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Diligence & Excellence
SUMMER INTERNSHIP PROGRAMM REPORCT
Mr. C.A. SUMIT AGRAWAL
A SUMMER INTERNSHIP REPORT
Birla Cement Satna
MBA F.T Course semester III
PIONEER INSTITUTE OF PROFESSIONAL STUDIES INDORE
“DAVV UNIVERSITY INDORE”
Mr. C.A SUMIT AGRAWAL
The path to the successful completion of this project report has seen its own
share up sand downs. Patience, determination and perseverance coupled with
the help and encouragement from several classes have paved the path to
success. We avail this opportunity to express deep sense of gratitude and
sincere thanks to everybody for the expert guidance, intelligent critics and
encouragement which help me to prepare my report. We would like to express
my deep sense of gratitude to my project guide “Mr. Sumit Agrawal” for
providing me the opportunity to undertake my project report.
Last but not least we appreciate the improvements suggested by my
colleagues, during the design and implementation. We thank all for the help
and guidance they have provided me for completion of this work. At the end,
we are grateful to god who inspired and gave me all kind of moral help and
support for doing this project report.
We hereby declare that this project report “Working capital” is my original
work carried under the guidance and Supervision of my guide
“Mr. Sumit Agrawal”, in partial fulfillment for requirement for the award of
degree of Master of Business Administration (MBA) adhering to the condition
lay down by the Management Department of Pioneer Institute of Professional
Studies, Indore. This project neither in full nor in part has ever been submitted
for any award to either any college of university.
Project report Guide by
Mr. C.A SUMMIT AGRAWAL
Project report Submitted by
BIRLA CEMENT CERTIFICATE
com Contact No.A) Designation: . Indore has Undergone training from “BIRLA CEMENT WORKS & BIRLA VIKAS CEMENT” for a period of. 30 days (From 15/06/2013 to 15/07/2013) in the field of Finance. SHIVRAJ TOMAR” Of Pioneer Institute of Professional Studies.(07672) . (Desk):.DECLARATION This is to verify that “Mr. SUMIT AGRAWAL (C.412000 6|Page .sumit@satnacement.Mr. During the training the student has abided by the rules and Regulation of our organization and his code of conduct were satisfactory. Manager (Accounts) Email Id: .Dy. Signature of Authorized PersonName of the Person: .
Chapter-3 24-27 Plant location in India Plant chart Highlights & Features of plant 4. Chapter-4 28-29 Department flow-chart Department detail 5.Table of contents:- S. Contents 1. Chapter-7 bibliography 7|Page 30-42 . Chapter-5 Major finding Cash management Working capital management Cash flow statement 6. 8-11 cement industry cement product 2. Chapter-1 Introduction Page No. No. Chapter-2 12-23 History of organization Promoters Vision/mission Quality policy & Product range 3. Chapter-6 Conclusion 7.
CHAPTER-1 8|Page .
the performance of the industry and prices of cement are monitored on a regular basis. OVERVIEW OF THE PERFORMANCE OF THE CEMENT SECTOR:The Indian cement industry not only ranks second in the production of cement in the world but also produces quality cement. However. ports and bulk terminals .Price and distribution controls were lifted on the 1st march 1989 and licensing was dispensed with since 25th July 1991.In order to utilize excess capacity available with the cement industry . (iii) Use of ready-mix concrete in large infrastructure projects (iv) Construction of roads in rural areas under prism ministers Gram Sadak Yojana INDIAN SCENARIO OF CEMENT INDUSTRY:- Indian cement industry is modern and uses latest technology.INTRODUCTION:GLOBAL SCENARIO:- Cement is one of the key infrastructure industries .2003 to ensure quality standards. Efforts are being made to recover waste heat and success in this area has been. lack of private and public investment in infrastructure project. Only a small segment of industry is using old technology based on wet and semi –dry process. However. the government has identified the following thrust areas for increasing demand for cement : (I) Housing development programmers. The industry is subject to quality control order issued on 17. poor quality coal and inadequate growth of related infrastructure like sea and rail transport . which meets global standards. high railway tariff. (ii) Promotion of concrete highways and roads.02. the industry faces a number of constraints in terms of high cost of power. high incidence of state and central levies and duties. 9|Page .
These limestone breaks up into smallest part by grinder. Now through conveyer belt these limestones are moved to plant. Concrete works in environment involving chemicals in soil and water. It is made from a mixture of element found in nature material such a limestone. After 5-6 Layers Company gets limestone in the form of big rocks.What is cement and how is it made?:Cement is a soft powdery-type substance. All kinds of marine works. hard rocks. roads. Now this grinded lime stone transfer to kiln. For making cement mainly four Raw materials are required:1) Limestone 2) Gypsum 3) Laterite / Blue Dust 4) Fly Ash Limestone is obtained by blasting in mines. Clinker is a semi-finished product of company. Applications: Suitable for all types of construction like building. aluminum. The high temperature of kiln melts all the raw materials. Cement product is very fine one kilo (2. Sewage and effluent treatment plant. Four essential elements are needed to make cement they are silicon. After kiln all these materials take a round shape which is generally known as “Clinker”. By blasting these big rocks of limestone be get limestone in smaller form which are easier to transport. iron. 10 | P a g e . Laterite and Fly Ash were mixed with each other. After grinding these clinkers we get final cement which is used for domestic as well as construction purpose. like jetty etc. culverts and cement base products. Mass concrete work like dam. machine foundation work. bridges. and calcium (which is the main ingredient) can be obtained from limestone. etc.2ibs) contains over 300 billion gram we haven’t actually counted them to see if that is completely accurate the powder will pass through a slave capable of holding water. In kiln limestone and other raw materials like Gypsum. clay and/or shale when cement mix with water it can bind sand and gravel into a hard solid mass called concrete. sand/clay. In mines there are several layers of soil. The temperature of kiln approximately 1400C.
Grade 53:. Also suitable for all types of specialized concrete repair works like gunniting etc. . pipes. . OPC PPC: . PPC 2.Moderate sulphate resisting properties.Higher strength of cement. pre stressed and slipform construction work. 33 Grade. manufacturing AC sheets. plastering and flooring. Prism Cement’s OPC is in demand for specialized cement concrete applications like high-rise buildings. tiles and poles. Suitable for applications like pre-cast. 43 Grade Features: Achieve more than the specified strength as per the relevant IS code through proper adjustment in the chemical composition. 11 | P a g e . It is finely ground blend of high quality clinker and carefully selected high quality Pozzolona material (Fly Ash) with high fineness an optimum range of chemical composition.Higher strength of cement. and 53 Grade cement. OPC: . 43 Grade. High quality limestone deposit result in . .e.Lower level of chloride concentration.Lower level of chloride concentration Efficient quality control and high level of process parameter results in reduced free lime. poles etc.(Portland Pozzolona Cement) with the brand name ‘Champion’ is general-purpose cement popular for all applications during house construction by individuals.(Ordinary Portland cement) is made in three grades i. low insoluble residue and loss on ignition. .Moderate sulphate resisting properties.Types of Cement:Two types of cement1. bridges. Applications:Optimally higher strength of cement makes it suitable for: All General and semi specialized construction works like plain and reinforced cement concrete works.Features: Higher strength than 43 Grade is achieved through further improvement in the raw meal chemical composition and also grinding finer than 43 Grade cement. High quality limestone deposit result in: . brick and stone masonry. Manufacturing of concrete pipes. blocks.
Applications: High strength of cement makes it suitable for: Making high grade concrete with proper mix design. Efficient quality control and high level of process parameter results in reduced free lime. Closed circuit cement grinding system using high efficiency separator controls the particle size distribution resulting proper hydration character. like bridges. Also suitable for all types of specialized concrete repair work like gunniting etc. Economical usage of cement due to high strength through proper concrete mix design. slipform work. Optimally higher fineness results in early strength improvement. 12 | P a g e .C. pre-stressed pipe / poles etc.. semi and specialized construction work. culverts. low insoluble residue and loss on ignition.C. All type of plain and R.
CHAPTER_-2 13 | P a g e .
M. This plant manufacture varieties of Cement like 14 | P a g e . Priyamvada Birla took over as chairman of Birla Corporation and continued to lead the company till her death on 3 July 2004. Over the year. BCL’s business has grown from strength to strength. The strategic focus of the company has been on steady growth by developing and assimilating technologies of tomorrow to Manufacturing an ever widening range of value-added product.) – Durgapur Cement Works & Durga Works & Durga Hitech Cement and one at Raebareli (U. 1. OVERVIEW OF BIRLA CORPORATION:The cement division of Birla Corporation Limited has seven plants. the company diversified and expand its business interest beyond jute. to reflect the wide range of operation. Birla Corporation Limited is keenly aware of social responsibilities too. Was the first company of the Birla Industrial Conglomerate Under the stewardship of his nephew Shri M.P. As an enlightened corporate citizen. while striving for complete customer satisfaction in India and abroad. his wife. and provides education and health care facilities for its employees. two each at Satna (M. Mrs. the company crossed the Rs. Chanderia (Rajasthan) – Birla Cement Works & Chanderia Cement Works. 85.28crores. Birla Corporation Limited is proud of safe work practice followed at all its factories and go downs. Birla.P.300-plus turnover mark.D.B. After the demise of Late Mr. P. and Durgapur (W. their families and the community at large. PVC floor covering and auto trims. Birla jute manufacturing company Ltd. at the outskirts of the Kolkata. is the flagship company of the M. Birla group.P.P. She was an entrepreneur of distinction strong business acumen and. The company renamed Birla Corporation Limited. Birla. under her leadership.History of Organization:- Company Founded in1919 by the visionary industrialist Shri G. to encompass cement PVC coated fabric.) the total capacity of these plants is 57. Its export in 2004-05 stood at Rs.80 lakh tones.) – Satna Cement Works & Birla Vikas Cement. Birla in 1990.
NCCBM recognized it for “best in energy performance” during 198687. NCCBM recognized it for “Best Improvement in Thermal Energy Performance” during 1993-94. 1997-98. It was the second best for “Improvement in Energy Performance” during 1996-97. 1994-95. increased water tightness of concrete. an international recognition for “Implementation of Environmental Management System” BVC have got the “Best productivity of Performance” award from NPC during 1986-88. PPC & PSC. i. Portland Pozzolona Cement (PPC). 1998-99. Royal tiger. covering the entire range of production and marketing and also have received the IS / ISO: 14001 certification for BCW & CCW have bagged various awards from NCCBM. BCW & SCW have received the ISO 9001-2000 certification for Quality Management system. & 1999-2000. begun produced by the company is ideal for mass concrete. Camel. SCW has also got “Fuller Energy Conservation Award” as first prize for “Lowest Thermal Energy Consumption” (for group A category plants) for three consecutive years i. The division export large quantity of cement to Nepal and Bangladesh. 199899. 1999-2000 SCW has been adjudged by NCCBM the “Best In Energy Performance” during 1993-94. Low Heat Cement and Sulphate resisting Portland cement. Birla cement and Birla premium cement. In 1996. bringing the product under a common brand of Birla cement while retaining the niche identity of Khajuraho (for the OPC product of Satna). SCW. 1997-98. increase resistance to Sulphate soils and aggressive water and increased resistance to alkali aggregate reaction beside corrosion resistance properties.e. Fly Ash based PPC. Low Alkali Portland Cement. 15 | P a g e . Portland Slag Cement. 1995-96. for the lowest average frequency rate accident.Ordinary Portland Cement (OPC). covering the entire range of production and marketing. CCW have received the “Best Productivity” award during 1989-90 & 1993-94. 1997-98. Birla cement CHETAK.e. BVC and DVC have received the ISO 9001-2000 quality system certification. Samrat. BVC has also received “Fuller Energy Conservation Award” as first for “Lowest Thermal Energy Consumption” (for group B’ category plants) for three consecutive years i. it received the runner cup under scheme –1 of National Safety Award. The cement is marked under the brand name of Birla Cement KHAJURAHO. RCC / pre-stressed – pre-cast structure (for reduced thermal crack). The special variety of SAMRAT cement. SCW & BVC have received the IS / ISO 14001 certificate. It has won “Lal Bahadur Shastri Memorial National award for “Excellent Pollution Control Implementation” for 2001-02 by International Greenland Society.e. 43 & 53 grades. under the brand name of Khajuraho. Chetak (for OPC product of Chanderia) and Samrat of blended cement. It received “National Safety Award” for outstanding performance in achieving the longest accident free-period during 1994. for all the units.
utilized thermal power station fly ash to produce PPC.BCW was awarded “Best Improvement in Energy Performance” and “Best Improvement in Thermal Energy Performance” during 1992-93. Cement plant were set up in MP and Rajasthan and Grinding units in West Bengal and UP. VEC. The Central Board awarded the “Worker Education Trophy” for worker education. • Satna Cement Works - 1959 • Birla Cement Works - 1967 • Durgapur Cement Works - 1974 • Birla Cement Works - 1982 • Chittor Cement Works - 1986 • SCW-Conversion Plant - 1989 • Raebareli Unit - 1998 16 | P a g e . The new grinding unit. Chennai chose Chanderia unit for sustained implementation of condition Monitoring and continued Machine Health Improvement Award during 2001-02. Government of India for excellent contribution and Implementation of Workers’ training during 1998-99 and again in 2001-02. BCW has received excellence award in Cement Sector from the Rajasthan State Council. during 2002-03. has one ball mill of 165 TPH capacities. commissioned in 2005-06. making it the largest plant in West Bengal. DCW recorded 114% capacity utilization in 2004-05. The Rajasthan Government gave “Bhama Shah Samman” it during 1996. Udaipur Ministry of Labor.000 tons plant increased by another 10. Durga Hi-tech Cement. The capacity of the 6. This environment-friendly project.000 tons. The DWC plant has received IS / ISO 9001-2000 license for Quality Management system certification (accredited by road boor accredited Netherlands). Jaipur. 00. VEC-IIT Madras chose Chanderia unit for excellence in “Improving Machinery Health Condition” during 1997. 00. emerging as the highest growing cement unit in the eastern region.
of India. 1. Award Awarded By Cement Satna Year Unit 1986-87 BVC 1993-98 SCW 2001-02 SCW Fuller energy MP Chamber of Cement conservation Manufactures. No. 8. National Productivity Council New Delhi. National Award safety Ministry of Labors Govt. Of Power Govt.) S. Calcutta. 9. Rajiv Gandhi Green tech foundation National Award Hyderabad for Energy Conservation 2003-04 Both 10. 4. 5. New Delhi & Performance Ministry. IS/ISO-1400 Environment Management. 1997-99 SCW 2000-03 BVC Best Productivity 1987-90 BVC 1993-98 BVC 1990-92 BVC 1993-98 BVC 1999-01 SCW 1999-2k Both 1994-95 BVC 1996-97 BVC for RWTUV Germany July 1995 BVC BIS New Delhi Sep 1999 Both Best Energy NCB. Top Award Exports CAPEXIL. of India 7. 3. 6. Calcutta. 2. Special Award Exports CAPEXIL. Award. ISO-9002 Quality.Awards earned by BIRLA Corporation Limited (M.P. 1998-99 SCW 2001-03 BVC 17 | P a g e Central Board Workers Education of . Workers Education Trophy.
Under the Chairmanship of Mrs. Rajendra S.COMPANY PROFILE:PROMOTERS & DIRECTORS:- Mr. Priyamvada ji BIRLA After the demise of Mrs. Priyamvada ji BIRLA.2005 and.P. Lodha. the Company continues to consolidate and grow under the leadership of Mr. thereafter. Shri Madhav Prasad BIRLA transformed it from a manufacturer of jute goods to a leading multiproduct corporation with widespread activities.3. 1300 – crore turnover mark and the name was changed to BIRLA Corporation Limited in 1998. Smt. who is now the Chairman. The company has posted its best ever results in the year ended 31. it was Mr. Madhav Prasad BIRLA who gave shape to its present form. BIRLA Jute Manufacturing Company Limited in 1919. 18 | P a g e .3. the Company crossed the Rs. once again in the year ended 31. Priyamvada ji BIRLA.P.2006. M.BIRLA BIRLA Corporation Limited is the flagship Company of the M. As Chairman of the Company.
Mr. H. the Company continued to consolidate in terms of profitability. He had been Vice-President of the Indian Chamber of Commerce.3. He has served as Chairman of Corporate Laws & Governance Committee and Co-Chairman of Young Leaders Forum of FICCI besides being Member of its Executive Committee. Kolkata. the Company posted its best ever results in the years ended 31. Rajendra S. Lodha (Chairman) Mr. Banking and Finance and Direct Tax Committees. MANAGEMENT.2008. 19 | P a g e . 31. late Chairman of the M. BORD OF DIRECTORS:- Mr. is on the Boards of several reputed companies. V. Harsh V. He has also served as Member of the Accounting Standards Board of the Institute of Chartered Accountants of India and Member of the Working group on Corporate Governance. Lodha is now Chairman of the Company. Birla Group. Birla Corporation Limited has products ranging from cement to jute goods.3.3. Lodha. set up by the Department of Company Affairs. Priyamvada Birla. as well as auto trims (jute felt-based car interiors).P. PVC floor covering. Under his leadership. Harsh V Lodha. Government of India.2007 and 31.2006. The Company continued to record impressive growth in 2008-09 and 2009-10. Rajendra S Lodha (1942-2008) (chairman) After the demise of Mrs. competitiveness and growth under the leadership of Mr. Mr. and Chairman of its Economic Affairs Committee. eminent Chartered Accountant.
He has vast experience in marketing. He has served several Government offices in the capacity of Secretary and Additional Secretary in the Union Ministries of Personnel (under the direct charge of the Prime Minister). Mines. He has worked with Hindustan Lever Limited for 12 years and has extensive experience in the design and project management of chemicals.. is former Election Commissioner of India and was member of the Delimitation Commission. Mechanical Engineer and Managing Director of Paharpur Cooling Towers Limited. Pracheta Majumdar Whole-time Director designated as Chief Management Advisor Mr Pracheta Majumdar.A. petrochemicals and fertilizer plants. Mr. UNCTAD. is acknowledged as an authority on thermal designing of cooling towers in India. Mr.Mr. held several senior positions in the Central Government. Tandon headed the working group on comprehensive revision of the Companies Act. He is also on the Boards of several reputed companies. Mr. 1956. which recommended several changes/amendments in the said Act. B B Tandon. He is on the Boards of various companies also. IAS. Africa and South American countries for the Harvard Institute for International Development. Trade High Commission of India. Company Affairs. He has conducted several technical assistance programmes on tariffs and trade matter. in London. and the World Customs Organization. 20 | P a g e . He served the Secretariat of the World Customs Organization. M. Industry and Defense Production. engineering and other management functions. Belgium. B B Tandon Mr. He was First Secretary. Vikram Swarup Mr Vikram Swarup. border control and tax modernisation in Asia. He was also a Member of the Indian Revenue Service and Member (Finance) of the National Highways Authority of India. Finance. He has been consultant to the Asian Development Bank. Mr. Anand Bordia Mr Anand Bordia. Whole-time Director designated as Chief Management Advisor. is former Managing Director of CEAT Tyres Limited. Brussels.
D N Ghosh. possesses rich professional experience of more than 33 years.P. New York. former Chairman of the State Bank of India and the Mr Deepak Nayyar. ICRA Management Consulting Services Balliol College. He was onof thethe Boards of several large companies. of Economics at the New of thedistinguished Indian Institute of Management. Chand ACTING COMPANY SECRETARY : Shri Girish Sharma AUDITORS:H. He has served as Chairman in several large companies. D N Ghosh Mr Deepak Nayyar Mr. at senior positions. B R Nahar Managing Director Mr B R Nahar. 99999999999999999999999999999999999999999999999999999999999 99999999999999999999999999999999999999999999999999999999999 CHIEF FINANCIAL OFFICER: Shri P. He is Honorary Fellow of the Chairman of ICRA Limited. Professor of Economics at was JNUFounder-Chairman at New Delhi. Oxford. Khandelwal & company charted Accountants Company Vision and Mission:- 21 | P a g e . he is the School for Social Research. Corporation Limited. 999999999999999999999999999999999999999999999999999999 99999999999999999999999999999999999999999999999999999999999 Mr. in various large corporate houses. Mr. Gurgaon. Fellow Member of the Institute of Chartered Accountants of India. Presently. Additional Secretary and Secretary. Ghosh also served various Central and State Government departments in various capacities such as Financial Advisor. The prestigious Businessworld magazine has identified him as one of India’s “Most ‘Value’able CEOs” in its issue dated 29 November 2010. is Management Development Institute. Maruti Udyog and SAIL. Exim Bank.K. including Larsen & Toubro Limited and Phillips (India) Limited. He has authored a number of books on a wide Limited and Sundaram BNP Paribas Asset Management Company range of and subjects. also University ProfessorLucknow. He has served in diverse fields.99 Mr. Limited is on the Board Housing Development Finance including SBI.
Mission:- • State of the art cement plants • Transparent dealings with all stakeholders • Committed to the principles of good corporate governance Quality Policy:“Cement is the flagship of BIRLA Corporation Limited.Vision:- To be acknowledged as a leading player in the industry with the highest level of integrity. Nearly 93% of BCL turn over 22 | P a g e .
Roads. Plain and reinforced cement concrete.Lime stone. BIRLA cement Khajuraho/chetak-53 grade ordinary Portland cement Railway sleepers Per-stressed girders and electric poles. Plastering and flooring.Portland Pozzolona Cement 23 | P a g e . Cement:A binding material exhibiting hydraulic strength hence known as Hydraulic cement Finally ground material which on addition of requisite quantity water is capable of Harding both under water and air by the chemical interaction of its constituents with water and is also capable of blending together Raw Material: . industrial buildings. M25 &above concrete. Pre-cast concrete elements BIRLA Samrat. runways. clay iron fuel used Important Pro parties of cement: Compressive strength Sorting time Specific surface area Resistance to chemical attack Heat of duration Application area of cement: Dams and bridges Concrete roads All type of general construction Underwater construction Application of product:-LICATIONS BIRLA Cement Khajuraho/Chetek – 43 grades Ordinary Portland Cement Brick and stone masonry. Pre-cast and pre-stressed concrete. RCC bridges& lofty buildings.comes from the cement division”.
Marine structures. In swampy areas for footing. cooling towers. Industrial effluent treatment plant. plinth beams. Brick and flooring. Below ground. Ordinary Pre-cast concrete work BIRLA Cement Khajuraho-sulphate Resisting Portland cement Building near sea coast. Plain and reinforced cement concrete. where concrete or mortar is used in foundation. sewerage treatment plant. BIRLA cement Khajuraho – Low Alkali cement • Bridges • Dams • Reservoirs BIRLA Cement Khajuraho – IRS-T40 Cement – • Railway sleepers. piles etc. Plastering and flooring. canals & culverts. Desert conditions. aqua ducts. chimneys. Product Range 24 | P a g e .
58 corers export in year 2006-07 25 | P a g e O. 93%turnover comes from cement All six plant capacity 57. (Portland Slag Cement) (Ordinary Portland Satna Cement) Khajuraho Cement Cement Product Profile:Facts: 1300 Crores plus Turnover.C.80 tons per annum 40.C.C.P. (Pozzolona Cement) BIRLA Cement Samrat P.P.P.S. .
CHAPTER-3 ORGANIZATION CHART:Location Of Plant In India:- 26 | P a g e .
27 | P a g e .
28 | P a g e .
29 | P a g e .
The capacity will further be increased to 24800MT per day once the work on Andhra Pradesh Plant is commissioned by the year 2011. All Electronic Packers each capable of packing accurately 120MT of finished cement per hour. Our all Plant equipments are supplied by M/s F. Krupp Industries Ltd. Online computerized quality control by x-ray spectrometer to ensure raw meal control and consistency from raw meal to final product cement. Ventomatic. Six Stage low pressure drop pre-heater for lower power consumption. Automatic Truck Loader each capable of loading 15MT of cement in 10 minutes. ABB Siemens and Crompton Greaves. Pollution control system e. Some special Design Features of our Plant: The entire cement manufacturing process at all Prism Cement Plant represents the latest relevant state-of-the-art technology. Quality grinding through closed circuit grinding system. Denmark and its subsidiaries.. ESP and Bag filters for all Plant Building to meet stringent pollution control requirement.L.Highlights & Features Highlights of Plant Design Features: The plant presently capable of producing 6800MT clinker per day is all set to be increased to 15800MT per day with the expansion work by September 2010.. Smith & Co.g. Wagon loader each capable of loading one full rake in 5 hours. Fuzzy logic control for kiln and cement mill to ensure instantaneous corrective response through computer based control system. 30 | P a g e . Computerized mining activities using three dimensional imaging for optimum blending of raw material. A combination of Roller Press and Boll Mill for improved fresh grinding of cement. The Vertical Roller Press mill for efficient grinding of raw meal.
Total self reliance in power requirement through DG Sets. CHAPTER-4 31 | P a g e .
DEPATMENTS:- 32 | P a g e .
4) Analysis of financial results of all the operations and making recommendation concerning future operations. 2) Forecast how much of fund requirement would be met by internal mobilization of funds and how much has to be borrowed from outside..Overview of Finance Department:As I was working in finance department in Birla Corporation Ltd. so it’s important to give a brief overview of what are the functions and workings of this department. 5) Carry out special studies with a view to reduce cost and improve efficiency and profitability. Carry internal audits and also maintain financial records of the company. Mainly in manufacturing industry all departments are closely integrated. Functions and Responsibilities:Functions and responsibilities of the finance wing include the following: 1) Determine the financial resources required to meet the organization’s operating and capital expenditure program. 33 | P a g e . 3) Establish and maintain the system of financial control governing the allocation and use of funds on daily basis.
CHAPTER-5 34 | P a g e .
15 21392. 3. in lacks) Particulars 10-11 11-12 Investments 24476. Overall all ratios of the company are good and company need to work with more efficiency.26 6016.99 ↑ by 35% ↑ by 40% 474. The additional capacity of cement production at Durgapur will create new milestones for the BCL.17 -303. 6.77 ↓ by 42% ↓ by 9% -1660. 35 | P a g e . 2. BCL’s NPAT is increasing day by day from last three years and the growth is remarkable.64 ↑ by 140% ↑ by 51% 3686.44% ↑ by 25% 17500 10000 ↑ by 233% ↑ by 40% Inventories Sundry Debtors Cash & Bank Current Liabilities General reserve 1. Cement can be said as true fruitful business for BCL from last many years. 5. 4.Major Activities Performed:Major Findings:Statement Showing Difference from Previous Year (Amt.37 ↓ by 6.5 5785. Lack of advertisement can be said as weak point of the BCL. BCL’s investment policies are very much reliable. BCL has shown that it is very strong competitor in cement sector of India. 8.78 ↑ by 21% ↑ by 16% -2483. 7.25 448. Position of the stock is increasing per year that is good sign to face the competition coming ahead.
04 crore Cash Management:- Necessity of CMP: Previously. and Uttaranchal & West Bengal. Traditional Methods of Funds Transfer: Telegraphic Transfer Electronic Transfer Agencies involve: Funds Remitting Branch Post Office (In case of TT) Funds Receiving Branch SHORTCOMINGS OF TRADITIONAL METHOD: Blockage of Funds at remitting branch/ in transit Requirement of opening of account at collection centre Comparatively higher cost MIS support not available for Internal Control & Funds Planning No value date credit is allowed in case of delay (In case of TT) Cash Management Product is the service provided by SBI for collection/payment keeping following targets: 36 | P a g e . the cement was sold through our depot network at various locations situated in MP. Jharkhand. Funds deposited at depot banks were remitted to our Cash Credit bank account with SBI. Highest ever dividend pay out of Rs. 36. funds were collected in the form of Cheque / Demand Draft and the same were presented at various branches of SBI at depot locations by our representatives. UP. Satna. Bihar. Highest ever net profit of Rs.9. Against above sales.57 Crores 10. 393.
land. building. Hence. In simple words. Funds are also needed for short-term purposes for the purchase of raw material. debtors & inventories. thus. payment of wages and other day – to. Working capital is of major importance to internal and external analysis because of its close relationship with the current day-to-day operations of a business. etc.day expenses etc. Long terms funds are required to create production facilities through purchase of fixed assets such as p & m.to-day operations. it is also known as revolving or circulating capital or short term Working capital may be regarded as the life blood of business. marketable securities. Funds. furniture. These funds are known as working capital. Every business needs funds for two purposes. working capital refers to that part of the firm’s capital which is required for financing short.term or current assets such as cash. invested in current assts keep revolving fast and are being constantly converted in to cash and this cash flows out again in exchange for other current assets.• Speedier movement of funds for reducing transit float to the minimum • Competitive Cost • MIS Support for Internal Control & Proper Fund Planning • Interest Cost reduction on borrowings STATE BANK OF INDIA provides cash management services to Corporate Clients under the brand name SBI FAST (Funds Available in Shortest Time). Working Capital Management:Capital required for a business can be classified under two main categories via. SBI FAST eliminates the inherent delays of the traditional funds transfer mechanism and enhances liquidity to ensure optimum planning and utilization of funds. 1) Fixed Capital 2) Working Capital Every business needs funds for two purposes for its establishment and to carry out its day. Investments in these assets represent that part of firm’s capital which is blocked on permanent or fixed basis and is called fixed capital. * Long term funds are required to create production facilities through purchase of fixed 37 | P a g e .
Working Capital = Current Asset – Current Liability. machineries. . It is other wise known as revolving or circulating capital It is nothing but the difference between current assets and current liabilities. renovation. equipment. or to make payroll. Concept of working capita:• • Gross Working Capital = Total of Current Asset Net Working Capital = Excess of Current Asset over Current Liability Current Assets • Cash in hand / at bank 38 | P a g e Current Liabilities • Bills Payable • Bills Receivable • Sundry Creditors • Sundry Debtors • Outstanding expenses • Short term loans • Accrued expenses • Investors/ stock • Bank Over draft • Temporary investment • Prepaid expenses • Accrued incomes .e. Capital is also used often by businesses to put a down payment down on a piece of commercial real estate. buildings & etc * Short term funds are required for the purchase of raw materials. and other day-to-day expenses. or machinery. Businesses use capital for construction. software. Working capital is essential for any business to succeed. lands. furniture. It is also commonly used to purchase inventory. i. It is becoming increasingly important to have access to more working capital when we need it.assets such as plants. payment of wages.
If you do. Accrued expenses and taxes payable: .These are obligations of your company at any given time and represent a future outflow of cash. Inventory: . Accounts receivable: . so naturally it requires continual scrutiny. Cash and equivalents: . Is the amount of money owed suppliers reasonable relative to what you purchase? What is your firm's payment policy doing to enhance or detract from your credit rating? 5.Many businesses extend credit to their customers. what’s the rate of inventory turnover compared with other companies in your type of business? 4.Financing by suppliers is common in small business. Accounts payable:. is the amount of accounts receivable reasonable relative to sales? How rapidly are receivables being collected? Which customers are slow to pay and what should be done about them. Is the inventory level reasonable compared with sales and the nature of? Your business. 39 | P a g e . A good cash budgeting and forecasting system provides answers to key questions such as: Is the cash level adequate to meet current expenses as they come due? What is the timing relationship between cash inflow and outflow? When will peak cash needs occur? When and how much bank borrowing will be needed to meet any cash shortfalls? When will repayment be expected and will the cash flow cover it? 2.This most liquid form of working capital requires constant supervision.Inventory is often as much as 50 percent of a firm's current assets. it is one of the major sources of funds for entrepreneurs.Working capital in terms of five components:1. 3.
Types of Working Capital:- SIGNIFICANCE OF WORKING CAPITAL:- 40 | P a g e .
easily calculated.Factors requiring consideration while estimating working capital: The average credit period expected to be allowed by suppliers. The following are the important ratios to measure the efficiency of working capital. 41 | P a g e . The length of the production cycle (or) work in process. wages. The following. ratios are important measures of working capital utilization. Total costs incurred on material. The length of sales cycle during which finished goods are to be kept waiting for sales. The length of time for which raw material are to remain in stores before they are issued for production. The average period of credit allowed to customers The amount of cash required to make advance payment Importance of Working Capital Ratio: Ratio analysis can be used by financial executives to check upon the efficiency with which working capital is being used in the enterprise.
to get a discount this will decline. you turn over the value of your entire Formulae stock every x days. slow moving lines will extend overall stock turnover days. just in time ordering will reduce average days. Receivables Debtors * 365/ = x days It takes you on average x days to collect monies due Ratio Sales to you. If Ratio Cost of Sales (or you negotiate better credit terms this will increase. the quality of service and any flexibility provided by your suppliers may suffer. If you simply defer paying your suppliers (without agreement) this will also increase .00 you owe.75 means that you could have liquidity problems and be under pressure to generate sufficient cash to meet oncoming demands. fewer product lines. Less than 1 times e. For example. If your official credit terms are 45 day and it (in days) takes you 65 days. One or more large or slow debts can drag out the average days.5 times means that you should be able to lay your hands on $1. Quick Ratio (Total Current= x times Similar to the Current Ratio but takes account of the Assets fact that it may take time to convert inventory into Inventory)/ cash. say.Ratio Stock Turnover (in days) Interpretation Result Average Stock *= x days On average.50 for every $1. Faster production. 1. Payables)/ Sales 42 | P a g e 365/ Cost Sold . 0. Current Liabilities are amount you are Liabilities due to pay within the coming 12 months. Payables Creditors * 365/ = x days On average.g. You may need to break this down into product groups for effective stock of Goods management. Effective debtor management will minimize the days.but your reputation. Current Ratio Total Current= x times Current Assets are assets that you can readily turn in Assets/ to cash or will do so within 12 months in the course Total Current of business. Total Current Liabilities Working (Inventory+ As %A high percentage means that working capital needs Capital Ratio ReceivablesSales are high relative to your sales. If (in days) Purchases) you pay earlier. Obsolete stock. you pay your suppliers every x days.
37 Provisions 35306.83 5785.34 Total ( A ) 73662.06 C.78 Cash & Bank 3135.70 23020.78 608.70 .82 14258.77 16785.75 8246.24 43308.83 Current Assets 303.99 Sound.32 24092.Statement showing change in working capital for BCL:( Rs.47 448.) Inventories 20044. 30109.42 Loan & Advances 47311.92 19215.75 7637.L.92 8246.83 22411.95 6016.64 Total ( B ) 65416. Debtors 3171.93 Current Liabilities ↑ in working capital Total 43 | P a g e 23020.in lacs) Particulars 11-12 10-11 Increase ( + ) Decrease (.65 3439.23 ( A-B ) 8246.99 50946.28 16091.92 23020.70 608.25 2722.27 30525.
47 2248.01 Total ( A ) 50946.23 302242.) Inventories 14258.83 10572. 24092.33 Current Liabilities 1660.25 Cash & Bank 3439.26 14726.95 25753.L.33 3686.21 Total ( B ) 43308.21 Provisions 19215.72 6666.38 28. in lacks) Particulars 11-12 10-11 Increase ( + ) Decrease ( .59 2483.72 Total 7637.42 5922.53 C.28 4489.11 Current Assets 18083. 30525.42 ( A-B ) 7637.07 23904.Statement showing change in working capital for BCL: (Rs.22 474.06 31213.34 44 | P a g e .83 23904.5 Sund. Debtors 2722.38 Loan & Adv.17 Other C.34 12442. ----------- 28.83 971.62 ↑ in working capital 6666.A.34 17237.
23 ---------------7637.82 SUNDRY DEBTORS 2248.11 31.21 4489.34 -------------- 31213.42 3135.83 30109.03.83 20044.11 24092.65 OTHER CURRENT ASSETS LOANS & ADVANCES 28.06 -------------- -------------- --47311.38 12442.in lacks) YEAR 31.28 -------------43308.25 CASH AND BANK 5922.Calculation of working capital for Birla Corporation limited: (Rs.27 --------------- 73662.24 ---------8246.22 2722.01 -------------- TOTAL CURRENT ASSESTS --30525.12 CURRENT ASSETS INVENTORIES 10572.95 19215.03.32 35306.92 -----------65416.47 3171.59 3439.99 ------------- CURRENT LIABILITIES AND PROVISION:- CURRENT LIABILITIES PROVISION 25753.33 14258.21 -------------- TOTAL CURRENT LIABILITIES 30242.75 .53 50946.42 ---------------- NET CURRENT ASSETS 45 | P a g e 971.
Depreciation 4144 3965 3416 2983 3367 3220 c. Fixed Assets 14289 3637 16234 10813 2569 3037 2. Increase in Working Capital 3288 6409 ---- 1774 ----- ---- 4. Investments 21393 24476 6511 1211 (883) 1670 3. Sources of Funds 11-12 10-09 09-08 08-07 07-06 06-05 1. Generation from Operations a. . Decrease in Capital Reserve (4) ----- ---- ---- ----- ---- Total Sources Of Fund 42574 37675 24721 15115 2555 4707 Application of Funds 1.N.Deferred Tax 116 -------- ----- ----- ------ 245 43617 36588 15992 11670 7688 3884 2. Surplus/(deficit) after taxes 39357 32623 12576 8687 4301 419 b. Reduction in Working capital ------- ------ 5707 ---- 661 832 4.Fund flow Statement of Birla Corporation Limited:S. Borrowings ( net ) (1039) 1087 3022 3445 (5774) (9) 3. Dividend 3604 3153 1976 1317 869 ----- Total Application of Funds 42574 31675 24721 15115 2555 4707 46 | P a g e .
65 25.54 107. Activity -62.23 29.07 114.72 47 | P a g e .58 Net Cash Flow-Operating Activity 394.Cash Flow Statement –Birla Corporation :Particulars Mar 12 Mar 11 Mar 10 Mar 09 Mar 08 Profit Before Tax 551.91 213.09 Net Cash Used in Fin.41 -291.39 59.15 -15.09 295.22 -81.23 29.04 -24.36 34.72 19.83 30.18 461.09 93.75 -1.94 -7.07 44.71 -28.07 44.04 Net Cash Used In Investing Activity -334.96 0.39 59.40 Cash And Equivalent End Of Year 31.43 -122.63 Net Inc/Dec In Cash And Equivalent -3.32 Cash And Equivalent Begin of Year 34.70 41.74 144.98 -181.
The total 48 | P a g e .CHAPTER-6 CONCLUSION:The overall performance of Birla Corporation Limited is getting on a good track.
On the top of the above the increase in the cost of coal. The cash earning of the company improved substantially to Rs. 501. taken together.7 million tones. With the increase in capacity on account of expansion projects being undertaken by the company. There is an increase of 140% in investment from the previous year. For meeting the working capita l needs and capacity expansion needs it has borrowed from banks. constitute over 70% of the ex-factory price. company is not utilizing these funds. construction and retail sector in India coupled with continued thrust of the Government on infrastructure projects is expected to sustain healthy growth of cement demand. The concern about the cement industry is that it is one of the most taxed industries in the country where the government levies and taxes. The recent boom in the housing. Indian cement industry has registered a growth of 9. Almost all the major players in the industry including Birla Corporation Ltd have announced substantial increase in capacity and the possibility of oversupply situation cannot be ruled out. it is expected that the cement division of the company will do well in the foreseeable future.03% mainly on the accounts of increase in the volume or blended cement in the overall cement sales.25 Crores in the last financial year. During the year 2007-08. 551. Company has parked its surplus fund in the various debt schemes of mutual fund. higher realization and effective cost control measures taken by the company.turnover of the company has registered a growth of 11.34% in terms of cement production. With the capacitive power plants already in operation and expansion projects under implementation.74 crore in the previous year. 461.18 Crores at against Rs. railway freight and transportation charge have further added worries of cement manufactures. The profit before tax was up by 19. Company is cash rich but as there are expansion and diversification plans under the pipeline.37% at Rs. it is expected that the company would be in a position to maintain the growth in future years. 49 | P a g e .39 Crores as against Rs. During the year company has embarked upon expansion projects at Satna and Chanderia which would effectively enhance the cement c capacity by 1.27% where as the operating profits for the year were higher by 18.179.
CHAPTER-7 50 | P a g e .
birlacorporation.com Financial Management – S. Maheshwari Annual Reports of BCL 10-11.N.birlacement.com www.birlacement.11-12 www.BIBLIOGRAPHY:- www.com 51 | P a g e .satnacement.com www.
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