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SUBMITTED TO: Ms. Prerna Patwa
SUBMITTED BY: Rishabh sharma
This is to certify that all the work contained in this research report titled as “CASH MANAGEMENT” is genuine work done by me as part of summer training project, Chanderiya lead zinc smelter Chittorgarh during May-June 2010. Wherever some material is taken from website or other published literature, suitable references are given and sources are acknowledged.
About three decades ago, the scope of financial management was confined to the raising of funds ,whenever needed & little significance used to be attached to financial decisionmaking & problem solving. Today, financial managers perform the passive role of scorekeepers of financial data, information & arranging funds, they occupy key positions in top management areas & play a dynamic role in solving complex management and financial problems. The main advantage of using Cash Management is to make the optimum level of cash in the organisation and Investing the additional fund into other activities where it needed. And To minimize the amount locked up as cash balances in the company. And To meet the cash disbursement need as per the payment Schedule . The Cash is uses in the company for the payment of day to day expenses which are occur in the organisation and to protect the firm against uncertainties characterizing its cash flows. And Cash is the most important factor in financial management. It is also the most important current asset for the operation of the business. Every activity in an enterprise revolves round the cash. While cash serves these functions, it is an idle resource which has an opportunity cost. The liquidity provided by cash holding is at the expense of profits sacrificed foregoing alternative opportunities. Hence, the finance manager should carefully plan and control cash. Cash is also helpful in maintaining the goodwill of the firm in the market. The company can gain the profit to purchases the material from the other firm on credit. And availing the cash discount to paid the payment in cash at the time . and it also help in managing the good relationship with banks.
Rishabh Sharma EXECUTIVE SUMMARY .S.) for the valuable guidance which helped me throughout the project. MADANLAL PHADIYA professor at GOVT. I am deeply indebted to my project Guide Mr.ACKNOWLEDGEMENT I would like to express my gratitude to all those people who helped me in completing my project at Chanderiya Lead Zinc Smelter Ltd at Chittorgarh. COLLEGE BUNDI (Raj. for allowing me to undertake the project & making available all facilities for the successful completion of the study besides guiding me to pursue the study on proper lines.N.LADDHA (SENIOR MANAGER) FINANCE Chanderiya Lead Zinc Smelter Ltd. I would like to express my gratitude to my academic project guide. My project title was cash management. Mr.
zinc and lead. Hindustan Zinc was a wholly owned company of the Govt. are used by the engineering and automobile industries. It also has installed capacities for phosphoric acid and super phosphate. Sulphuric acid. and Silver etc. The principle operations are in Rajasthan. after the takeover of the erstwhile Metal Corporation of India Limited. 43000 tpa and 96000 TPA respectively. And the cash management is the part of working capital management. HZL is India’s only integrated Zinc company. Lead. Vedanta is India’s only integrated Zinc producer. dominated by Rampura Agucha Mine. . lead and silver with installed capacities of 169000 TPA. Working capital is the capital required for maintenance of day-to-day business operations. operating from Mines to finished metal & supplies around 90% of India’s Zinc requirements.VEDANTA is a London listed metals & mining company. Rajpura Dariba mine. Zawar mines. Rajasthan. This is the biggest and modern Zinc Refinery of India. to develop mining and smelting capacities and to substantially meet the domestic demand of zinc and lead metals. The Zinc business of Vedanta is managed with in Hindustan Zinc Limited. in May'92. Zinc & Lead. India. The present day competitive market environment calls for an efficient management of working capital. Hindustan Zinc Limited (HZL) was incorporated in January 1966 as a public sector company. financial institutions and banks. of India till disinvestments of shares by the Govt. The company is engaged in mining and refining ore to produce non-ferrous metals . Hindustan Zinc Smelter. Hence the goal of working capital management is not just concerned with the management of current assets & current liabilities but also in maintaining a satisfactory level of working capital. cadmium and zinc Sulphate are produced as by-products.zinc. The reason for that is attributed to the fact that an ineffective working capital management may force the firm to stop its business operations. may even lead to bankruptcy. Copper. The main products. Chanderiya is a refinery located in 10 km north of Chittorgarh. in the favour of trust. The major metals produced are Aluminum. It is active in the commodities like Copper.
CONTENTS . because if the company keep more fund then required then the company loose the other investment opportunities or loose the interest with the company can gain to invest the money in some other place.The main objectives of the study were to analyze by the for the day to day transaction to meet the company requirement that how much cash the company need to keep with it .
6 Scope of Study---------------------------3. Questionnaire------------------------------------------------10. 3.4 Type of Research-----------------------3. Bibliography------------------------------------------------- .1 Title of Study -----------------------------3. Data Analysis and Interpretation---------------6. SWOT Analysis-----------------------------------------------7. Facts and Findings----------------------------------------5.3 Objective of Study-----------------------3. Conclusion----------------------------------------------------8. Introduction to Industry-------------------------Introduction to Organization-------------------Research Methodology-------------------------3.7 Limitations---------------------------------- 4.1.2 Duration of study ------------------------3. 2.5 Data Collection and Sampling-------3. Recommendation and Suggestions-------------------9.
INTRODUCTION TO INDUSTRY .
zinc products were . arsenal in 1835. Missouri. in Tennessee. which used electrical energy as a substitute for coal and gas in freeing zinc from its mineral compounds. reduced by externally heating closed clay vessels containing a mixture of ore and coal. and Arkansas. This required new technology for rotating the sulfides to form crude oxides. zinc mining and smelting industry.INTRODUCTION TO INDUSTRY Zinc was first introduced commercially in the United States during the 1850s. The discovery of natural gas in and west of this area fueled developments. larger quantities of sulphides and smaller quantities of oxides occurred. by Belgian workers. Development of zinc-lead ore fields in Missouri. corrugated sheet metal. As ore deposits were worked to greater depths during the 1880s. a so called American process that was perfected in the last half of the nineteenth century. Westward migration created a great need for galvanized. During the first quarter of the twentieth century. Samuel Wetherill invented a grate furnace to produce zinc oxide from oxidized ores. it became possible to produce high-purity zinc. sulfuric acid became a by-product of the zinc industry. The uses for this zinc were vast.. with small-scale smelting plants in New Jersey. When alloyed with aluminium. It also spurred introduction of the electrolytic process in 1916. precision shapes. and Oklahoma in 1895 gave a great impetus to the building of gas-fired zinc smelters in the region. and the tri-state region became known as the Gas Belt. A furnace was built primarily to produce zinc for making brass to be used in standard weights and measures.C. zinc-coated steel for fencing. Kansas. and in Virginia. enabling mass production of intricate. The first known domestic zinc production was at the Washington. Pennsylvania. near sources of ore and fuel. a zinc-copper alloy. and brass hardware. Demand for zinc during World War I led to great expansion of the U. In the course of improving the process. D.S. The principal early use of zinc was in the production of brass. the froth flotation technique for separating sulfide minerals from associated rock became the major mode of production. Early zinc production used oxidized forms of the ore. as new mining districts were opened up in the Rocky Mountain area. Illinois. In 1852. As a result of this technology. The vaporized zinc was condensed and cast into slabs.
New smelting techniques recovered cadmium as a by-product. which is valuable for its attractive and durable finish when plated onto other metals.instrumental in the burgeoning automobile and appliance industries beginning in the 1930s. .
Introduction To Organization .
and it became a part of the Sterlite group. Become a global leader in Zinc.HISTORY Hindustan Zinc Ltd. Sterlite acquired a 46% interest in HZL from the Government of India and the open market. . Today HZL is India’s leading Zinc producer. In August 2003. Create value for all entities whether it is Customers. extensive Harnessing mining resources to help India maintain self-sufficiency in Employees. was created from the erstwhile Metal Corporation of India (MCI) on 10th January 1966 as a Public Sector Undertaking. HZL is a vertically integrated Mining & Smelting company. investments in R&D and technology are the hallmarks of HZL making it a multi-unit and multi-product company. Since then HZL has been growing from strength to strength. gearing up to: Zinc. Investors or Constant innovation. meticulous attention to detail.9% interest from the Government of India. Sterlite acquired a majority state in HZL by acquiring another 19. In April 2002.
Zawar mines. The principle operations are in Rajasthan. Our processes and performance have evolved on safety. Hindustan Zinc Limited (HZL) was incorporated in January 1966 as a public sector company. The Zinc business of Vedanta is managed with in Hindustan Zinc Limited. Copper. The major metals produced are Aluminums. Sustainable development is an integral part of our business philosophy. Chanderiya is a refinery located in 10 km north of Chittorgarh. It is active in the commodities like Copper. Zinc and Lead. Copper. This is the biggest and modern Zinc Refinery of India. Our mission is to create a world-class metals and mining group and generate strong financial returns. to develop mining and smelting capacities and to substantially meet the domestic demand of zinc and lead metals. dominated by Rampura Agucha Mine. Vedanta is India’s only integrated Zinc producer. Vedanta is a FTSE 100 metals and mining company. India. Rajasthan. Our principal operations are in India. after the takeover of the erstwhile Metal Corporation of India Limited. Lead. Zinc & Lead. operating from Mines to finished metal & supplies around 90% of India’s Zinc requirements. The major metals produced are Aluminum. and Silver etc.VEDANTA is a London listed metals & mining company. Hindustan Zinc Smelter. HZL is India’s only integrated Zinc company. Zambia and Australia. Rajpura Dariba mine. health and environment in tandem with our sustainable development goals. We stay committed to continue to improve our performance in line with our HSE & Social Policy. .
k. Ajita Bajpai Pande. Director Shri G.S. Director . CEO & Whole-time Director Shri S.Srinivas. Director Shri Nand Kishore Shukla. Director Shri Tarun Jain. Chairman. Mittal. Director Shri Anil Agarwal. Director Shri Navin Agarwal.MANAGEMENT PROFILE BOARD OF DIRECTORS Shri Agnivesh Agarwal. Shri M. Director Smt. Mehta.
Sterlite acquired a majority state in HZL by acquiring another 19. Create value for all entities whether it is Customers.699 tones Zinc and a record production of 999.HINDUSTAN ZINC AT A GLANCE:Hindustan Zinc Ltd. gearing up to: Zinc.007 tones of Zinc concentrate during 2005-06. Sulphuric Acid and Silver. Lead and by-products viz. and it became a part of the Sterlite group.9% interest from the Government of India. HZL is a vertically integrated Mining & Smelting company. meticulous attention to detail. In August 2003. was created from the erstwhile Metal Corporation of India (MCI) on 10th January 1966 as a Public Sector Undertaking. Sterlite acquired a 46% interest in HZL from the Government of India and the open market. HZL produces Zinc. . HZL achieved an all-time high production output of 293. Become a global leader in Zinc.Today HZL is India’s leading Zinc producer. Since then HZL has been growing from strength to strength. Constant innovation. In April 2002. extensive investments in R&D and technology are the hallmarks of HZL making it a multi-unit and multi-product company. Investors or Harnessing mining resources to help India maintain self-sufficiency in Employees.
2005: Chanderiya smelte .30million tones per annum to 3.37million tones per annum to 2.000 tons of zinc debottlenecking completed at Debari zinc smelter and Vizag zinc smelter -Debottlenecking of Rampura Agucha Mine from 1.Hindustan zinc limited was incorporated from erstwhile metal Corporation of India on 10 January 1966 1991: -Chanderiya Pyro-metallurgical lead zinc smelter and Rampura Agucha mine began production.359 employees.GROWTH HISTORY OF THE COMPANY Driven by the capability of 6.000 tons per annum of Ausmelt Lead smelter at chanderiya smelter complex. 2003: -32.000 tons per annum of hydrometallurgical zinc smelter (Hydro)at -Commissioned 2*77MW captive power plant at chanderiya smelter Complex. 2006: -Commissioned 50. -Rampura Augucha Mine expansion from 2. Hindustan Zinc Limited is the world’s second largest zinc producer.75million tones per annum. 2002: -Acquired by Sterlite industries (India) Limited on 11 April 2002. 1966: .000tonnes of zinc debottlenecking completed at Chanderiya Smelter Comp -Commissioned 170.30million tones per annum 2004: -35.
2007: -Commissioned 170. India has the potential to see high growth in zinc consumption. the increase in zinc demand is led by India fast growing galvanizing sector which accounted for about 70% of the total zinc demand.2MWas on 31March 2008 INDIAN MARKET: ZINC Spurred by industrialization and infrastructure demand. -Rampura Augcha Mine expension from 3.3million tones per annum. 2008: -88. -Commissioned 38. In 2007.47 million tonnes. USE OF ZINC: .India zinc demand rose strongly by 9.8MW Wind energy farms making the company’s total Wind energy capacity to 107. For 2009-10. -Commissioned additional 68. manufacturing sector and infrastructure.00million tones per annum . the rise in demand of zinc is expected to remain robust driven by realty growth.-Sindesar Khurd Mine began production with an initial capacity of 0.000 tonnes per annum zinc debottlenecking completed at chanderiya smelter complex and debari zinc smelter .5%to 0.000 tonnes per annum of hydrometallurgical zinc smelter (Hydro) ina benchmark time of 20month at chanderiya smelter complex.4MW of wind Energy farms at Gujarat.75million tones per annum to 5.
: FIRST USE OF ZINC: .
electrical equipment. pharmaceuticals and other application. ZINC OXIDE The most widely used zinc compound. and used extensively in building construction infrastructure. DIE CASTINGS Zinc is a ideal material for die castings and is extensively used in hardware. zinc oxide is used in valcanisation of rubber. . paints. automobile. and many more. household appliances. as well as a ceramics. A special grade of zinc oxide has long been used in photocopiers. animal feed.GALVANISING Zinc is the one of the best form of the protection against corrosion. steel furniture. automotive and electronic components.
. and OSHAS 18000 for health and safety. A part from sindesar khurd. Hindustan zinc’s operation can be classified into mining and smelting currently.PRODUCTION & OPERATION PERFORMANCE Hindustan zinc is the second largest integrated producer of zinc in the world. the other six units are accredited with ISO 14001:2004 for environment. Which is a new mining site . of which four are mining operation and the remaining three are smelting. . It has operating facilities at seven location. Its main product are zinc and lead. all other facilities of the company are in the state of Rajasthan. beside sulphuric acid. barring the smelting facilities at Vishakhapatnam in Andra-Pradesh . cadmium & silver.
Lead 1. (HZL) is the only integrated Zinc producer in India and owns captive Zinc mines that supply all of HZL’s Zinc concentrate requirements for its smelters. Zinc 6.Hindustan Zinc Ltd. Rajasthan.0%.3 MTPA Details An underground mine with onsite concentrator and two vertical access shafts. with Rampura Agucha mines being one of the most cost-efficient Zinc mines in the world. Ore is crushed underground before hoisting and stockpiling for secondary and tertiary crushing.3 MTPA ore Including Sindesar Kurd mine’s capacity of 0. Rajpura Dariba Mines Commissioned Location Capacity 1993 75 km north-east of Udaipur. Mining is done through vertical crater retreat and blast hole stopping. India 1.7%(Grades are as on 31 March 2006) Ore Grade Zawar mines Commissioned 1942 . HZL operates open cast (Rampura Agucha Mine) as well as underground mines (Rajpura Dariba and Zawar Mines) with state of the art technology.
0. dariba.0 Million tones per annum after a recent expansion. . dariba.Sindesar khurd and zawar mines with an annual capacity of 0. Mining is done with sublevel stopping with matching infrastructure.and has a 55 certification and the for star rating form the British safety council. Rajasthan. Rampura agucha.M. The other three mines Rampura agucha. OHSAS 19001:1999 The company mining operations are located in Rampura agucha. Rajpura. Ore Grade Zinc 4.2 million tones of respectively: SMELTING: Hindustan zinc’s smelting facilities are located at Chanderiya and Debari in Rajasthan and Visakhapatnam in Andhra Pradesh. Sindesar khurd and zawar mines all in Rajasthan. north of Udaipur. Hindustan zinc received the coveted London metal Exchange (LME) registration for zinc metal produced from its hydro I smelter at chanderiya under the brand of Hindustan zinc SHG 99. During 2007-08. Chanderiya smelter complex with a capacity of 525. it is word’s third largest open cast mine for zinc and lead . It is also one of the lowest cost zinc mines in the world . ISO 14001:1996. Rajasthan.6 Million tones and 1.3%.3 Million tones . an open cast zinc-lead mine.99 chart G give the details of capacities and production of the smelting operation.Location Capacity Details 40 km east of Udaipur. Rajpura. is located in Bhilwara district 225 K. India 1.with a capacity of 5.2 MTPA ore An underground mining complex consisting of four underground mines and one concentrator for all mines.000 tons of zinc is the world’s largest single location zinc smelting complex.Lead1.9% (Grades are as on 31 March2006) Certifications ISO 9001:2000.
000 TPA of refined Zinc.000 TPA of refined Zinc . Vizag and Chanderiya Smelters and Ausmelt™ (Chanderiya Lead Smelter) process routes. Main by-product is Sulphuric Acid. India 105. Main byproducts are Sulphuric Acid and Silver A hydrometallurgical smelter using the state-of-the-art RLE technology commissioned in the year 2005-06. Rajasthan. A pyrometallurgical smelter using ISP™ technology.While increased in saleable metal output was driven by the increased in Hydro-II facility at chanderiya coming on stream in third quarter of FY2008 production of the existing capacities at chanderiya and other location also contributed to this growth . (HZL) operates smelters using the ISP™ pyrometallurgical (Chanderiya Lead Zinc Smelter). . ISO 14001:1996.000 TPA of refined Lead – Ausmelt™ lead smelter.000 tpa of refined Lead – pyrometallurgical lead – zinc smelter. Chanderiya Lead Zinc Smelters(CLZS) Commissioned Location Capacity 1991 120 km east of Udaipur. Hindustan Zinc Ltd. OHSAS 19001:1999 (For Pyro Plant) Power Coal based 154 MW captive power plant commissioned in 2005. An Ausmelt™ lead smelter commissioned in February 2006 Certifications Captive Generation ISO 9001:2000.6% and 8.during the year production at debari and vishkhapatnam increased by 5.3% respectively. 35. Details 50. RLE hydrometallurgical (Debari. 170.Hydrometallurgical zinc smelter.
OHSAS 19001:1999 VIZAG ZINC SMELTER Commissioned Location Capacity Details 1977 17 km from Vishakhapatnam.000 TPA of refined Zinc A hydrometallurgical smelter using RLE technology. India 90. Andhra Pradesh. Rajasthan. OHSAS 19001:1999 . ISO 14001:1996. Plant is equipped with 29 MW of captive power generation capacity. Main byproducts are Sulphuric Acid and Cadmium. ISO 14001:1996.000 TPA of refined Zinc A hydrometallurgical smelter using RLE technology. Main byproducts are Sulphuric Acid and Cadmium. The plant obtains part of its power requirement at low-cost due to shareholding in a gas utility company in Andhra Pradesh.DEBARI ZINC SMELTER Commissioned 1969 Location Capacity Details 12 km east of Udaipur. India 56. Certifications ISO 9001:2000. Certifications ISO 9001:2000.
.000 tons per annum. Mission:• • • Be a lowest cost zinc producer on a global scale. maintaining market leadership . One million tons zinc-lead metal capacity by 2010 Be innovative.000 tons per annum . creating value. maximizing stake-holder value. customer oriented and eco-friendly.VISION AND MISSION OF COMPANY Vision: Be a world-class zinc company. Highlight:• • • One of the world’s largest integrated zinc and lead producer. Refined zinc production capacity 669. leveraging mineral resources and related competencies. Refined lead production capacity 85.
PROJECTS: GROWTH-NEXT STAGE: .
065. with fully integrated mining and captive power generation capabilities. we also expect to progressively increase our silver production from the current levels of 2.8 million ounce per annum to a level of approximately over 16. the company will also add 2*80 MV captive power plants at Rajpura Dariba.1 million ounce per annum.000 tons per annum zinc hydrometallurgical plant and a 100.0 million tones per annum to 6. -Captive power: to meet the energy requirements for these operation. These are: -Mining: Expansion from 5.5 million tones per annum at sindesar khurd.These project will take our annual mining capacity to more than 1 million tones (1.0 million tones per annum at Rampura Agucha. In addition to the above. expansion from 0.000 tons) per annum –making Hindustan zinc the world’s largest zinc producer by 2010. Completion of .000 tons per annum lead plant at Rajpura Dariba. TYPES OF ZINC PRODUCES BY HZL .3 million tones per annum to 1.The company has recently announced a list of new project in mining smelting and captive power plants. and a new mine with an initial capacity of 0. which will be made operation by 2010.3 million tones per annum at Kayar in Rajasthan. -Smelting: set up a 210.
animal feed.10) mm width 475 (+/. Building/ construction.995% Ingot weight Bundle weight Bundle configuration Bundle dimension 470 (+/. aluminum alloys. agriculture automotive/transport. Food industry. zinc thermal spraying. fertilizers.Special Grade Zinc First Use Die Casting and Gravity Casting End-Use Automotive equipment. toys. cosmetics industry. magnesium alloys Rolled Zinc Batteries Zinc Compounds construction products. electro plating. household appliances. tools. computers medical equipment.2 kg) 1000 kg each (+/. End-Use Building/construction. Automotive/transport. etc. pharmaceutical industry.fittings automotive and electrical equipments.10) mm height First Use Corrosion Protection (galvanizing.10)mm length energy/power. 25 kg each (+/. Prime Western Grade Zinc .50 each) 4 ingot/ layer X 10 layer 960 (+/. zinc rich paintings) Brass (copper-zinc alloys) Building/construction. fittings. steel furniture. High Grade Zinc Special high grade zinc 99.
zinc rich paintings) Zinc Oxide End-Use Building/construction. zinc thermal spraying. agriculture automotive/transport. steel furniture. all rubber goods. CHANDERIYA LEAD ZINC SMELTER . electro plating.First Use Corrosion Protection (galvanizing. energy/power. Tyres.
There are many places in our country. In these substances the metals are formed in compound form. It started raising Lead Zinc from its Agucha Mines in Udaipur. where we get different types of metallic substance as raw materials for industries. .An Introduction Chanderiya Lead Zinc Smelter was established in the year 1989.
Ajmer. The Jawar Mines in Udaipur are famous as a source of zinc all over world. Banswara & Tonk are the famous places as a source of mica. There are basically 2 types of assets.M. Several belt conveyors transport the concentrate from the underground bins to the concentrate storage hall.H.Plenty of minerals are.sulphide (ZNS) which is send to the Roaster Furnace through the chain conveyers. Dungarpur. A Pay loader feeds the materials into two hoppers.1 Concentrate Storage The zinc concentrate is delivered by trucks and is discharged into two underground bins. Bhilwara the Beawar. By means of . A) i) ii) iii) B) i) ii) iii) 1) Mines :Zawar Mines Rampura Agucha Mines Dariba Mines Smelter :Deriba Smelter Chanderiya Smelter Vizag Smelter Raw Material Handling Plant (R.) In the Hydro plant the raw material used is Zinc. obtained in Rajasthan. 2) Roaster plant - 2.
during start-up. with fine adjustments being made as necessary during operation. It is particularly important to distribute the fine material over the surface of the fluid bed to prevent local material deposits and the development of gas zones of varying S02 concentration. 2. . which in turn discharges onto a rotary table feeder. and fine distribution of the concentrates in the bed area.2 Material Feeding System and Fluid Bed Furnace The roaster with a grate size of 123 square meters is designed to treat concentrates of varying compositions. equal. The average particle size distribution of a standard concentrate feed mix is given below: The loading level gate at the concentrate bin outlet. The roaster is fed then by two slinger belts. The fine control occurs by means of the belt speed. The produced calcine has the following characteristics. a vibro screen and a hammer mill. The slinger belts provide a very soft. For moistening of the concentrate several spraying nozzles are foreseen in the concentrate storage hall. as well as on the conveying belt before the concentrate feed bin. which directly feed into the roaster. 0. coarsely controls the quantity of the feed flowing onto the discharge belt conveyor. the materials are transported to the concentrate feed bin. which changes the material loading level on the belt. which can be accelerated or slowed down by a remote-controlled PIV gear drive.discharging and transport belt conveyors including an over-belt magnetic separator.8% of sulphate sulphur Blended feed from the concentrate feed bin is discharged onto a discharge belt conveyor. Dross material from the cathode melting and casting process will be added to the feed material before the vibro screen. The rotary table feeder supplies concentrates to the slinger belts. The coarse adjustment is made only once. 1. Sulphide sulphur in calcine approx. Sulphate sulphur in calcine approx.3% of sulphide sulphur.
A portion of the feed charged into the roaster agglomerates in the bottom of the fluid bed and would result in a continuously increasing pressure loss in the roaster if an appropriate quantity of material were not withdrawn. A portion of the surplus reaction heat is absorbed by cooling coils installed in the fluid bed in the form of evaporator heating surfaces connected to the forced circulation system of the waste heat boiler. The combustion air serves both as a carrier medium for the fluid bed and as a source of oxygen for the predominant reaction.975°C and with an S02 concentration of approximately 10. Bed material is withdrawn via: The continuous roaster overflow.5 O2 -> ZnO + SO2 ∆ H = -446 kJ/mol The reaction in the roaster is strongly exothermic. the start-up burners and lances using fuel oil heat the roaster to ignition temperature.For the initial charge of concentrates.2% by volume. The purge device for coarse agglomerates. however as an indication and for 1st start-up the discharge should be operated once per shift. The flexibility needed for the operation of treating concentrates with varying calorific values is provided by the combined direct/indirect cooling of the turbulent layer. lined with castable materials. The roaster overflow functions by gravity and its barrier rim can be raised or lowered by the insertion of weir plates. The purge-discharging device is operated manually and withdraws the material from the grate level and thus prevents the accumulation of the coarser-sized particles. which converts zinc sulphide to zinc oxide and sulphur dioxide. dry basis. . and the gases leave the roaster with a temperature of approximately 930°C . The operation frequency depends on the formation of coarse agglomerates. thus cooling the fluid bed by indirect heat transfer. The grate itself is made of steel. ZnS + 1.
Before the first start-up. The material temperature at the drum cooler outlet is below 150°C. as well as for start-ups after extended shut-downs. the fluid bed furnace and the waste heat boiler have to be preheated.075 mm and 70% below 0. whereas the calcine of the roaster and waste heat boiler requires primary cooling as well as grinding to the size required for leaching. a cylindrical enlarged top section.050 mm for the total calcine.3 Calcine Discharging System The calcine is discharged at four points during normal operation: Roaster Waste heat boiler Cyclones Hot electrostatic precipitator The cyclone and precipitator dust is received relatively cold (300-350°C) and sufficiently fine in size. For process optimisation 10 secondary air nozzles are installed to be able to distribute additional roasting air above the bed. The necessary combustion air is taken from the main roaster air fan and the start-up and cooling air fan. 2. which consists of 4 oil burners and 12 oil lances with accessories. Roaster calcine and boiler dust are combined in a common chute and passed to a drum cooler. which is 90% below 0. a conical intermediate section. . The pre-cooled calcine is transferred into a ball mill via an inclined chain conveyor. The cooling air blower cools the boiler chain conveyor. For this purpose. and a grate area of 123 square meters. This ball mill is designed to achieve the desired grain size. The enlarged cylindrical section enables a complete roasting of even the finest calcine particles without the occurrence of a secondary combustion phenomenon.The roaster has a cylindrical bed section. A water-cooled rotary valve provides the gas seal of the boiler chain conveyor. This results in the following arrangement of the calcine handling. the roaster is equipped with a preheating unit for start-up purposes. A slight draught is maintained at the roaster gas outlet to ensure the safety of the roaster operation.
Pneumatic cylinders drive these rappers. cobalt. The waste heat boiler is equipped with a membrane tubed settling (drop-out) chamber ahead of the front convection bundles. to the maximum extent before sending the solution to zinc electrolysis plant for extraction of zinc. The convection heating surfaces of superheaters and evaporators are combined in bundles in a suspended arrangement. The SO2 bearing gases goes to acid plant through Gas cleaning section. In the boiler. Since the waste heat boiler handles roasting gases having very high dust content. The copper is recovered as copper cement and . The combined calcine from the ball mill. germanium etc. The waste heat boiler is a forced-circulation-type boiler for the production of superheated steam. SO3 is absorbed by H2SO4 SO2 + O2 =SO3 SO3 + H2O = H2SO4 3) LEACHING & PURIFICATION - The purpose of leaching is to extract maximum zinc from the calcine into zinc sulphate form and to purify the solution from all other impurities like copper. The calcine silo bin is equipped with a separate storage dedusting air fan.The finest dust precipitated in the hot gas ESP is combined with the mill discharge and transferred to the calcine silos via the pneumatic transport system. the dust-laden gases are cooled down from the roasting temperature to about 350°C before entering the dust precipitation system. iron. In the settling chamber. arsenic nickel. The hot dust laden gas stream leaving the roaster is drawn into the waste heat boiler under suction from the SO2 blower. cadmium. In Acid Plant SO2 is converted into SO3 in presence of of catalyst. which transport the calcine to the calcine silo. Cooled gases leaving the waste heat boiler flow into the hot electrostatic precipitator (ESP) for final dust removal. part of the dust carried along with the gas is separated. cyclones and hot-esp are transported via a chain conveyor to the calcine intermediate bin. Screw type compressors provide the air for the pneumatic transport pumps. A bag filter is provided to capture fugitive dust from the calcine handling ventilation system. a mechanical rapping device has to be provided.
This step helps to achieve very high overall zinc recovery (97%). 2. Zinc Ferrite (ZnO Fe2O3) formed during roasting is not leachable even during HAL I. 5) Pre-Neutralisation – This stage is to eliminate the residual iron in clear solution from jarosite before entering the neutral leaching. The other impurities are also precipitated along with jarosite during this stage.cadmium as cadmium sponge. All other impurities go along with the jarosite cake. has leached during hot acid leaching II-stage. Calcine is added and pH ~4.5 is maintained to precipitate iron as ferric hydroxide. The leaching section is subdivided into various sections: 1) 2) Calcine storage and feeding Neutral leaching – To convert zinc oxide into ZnSO4 solution at ~5 pH in presence of excess calcine so as to get minimum impurities in neutral overflow solution. The iron present in calcine is also leached during hot leach operation and is precipitated out as sodium jarosite by addition of sodium sulphate. 3) The zinc oxide remaining un-dissolved during neutral leaching is leached at higher temperature (70-80°C) and acidity (40-50 gpl) known as Hot Acid Leaching I (HAL I). more aggressive leaching (90-95°C. This stage is termed as Hot Acid Leaching II (HAL II). 4) which Jarosite precipitation – It is required to remove the iron from ZnSO4 solution. This is done at high temp (100 °C) and by adding sodium sulphate to precipitate iron as sodium jarosite.1 Neutral Leaching . To dissolve zinc contained in zinc ferrite. 116 gpl acidity) is adopted wherein both zinc and iron go into solution.
The neutral leaching is the most important section of the leaching plant, because most of the zinc is dissolved here. Calcine from the calcine storage day bins will be fed via star feeder, weighing belt conveyor and screw conveyor into the first and third NL leaching tank. The homogenized solution made up of spent electrolyte, pre-neutralized solution, recirculation streams from the purification section and MnO2 as well as MnO2 slurry from the tank house is pumped to the first neutral leach tank via a flow control valve. The main amount of calcine added to the leaching section is fed to the first tank of the NL section. To eliminate all the iron in solution and to precipitate harmful impurities it is required to neutralise the solution to a pH of 5.2. This final pH-adjustment is done in the third NL tank by adding calcine.
The final acidity in the last tank of the NL leaching cascade should be maintained very exactly at a pH of 5.2 to 5.4). At this pH value the calcine added has been minimized, thus obtaining a very small amount of unreacted calcine in the neutral leach residues. The suspension from the last NL tank containing the un-leached calcine, iron precipitates and zinc ferrites flows via a launder to a thickener for solid-liquid separation. To accelerate the solid-liquid separation diluted flocculants are added to the solution. The solids, which settle on the thickener’s conical bottom, are pushed towards the center by means of the thickener rake, from where they are pumped to the hot acid leaching section to recover the zinc from excess of calcine added to the NL section and from the undissolved zinc ferrites (ZnO x Fe2O3). The clear NL thickener overflow is collected in a pump tank, from where it is pumped to the purification section. The basic reaction during neutral leaching is as follows; ZnO + H2SO4 = ZnSO4 + H2O MeO + H2SO4 = MeSO4 + H2O Me = metals other than zinc present in concentrate.
Hot Acid Leach I and II
The neutral leach residue and the leaching residues from the pre-neutralization step, are leached in two counter current hot acid I, II leaching steps. The main purpose of this two-step counter current leaching step is to break up the incoming zinc ferrite to obtain an overall zinc recovery 97% and a lead-silver residue. Lead-silver residue shall be fed to the existing Imperial Smelting Furnace (ISF). Each hot acid leaching step consists of leaching tanks arranged in a cascade and a thickener. Both of the leaching steps, hot acid leach II and I, are run at elevated temperatures and higher acidity.
3 Jarosite Precipitation During the jarosite precipitation step the iron is precipitated selectively out of the solution as a basic iron sulphate jarosite. During this aggressive leaching almost all of the zinc ferrites will go into solution. The resulting lead and silver residue obtained after the hot acid leach II is separated from the acid leaching solution in a thickener. The Pb-Ag filter press cake is collected in a concrete box from where it is sent to the existing plant for further treatment. During the hot acid leaching steps not only zinc but also iron from the zinc ferrites is dissolved.The acidity control is done by increasing or decreasing the addition of spent electrolyte into the hot acid leach II. The iron removal is achieved by neutralizing the solution with calcine to precipitate the dissolved irons as jarosite. . Temperature is maintained by means of steam. To optimize jarosite formation. This iron must be removed before sending this solution to the neutral leaching step. To minimize the addition of calcine to the jarosite precipitation step and to pre-purify the jarosite thickener overflow prior to joining the neutral leaching step a pre-neutralization step will be provided. The hot acid leach II thickener overflow is pumped to the acid leach I. As an equivalent amount of sulphuric acid is liberated during the precipitation. calcine will be added continuously to maintain a fairly constant acidity of the solution. The filtrate is returned to the thickener. 3ZnOFe2O3 + 12H2SO4 === 3ZnSO4 + 3Fe2(SO4)3 + 12H2O 2. The total reaction is the following: 3 Fe2((SO4)3 + 10 H2O + Na2SO4 = (Na)2 (Fe6(SO4)4(OH)12) + 6 H2SO4 This reaction gives the end product of several intermediate reaction steps with partly hydrolysed iron sulphate. Na-ions must be present. Main reaction steps are as follows. The Pb-Ag residue from the hot acid II leach thickener underflow is pumped to filter presses for filtering. whereas the acid leach I thickener overflow will be sent to the jarosite precipitation section.
The discharge from the last reaction tank flows to the jarosite thickener for solid liquid separation.Jarosite formation allows for the co-precipitation of a number of impurities brought into solution during the two hot acid leaching steps. The underflow from the jarosite thickener containing the jarosite formed during the iron precipitation and the residues from the calcine used for the neutralization is washed on vacuum belt filters to minimize soluble zinc losses.5 Purification . The converted jarofix is transported by trucks to the waste disposal yard. 2. 2.4 Jarosite Disposal Jarosite residue is converted to an inert material “Jarofix” by blending and curing with cement and lime at certain proportion. Sodium sulphate (Na2SO4 x 10 H2O) will be added into the first tank of the jarosite tank cascade from a bin. To accelerate the solid-liquid separation diluted flocculent are added to the solution prior to entering the thickener. There is also a provision maintained for repulping the jarosite redidue and pumping to an impervious storage pond located at about 2 kms from the place. while adding a minimum amount of water.
in so far as these impurities have not been completely removed during the ferric hydroxide purification in the neutral leaching plant. The impure neutral solution coming from the neutral leach thickener is stored in a storage tank before being pumped to the purification tanks of the first purification step. 2. and nickel as major impurities and also small amounts of arsenic and antimony. The temperature for cementation is 60 to 650C. The purification of the neutral solution will be carried out in three main steps: The first step or cold purification for the removal of copper and cadmium as impurities. The second step or hot purification for the removal of cobalt and nickel as Impurities Third stage shall be polishing stage.2 Hot Purification In the hot purification section.The purification of neutral leach solution is necessary to remove certain elements like copper. cadmium. cobalt. 2.1 Cold Purification In cold purification step the neutral solution produced in the leaching plant is sent to strip the solution from copper-cadmium by means of zinc dust.5. hence no heating or cooling of the solution during the cold purification is required. cobalt and nickel are precipitated out of the solution. The process requires a temperature of >750C and the addition of . The purification is carried out by the addition of zinc dust.5.
. in this stage the impurities not removed earlier gets removed by the addition of Zinc dust. MeSO4 + Zn = ZnSO4 + Me Me is metals as Cd. Cu. 2. Co etc. The final pure electrolyte after this polishing step is pumped to Electrolysis plant for extraction of zinc metal by electrolytic process. The extra Antimony if any is also removed in this stage.3 Polishing Stage As the name suggests. The main reaction in purification section is as follows.Potassium Antimony Trioxide (PAT) and copper sulphate in order to improve the zinc dust reactivity and accelerate the precipitation reaction. Ni. The cake from polishing stage is recycled to first stage of purification as it is mainly of zinc dust.5.
Melting and Casting – . The cadmium plant operates in batch process and involves the following main steps: Filter cake leaching with spent electrolyte to leach excessive zinc Removal of copper cement after zinc and cadmium is dissolved Selective cadmium precipitation with zinc dust Disposal of products/wastes The copper cement shall be sold as by-product.Purification & Cadmium Plant Impure Zn SO 4 Solution (from NL) Zn Powder & PAT Zn Powder Cold Purification Steam Filtration Cake Steam HE Zn Powder Hot Purification Polishing Cell Acid Filtration Co Cake Cake Re-leaching Filtration Filtrate Filtration Cake Pure Solution to Electrowining Cu Cake Zn powder NaOH Cd Precipitation Filtration Cd Sponge Filtrate to Jarosite 2. Cobalt residue and Cadmium as cadmium sponge with a purity of 95%. Nickel as well as Copper together with the excess of zinc dust.6 Cadmium Plant The filter cake from the cold and hot purification contains all the Cadmium. Cobalt. This filter cake is treated in the cadmium plant to recover Copper cement.
Each cell is fitted with 114 Aluminium cathodes and 115 Lead-Silver alloy anodes. The cells are arranged in two bays. it is partly purged from the system and enriched with fresh electrolyte.1 Tank House The tank house contains 124 numbers RCC cell tanks with suitable acid proof lining. the DC power supplied by two rectifiers each of 96 KA . zinc sulphate electrolyte dissociates resulting in formation of zinc metal coating on the cathode plate and dilute sulphuric acid. . As the electrolyte depletes in zinc content . 490 V DC output.62 cells in each bay. The electrolyte during its circulation through the cells get heated. Pure zinc sulphate electrolyte is continuously circulated through the cells. This is cooled in atmospheric cooling tower made of FRP.3. The cells are electrically connected by copper bus bras in closed circuit. The zinc metal deposited on cathode plate is stripped out at every 48 hours in an automatic stripping machine. DC power from rectifier is also continuously fed to the cells.
fans and bag filter. ducts. ventilation system comprising hoods . Two casting machines are provided. the metals is removed by the pumps to the casting machines. one dedicated to each melting furnace. The melting furnace is provided with doors for periodical removal of dross from the top molten surface . Zinc sheet is charged into the feed chute of the furnace. matching their melting rate capacity. As the zinc melts.3. One casting machine is for casting 25 Kg ingots and the other for casting 1Ton jumbo ingots.2 Melting & Casting Plant Zinc sheet stripped from cathodes is melted into electrical induction furnaces each having 22 TPH melting capacity. .
FLOW CHART OF MELTING AND CASTING:- .
70.05.05.000 159582 1.70.000 65415 1.Production in Hindustan zinc Product Parameter Zinc Metal (Pyro Plant) Zinc Metal (Hydro 1 Plant) Zinc Metal (Hydro Installed Capacity Production volume Installed Capacity Production volume Installed Capacity Production volume Saleble metal Production(MT) 2005-06 1.000 88187 2007-08 1.70.05.000 82798 2006-07 1.000 33536 .000 86080 1.70.000 133197 1.
2Lead Plant) Metal Pyro plant) & Installed ( Capacity 51.667 23867 85.000 tonnes per annum of Lead Commissioned in 2006 TSL Technology from Ausmelt- .000 tonnes per annum of Zinc Hydro II Commissioned in 2007 Roast Leach Electrowinning Technology with Conversion Process 210.000 44416 85.000 tonnes per annum of Zinc Lead Smelter Australia Cansolv Technology for Sulphur Recovery 50.000 58343 Ausmelt Production volume Hydrometallurgical Zinc Smelter Hydro I Commissioned in 2005 Roast Leach Electrowinning Technology with Lead Silver Residue Recovery 210.
993% 5ppm 5ppm 25ppm 5ppm 20ppm 5ppm 5ppm Typical Analysis . OHSAS 18001:1999 Specification of lead product:Lead as per IS Element Lead. Max Silver. Max Iron.99% 5 ppm 10 ppm 50 ppm 5 ppm 20 ppm 5 ppm 10 ppm 99. Max Antimony.Coal Based Captive Power Commissioned Plant in Built 2 x by 77 in by 2005 BHEL MW 2007 BHEL Commissioned Built 80 MW Certification ISO 9001:2000. ISO 14001:2004. Max Zinc. Max Bismuth. Max Arsenic. Max 27:1992 99.99% 30 ppm 20 ppm 50 ppm 30 ppm 20 ppm 20 ppm 20 ppm HZL Lead 99. Min Copper.
M ax C m m ad iu . in in L ead . op M ax S Gasp H er IS 2 9 9 2 0 :1 9 9 . M n ax C p er.9 5 % 9 90 3 pm 0 p 2 pm 0 p 2 pm 0 p 1 pm 0 p T p al y ic A aly isP ro n s y 9 .9 5 % 9 98 2pm 7p 2p m p 7p m p 6p m p T p al y ic A aly isH d n s y ro 9 .9 % 9 9 3 pm 0 p 3 pm 0 p 3 pm 0 p 2 pm 0 p H LS G Z H 9 .9 5 % 9 96 2pm 7p 1p pm 9p pm 7p pm 3 R :• • • REDUCE RECYCLE REUSE . M ax Iro .Specification of product SHG zinc: E en lem t Z cM .
Our approach towards managing environment is one of the best in class in our sector. . We continuously strive to uplift the economic wellbeing of our neighborhood communities through various initiatives like sustainable livelihood. it is a key element of our business and corporate philosophy. emissions are kept to an absolute minimum. driving a number of initiatives to create value from waste and continuously striving to surpass the best industry standards.5 ‘S’:• • • • • SERE – To keep useful things only SATON – to arrange properly SESO – to keep neat and clean SEKETSU – to be trained SETSUKE – to be self discipline SUSTAINABILITY DEVELOPMENT: COMMITTED TO IMPROVING PERFORMANCE As a responsible corporate citizen Hindustan Zinc has a clear focus on sustainable development. Our ability to maximize related opportunities and minimizing the risks is unique in itself and in turn creating value for our shareholders. and education. Employing environment friendly technologies. We follow best practices in the management of environmental impact and related opportunities. Invariably all specific initiatives follow identification of need in consultation with the beneficiaries. optimizing the usage of energy and resources through recycling and reuse procedures. health care.
Safety stewardship: driving safety initiatives down the line. and environment objectives. HEALTH In addition to various healthcare camps across 173 operational villages in the neighborhood of its mines and plants (Social Responsibility). These include: Safety reviews and audits by internal and external experts. SAFETY The index used is the lost time injury frequency rate (LTIFR). It is the number of injuries involving loss of work time per million working hours. Hindustan Zinc has six hospitals/dispensaries at its operating locations with all requisite facilities. Safety score-card. and several technological and administrative controls have been put in place to achieve health. Employing environment friendly technologies. . In April 2007. Routine safety inspection. Ensure all our employees including contract labours implement health and safety policies and procedures. and with qualified doctors and nurses being available round the clock. The Company also has tie-ups with reputed hospitals in the country to provide best health and medical facilities to the employees and their dependents. Incentives linked with safety performance. Implementing learning from near miss incidents/accidents/ first aids.HEALTH. SAFETY AND ENVIRONMENT (HSE) Health and safety of Hindustan Zinc’s employees is of paramount importance to the Company. Compliance with all the legislations applicable. Preventing workplace accidents and controlling the incidence of occupational diseases is a top priority.
Hindustan Zinc continues to strengthen its focus on safety by imparting training programmes to all contracted personnel and better monitoring of safety related processes to minimize the risk of such incidents. Hindustan Zinc will continue to learn and evolve its safety and occupational health systems according to its changing needs and best practices in the Industry. Environment Hindustan Zinc’s approach towards environmental sustainability is to optimize resource use. there were. HSE training was given to 17.46 in 2006-07 to 3. The actual performance: LTIFR reduced by 44% from 5. unfortunately. Despite the Company’s continued focus on safety.Hindustan Zinc set a target of reducing LTIFR by 20% at its operations. minimize the carbon footprint and conserve bio-diversity in and around its operating locations.378 employees including contract workmen.07 in 2007-08. Considering the environment in which the Company is operating increased emphasis will now be placed on behavioural aspects of industrial safety. Safety training is compulsory for all new employees and refresher training is periodically carried out in the different facilities. This is a cause of concern. five fatalities all related to contract workers. In 2007-08. the Company conducts both introductory and specialized training. To sensitize the workforce on health and safety issues. The Company has a qualified team of .
87 terra-watt hours (TWH) of electricity (equivalent to 6. This included 1.8 TJ of energy was produced and used ‘at-source’ for the smelting operations. and its functions are reviewed at various for a such as daily operations meetings. Energy conservation Hindustan Zinc’s total energy use during 2007-08 was 10. 2007-08 has seen significant improvement in energy and water utilisation.environment professionals consisting of certified ISO auditors. and quarterly HSE Committee meetings at the group corporate level. monthly review meetings at the plant and Company levels. All employees from top management to shop floor workmen are expected to champion the cause of environmental protection. reduction in emissions and adoption of environment friendly technologies across all the operations. About 3. water consumption has come down significantly for both smelting and mining operations. Under SixSigma initiatives. dedicated teams have taken up a number of projects to reduce energy consumption.7 TJ).53 terra-joules (TJ). Water Conservation Similarly. most of which was produced in captive power plants. . scientists and ecologists. Charts I and J show the general trend in reduced energy use both in smelters and mines. there has been a significant reduction in the usage of water in the Company’s operations. Their projects have resulted in a sustained decrease in specific energy consumption over the last three years. As shown in Charts K and L. The team is governed by Hindustan Zinc’s HSE policy. environment engineers.
HZL is contributing INR 186 million towards the cost of constructing the Mansi-Wakal dam. and this year we added another 68. Our power plants operate at the optimal capacity compared to the standard power utility plants leading to more efficient power generation. Tuticorin .8 MW wind energy capacity making a total installed capacity of 107. We run our captive power plants to meet the requirements of our mining and smelting operations.Wind Energy Most of the power generated in India is produced by thermal power plants that are fuelled by the large coal reserves in the country. Further to this we shall add another 17 MW of wind energy which is progressing as per schedule. In the previous financial year we reported the commissioning of 38.4 MW wind energy in Gujarat. In partnership with the Government of Rajasthan. HZL. This dam is due for completion in August 2005 and will augment the drinking water supply of Udaipur. as part of ongoing community support to local needs at all units. has undertaken the digging of tube wells and the maintenance of hand pumps.2 MW as on 31 March 2008. Rural Infrastructure And Community Development: The creation of durable assets and the renovation repair and maintenance of the existing public utility infrastructure is a major part of the Group's community programme.
000 people. MALCO undertook desilting operations at Yercaud Lake by using local youths. The programme is driven by the belief that “if a woman in the family is educated then the entire family gets educated”. The Group extended both financial and in-kind support. This was an important task in revitalising local drinking water sources. Child Care There are 16 child care centres in Tamil Nadu and two in Orissa for children between three and six years of age. Financial And Organisational Support To People In Distress Our deepest sympathies go out to all those who suffered in the unprecedented Tsunami disaster. The . This was developed in response to research looking into the needs of families below the poverty line.has contributed INR 716. founded in 1995. School children have planted saplings around the sake for better recharge and the use of plastic in and around the lake has been banned.000 to implement the Government’s Sajaldhara Scheme which will provide drinking water to 43 villages around Tuticorin and benefit 20. Female Empowerment The Female Empowerment Scheme encourages women to complete their higher education through Reengus College.
The activities primarily focus on providing fodder to livestock. Through our various initiatives . blankets. employment. More importantly we see ourselves as a major facilitator in their socio-economic development. Relief material in the form of clothes.Group contributed INR 15 million to the disaster relief funds in addition to one day’s wages contributed by employees. food packets and utensils from the MALCO and Sterlite operations located in Tamil Nadu were distributed to the victims. HZL has undertaken various activities as part of drought and famine relief in the villages around its units in Rajasthan. Fire tenders. Our approach towards sustainability is to generate and establish socioeconomic wealth and creating opportunities of entrepreneurship. stoves. Corporate Social Responsibility (CSR) is an integral part of Hindustan Zinc’s business philosophy. and digging/deepening of wells. and self-sustained businesses for the local community in which we operate. Its centrality has led the Company to undertake several projects aimed at achieving sustainable socio-economic development of the villages in the vicinity of its plants and mines. Immediate relief in terms of food packets and clothes were distributed to an area near Rampura Agucha mine which experienced flash floods. drinking water to humans and livestock. ambulance and medical aid are routinely offered in emergencies to assist in areas near to Group units.
However our efforts towards being a responsible corporate through various sustainable development initiatives were recognised at the local.209 families across 173 operational villages in the neighbourhood of its mines and plants. specialists and fieldworkers. AWARDS AND RECOGNITION The Company has received several awards in 2007-08.GBC. -Dun & Bradstreet – American Express Corporate Award 2007 for being the Top Indian Company in the Non-Ferrous Metals Sector. Corporate: -Golden Peacock Award for Excellence in Corporate Governance. . national and international levels. 2007. Hyderabad. Environment/Industrial Activity/Operational Efficiencies: -Water Efficient Unit Award to Chanderiya Smelter Complex by Confederation of Indian Industry. we are positively impacting the lives of 54. both at an overall corporate level as well as for its individual operating units.and a team of 150 qualified CSR professionals. Some of these are given below.
-TERI Corporate Environmental Award 2007. . Safety: -Golden Peacock Award for Occupational Health and Safety for 2007. -International Safety Award 2006 from British Safety Council. Singapore. -Greentech Environmental Excellence Golden Award to Chanderiya Smelter Complex and Rampura Agucha Mine. UK. for the Chanderiya Smelter Complex. -Asian Power Plant of the Year Award 2007 & Best Emission Reduction Project in Asia by Asian Power. for the Debari Zinc Smelter. for the Debari Zinc Smelter. -Safety Gold Award 2007 from Royal Society for Prevention of Accidents (UK). -Excellence in All Round Performance in Industrial Activity to Vizag Zinc Smelter by Federation of Andhra Pradesh Chambers of Commerce & Industry. -Greentech Environmental Excellence Silver Award to Debari Zinc Smelter and Vizag Zinc Smelter. -Institute of Cost & Works Accountants of India Award for Excellence in Cost Management for 2006-07.
for the Debari Zinc Smelter. -State Population Stabilisation Award 2007. 2007. because there is no sufficient Working Capital a business can not . raw materials and payment to creditors.-Meritorious Achievement in NSCI Awards 2006 by National Safety Council of India. Chanderiya Smelter Complex. expenses. for the Chanderiya Smelter Complex and the Debari Zinc Smelter. WORKING CAPITAL MANAGEMENT In day to day working of business concern. -Reader’s Digest Pegasus Corporate Social Responsibility Award 2007. Delhi. -State Level Bhamashah Award 2007: Chanderiya Smelter Complex and the Debari Zinc Smelter. Corporate Social Responsibility (CSR): -Golden Peacock award for Corporate Social Responsibility. because Working Capital is required for payment of wages. -Safety Innovation Award by Institution of Engineers. -TERI Corporate Social Responsibility Award 2007. Whether a business firm is earning profit or incurring loss or facing financial crises can be seen with the help of quantum of Working Capital due to shortage of Working Capital a business firm is lame. Working Capital plays an important role.
run its business smoothly. Thus working capital is required as there is a time gap between credit self and collection proceeds from the customers. Shortage fixed can be tolerated by a business concern for short period but shortage of working capital can create lots of serious problems within a period of few days. Working Capital plays equivalent vital role in the business as blood plays in the human body. Reciprocal relationship between current assets and current liabilities is the main these of the theory of working capital management. . The Management of Working Capital is concerned with the management of the firms current accounts. Due to this reason working capital management has assumed greater importance in every business firm. In this modern area of cut – throat competition. it has become essential to provide certain facilities to customers to capture the market. the credit facility is one of them. which includes current assets and current liabilities.
CONCEPTS OF WORKING CAPITAL Working Capital means the funds available for day to day operation of an enterprise. (1) (2) GROSS WORKING CAPITAL NET WORKING CAPITAL (1) GROSS WORKING CAPITAL – . There are two concepts of Working Capital.
(2) NET WORKING CAPITAL – Net working capital refers to the difference between the current assets and current liabilities. to measure for payment with an accounting year and include creditors. A positive net working capital will arise when current assets exceeds current liabilities. accrued incomes. Current assets include cash and bank balances. money receivable (within 12 months). Current assets are the assets. The gross working capital focuses attention of two aspects of current assets management. Current liabilities are those claims of outsiders. which indicates the liquidity position of the firm and . bills payable and outstanding expenses. prepaid expenses.Gross working capital. sundry debtors. short term loans and advances bills receivables. Net Working Capital = Current Assets – Current Liabilities Net working capital can be positive or negative. a) Optimum investment in current assets and b) Financing of current assets. inventory. which are accepted. It is a quantitative concept. The consideration of the level of investment in current assets should avoid two danger points-excessive and inadequate investments in current arranging funds to finance current assets. Whenever a need for working capital funds arises due to the increasing level of business activity or for any other reason arrangement should be made quickly. which in ordinary course of business can be converted into cash within an accounting year. simply called as working capital refers to the firm’s investment in current assets.
Tandon committee has reserved to this type of working capital as “Core Current Assets”. The amount of such working capital keeps on fluctuating from time on the business activities. Events like strikes. On the other hand. Variable working capital: The amount of working capital over permanent working capital is known as variable working capital. Permanent working capital. NEEDS OF WORKING CAPITAL . Amount of permanent working capital remains in the business in one form or another. Seasonal working capital is required to meet the seasonal demands of busy periods occurring at stated intervals. It also grows with the Size of the business. 2. 1. It is permanently needed for the business. fire. Temporary or variable working capital.e. special working capital is required to meet extraordinary needs for contingencies. rising price tendencies or initiating a big advertisement campaign require such capital. Permanent working capital: It is the minimum amount of investment in all current assets which is required at all times to carry out minimum level of business activities. Working capital can be classified into two categories i. unexpected competition. and therefore be financed out of long-term funds.suggests the extent to which working capital needs may be financed by permanent sources of funds. It may further be divided into seasonal working capital and special working capital.
Hedging approach 2. Working Capital is required for this period in order to sustain operating activity of an enterprise. aggressive approach Hedging approach: A firm is said to be following Hedging approach if it matches the maturity of the debt with the maturity of assets. the long financing level also increases. This time gap is technically termed as operating or cash cycle of business. However. sales don’t convert into cash instantaneously. As the level of these assets increases. Conservation approach 3. Conservative approach: . These funds are generated usually through sales. long term financing will be used to finance fixed assets and permanent current assets and short term financing for temporary or variable current assets.Funds are required for an enterprise for day to day running. For the firm following hedging approach. This is always time gap between the sales activity and receipt of cash. 2). Approaches for financing working capital: There are three approaches to financing the working capital: 1. it should be realized that exact matching is not possible because of the uncertainty about the expected lives of assets. it is clear that Working Capital is required because of time gap between sales and actual realization of cash. Therefore. However.
increase in costs and reduction in profits. Similarly insufficiency of working capital results in interruption of production. the business can hardly prosper and survive. If it becomes weak. This will lead to inefficiencies. the firm finances its permanent assets and also a part of temporary current assets. Working capital is like the lifeblood of business. No business can run successfully with out and adequate amount of working capital.A firm in practice may adopt a conservative approach in financing its current and fixed assets. Aggressive approach: A firm may be aggressive in financing its assets. inadequacy of working capital is more dangerous for a firm. Under a conservative plan. Under an aggressive policy. The conservative plan relies heavily on long term financing. Out of two. . A firm follows aggressive policy when it uses more short-term financing than warranted by the matching plan. the idle long-term funds can be invested in the tradable securities to conserve liquidity. Excessive working capital results in idle funds on which no profits are earned. It is worthy to note that both excessive and inadequate working capital positions are harmful. Importance of working capital: A business firm must maintain an adequate level of working capital in order to run its business smoothly. 3). the firm financing a part of its permanent current assets with short term financing. Some extremely aggressive firms may even finance a part of their fixed assets with short-term financing. The financing policy of the firm is said to be conservative when it depends more on long term funds for financing needs.
It enables a business to with stand periods of depression smoothly. Increased productivity. High Morale..The following are the few advantages of adequate working capital in the business: Cash Discount: Adequate working capital enables a firm to avail cash discount facilitates offered to it by the suppliers.e. . The amount of cash discount reduces the cost of purchase. Research programs. Regular supply of raw materials: It permits the carrying of inventories at a level that would enable a business to serve satisfactory the needs of its customers. That is it ensures regular supply of raw materials and continuous production. Making prompt payment is a base to create and maintain goodwill. Expansion of markets: A firm which has adequate working capital can create favorable market condition i. Ability to face crisis: The provision of adequate working capital facilities to meet situations of crisis and emergencies. Goodwill: Adequate working capital enables a firm to make prompt payment. purchasing its requirements in bulk when prices are lower and holding its inventories for higher. Thus profits are increased. Credit-worthiness: It enables a firm to operate its business more efficiently because there is not delay in getting loans from banks and others on easy and favorable terms.
Danger of excessive working capital: A firm may be tempted to over trade and lose heavily. waste. It may not be able to take advantages of cash discounts. Determinants of Working Capital: firm may be damaged because of lack of liquidity. thereafter a firm may not be .Problems of inadequate working capital: Firm may not be able to take advantage of profitable business opportunities. Production facilities cannot be utilized fully. Unable to extract benefits of customers’ credit The situation may lead to unnecessary purchases and accumulation of inventories. The situation leads to greater production. In the same way. which may not be having matching demand. losses etc. Credit worthiness of the able get credit facilities. Thus it may be lose its reputation. The excess of working capital leads to carelessness about cost of production. Short-term liabilities cannot be paid because of non-availability of funds. There arises an imbalance between liquidity and profitability. Excessive working capital means funds are idle. This cause more chances of theft. low profitability results in low liquidity. Its low liquidity may lead to low profitability.
Seasonal variation. Inventory turnover. In order to determine the proper amount of working capital of concern. Dividend policy. the following factors should be considered. Nature of business. Ratio to measure the efficiency of working capital: Current Ratio : Current assets / Current liabilities Quick Ratio : (current assets – Inventories) /Current liabilities Sales to cash: Sales during a period / Average cash balance. Need to stockpile raw material and finished goods. Terms of purchase and sale. Each factor has its own importance and its importance of the factors changes for firms over time. Turnover of circulating capital. Business cycle fluctuations. Size of the business unit. Growth and expansion. Pricing level changes. There is no set of rules or formulate to determine the working capital needs of the firm.The need of working capital is not always the same it varies from year to year or even month-to-month depending upon a number of factors. . Time consumed in manufacturing.
Ability of ample funds at the time of need. Objectives of Working Capital Management: The objectives of working capital management are two fold: 1. Maintenance of working capital and 2. Average payment Period: Creditors divided by annual credit purchase and the resultant figure is multiplied by 365. liquidity and its structural health. This ratio indicates how many days of credit is being obtained from the suppliers. . Working capital policy: Working capital management policies have a great effect on firm’s profitability. Average collection period: Debtors divided by annual credit sales and the resulting figure multiplied by 365. Inventory turnover ratio: Sales /Average inventory. This ratio indicates how many days of credit are being obtained from the suppliers. The basic goal of working capital management is to manage each of the funds current assets and current liabilities in such a way that an acceptable level of net working capital is always maintained in the business. 2. proper liquidity and sound structural health of the organization. Estimating the amount of working capital. A finance manager should therefore. chalk out appropriate Working capital policies in respect of each competent of working capital so as to ensure high profitability. Sources from which these funds have to be raised. In order to achieve this objective the financial manager has to perform basically following two functions: 1.
This time gap is technically terms as operating cycle of the business. Conversion of finished goods into accounts receivables. In case of “Trading Firm” the operating cycle will include the length of time required to: a) Cash into inventories. This cycle is continuous phenomena. c) Accounts receivables into cash. Conversion of cash into raw materials. Conversion of accounts receivable into cash. Conversion of work in progress into finished goods. b) Inventories into accounts receivables. In case manufacturing company. . In case of “Financing Firm” the operating cycle includes the length of time taken for one year.Operating Cycle: Working capital is required because of the time gap between the sales and their actual realization in cash. Conversion of raw materials into work in progress. the operating cycle of time necessary to complete the following cycle of event.
19 1813.2 0 2456.16 706. 38 511.1 9 9220.9 1 .9 5 826.73 603. Sales Working capital turnover ratio = Net working capital Year Curren t Assets Curren t Liabilit 200102 692.0 13 225. greater is the efficiency and larger the sale of profits. Working capital turnover ratio: It measures the efficiency of the employment of working capital.76 200708 2711. Generally higher the turnover.54 4 200203 736.11 3 2079.33 g 6 Capital Sales 1418.0 0 446.4 07 437.1 8 y Workin 398. and b) Conversion of debtors into cash.88 0 294.57 4 299.89 1309.a) Conversion of cash debtors.7 22 669. Working capital turnover ratio can be calculating with help of the following formula.88 7 2004- 2005- 200607 1480.43 2 200304 1116.4 5 8736.14 2 1608. 1 26 654.6 3 898.44 05 06 736.1 4326.
91 6.11 in the year 2003-04 and the maximum is 14.Workin 3. Higher ratio indicates effective utilization of working capital.11 10.13 14.68 3.56 g Capital T/o Ratio 3.09 4. which indicates that company can utilize working capital effectively in near future. .82 WORKING CAPITAL TURNOVER RATIO Working Capital T/o Ratio 16 14 12 10 8 6 4 2 0 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 Working Capital T/o Ratio Interpretation: It measures the efficiency with which the working capital is being used by a firm.09 in the year 2006-07. Minimum ratio is of 3. Increase in the ratio during the study period shows that the working capital has been utilized efficiently .The trend line shows upward trend in this ratio.
back bone gives the strength to the human body and cash gives profit and solvency to the business. In broad sense it also includes near cash assets likemarketable securities and fixed deposits in bank.CASH – Cash in the business may be compared to the back bone of the human body. According to Keynes there are three motives for keeping cash: 1) 2) 3) Transaction motive Precautionary motive and Speculative motive In general we can say that a business keeps cash to take day to day obligations. The question arise that what is the proper level of cash or how much cash be kept by a business. Now the question arise that what is the aim ti keeping cash. There is no any formula to determine the proper level of cash.nature of business. which should be kept by a business. The term cash is used in two senses. But a minimum cash balance is essential to meet the requirements of the business. period of credit sale and the position of receivables and inventory. . In narrow sense it is used for cash. In a business ultimately a transaction results either in flow or out flow of cash. cheques. The proper level of cash depends on various factors like. drafts and demand deposits in bank. to take benefit from favourable market conditions and to allow for contingencies. Cash in hand. as an asset it has no any earning power in itself.
Concept included:- . If the level of cash balance is more than the desired level it shows mismanagement of funds. Cash is the basis input required to keep the organization running on a continuous basis. trading and / or manufacturing operation will be disrupted. it can be stated that the higher the level of unused cash. Cash is the most liquid asset that a firm owns. for smooth functioning and hjgher profitability. such as marketable securities or bank time deposits are also included cash. proper and effective cash management is of paramount importance. the greater is the cost of holding it in the form of loss of interest which could have been earned either by investing it in securities or by reducing the burdun of interest charges by paying off the loans taken previously. An organization should hold sufficient cash. The basis characteristic of near. money orders or bank drafts which banks normally accepts for deposit and immediately credit to the depositer’s account.CASH MANAGEMENT Cash is the medium of exchange on the common purchasing power and which is the most significant components of working capital. It includes money and instruments like cheque.cash items. neither more. Therefore. Sometimes near. In other words. Since excessive cash remain idle which in turn increases the cost without contributing anything towards the profitability of the organization and in the opposite case.cash assets is that they can easily be converted into cash. At the same time it is the ultimate output which is expected to be realized by selling goods and services. nor less.
administrators must calculate the cash amount to their level of activity. Maintaining a cash surplus thus has a number of advantages. it enables companies to carry on the normal transactions that arise in the . To prevent breaks in the trading cycle due to lack of cash. It is essential to establish the right level of disposable assets to short-term financial investments at companies.Cash management can be seen from two different perspectives depending on how many responsibilities it includes: treasury management (basic cash management) and advanced cash management. with firms unable to meet needs that may arise at any given time or unable to take advantage of unexpected investment opportunities. also the wrong safety margin may result in financial difficulties. Basic cash management: Treasury management or basic cash management propitiates the development of administrative techniques conducive to optimizing the level of disposable assets to be maintained by a company. Holding wrong amount in cash or cash equivalent may interrupt the normal flow of business activities. plan the timing of the relevant payments and collections and draw up a policy of investment in assets with high liquidity that can be converted to cash at a low transactional cost.
as the return on those assets is lower then the return on productive investments. as reflected in the opportunity costs entailed by assets with little or no profitability . with the purpose of increasing profitability with the minimum risk and in the best conditions . there are also disadvantages in being too conservative. it is based on payment and collection management. with the ultimate aim of increasing the profitability of the company and improving working capital management . lengthen payment periods and avoid idle resources that do not generate returns . This overall analysis should strive to shorten collection periods. Having liquid assets available constitutes an opportunity cost for a company.course of their activities and avoid any treasury gaps. The management of interest-exchange rate risk and the management of contractual relationships with financial institutions are other functions that have been added to cash management. and at the same time affect those factors and processes that translate immediately into cash. cash management as an overall. However. liquidity includes the planning of disposable treasury assets and their management and banking management which has taken on a broader perspective . advanced cash management:treasury management as a set of techniques that act on the short-term liquidity of a company. but there may still be transaction costs arising from the sale or purchase of financial assets. On the other hand it helps them cover any unexpected needs for cash by acting as a preventive balance. and disadvantages in terms of taxation. integrated service of which the customer takes that part that best suits him.
and banking risk management. investment of treasury surpluses deficit financial management. (iii) Speculative motive . “Corporate culture” means “the set of beliefs. advanced cash management. payment and and and collection financing management. drafts and demand deposits in banks. expectations and basic principles shared by the members of an organization . There are four primary motives for maintaining cash balances : (i) Transaction motive. . The broad view of cash also includes near cash assets. In a narrow sense.subsequent monitoring. it is used broadly to cover currency and generally accepted equivalents of cash. banking management . (ii) Precautionary motive. MOTIVES FOR HOLDING CASH The term cash with reference to cash management is used in two senses. not only involves financial tools and techniques for managing liquidity but entails an entire corporate culture. The main characteristics of these is that they can be readily sold and converted into cash. management treasury functions forecasts. a strategy for investing surpluses to obtain maximum profitability and finance deficits with minimum costs. Cash management brings together actions concerned with liquidity management. finally. such as marketable securities and time deposits in banks. They serve as a reserve pool of liquidity that provides cash quickly when needed. such as cheques. and (iv) Compensating motive. management of interest-rate and exchange-rate risks and.
For example. This refers to the holding of cash to meet routine cash requirements to finance the transaction which a firm carries on in the ordinary course of business. precautionary balance may be used to meet an unanticipated expenses as the result of an unanticipated decline in sales revenues. Precautionary balances are those which are set aside because cash inflows and outflows are not synchronized. . SPECULATIVE MOTIVE – It refers to the desire of a firm to take advantage of opportunities which present themselves at unexpected moments and which are typically outside the normal course of business. The speculative balances are sensitive to interest rate changes and are usually hold in the form of interest hearing securities. PRECAUTIONERY MOTIVE – It is also related to the nature and level of business activity. A firm enters into a variety of transactions to accomplish its objectives which have to be paid for in the form of cash.TRANSACTION MOTIVE – An important reason for maintaining cash balances is the transaction motive. Business concerns that have highly predictable inflows and outflows of funds can hold relatively less cash then firms that have irregular cash flows.
and (b) to minimize funds committed to cash balances. (iv) a cash discount . There are two reasons for requiring a compensating balance. OBJECTIVE OF CASH MANAGEMENT The basic objectives of cash management are two – fold : (a) to meet the cash disbursement needs (payment schedule). that 10% of a loan be left in deposit. (iii) it helps in fostering good relations with trade creditors and suppliers of raw materials. (ii) the relationship with the bank is not strained. MEETING PAYMENTS SCHEDULE – The important of sufficient cash to meet the payment schedule can hardly be overemphasized. as prompt payment may help their own cash management. This motive is with commercial banks that require borrowers to leave a portion of their borrowed funds in deposit at the bank. it raise the effective interest rate for banks and it provides banks with funds to make additional loans.COMPENSATING BALANCE – A compensating balance is the fourth motive for holding cash. These are conflicting and mutually contradictory and the task of cash management is to reconcile them. Banks may require. The advantages of adequate cash are: (i) it prevents insolvency or bankruptc arising out of the inability of a firm to meets its obligations.
There must also be a proper channedl of arrangement of investment of surplus cash. MINIMISING FUNDS COMMITTED TO CASH BALANCES – The second objective of cash management is to minimize cash balances. such as strikes. For this cash periodical reports are very much helpful. ensure prompt payment together with all the advantages. In minimizing the cash balances. as shown above. CONTROL OVER CASH FLOWS Drawing of cash plan is not enough. two conflicting aspects have to be reconciled. A high level of cash balance will. a strict compliance of plan is required through proper control of cash collections and payments. But it also implies that large funds will remain idle. and finally. (vii) the firm can meet unanticipated cash expenditure with a minimum of strain during emergencies. (vi) to take advantages of favourable business opportunities that may be available periodically. as cash is a non-earning assets and the firm will have to forego profits. so as to cope with the growing requirements whereas outflow must be checked. fires or a new marketing campaign by competitors. ALLOCATION OF CASH INFLOW- . On the other hand inflow is to be accelerated. (v) it leads to a strong credit rating which enables the firm to purchase goods on favourable terms and to maintain its line of credit with banks and other sources of credit.can be availed of if payment is made within the due date.
The firm’s authorized bank picks up the remittance collects for the gain and supply the detail of cheques collected. PROMPT PAYMENT BY CUSTOMERS – Prompt billing with the notification what the custmer has to pay. the period of payment is the way to ensure prompt payment from customers. as a . a firm establishes the collection centers in accordance with the concentration of customers hires a post office box and instruct its customer to remit the bills of cheques directly to this box.Cash can be conserved through maximized inflow and lesser permanent investment. To speed up collections the followings techniques may prove useful: LOCK BOX SYSTEM In this system. The early conversion of payments into cash. Another technique which is commonly used is trade discount. Collection can be accelerated by reducing the time gap caused by waiting time. Although it is a costlier system but the cheques are collected immediately. Use of modern devices for billing and enclosure of a sell addressed return envelope will speed up collection from customers. PROMPT CONVERSION OF PAYMENTS INTO CASH – There is a time lag between the cheque is prepared and mailed by the customer and the time the funds are converted into cash by the bank.
Once a cheque is issued. as it may prove riskly. collection of payments personally is one of the important means to accelerate the inflow of funds. . This is useful technique to speed up the collection of accounts receivable. Payment flot is also one of the resources of funds. is done to reduce the time lag between posting the cheque by customer and the realization of cheque from bank. the time lag between mailing can be reduced. In disbursement the centralized system for payment is also very much helpful in conversation of funds. This is called decentralized system of collection of bill at multiply centers. There is no advantage in paying the amount sonner than expected or agreed to as this source is free from interest. it takes a particular time in transit and on the basis flow can be calculated. Finance Manager of a firm can take advantage of flot in disbursement but he must be careful. SLOW DISBURSEMTNS – A firm should make its payments using the credit terms to their fullest extent. But a firm must not make undue delays which may endanger its credit standing. DECENTRALISED COLLECTIONS – When a number of collection centers are operating instead of single collection centers at the head office.technique to speed up collections. Advantages of sample cash funds: a) A shield for technical inefficiency. Besides.
h) Over coming abnormal financial situations. d) Good bank-relations. e) Exploitation of business opportunities. Benefits: Reduced amounts kept in our bank accounts without incurring overdraft charges.b) Maintenance of goodwill. f) Encouragement to new investment. g) Increase in efficiency. c) Availing of cash discount. Sound accounting systems and controls. Clear understanding of responsibilities and accountabilities. analysis and reporting (and decision making). Effective cash management requires: Systematically anticipating the future. timely and effective monitoring. Budget disciplne including the effective application of sanctions where necessary. Systematic. Good liaison and sharing data/information across organization boundaries. hence kept more funds invested Better estimate of amounts available for investing (budgets and forecast) Assisted in decisions on internal lending and external borrowing .
o e. If expected returns are high.Size of minimum cash flow depends upon: Reduced amounts kept in our bank accounts without incurring overdraft charges. commercial paper Expected return on investment opportunities.g. money market funds. organizations should be quick to invest excess cash Transaction cost of withdrawing cash and making an investment Demand for Cash for daily transactions (Cash Budget helpful) Instrument of excess fund:Treasury bills short term investment maturity upto 1 year safest and most liquid . CDs. cash bal. depends upon: Available (short-term) investment opportunities – e. hence kept more funds invested Better estimate of amounts available for investing (budgets and forecast) Assisted in decisions on internal lending and external borrowing Max.g.
Precautionary motive:.cash facilitates the meeting of the day to day expenses and other debt payment normally inflow of cash operation should be sufficient for this purpose but in many cases it is only the reserve cash bal.sometimes cash act for providing safety against unexpected events Different models of cash management William j.in this model optimum cash level is that level where the carrying cost and transaction cost are minimum (carrying cost = holding cost) transaction cost refers to cost involved in getting the marketable securities converted into cash . baumol’s eoq model :. Speculative needs:. 60. this happen when the firm found falls short of cash and has to sell the securities resulting in clerical brokerage registration cost.cash may be held in order to take advantages of profitable opportunities that may present themselves and which may be lost for want of ready cash. that can enable the firm to make payment in time.Commercial maturity on demand maturity negotiatable negotiatable but normally 30. 90 days Nonbank financial institutional Certificates of deposit any time Need of cash representative a term bank deposit and more liquid becoz they can be sold Transaction need:. The formula to determine the cost .
It is a control limit model this model is determined the time and size of transfer b/w an inverstment account and cash account .MILLER-ORR CASH MANAGEMENT MODEL:By through this model the net cash flow is completely stochastic. in this the control limits are set for cash bal. occur randomly the application of control theory serve a useful purpose.when changes in cash bal. Research methodology :- .
newspapers. Research is careful investigation or enquiries for new facts in any branch of knowledge. We can also define research as “Scientific & Systematic search for pertinent information on a specific topic”.In which variables being studied is control by the investigator. diaries. Research methodology is a way to systematically solve the research problem. documents. reports.. Researches are basically systematic enquiry with customer’s. Experimental method. critical examination with objectives to search new facts or interpret known facts in new light. .In which a systematic study of a particular community or a group or an institution is made for analyzing the problem/issue/event. In other words. It is a systematic investigation to find solutions to a problem. etc. Survey method.RESEARCH Research refers to search for knowledge. Man’s knowledge grows by studying what is already known and revising past knowledge in the light of new findings. the effect of one variable is observed while other relevant variables are held constant. METHOD OF RESEARCH Historical method. The investigation is guided by previously collected information.In which information is collected about the past from written records of all types. travelers’ accounts.
government publications. Data should be classified in to two categories Primary data. research organizations etc & in this I use company Manvel. which is collected by the investigator himself for the purpose of specific inquiry or study & I have complete my research through observation. For example. which has already been collected by others. It must be ascertained that the group contains people representing variables such as income level. living style etc. company website etc. the researcher might stud 500 consumers in a certain geographical area.journals. It depends upon the source utilized. education.Secondary data is one. reports. publication of professional. The quality of data will greatly effect the conclusion. A statistics may be a measure of central tendency of dispersion of correlation of a difference between two samples. Research Objectives . company magazine.Primary data is one. Hence. For example.In which data is collected quantitatively or by statistics. TYPES OF DATA Research requires systematic collection of data. the data should be taken ensure accuracy. Statistical method. to determine the potential market for a new product. Secondary data. company reports. discussion & interview.
00 648.00 1.455.00 358.395.00 8.00 161.051.060.00 202.08 31.767.00 349.980.00 8.408. To know what the cost occur if the company keep additional fund in the organization.280.7.08 31.00 247.00 247.00 238.10.907.408.325.00 154.00 Inflow Outflow Balance 215.00 525.00 256.634.4.00 727.5.634.08 30.00 161.00 349.00 567.720.00 1.00 861.12.00 537.1.868.11.026.990.00 3.00 226.412.09 490.421. To suggest how a HZL can effectively utilize the additional (excess) fund in the different activities or valuable projects or effectively utilize the additional fund where it needed.00 Difference 54046 110582 253373 -340439 8554 -45344 -47417 101926 92838 -122986 Cumulative 215.00 154.967.08 31.883.08 29.00 435. To tell the organization that how much cash the organization save when the company keep the cash at a certain limit.00 238.784.499.395. CASH MANAGEMENT OF HINDUSTAN ZINC LIMITED Monthly Date 01.08 31.00 325.398. The primary objective is to determine how an organization can achieve excellence in managing cash in an organization .765.093.021.4.00 579.453.279.907.00 .560.00 325.00 579.841.467.00 427.6.9.072.00 202.329.00 226.412.560.8.325.00 256.00 2.08 29.998.00 719.051.08 30.00 265.976.00 313.841.946.550.08 31.279.280.08 29.398.00 521.
393,395.00 166983 213,360.00 -180035
Findings:The graph and the table shows that the company never goes out of cash . on the monthly basis company always have sufficient cash to meet its day to day expenses .
The minimum balance that the company have in the whole year on the monthly basis is 154634 at the end of the month of oct. 2008. The maximum balance that the company have in the whole year at the end of June. As the graph shows firstly the company monthly balance growing to the end of the month of june after that the company given the bank clearance and the balance goes down to 238841 from the balance of 579280. Then the balance is around of that after that come at the lowest level of the year then grow at the end of Dec. in two months and by the slowing recovery of the money the balance goes down and then grow because the company recovery is good after that at the end of financial year the balance is decrease as comparison to previous year. Graph on the basis of daily cash balance of the company
The company have the highest balance in the year on the date of 08.09.2008 and 14.10.2008 and 22.10.2008. the balance amounts are 2486434 2768175 and 1947297 respectively. and
ANALYSIS OF THE CASH DATA:weekly average of the idle fund on the basis of the limit of 50,000:Date 08.04.2008 15.04.2008 24.04.2008 01.05.2008 09.05.2008 20.05.2008 31.05.2008 10.06.2008 18.06.2008 27.06.2008 weekly average 101,144 135,720 198,424 159,824 124,823 235,401 289,773 310,533 444,830 481,707
2009 17.2008 28.08.2008 15.10.229 107.2009 28.02.2008 04.2008 22.2009 435.11.10. The date and the amount which shows on the above table are taking the weekly average of the idle fund on the basis of the cash limit of 50.2009 03.01.07.2009 04.07.09.2008 16.07.01.03.173 543.2008 15.128 205.947 157.000 .11.01.034 294.292 340.190 288.507 222.2009 12.688 567.08.256 311.2008 01.2009 23.876 149.2008 06.368 The above shows amount is the idle cash average if the company keep the cash balance 50.2008 20.08.2008 01.2008 24.2008 27.02.02.905 105.753 229.381 198.03.2008 10.2009 27.05.2009 31.572 358.470 276.03.11.001 191.2008 24.2008 06.307 295.154 347.807 172.03. The .881 321.01.12.2008 02.464 194.2008 14.241 170.946 361.2009 20.10.08.03.000.2008 23.09.2009 12.241 65.12.013 607.12.2008 19.2009 09.555 225.182 188.09.11.527 158.086 310.2008 11.497 589.
07 Rs. If the company invest the money on the weekly basis into the commercial papers at the rate of interest of 11.50% the company can gain total 25.050. If the company give the money on the loan to the some other person on the weekly basis then the company can gain the total interest of 26476 Rs.07 amount of money on the weekly basis if the company keep the minimum amount of balance 75000 Rs. The company can invest the money (shows above) in the other investment project.company can invest this much amount of the on the monthly basis and get the profit. If the company give the money on the loan to the some other person on the weekly basis then the company can gain the total interest of 24053 Rs.65 Rs.54 Rs. If the company invest the money on the weekly basis into the commercial papers at the rate of interest of 11. If the company keep it in bank then the company gain 7723 Rs. At the limit of 75.50% the company can gain total 23. If the company keep it in bank then the company gain 9020 Rs. The total average amount which company can invest is 11472851.000: The company can invest total10422851.372. .
If the company invest the money on the weekly basis into the commercial papers at the rate of interest of 11. If the company give the money on the loan to the some other person on the weekly basis then the company can gain the total interest of 19207 Rs.50% the company can gain total 20728 Rs.50% the company can gain total 16085 Rs. If the company invest the money on the weekly basis into the commercial papers at the rate of interest of 11. If the company give the money on the loan to the some other person on the weekly basis then the company can gain the total interest of 21629 Rs. . If the company keep it in bank then the company gain 7203 Rs. At the limit of 150000: The company can invest total 7272852 amount of money on the weekly basis if the company keep the minimum amount of balance 150000 Rs. If the company invest the money on the weekly basis into the commercial papers at the rate of interest of 11. At the limit of 125000: The company can invest total 8322852 amount of money on the weekly basis if the company keep the minimum amount of balance 125000 Rs.At the limit of 100000: The company can invest total 9372851 amount of money on the weekly basis if the company keep the minimum amount of balance 100000 Rs.50% the company can gain total 18406 Rs. If the company keep it in bank then the company gain 8111 Rs.
On the monthly basis at the limit of 50000 . If the company keep it in bank then the company gain 6294 Rs. If the company give the money on the loan to the some other person on the weekly basis then the company can gain the total interest of 14360 Rs.50% the company can gain total 13762 Rs. If the company give the money on the loan to the some other person on the weekly basis then the company can gain the total interest of 11938 Rs. If the company invest the money on the weekly basis into the commercial papers at the rate of interest of 11.50% the company can gain total 11440 Rs.If the company give the money on the loan to the some other person on the weekly basis then the company can gain the total interest of 16783 Rs. At the limit of 200000: The company can invest total 5172852 amount of money on the weekly basis if the company keep the minimum amount of balance 200000 Rs. If the company keep it in bank then the company gain 4477 Rs. If the company keep it in bank then the company gain 5385 Rs. At the limit of 175000: The company can invest total 6222851 amount of money on the weekly basis if the company keep the minimum amount of balance 175000 Rs. If the company invest the money on the weekly basis into the commercial papers at the rate of interest of 11.
754 265.124 4.773 3.4 189.557 int @12 % 1.08 30.08 31.4.09 30.2 179.239 421.379 209.9.952 3.08 29.8.2 371.6.3.08 31.5.3324472 Rs then the company gain 31860 Rs.434 412.08 29.187 1.836 2.50% 1.625 254.000 1.08 31.50% 1.11.168 245.489 2.10.035 3.910.5.50% and if the company invest it at the rate of 12% then the company gain 33245 Rs.monthly Date 30.065 3126.96.36.1995 2.122 4.08 29.8 377.404 399.08 29.061 2.845 firstname.lastname@example.org 31.910 212.1.963 1.12.712 .09 average 148.08 31.7.890 3. On the monthly basis at the limit of 75.356 int @12 % 1.517 2.980 151.159.08 29.812 3.08 31.211 3.670 283.541 2.795 3.7.652 2.007 3.9.427 2.718 2.08 30.044.0 309.441 2.548 2. at the interest rate of 11.08 31.034 4.720 3.4.454 2.458 If the company can invest total average on the monthly basis Rs.092 1.518.08 average 123.8 email@example.com 28.000: monthly Date 30.094 4.2.239 1.194 2.833 1.
2.298 2.9 224.596.248 2.09 30.135.753.7 229.557 2.660.09 28.31.08 31.198.152 3.10.171 2.450 2.1.202 2.0 122.12.9 3.11.08 29.795.08 31.2952258 Rs then the company gain 28292 Rs.222 2.154 2. at the interest rate of 11.09 345. On the basis of month at the limit of 100000 monthly Date average firstname.lastname@example.org If the company can invest total average on the monthly basis Rs.3.308 1.50% and if the company invest it at the rate of 12% then the company gain 29523 Rs.451 1.7 224.50% int @12 % .5 255.
7.962 1.996 If the company can invest total average on the monthly basis Rs.307 2. at the interest rate of 11.08 29.4 164044.1.210 1.8.462 3.08 30.5.08 31.2652258 Rs then the company gain 25417 Rs.08 188.8.131.521 3.640 3.545 3.9 199596.0 284234.08 29.5 230660.048 1.376 2.201 972 2.09 30.08 31.998 1.3.12. On the basis of month at the limit of 125000 .08 31.2 154518.08 31.523 2.0 97198.068 931 2.915 1.317 184.108.40.206 346159.7 204753.6.09 28.8 352250.724 1.9 948 1.913 989 1.09 98910.572 3.7 199795.11.8 320135.2.08 29.50% and if the company invest it at the rate of 12% then the company gain 26523 Rs.842 1.
monthly Date 30.333 3.50% and if the company invest it at the rate of 12% then the company gain 23523 Rs.09 28.5.8.08 31.675 1.723 1.057 1.748 1.50% 708 1.09 average 73910.971 220.127.116.11 179753.2.08 31.08 31.798 1.390 3.08 30.241 3.08 31.828 692 1.7.08 29. at the interest rate of 11.2 129518.295 3.08 29.11.9 email@example.com. .212 2.10.951 722 2.2352258 Rs then the company gain 22542 Rs.8 327250.273 2.7 174795.6.4 139044.1.2 321159.673 int @12 % 739 1.136 2.0 259234.5 205660.08 29.484 1.592 1.9.08 31.9 174596.8 295135.078 2.09 30.0 72198.746 If the company can invest total average on the monthly basis Rs.
50% and if the company invest it at the rate of 12% then the company gain 20523 Rs.483 1.2 296159.436 1.08 31.342 1.2.023 2.0 47198.50% 469 1.4.08 29.6.8.002 2.731 1.140 2.045 3.8 270135.9.12.093 2.08 29.9 firstname.lastname@example.org Rs then the company gain 19667 Rs.On the basis of month at the limit of 150000 monthly Date 30.548 1.434 int @12 % 489 1.7 154753.807 1.7.4 114044.0 234234.11.9 149596.09 28.09 30.245 1.5.08 30.962 2.496 If the company can invest total average on the monthly basis Rs. .08 29.08 31.10.498 1.838 2. at the interest rate of 11.08 31.2 104518.3.09 average 48910.1.701 472 1.7 149795.08 31.589 452 1.897 2.8 302250.5 180660.08 31.
248 1.08 29.451 222 1.3. at the interest rate of 11.657 2.08 29.50% and if the company invest it at the rate of 12% then the company gain 17522 Rs.10.5.298 1.On the basis of month at the limit of 175000 monthly Date 30.194 int @12 % 239 795 2.243 1.492 1.6.50% 229 762 2.9 124596.4 89044.08 30.11.7 129753.2 271159.1752258 Rs then the company gain 16793 Rs.08 31.5 155660.7.9.08 31. .08 31.8.005 853 2.7 124795.712 2.246 If the company can invest total average on the monthly basis Rs.0 22198.0 209234.092 890 2.09 28.1.09 30.4.599 2.2 79518.349 213 1.196 1.9 email@example.com average 23910.08 31.2.8 245135.773 2.557 1.08 31.08 29.12.8 277250.
9.08 29.201 -28 1.09 average -1090 54519 252250 184234 64044 246160 220135 -2802 130661 104754 99796 99597 firstname.lastname@example.org 31.10.8.08 31.842 640 2.252 1.08 18.104.22.168 -27 1.08 30.08 29.7.004 956 954 int @12 % -11 545 2.462 2.1.08 31.6.On the basis of month at the limit of 200000 monthly Date 30.09 28.5.307 1.523 1.08 31.417 22.214.171.124% -10 522 2.08 31.09 30.766 614 2.048 998 996 .359 2.3.
50% and if the company invest it at the rate of 12% then the company gain 14522 Rs. at the interest rate of 11.000 Rs on the daily basis . The company never go out of cash in the financial year 2008-09 At the cash limit of 75000 company 4 times go out of cash and needed cash from the bank in the financial year of 2008-09 At the cash limit of 100000 company never go out of cash .If the company can invest total average on the monthly basis Rs. Now the company keep average of 2.00.1452258Rs then the company gain 13917 Rs.2008 and the company needed to take the cash from bank for the payment of day to day expenses. Conclusion: In the limit of 50000 cash company go out of cash in 5 times from 22 to 27. . At the limit of 125000 company will not go out of cash but have little excess fund with him.08. The company have 8 times abnormal cash balance these cash balances are for the specified purpose.
000 at that times the company give the bank clearance The Hindustan zinc limited needed to give the advance to many company for the purchases of raw material like IOC and other. 11761218. The company have some excess fund in his books . so the company can invest those excess fund into some other project. pp 18. The company recovery is good in the initial months then the recovery position is not so much good so the company need to improve the recovery policies.000 then the company gain the profit to invest the excess fund of11472851 at the rate of 12% by given loan to somebody and gain the interest of 26475 Rs. If the company keep the cash at the limit of 50.13. 21. third edition. Prasanna Chandra (1993) ‘Fundamental of Financial Management’.As far as the advances concerns of the company then the company needed to control on to the company given advances the company advances credit more the debit Rs. and for other purpose so the company directly deposit the cash into the insurance company. Tata McGraw-Hill publishing company Ltd.1-19. REFERENCES & BIBLIOGRAPHY 1.17. The difference comes in the expenses because of the company take cash advance from the contractor for the purpose of general insurance .1-22.00. When the company cash goes more then 5. .
9. 13. Kothari C. 31.com www. www.(2003) ‘Working Capital Management’. Vikas Publishing House Ltd. Third edition McGrow-Hill Publishing Company Limited. (2005) ‘RESEARCH METHODOLOGY’ New age international Ltd.) completed Major Research Project entitled “CASH MANAGEMENT” The project has been completed after . Book Company. CERTIFICATE This is to certify that Miss.com www. NEHA GAUTAM a student of BBA I Year at GOVT. Pareek (2003) ‘COST ACCOUNTING’ Ajmera Khan .Google.com Company data Company books 5. 11. 8. 1-71. PG COLLAGE BUNDI (RAJ. R. “Financial Management”.Vedantasource. Khandelwal . 4. 12. fifth edition. 3. pp. and 95. fifth edition pp. Eighth Edition.2. Jain (2004) ‘MANAGEMENT ACCOUNTING’ Tata Pandey. 7. 10. Journals of Hindustan Zinc Limited Jain . 45.hzlindia. Third edition. K.1-2. Anmol Publication. Bhalla V.
LADDHA” is as per norms and guidelines provided. COLLEGE BUNDI(RAJ.S. .) The Major Research Project has been completed under the guidance of “Mr.N.studying for one year in BBA course and for partially fulfilling the requirements for award of degree of beachler of Business Administration of GOVT.
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