interest cover Ratio Expenses Ratio in (%) Net worth turnover Ratio in (Times) 11.3) 88 .2) CashCycle 0 2005 -06 -10 -20 -30 Cash Cycle 2006 -07 -5.39 (CHART.32 1.89 2007 -08 2008 -09 2009 -10 -7.67 2 1.58% 1.27 12.21 -1.53 1.86 -24.28 86.5 0 2005 -06 2006 -07 2007 -08 Acid test Ratio 2008 -09 2009 -10 Current ratio 1 0.41 1.44 1.3 0.16 12.79 82.38 0.51 -15.63 10.69% 1.06 1.40 83.29 (CHART.19 82.84 11.75 14.44% 0.19 20.99 84.62 1.17% 1.64 10.03 0.1) Currentand Acid test Ratio 1.40 (CHART.29 1.75 0.79% 0.91 11.5 1 0.12 8.

9 13.34 60.4) (CHART NO.Account payment 2008-09 2009-10 .7 69. Account collection 2006-07 2007-08 89 Avg.62 13.(CHART.39 Avg.18 12.43 78.38 83.89 15. 5) 120 100 80 60 40 20 0 2005-06 Collection andP ayment Period days) (in 73.46 18.

7) CreditorsTurnover (in%) 20 15 10 5 0 2005 -06 2006 Creditors Turnover (in% -09 -07 2007 -08 2008 ) 2009 -10 16.07 (CHART NO.94 14.14 13.8) 90 .29 30 20 10 0 2005 -06 2006 -07 26.6) Debtorsto S ales (in times) 28.79 26.(CHART NO.27 20.07 23.2 18.17 18.71 Debtors to Sales (in times) 2007 -08 2008 -09 2009 -10 (CHART NO.

11) 91 .10) (CHART.9) (CHART NO.(CHART NO.

in the current year current ratio is1.(CHART. 92 . Current Ratio and Acid test Ratio: Interpretation: Current ratio and acid test ratio are shown as 2:1 is ideal ratio.12) 1.62:1 its means company can be solvent. in current year is 0. Acid test ratio is moving of the assets they utilize in the all over of RIL. Current assets is more than current liability its means they pay of the debts in this year.29:1. And acid test ratio is current year is inventory is more than previous year.

this is the precautionary step taken against the recession. Net Current Assets to Sales: Interpretation: Net current assets is reduces by the over a period in the 2007-08 is low 7. Collection and Payment Period Interpretation: 93 .2. Operating cycle is upward in the year 5. 3. But it starts increasing again in the next year. Cash cycle for the RIL is actually moving negatively.86 days. in the some of the financial crises in the last year reduce the sale. Cash Cycle: Interpretation: Cash Cycle is reducing over a period for three years but in the 2008-09 it was reduced to -15. 4. In the current year improve the sales of all over the RIL branch and the futures they will increase in the sale. RIL can be money use perfectly and cash can be performing well. Operating Cycle: Interpretation: Operating cycle of RIL show that the collection of cash early time and inventory of the more they can be utilize and the inventory is more in the case of retail store.08 then the increase by the Future.

In the 2006-07 in this year is sundry debtors is low is rs. 8 Net Profit Margin: Interpretation: Net profit margin going downward for the year in this year current investment and the long term investment low then other income is low excise duty is more than the previous year one of the products are can be loss in this mall of the reliance fresh is the loss making. And they paid to vendor within 60 to 70 days. in the current year company can increase the inventory of raw materials.42 compeer to the five year. 6 Debtors to Sales Interpretation: . Even RIL receives the advances for few chemicals. Profit can come to the low. 732. In this year are high debtors to sales 28. They collected the money from customer with in the 10 to 20 days. Before RIL collected money. Company high debtors in the previous year debtors are Rs 359. Salaries. It is clear that RIL has a policy for credit purchase but maintain the sales on the cash bases as much as possible. In current year is debtors are high in the previous year the company can receive the subsidiary. They can addition in the current year as per the company SCHEDULE ‘G’.29 crore.3.In this chart show the RIL can be collected and payment strategy. 9 Total Assets Turnover: Interpretation: Total assets turnover ratio can be defined the company total assets. And a net sale is high. 7 Creditors Turnover: Interpretation: Creditors Turnover Ratio increasing 10% to 21% during four year.29 times. the sundry debtors and decrease the 94 . In the current year decrease the %. director commission they calculated @0.40 in the schedule “O”.

%. 11 Net Worth Turnover Ratio in (Times) Interpretation: This ratio is continuously fluctuating till 2009-10 which means that the company has not enough sales so it can’t earn easily.32%.100 is 84. 95 . 80.40 times and it is more than the previous year.28% respectively which is very nearly to each other but lesser the ratio is better for the company. 2007-08. 83. It signifies that the company’s profit before tax and interest flaunting where the interest continuously Flaunting so that the company’s interest coverage ratio decreasing which indicates that the company is using excessive debt. 2006-07. But in the year 2009-10 it is 1. Then they increase the PBIT profit is large than company debt is low that’s year. Expense Ratio: Interpretation: In the year 2005-06.41%. It shows that the company’s expenses every year increases except in 2007-08 and the sales of the company also increasing but the expenses are increasing more faster than the sales so that the ratio is flaunting so company will require further investigation. Here the every year the company’s ratio is going up and down that is not good for the company. 11. 2008-09 and 2009-10 the company’s expenses ratio for every rs. So it is good for the company but yet company requires further investigation so it can earn more profits.06%. 82. 10 Fixed Interest coverage Ratio: Interpretation: These ratios are continuously decreasing in two year.cash and bank balance to the fixed deposits are down the current year its company can be solvency in the year.35% and 86.

12.5Cash Flow Statement Analysis 96 .

97 .

For the year ended 2009-2010. Cash flow statement the cash flow statement. Analysis of 2009-10 follows. is reproduced hereunder for ready reference.Analysis of the cash flow We are analysis of the reliance industry Ltd. as reported in the annual report. (A) Operating activities 98 .

829.a.1. 4.) 7.a. 20. 3. 7. The analyst. which are expected to produce higher future revenues. RIL’s dividend and dividend tax outflow at Rs. RIL had significant outflow towards investment. RIL had a very high cash inflow on account of provisions for contingencies. this is indicates high hidden reserves and very favourable cash position. it indicates a favorable cash position. 2. therefore.a.a. needs to look at the schedules of loans in the balance sheet. in general. just normal plans.21. (It is on account of working capital as per the schedule.48 crore only this typically shows that the management has no aggressive growth plans on the anvil. Entire cash flows of RIL during 2009-10 have been contributed by operating 1. however. this typically indicates a very strong cash position. (C)Financing Activities: 6. and depreciation. Clear disclosure is required to facilitate analysis. 99 . It is. not clear whether the inflow was on account of long-term debt or working capital financing. RIL had a substantial net inflow from borrowings. 5.45 crore against net cash inflow from operating activities at Rs.a. Fixed assets are income-producing assets.490. seen the background of net outflow into fixed assets of Rs. 3.a. (B) Investing activities: 4.2. 4. sale.b.83%.this indicates RIL is purchasing more fixed assets. this typically indicates an efficient management of working capital. RIL had a net cash inflow in respect of working capital. 4.c. 5. activates. this is an indication of expanding business.22 crore is to high-10.219. RIL had a net cash outflow for fixed assets. 2.

RIL has generated cash from operations in both the years. Items of inventories are measured at lower of cost or net realizable value. less accumulated depreciation including Depreciation on fixed assets is provided on straight line method at the rate Transactions denominated in foreign currencies are normally recorded at the Long term investments are stated at cost. • • • • • Fixed Assets are stated at cost. The important Accounting Policies are as under: • The financial statements are prepared under the historical cost convention in accordance with the generally accepted accounting principles in India and the provisions of the Companies Act. is more or less the same as last year. inventory comprises of all cost of purchase. prescribed in the Companies Act. thought increased this year. that RIL’s debts are not high in comparison to its size. (E) Ability to generate positive cash flow from operations in future: 10. Cost of impairment loss. RIL’s financing activities reflect a favorable cash position in the sense that there is a net outflow despite outflow into fixed assets. cost of conversion and other cost incurred in 100 .b. 1956. (D) Quality of cash position: 9. and as supported by the balance sheet. exchange rate prevailing at the time of the transaction. Information provided by its cash flow statement establishes its ability to generate steady positive cash flows from operations in future. Therefore. Each and every transaction is done through SAP. It has been generating cash from operating activities and utilizing this money in expanding it business and paying dividends.7.6 Accounting System: The accounting system at IPCL is SAP oriented. The reasons are simple and more than clear. It appears from this information. it is in a very comfortable position to meet its obligations towards lenders as well as shareholders. 1956. this typically means that cash inflow from operations in future will have only steady growth. 8. The amount. 12. unless the company reverses its policy of aggressive dividend payouts. the information provided by the cash flow statement of RIL appears to indicate a high quality of cash position.

Securities Premium Account. • • • • Company’s contribution to provident fund. recoverable value. payment. • Turnover includes sale of goods. retirement scheme of the company is charged off to Profit and Loss Account.:12) Name of the account G/L account posting Incoming Payment Vendor line item disply Vendor new code enter Bank/ cash receipt print G/L a/c disply Year report seen Display check information Cheack loate inpute Scroll report Post out going payment Create Cheque information Cheque printing manual Printing from for payment document House bank updating Auto payment transaction Bank payment voucher preparation Cheque printing and advice printing code F-02 F-52 FBL-1 F-21 ZBVR FB103 FBL1 FCH1 FCHI YACM Steps in manual payment run F-53 FCH5 YF12 FBZ5 Steps in auto payment Run YHBK F110 YFBP SP-01 101 . An impairment loss is charged to the Profit and Loss Account in the year in which an asset is identified as impaired.bringing them to their respective present location and condition. cash management.  Cash command in SAP. • period. family pension and gratuity and leave Compensation to employees who have opted for retirement under the voluntary Premium on redemption of bonds / debentures are adjusted against the An asset is treated as impaired when the carrying cost assets exceeds its encashment benefits are charged to Profit and Loss Account. excise duty and sales during trial run All the account handling by SAP program. services.(TABLE NO. budget all the items are recorded in SAP program and evaluate. By-products are valued at net realizable value.

7 SWOT Analysis of RIL: Strengths • Manpower with rich experience in managerial.Steps of bank reconciliation FF67 SM 35 ZBKR Session upload Batch Input Monitoring and clearing Viewing of bank reconciliation 12. This reflects significant potential for continued demand growth in future. • Dependence on sole suppliers for natural gas and C2/C3 • Commodity business – subject to cyclicality. • The company. Threats • Uncertainties on natural gas pricing. • Unfavorable trends in import tariff on key raw material and product may adversely impact the cost structure and/or selling prices of products in the domestic markets. • Despite sustained growth of petrochemicals units in the country. • Scope for expansion especially at Gandhar complex. • Competition from “low cost” Middle East producers. • Noteworthy safety and environment records. • Global sized plants at Gandhar and Nagothane complex. Opportunities • Huge growth potential in Indian polymer market. technical commercial fields. • Environmental concerns on plastics. • Dependence on external sources for feed stocks. • Revamp of old plants located at Baroda. • High rate of technological obsolescence. where the downstream industry is concentrated. India’s consumption of polymer products still remains very low on a per capita basis. 102 . thereby potentially affecting margins. • Extensive sales network and infrastructure facilities. • Productivity enhancement to global standards. Weakness • Feedstock supply constraints at Gandhar and Nagothane. • Strong outlook for global petrochemical industry. • Diverse product range. • Plants located on the west-coast. with its global scale and integration of operations and extensive marketing and distribution network is ideally positioned to benefit from the growing domestic market for petrochemicals products. • Excellent research and development facilities. • Both liquid and gas fire crackers.

103 . it is very difficult to find out and gather complete and true information in the forms of figures regarding financial matters. proportionate basis based on the information provided to us.Limitations This project is not far from limitations. • • The authenticity of the suggestions and recommendations depend upon the Data for VMD separately are not provided as it is confidential so data are taken on rationality of the data provided to me. • The report highly depends on the secondary data and it may be possible that the data from which the report is made may not appear in the report because some data is confidential for the company. In such case. The limitations are: • A company generally doesn’t disclose its internal policies to outsiders.

General Findings:
• SAP system of management is quite useful in managing the information and sharing the data. This system makes management more easy and also reduce the work of management. It also handles the few computations relating to the management and also makes remind to management for activities needs to be followed. • resources. • VMD has bright opportunities for the expansion as VMD has the additional resources in the form land and capital. VMD has an experience management team force to manage the activities and all activities are managed in professional way that would result in better profitability from available

Specific Findings:
• VMD gives importance to the Working capital management. VMD has a proactive Management as they are consider the budgeting as an important part of each activities and compare the actual consumption with the budgeted and being prepared for next steps. • • Each Element of working capital is managed by the different group of members, they Working capital is not completely managed by the management of VMD but few are working with the coordination with all the groups to achieve the goal of the organization. elements or partial working of that elements are managed centrally by the head office which leads to better control on management. • Most of the cash transactions are managed by the head office.

General Conclusion:
• VMD is the oldest and still this site gives a considerable contribution to the profit of RIL. Management relies on the technology to connect all the departments of VMD and to connect with the other sites of RIL.

104

• •

VMD is not only focusing on expansion or growth of the company but they are keenly Efficient Management will surely lead the VMD for more expansion and development

interested in employees’ empowerment and career development. in near future.

Bibliography
1) 2) 3) 4) 5) Web site-www.ril.com Annual report of RIL2009-10 Company’s internal portal I.M.pandy books of finance management Ambrish Gupta Financial accounting for management.

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Annex:
Balance sheet of RIL Mar '06 particulars Sources Of Funds Total Share Capital Equity Share Capital Share Application Money Preference Share Capital Reserves Revaluation Reserves Networth Secured Loans Unsecured Loans Total Debt Deferred Tax Liability Total Liabilities Application Of Funds Gross Block Less: Accum. Depreciation 84,970. 13 29,253. 38 99,532. 77 35,872. 31 104,229.1 0 42,345.47 149,628.7 0 49,285.64 215,864.7 1 62,604.82 1,393.1 7 1,393.1 7 0 0 43,760. 90 4,650.1 9 49,804. 26 7,664.9 0 14,200. 71 21,865. 61 4,970.8 2 76,640. 69 1,393.2 1 1,393.2 1 60.14 0 59,861. 81 2,651.9 7 63,967. 13 9,569.1 2 18,256. 61 27,825. 73 6,982.0 2 98,774. 88 1,453.39 1,453.39 1,682.40 0 77,441.55 871.26 81,448.60 6,600.17 29,879.51 36,479.68 7,872.54 1,25,800. 82 1,573.53 1,573.53 69.25 0 112,945.4 4 11,784.75 126,372.9 7 10,697.92 63,206.56 73,904.48 9,726.30 2,10,003. 75 3,270.37 3,270.37 0 0 125,095.9 7 8,804.27 137,170.6 1 11,670.50 50,824.19 62,494.69 10,926.30 2,10,591. 60 12 mths Mar '07 12 mths Mar '08 12 mths Mar '09 12 mths Mar '10 12 mths

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938.56 3.25.691.69 25.079.574.78 153.701.432. 2.454.84 22.66 392.82 23.09 18.77 141.897.767.38 22.195. 82 4.61 36.058.49 14.883. 00 29.84 0 21.867.Net Block Capital Work in Progress Investments Inventories Sundry Debtors Cash and Bank Balance Total Current Assets Loans and Advances Fixed Deposits Total CA. 46 7.1 6 16.62 11.124.21 439.005.981.228. Loans & Advances Deffered Credit Current Liabilities Provisions Total CL & Provisions Net Current Assets Miscellaneous Expenses Total Assets Contingent Liabilities Book Value (Rs) 55.43 40.379.79 4.3 5 17.71 18.247.63 Mar '09 12 mths Mar '10 12 mths Income Sales Turnover Excise Duty Net Sales Other Income Stock Adjustments Total Income 146.157.72 4.16 137.885.913.846.57 542.003.10.83 21.578.835. 45 0 12.119.480.19 84.847. 48 8.334.571.136.528.454.849.28 654.7 9 5.13 100.79 -1.9 7 0 76.62 26.37 0 62.38 107 . 40 11.206.343.71 6.8 7 18. 1.83 21.119.660.46 133.800.280.827. 66 8. 18 37. 50 3.025.4 2 1.21 13.33 682.716.334.890. 34 12.7 9 24.60 Mar '08 12 mths 139.328.03 63.269.869.964.10.6 2 2.1 3 16.88 2.163.74 727.60 14.774.443.183.58 4.010.0 6 69.957.732.038.825.27 0 32.043. 88 82 75 60 46.00 5.692.89 144.99 111. 66 324.399.913.60 7.010.826.063.119.563.47 192.54 6.591.462.353.47 2.227.65 52. 2.8 9 12. 35 0 16.27 0 98.46 5.00 3. 75 6.63 23.51 Profit and Loss account of RIL particulars Mar '06 12 mths 89.88 10.865.660. 51 3.259.131.414.565. 53 1.62 24.46 7.531.07 200.204.40 3.05 24.75 0 54.146. 69 24.660.460.045.176.90 19.847.632.712.947.10 0 36.836.9 8 16.47 427.91 198.90 35.53 41.707.1 8 10.138.02 2.211.13 81.44 Mar '07 12 mths 118.059.640. 35 12.72 478. 95 0 61.628.606.6 112.992.712.251.461.22 42.92 2.49 13.

529.64 70 392.146.10 321.26 978.815.08 85.24 15.42 33.92 118.36 109.458.18 1.791.24 14.07 108 .26 2.67 322.34 153.112.847.943.712.865.96 0 1.98 97.298.08 65.28 130 727.72 9.39 29.137.355.74 -155.74 15.21 91.446.67 8.330.50 2.69 2.09 1.217.34 8.74 145.506.40 11.536.70 893.51 14.24 3.85 19.153.44 651.53 0 0 18.61 14.559.528.094.of share 59.36 80.02 13.234.284.49 133.35 98.09 3.57 139.458.42 2.999.405.33 715.95 31.15 0 14.739.90 4.45 668.91 20.51 327.71 110 439.51 195.64 0 0 18.86 130 542.774.005.14 2.261.52 29.17 5.935.71 2.14 0 23.60 562.33 300.97 15.706.689.156.64 3.32 16.10 22.24 277.17 166.400.07 25.810.34 4.67 5.631.872.66 20.31 5.46 109.96 -3.066.703.673.084.47 1.057.397.14 48.35 11.98 2.74 49.84 2.05 2.496.947.235.265.23 14.23 -111.343.057.560.83 12.18 0.75 0.756.80 1.585.90 27.949.195.07 0 1.152.381.018.028.03 139.90 19.29 10.969.1 23.935.66 -175.4 346.88 10.446.069.641.82 1.29 1.393.66 157.66 20.736.478.642.324.17 5.432.68 0 0 1.642.052.44 202.162.832.72 20.19 5.440.69 24.309.560.070.28 4.44 13.12 1.550.65 -1.14 68.40 412.112.119.01 3.Expenditure Raw Materials Power & Fuel Cost Employee Cost Other Manufacturing Expenses Selling and Admin Expenses Miscellaneous Expenses Preoperative Exp Capitalised Total Expenses Operating Profit PBDIT Interest PBDT Depreciation Other Written Off Profit Before Tax Extra-ordinary items PBT (Post Extra-ord Items) Tax Reported Net Profit Total Value Addition Preference Dividend Equity Dividend Corporate Dividend Tax Per share data (annualised) Shares in issue (lakhs) Earning Per Share (Rs) Equity Dividend (%) Book Value (Rs) No.95 0 1.29 10.416.98 4.95 23.897.162.711.08 100 324.91 0 10.37 32.737.65 2.06 1.549.

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