~1~

PROJECT REPORT ON PROJECT COST MANAGEMENT OF EVEREST INDUSTRIES LTD. KYMORE

SUBMITTED TO :SUBMITTED BY :-

~2~

MR. SANJEEV MISHRA SANJAY NEEKHAR DEPUTY MANAGER THIRD SEM (FINANCE) 2010-2011 MBA

~3~

ACKNOWLEGEMENT
It is my pleasure to place on record my sincere gratitude towards my guide Mr. Sanjeev mishra (Deputy Manager Finance) Everest Industries Limited, who spent his precious time providing continuous ideas and expert guidance to my Report work. It was his direction and encouragement at every moment and step that motivated me to steer the research work confidently and successfully. We are also thankful to our Venerable mentor Pragya Keshari whose encouragement, moral support provide the

~4~

valuable guidance, which has been a source of inspiration to us. I especially thankful to Mr. MANOJ K. SHARMA, Mr. V.K. KHULLAR, Commercial staff that have to provide me valuable guidance, which is helpful to fulfillment my Project Report I am also thankful to my friends who directly or indirectly helped me lot.

Mr.Sanjay Neekhar MBA (I.B.)

CONTENTS
Sr. No. Particulars Pag e No. 5 6 7 10 12 13 18

1 2 3 4 5 6 7

COMPANY PROFILE. INTRODUCTION. HISTORY. GROUP PROFILE. VISION AND MISSION. AWARDS AND OWNERS. BASIC ACCOUNTING TERMINOLOGY.

~5~

8 9 10 11 12 13 14 15 16 17 18

PROPOSAL FOR NEW PROJECT. DRAWINGS. INDENT. QUOTATION. PURCHASE ORDER. MEAN. GRN. PAYMENTS. INSTALLATION OF MACHINE.

32 58 62 63 64 66 67

OBSERVATION AND SUMMARY. CONCLUSION.

Company Profile
Everest Industries Limited is a 75 years old company, known for manufacturing fibre cement board as well as Asbestos and Non asbestos Sheet. It has 5 manufacturing plant all over India and Sales Depot in almost all over India

EVEREST INDUSTRIES LTD

~6~

P.O.KYMORE-483880 DISTT.KATNI (M.P.)

Introduction

~7~

Everest Industries Limited is the pioneer of the Fibre Cement Products in India. It started operations since 1934 and today has 5 plants across the country. All the manufacturing units are ISO 9000/9001/9004/19011: 2000 ISO/TS 16949 certified. Everest Industries Limited is not only the manufacturer of corrugated roofing sheets, accessories and building boards but also provide complete solutions to the needs of industrial and commercial roofings, prefab structures and interior

HISTORY
1934 - The Company was Incorporated in the name and style Asbestos Cement Ltd., as a private limited company under the Indian company's Act, VII of 1913 with two corporate shareholders viz.,C.P. Cement Co. Ltd., (which subsequently in 1936 merged with other

~8~

companies to form Associated Cement Companies Ltd.) and Turner & Newall Ltd., U.K. - The company's object is to manufacture asbestos cement sheeting products such as corrugated roofing sheets, corrugated curved tanks, roofing extractors, etc., as well as accessories for roofing sheets. The products are marketed under the brand name EVEREST. - The name of the company was changed to Asbestos Cement (Pvt.) Ltd as required under the Companies Act, 1956. The name was again changed to Asbestos Cement Ltd., in 1960 when the Company became a deemed public limited company under Section 43A of the Company's Act, 1956.

- The Company was the first to set up facilities for the manufacture of asbestos cement roofing sheets in India with the commissioning of its first factory in May at Kymore in Madhya Pradesh (formerly Central Provinces). The manufacturing business was expanded progressively by establishing a second sheeting factory at Mulund (Mumbai) in 1937, a third factory at Calcutta in October 1938 and a

~9~

fourth factory at Podanur near Coimbatore in Tamil Nadu in November 1953. 1957 - A second sheeting plant was installed in the Kymore factory.Plants for the manufacture of pipes were added at all these factories between 1938 and 1963. - The Company has research facilities at Kymore and Mumbai.Research and development activities are being carried out in close cooperation with the Research and Development units of Turner & Newall Plc., U.K. 1995 - A new factory was commissioned at Nashik in March. 1997 - During the year, the second machine at the company's new plant at Lakhmapur was commissioned. 1998 - The performance of the company was adversely affected by continued depressed economic conditions that affected industrial activity and excess capacity in the industry resulting in huge inventory and pressure on margins. 1999 - ETERNIT Everest Ltd (EEL), engaged in manufacture of fibre cement products, has set up a new production line at its Lakhampur plant near Nashik, Maharashtra.

~ 10 ~

- Eternit Everest, is a MNC engaged in the production of cement based products (like asbestos sheets) and building materials. The company belongs to Eternit Group of Belgium (which holds a 49.50 percent stake in the company) and ACC (with 26 percent stake). The company was out of sight on the bourses, largely because of the lull in the housing sector in the last two years.2002-The Eternit Everest Ltd is now subsidary ACC. 2004 -Everest Industries enters into an Agreement with Dansk Eternit, Denmark 2005 -Adani Group inks pact with Holcim to take over Everest Industries

Group Profile
Everest Industries Limited. The Group's principal activity is to manufacture building materials used for false ceiling, partitioning, paneling, doors. It operates with only one subsidiary namely M/s Everest Building Solutions Ltd. The

~ 11 ~

Groups plants are located at Madhya Pradesh, Maharashtra and Uttarakhand The following reports, available for Everest Industries Limited, are typical of the content provided on all companies covered in CorporateInformation.com Officers, Contact Information), Competitor Analysis and up to ten-year history of Sales, Earnings per Share, Dividends per Share, Security Price and Key Ratios. Financial Statement Reports Research reports that analyze Everest Industries Limited Income Statement and Balance Sheet along with the Sources of Capital for a five-year period. View Samples

Financial Ratio Reports Analyses reports that highlight Everest Industries Limited Accounting Ratios, Asset Utilization, Fixed Charges Coverage, Liquidity, Leverage, Profitability, Employee Efficiency and Per-Share Data over a five-year period. View Samples Wright Quality Analyses Reports Wrights proprietary rating of corporate quality. The reports include a detailed analysis of Everest Industries Limited Equity, Liquidity, Financial Strength, Profitability and Corporate Growth.

~ 12 ~

Vision & Mission

Vision

~ 13 ~

Everest Industries Limited will be deepest housing and building solutions to provide to delivery strength, speed and safety to its customers in all as target market.

Mission
Mission is achieve sales turnover 1000 crore with net profit 100 crore by 2010-11

Awards and honors

Eternit Everest Ltd has been awarded the Inter-Industry State safety Award for 1994, 1995 and 1996. The award, instituted by the National Safety Council of India, has

~ 14 ~

been awarded to Eternit Everest for its Kymore Works at Madhya Pradesh. Everest Industries Limited has received National Award for Excellence in Cost Management from Institute of Cost and Works Accountants of India (ICWAI) for their Kymore Plant situated in Madhya Pradesh. Everest received this award under Private Sector- Manufacturing (Small) category. The particular category was applicable only to those manufacturing units in private sector whose turnover was up to Rs. 100 crore per annum. The award function was held at Vigyan Bhavan on 13th March 2009, the award was presented by Mr. Anurag Goel, Secretary, Ministry of Corporate Affairs, Govt. of India to Mr. M. L. Gupta, Managing Director, Everest Industries Limited.

As a leading professional institute in India, specialized in the field of Management Accountancy ICWAI is presenting the ICWAI National Award for Excellence in Cost Management2008. A high profile Jury members led by the former chief Justice of Supreme Court of India, Justice J S Verma, chose the winners after the comprehensive selection process.

~ 15 ~

Established in 1934, in Katni, Madhya Pradesh, this is the first plant in India that was setup to manufacture FiberCement Roofing Sheets & Accessories. At Kymore Works major emphasis is laid on Safety, Health & Environment to ensure high level of safe working environment. Kymore Works has been honored by State Level Award as the first and only unit in Madhya Pradesh, among similar manufacturers, by the Government of Madhya Pradesh for excellence in the fields of Safety, Health & Environment. Everest Industries Limited, established in the year 1934, has manufacturing facilities in Kymore (Madhya Pradesh), Kolkata (West Bengal), Coimbatore (Tamil Nadu), Nashik (Maharashtra) and Roorkee (Uttrakhand ).The company has a state-of-the-art R&D centre in Nashik, which constantly works on product up-gradation and development of new products.

~ 16 ~

Kymore Works Winner of the Highest Tax Payer Award in Katni District for the Year 2007-08
The Kymore Unit of Everest Industries Limited was

~ 17 ~

presented a District Level Prestigious Award (A Certificate & Cash Award of Rs. 50,000/-) conferred upon it as a token of honour by the Madhya Pradesh State Commercial Tax Department for being the Highest Tax Payer Business Entrepreneur at district level in the Katni district of Madhya Pradesh for 2007-08 in view of its depositing an highest amount as tax in the district and further being a regular into the same during the said fiscal. This prestigious Award & Certificate (copy attached) so conferred upon Kymore Unit of the Co. by Honble Shri Raghavji [i.e. the Honble Minister of the State of M.P. for Commercial Tax, Finance, Planning & Statistics] was presented before a large audience in a grand function organized for the purpose at Hotel Gulzar, Jabalpur, on

12.08.2009 wherein representing Kymore Unit of the Co. amidst great applause its General Manager (Works) Mr. S.K. Mishra [flanked by Messrs Sanjeev Mishra & V.M. Duche from KW] took away the above Award Certificate together with a Cash Award of Rs. 50,000/presented to him by the Honble Minister of Madhya Pradesh Dr. Ramkrishnaji Kushmaria [others at the dais with him viz. honble Shri Rakesh Singhji M.P. from Jabalpur

~ 18 ~

constituency, Addl. Commissioner Commercial Tax Department Madhya Pradesh, Advocate General Madhya Pradesh & other VIPs] in the benign presence of many distinguished guests on the occasion.

Basic Accounting Terminologies

Introduction:Every human being consciously engages himself in some meaningful activity. Although the measure of success may vary in each case one has to be careful and cautious at

~ 19 ~

every stage in his life. Bookkeeping and accountancy is a science, which has attracted the attention all such human activities. Accounting enables a person to assess the risk appropriate steps. Account:- An account denotes a summarized record of transactions pertaining to one person, one kind of asset, or one class of income, or one class of income or loss. Assets:- Properties of every description owned by a person will be called assets for example land and building, plant and machinery, cash balance, bank balance etc. Bad debts:- Which are irrecoverable and written off from debtors A/C as a loss are termed as bad debts.

Casting:- Means the totaling of the books of account casting has to be done of the ledger accounts and also of a journal. Creditor a creditor is a person to whom we owe some thing. He is the person to whom we have to pay. Capital:- The dictionary meaning of the term capital is wealth capital is the total account invested in business the

~ 20 ~

capital of a business is the claim of the owner to the business is the claim of the owner to the business. Debtor:- It is person who owes something he is the person who has to pay to other person. Drawing:- It is the total amount withdrawn by a trader from his business for meeting personal expenses. Trader becomes a debtor of business by the amount withdrawn by him from business for private purpose. Discount:- It is an allowance or a concession allowed by the receiver of benefit to the giver of benefit. It is normally allowed to the customers, debtors, and retailers etc. the discount may be classified in two ways.

1.

Cash discount:- It is discount allowed to customer as an inducement to make payment immediately. Cash discount is closely related to cash receipt and cash payment. When cash is received, discount is allowed is a loss to a business while cash discount received is a gain to him.

~ 21 ~
2.

Trade discount:- It is an allowance made by a wholesaler to a retailer in order to enable the retailer to sell the articles at list prices and earn a reasonable margin of profit. The amount of trade discount is deducted from the invoice; therefore, it has no connection as to the receipt and payment of cash. Hence, trade discount does not appear in the books of accounts.

Entry:- The term entry refers to the recording of a transaction in the books of account. It is the primary record of a transaction in the books called journal or any other subsidiary journal.

Expenses:- The effort made by business to obtain the revenues are termed as expenses. It is the amount spent on manufacturing and selling of goods and services. Folio:- It means the page number of the book of original entry or of the ledger by writing folio i.e. page number, one can easily find out on what page the original entry is made and on what page the entry is made in the main book.

~ 22 ~

Goods:- Commodities in which a trader deals are called as goods. Insolvent:- A person is said to be insolvent when his liabilities are more than asset Insolvency:- When the liabilities of a firm are greater than its assets, it is referred to as insolvency indicating the liabilities of a business to meet all its liabilities. Such a business firm is said insolvent. Journal:- Is the book 0f accounts in which business transaction are first recorded. It is a book of prime entry or first entry.

Liabilities:- Debts owed by a person are called liabilities. Liabilities represent the total amount to creditors. Debts arise because, goods may be purchased out but payment may not be made at the time of purchasing the goods. Therefore the total amount payable to creditors will be the liabilities. Narration:- It is a brief explanation or description on to a journal entry it is given on the line just below the journal entry within the brackets.

~ 23 ~

Posting:- Transaction entered in the original books of entry are also to be recorded in the ledger on the basis of the entry made in the original book is called posting. Purchases:- The goods bought for resale or manufacture and resale are called purchases. Purchases may be classified as 1)

Cash purchaseCredit purchase-

2)

Revenue:- It represent the accomplishment of the enterprise until the company has been successful in selling its products, no revenue is realized. Revenue is the amount that adds to the capital. Sales:- The goods sold by a business for cash or on credit are called sales. The sales may be classified as; 1)Cash sales 2)Credit sales

~ 24 ~

Solvent:- A person is said to be solvent when his assets are equal to or more than his liabilities. Stock:- Goods unsold lying with a business on any given date are called as stocks. Transactions:- A transaction are an exchange of money or moneys worth between two parties. It is dealing between two parties. It is dealing between two or more persons. The transactions are classified on the basis of exchange of goods and service they may be.

1)Barter transactions.
2)

Monetary transactions.

Monetary transactions are classified in they two types.

1)

Cash transactions. Credit transactions.

2)

Book keeping:- It is defined as the process of analyzing, classifying and recording transaction in a systematic manner

~ 25 ~

to provide the information about the financial affairs of the business concerns. Accounting:- It is a wider concept, which includes book keeping accounting, is involved not only maintaining records, but also balancing of accounts, interrupting the balances, preparation of summaries, drawing conclusions from the summaries knowing the results of financial transactions etc.

Classification of accounts. Accounts are classified in to four types:1)

Personal accounts.

2)Real accounts. 3)Nominal accounts. Personal accounts = DEBIT THE RECIVER AND CREDIT THE GIVER

~ 26 ~

Real accounts = DEBIT WHAT COMES IN AND CREDIT WHAT GOES OUT Nominal accounts = DEBIT EXPENSES AND LOSSES AND CREDIT GAINS OR INCOMES. Journal:- It is derived from the French word jour which means a day journal is the book of original entry or primary entry. It is book of daily record first of all the business transactions are recorded in the journal and subsequently they are posted in the ledger.

Ledger:- A group of accounts is known as ledger a ledger is the principle book of account a journal is meant for passing the entries of business transaction. A ledger is a bound book. It contains many pages, which are called folios. These pages are consecutively numbered. For each account a separate page is kept. Every ledger has an index. It is generally an alphabetic index one page is allotted for each alphabet. All the accounts commencing with that particular alphabet are indicated on that particular page only. The page number on which the particular account appears is shown in the index. This facilities appear is shown against the account in the index. The facilities immediate reference.

~ 27 ~

Ledger posting:- After the transaction has been analyzed into its debit and credit elements in a journal, each such debit and credit elements must be transferred in a journal accounts. The process of transfer of entries from journal to ledger account is called ledger posting. Trial balance:- After posting the transaction to respective ledger accounts they are balanced and then a trial balance is drawn. A trial balance is a statement, which shows the list of

accounts showing debit balances and list of accounts showing credit balance. If double entry principles are strictly followed the total of the entire debit balances must agree with the total of all the credit balance. Trade discount:- The amount of trade discount is deducted from the bill itself. Therefore, a trade discount does not appear in the books of accounts. If a trade discount is given in the transaction, the amount of such a trade discount is deducted from the gross value of purchase and only the net value (arrived at after allowing a trade discount) is recorded in the purchase books.

~ 28 ~

Debit note:- A debit note is sent to the supplier when the goods purchased from him are returned. A debit note is a statement sent by the buyer to the supplier stating the full details of the good returned. It is sent along with the goods. It intimates the supplier that his account has been debited by the value of the good returned to him. Credit note:- A credit note is sent to the customers when we receive goods returned from them. It gives the full details of the good returned by the customer. Credit notes are

generally is printed in red ink. Transaction is recorded in this book on the basis of credit notes.

Trial balance:- The dictionary for accountants written is a list or abstract of the balance or of total debits and total credits of the accounts in a ledger, the purpose being to determine the equality of posted debits and credits and to establish a basic summary for financial statements. Subsidiary books (sub division of journal):- If all the business transaction were recorded in one and the same journal, the journal would be bulky and cumbersome. It

~ 29 ~

would be very difficult to make clerks to work on the same journal at one and the same time. Instead of recording all the transaction in on and the same journal, they are recorded in separate journals meant for the purpose. Therefore, in order to meet the requirements of modern business, the original journal is divided into the following:-

Purchase book Sales book Purchase return book Sales return book Cash book Bills receivable book. Bills payable book. Journal proper.

~ 30 ~

Final account:The final accounts are prepared to find out the profit or loss and to know the financial position of the business. These account consist of The trading account The profit and loss account Balance sheet

Trading account:A trading account is prepared to find out the gross profit or gross loss in the business done during the year. The gross profit is the difference between the cost of good sold and the sale proceed without any deduction of indirect expenses. Hence, in the trading account it is necessary to include all items of expenses directly affecting the cost of good sold. The cost of good sold includes the purchase price of the good sold plus buying and bringing expenses and the

~ 31 ~

expenses of conversion of raw material into saleable finished goods.

Profit and loss account:Profit and loss account is another summary account, which is prepared after preparation of trading account. Trading account does not disclose the net income or loss. There are other expenses in order to ascertain the profit or not loss.

Balance sheet:A balance sheet is a statement of the financial position of a business on a given date. It is a snapshot of the financial condition of the business. The balance sheet is not account; it is only a statement showing asset and liabilities of the business. It is important to note that the balance sheet always balances. The total value of the assets is always equal to the capital and liabilities.

~ 32 ~

We can define balance sheet as a statement of financial position of any economics unit as at a given moment of time, its assets, at cost, depreciated cost or another indicated value, its liabilities and its ownership equities

PROPOSAL
MEANING- It is proposed or propounded for consideration or acceptance, a scheme or design, terms or conditions proposed intended to acceptance. In other words we can say it is offering or suggesting something for acceptance.

~ 33 ~

PROJECT PROPOSAL- A Project proposal is basically a document that describes you project in details, as well as the strategy and tactics you plan to use to achieve its completion NATURE- The nature of project proposal is basicslly the area where the project belongs to. The nature of project can be construction improvements, machine improvements, new electronic design, cost reduction etc.

PROJECT OR PROPOSAL OBJECTIVES

Instructions: Objectives are specific goals you plan to complete during the term of the project. Before you start a project, you usually need to know where you are going and what you plan to accomplish. In writing a proposal, figuring out and stating just exactly what you plan to accomplish is, perhaps,

~ 34 ~

your most important task. In writing objectives, you need to distinguish between

Ultimate goals - Accomplishments you hope to achieve in the long run Project Objectives - Specific goals you will complete by the end of the projects term, and Methods Steps you will take to create/complete your objectives.

ULTIMATE GOALS:These might not be attainable during the term of your project. Your project probably will be a step in attaining those long term goals. So, where do you want to address ultimate goals in your proposal? Usually, you refer to these in your background section and

~ 35 ~

in the conclusion section. They could also appear as a problem. You might refer to them in your objective section by way of introduction You want to make sure your readers dont think your ultimate goals are the project objectives: this might cause them to either reject your proposal because they see the objectives as being unrealistically large (even grandiose) or for them to be disappointed with your final results.

PROJECT OBJECTIVES:Make your project objectives as specific as possible. Project objectives should be:
1.

The solution to the problem you state in the problem section.

2.The project accomplishments project outcomes results of the project output deliverables
3.

The final results of the project that will be of lasting

~ 36 ~

value. 4.The expected results:

Accepting or rejecting your hypothesis is an objective.

Telling what you expect to see to accept or reject your hypothesis may form part of your objective. Accounting for evaluation of the project often is critical.

How will you know if the project is a success?

Show how you will know if you attained your project objectives:

List benchmarks List specific project goals.

For example:

the end of the project, we will have reduced the amount By of selenium in the soil by at least 80%. 1.The table of contents for the final report you plan to present A list of topics you plan to cover in the body of the final

~ 37 ~

report. A list of the kinds of information you plan to present. A list of the ways you will evaluate the information. See the final report outlines. This will help you plan your objectives. Objectives become a major focal point of evaluation for proposals. Objectives are the main point of the proposal because with them you specifically state what you will accomplish, what the grantor will receive at the end of the Project, your main project goals. What do readers look for in proposal objectives?
1.

FEASIBILITY. Can you do it? Can you complete the project? USEFULNESS. Does it solve the problem? Is the project worthwhile? EFFECTIVENESS and EFFICIENCY. Is the solution cost effective and timely. EVALUATION. Do you provide a way for deciding whether or not the solution actually works.

2.

3.

4.

~ 38 ~

PROJECT PROPOSAL FOR MODERNIZATION

AT

EVEREST INDUSTRIES LIMITED, KYMORE WORKS.

~ 39 ~

C O N T E N T S

1.

Modernization Project
2.

Details of Expected Expenditure

3.

Land used
4.

Raw Material 5. Plant Equipment 6. Energy Requirement 7. Expected Hazards

~ 40 ~

8. Manufacturing Process

Modernization Project:In line with the managements traditional commitments towards the environment protection, conservation of natural resources and safe work practices as per the internationally recognized standards and to improve the visual and dimensional quality of the product to meet the ever changing market demands, it has decided to modernize our ground handling lines by introducing Atmospheric Corrugators for corrugating the green sheets with 6 M templates as well as automate the ground handling system. The cost of the project is estimated at 7.68 crores. A copy of the drawing showing the proposed changes in the existing production

~ 41 ~

line along with list of machines and electric motors to be installed is appended as an Annexure to this document.

Existing Corrugation and Handling System

As per the existing system Green sheets formed are of 6 M or 5 M in length and are of standard 1.35 M width. They are cut in two pieces in length of marketable size and transferred over steel templates which take them to the Drop Bar Corrugators for corrugation. From the corrugators they are passed on to a pneumatically operated Pilling machine where they are stacked in lots of about 50 sheets along with 50 steel templates.. From the Pilling machine these stacks are lifted with the help of Fork lifts and placed in Pre-curing area for 8 to 10 hrs.. After pre-curing time is over the stacks are taken again with the help of Fork lift trucks to de-pilling machine. Here sheets are sorted and re-pilled whereas templates are fed back to production line. In this outdated drop bar corrugator sheets formed are of very poor visual quality and do not meet the market demand standards, Further due to handling of mixed stacks with Fork

~ 42 ~

lifts there is significant spillage of lubricant oil from templates, emission from the diesel operated fork lifts pollute the environment and sound levels due to operations of Pneumatic Pilling and De-pilling machines and operations of Forklifts are area of serious concern.

Proposed System after Modernization

In the proposed system green sheets in full six meter length are proposed to be taken to atmospheric corrugator where they will get cut in marketable sizes during corrugation and lifted together and placed over 6 M long templates and get stacked over bogies. Handling line will retain them for the duration of pre-curing period and thereafter sheets will be de-pilled at de-pilling machine and templates will get back into the production line. Thus all the above mentioned short comings of the existing system are expected to be taken care of and product of desired visual quality produced. A drawing showing the existing line in blue color and proposed additions in black is Annexed to this document.

~ 43 ~

Details of Expected Expenditure

Estimate for the KW 6 M Line modernization Project is for Rs 7.68 Crores as detailed below. Sl. Items Estimate No. (Rs.in lacs) 1 Statutory clearance, power, environment, 8.00 Factory Directorate 2 Drawing & Design of Shed Extension & 3.50 Equipment foundation 3 Cost of Hardware (Hy & ERW pipes, 30.00 valves, couplings), Air Cylinder, bolts & nuts 4 Cost of Steels (Rails, ISMB, ISA Plates) 45.00 5 Cost of 6 M line 210.00 6 Cost of 6 M Bogies (33 nos.) 43.00 7 Cost of 6 M Templates 180.00 8 Waste Conveyor 0.50

~ 44 ~

9 Cost of Air Drier 10 Cost of 3rd conveyor modification, drive motor & VFD 11 Cost of MCC, PLC & Control Desk 12 5 KVA UPS 13 Cost of cables, light fitting, connector, lugs, rely, censors, etc. 14 Construction of road, foundation of shed, machine, flooring and railway tracks, MCC, drains, Hydraulic trench and cable trench 15 Dismantling of existing shed, fabrication of steel structure & column for shed & AC Roofing 16 Shifting of fencing, Cement line, Air line 17 Construction of PLC Room with cables 18 Modification of long conveyor 19 Installation of Pilling machine, CLT for Pilling machine, CLT for De-Pilling, TPilling, both roller conveyors and oiling machine, Depilling machine, T Pilling machine, alignment and grouting transbar, Shock absorbers (3 nos.), runway tunnel etc. 20 Fabrication & laying of rail track for transborder, curing line

6.00 2.50 15.00 1.00 12.00 75.00

17.00

1.00 5.00 3.00 10.50

10.00

~ 45 ~

21 Placement and fixing of Power packs (3 nos.), Hyd. Valve stand, Hyd. Pipe lines at Pilling, De-Pilling, Hy. Pipes, Pipe line picking, acid wash, pr testing and refitting, Hyd. Pipes for T Pill, Hyd Pipes for curing line, Picking for pullers etc. 22 Laying of HSPE Pipes with earthing flat in side ca, Earthing stations 4 Nos. (2 for PLC & 2 for equipment, earthing connections upto Bus and MCC's 23 Installation of MCC's, PLC & control desk 24 Placement of Bogies, Fixing of pipes and templates on Bogies, Bogie filling with 6 M template (40 nos.) 25 Transportation charges for equipments 26 Shifting pilling and drop bar etc. 27 Syro oiling system 28 Electrical cable laying, connection 29 Store consumables (Cement, Oil, grease, hardware) 30 Misc. Total ::

3.00

0.60

1.4 3.00

15.00 15.00 12.00 10.00 10.00 20.00 768.00

~ 46 ~

Land & Building:

Required Land and Building proposed to be used is available by the side of existing sheet handling line and can be made available with minor alterations in the existing plan. Modernized 6 M hand ling will use existing 25 M x 50 M Plant shed area towards south end of the existing sheeting line.

RAW MATERIALS:
Raw materials used in manufacturing process are: 1)Asbestos fibre 2)Cement 3) Fly Ash 4)Cement Paper Kraft (CPK) 5)Hard Ground Waste (As additive- after pulverizing of reject products)

~ 47 ~

Plant & Equipment:

List of Equipment proposed to be installed for 6 M sheet corrugation and handling is as under. 1.Flat Belt Conveyor 7 M Long x 1.7 M wide 2. Side cutting and end trimming Waster Recycling conveyor. 3.Atmospheric Corrugators. 4.Constant Level Tables 5.CBS Mixed Stack Pilling Machine 6.CBS De-pilling Machine 7.CBS Template Pilling Machine 8.Handling Trolleys 6.1 M Long 9.Rail Tracks for Bogie Movement 10.Template Cleaning and Oiling Machine. 11.Tran borders for Bogie Handling system 12.Hydraulic Power Packs 13.Programmable Logic control System. 14.Oil cooling system for Hydraulic oil

Energy Requirement:-

~ 48 ~

As the connected Load of the additional equipment proposed to be installed is 210.75 KW and effective load for normal operations is only 150 KVA. Considering the existing contract demand of the plant at 900 KVA and normal operative load of 800 KVA it is proposed to enhance the contract demand from the state electricity board by 200 KVA. No other source of energy shall be required to meet the operative needs of the plant after the proposed modernization.

Connected Load :
Sl No 1 2 3 4 5 6 7 8 Equipment and Drive units Conveyor No. 1 Motor Conveyor No. 1 Motor Conveyor No. 1 Motor Long Cutter 1 Motor Long Cutter 2 Motor Waste Conveyor Motor Traverse Cutter1 Motor Traverse Cutter 2 Motor Connected Load in KW 5.5 5.5 5.5 1.5 1.5 2.2 1.5 1.5

~ 49 ~

9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28

Traverse Cutter 3 Motor Traverse Cutter 4 Motor Piling Vacuum Fan DP Vacuum Fan DP Reject sheet Vacuum Fan T Piling Vacuum Fan TBR1 Motor TBR2 Motor TBR3 Motor TBR4 Motor Template Puller Roller 1 Motor RC Under De-Pilling Motor RC Under T-pilling Motor Lower Brush Before Oil Motor Upper Brush Before Oil Motor Template Oil Pump Dirty Oil Pump Power Pack No. 1 Hy. Motor Power Pack No. 1 Cooler Motor Power Pack No.2 Hy. Motor

1.5 1.5 18.5 11 5.5 5.5 1.5 1.5 1.5 1.5 1.1 1.5 1.5 2.2 2.2 0.75 0.75 37.5 0.5 37.5 0.5

29 Power Pack No.2 Cooler Motor

~ 50 ~

30 31 32 33 34 35 36

Power Pack No. 3 Hy. Motor Power Pack No.3 Cooler Motor Cooling Tower No. 1 Fan Cooling Tower No.1 pump Cooling Tower No. 1 Fan Cooling Tower No.1 pump Reject sheet Shifting

37.5 0.5 2.2 2.2 2.2 2.2 3.75

Total Connected Load 210.75kw

EXPECTED HAZARDS:
Toxic Material:
There is no toxic material proposed to be used or expected to evolve during the course of operations.

Fire Rating:

~ 51 ~

No Industrial Product having Fire Rating of higher than 1 i.e. Flash Point less than 100 0 F, would required to be stored in the factory.

Hazard Analysis & Risk Assessment:

Hazard Analysis and Risk Assessment are carried out by using established techniques such as What if Analysis and Past History of the similar plants not only in our organization but internationally.

Hazards Foreseen:
As the result of Hazard analysis carried out there appears to be fire hazard due to use of Hyd. and lubricant oils and fire due to electrical short circuits and other maintenance activities where Oxy Acetylene torches are proposed to be used.

Training:

~ 52 ~

Training Programs / Seminars on Safety, Accident Prevention, House Keeping & Fire fighting etc. are organized regularly for both permanent and contractor employees. Employees are also sent for outside Training Programs / Seminars.

Fire Fighting:
Adequate firefighting equipment with trained personnel is proposed to be added along with this modernization proposal.

Manufacturing Process:
Since the manufacturing procedure of M/s Everest Industries Limited is based on a wet process plant, the raw materials in weighed quantity are mixed with water to form slurry, which

after process in machine form a wet sheet of rubber like consistency.

~ 53 ~

Asbestos fiber reinforces the cement and fly ash binders by an intricate net work of blended fibers. In process of manufacture every fiber is coated with fine particles of cement and fly ash binders thus ensuring maximum strength.. The product further matures and gains strength by exposure to every element of weather they have to resist. The production is carried out on a conventional Hatschek Machine in the following order through programmable Logic Controller (PLC) a)Asbestos Fibre from Fibre Silo, CPK from CPK chest, HGW from HGW Mixer and water are all commonly mixed in Mixer No . 1. This is adequately wetted to facilitate homogeneous mix of all the components. b)Similarly Cement Fly Ash and water are commonly mixed in Mixer No 2 This is also adequately wetted to form homogeneous slurry for ease in pumping.

c) Then the above mixers from Mixer No 1 and Mixer No 2 are brought to the main mixer i.e. Mixer No 3 where the

~ 54 ~

same are further mixed vigorously to form a homogeneous slurry. d)This slurry is then brought in to Agitator, for feeding into the pre-mix and also to ensure that the slurry does not settle, where the same is continuously agitated. e) After the above, the same is taken to Pre-Mixer Tank and further diluted with additional water for desired consistency in the Hatschek machine. f) The slurry is then passed through Vats (Vats 1-5) so as to form a laminar film/layer. g) The layer so formed is then transformed over the Felt where excess water from the layer is sucked through Suction Trays and evacuated. This excess process water, so evacuated, is sent here from to Cone Tank where it is decanted for re-use.

h)Thereafter the layer is transformed to the Forming Bole/Drum for obtaining desired thickness of sheets as per

~ 55 ~

BIS norms. After the desired thickness (5.8 mm to 6 mm) the sheet is cut off from the Bole. i) The sheet so cut off from the Bole / Drum is then dropped on the conveyor where it is cut to desired sizes i.e. 3.00 M, 2.75 M, 2.50 M, 2.25 M, 2.00 M and 1.75 M according to the sales requirement. j) Subsequently the sheet is corrugated on the corrugator machine for sheets. k) The products are demoulded after a period of primary curing of 10-14 hours and finally all these products are matured for 21 days and tested thereafter. If the products meet BIS norms, the same are released for despatch.. l) We produce all the standard sizes, as above, in corrugated sheets i.e. CBS UT. Apart from CBS UT, as per the requirement from marketing, we also produce flat Fiber Cement sheets i.e. Everest Plibestos Board ( EPBUT) in different standard sizes as above.

~ 56 ~

EVEREST INDUSTRIES LIMITED MANUFACTURING PROCESS COMPLETE -FLOW CHART

Sections shown in Red is proposed to be installed in place of the sections shown in Blue color

~ 57 ~
=

Water Template Back Wet DES DePre-Curing Atm. C water Waste

PTC Pilling Lines Corrugator/.Pill u H Machine & ing ri Sorting n g

~ 58 ~
Asbestos oiling Waste Template -2 Hard Salvaging -1 Shorting Eff. De-piling corrugators Pre-Curing Piling Drop InBall Roller sieve ConveyorSilo Hatscheck Pri-mix/Control Slurry Machine Sludgeconveyor Mixer-3 of plant High Wastestock RotaryConveyor Cementchain Fly-ashHydro WKP BarChest / Mixer-2Slurry feed Mixer-1 Water Template Back Wet DES Cone DePre-Curing Atm. C pulping mill Pulper Machine Mixer Agitator tank Pulse jet Chest-1, 2 , Mill water Waste DC PTC Tank

Pilling Lines Corrugator/.Pill u H Machine & ing ri Sorting n g

~ 59 ~

Drawings

~ 60 ~

Construction Drawings
Construction drawings are also referred to as working drawings. They are used by all involved in a project to work on the actual building of the design. These drawings provide all the information, both graphic and written, about the project. It is specific information. For example, the paint color to be applied to the walls will be listed by manufacturers name, phone number, the paint color number and name, and type of finish (latex, enamel) to be used. Detailed information is given about everything in the project. Walls, doors, furniture, equipment, lighting, outlets, demolition and so on, are all specified. Graphic symbols are used to represent walls, doors, furniture, etc. Dimensions are used to define the location of these components. Texts is used to further describe them or to point specific elements of the design, Legends are used to describe doors, finishes, lighting, etc. Standards drawing symbols are used to cross reference information.

~ 61 ~

This information is explained through demolition plans, floor plans, interior or exterior elevations, reflected ceiling plans and detail drawings. Together they are produced on drawing sheets. The sheets are 11 x 17 or 24 x 36 or 30 x 42. The size is based on the type of project and the amount of information required to explain it. The drawing set is typically made up of two parts, architectural and engineering. (For some project separate structural drawings are also required). The architectural set consists of the items described above. Millwork is considered to be part of the architectural set. The engineering set describes the electrical, mechanical and plumbing as required.

~ 62 ~

Construction Drawings Architectural Standard Drawing Symbols

The complete drawing set (architectural and engineering) is used for pricing the project. Two or more general contractors are provided with the same set of drawings. This way everyone has the same information and it is fair to all. No one general contractor has any more or less information than the other one when pricing. The set of drawings must comply with all codes. They are submitted to the local buildings departments in order to obtain a building permit for the construction work. A building permit is issued after all the drawings are checked and approved by the department. The set can be large, 30 or more pages, or small, 15 pages. This all depends on the type of project.

~ 63 ~

A shopping centre would require many drawings. A home renovation a smaller set. A interior designer or architect creates this set of drawings for the owner. They are qualified in both design and codes compliance. Construction drawings are considered to be a legal document. They are part of the written contract between the owner and designer as well as the owner and contractor. Everyone involved in the project, the owner, the interior designer or architect, and the general contractor, all reference these drawings during the building process.

Indent An order for goods to be exported or imported. In this we will show what and how much materials we need for manufacturing or for new project.

Quotation-Letter:

~ 64 ~

It is a written document or letter given to the different supplier or service provider for fulfilling the needs or requirement of materials or services at the lower rate with better qualities. A quotation letter comprises the following details: Senders address Receivers address Date Dear Sir Sub: Ref: Contents How you came to know about this company (through an ad / an exhibition/ catalogue/ another firm) What exactly you want : Name of the article / product Specification: quality(size, length, thickness); quantity (the number you want) When you want it Ask them to quote prices

Ask for discount. Ask for payment terms (cheque / letter of credit / DD ) Mention the mode of transport.

~ 65 ~

Yours faithfully Signature, Your name

APPROVAL LETTER:When the lowest cost is decided or approved by the finance manager, directors, or by project engineers, the approval letter is given to the supplier or service provider.

PURCHASE ORDER (PO):A purchase order (PO) is a commercial document issued by a buyer to a seller, indicating types, quantities, and agreed prices for products or services the seller will provide to the buyer. Sending a purchase order to a supplier constitutes a legal offer to buy products or services. Acceptance of a purchase order by a seller usually forms a oneoff contract between the buyer and seller, so no contract exists until the purchase order is accepted.

NEED OF PURCHASE ORDER:-

~ 66 ~

Purchase orders allow buyers to clearly and explicitly communicate their intentions to sellers, and sellers are protected in case of a buyer's refusal to pay for goods or services. Purchase orders also help a purchasing agent manage incoming orders and pending orders. Purchase orders also are an economical choice for a business because they streamline the purchasing process to a standard procedure.

ELECTRONIC PURCHASE ORDERS:Many Purchase Orders are no longer paper-based, but rather transmitted electronically over the Internet. It is common for electronic purchase orders to be used to buy goods or services online for services or physical goods of any type. Example of purchase order:PURCHASE ORDER

Purchase Order No. : 09-KW-RPO-00000008 February 01, 2010 SHARMA ASSOCIATES, Consigned To WORKS TYPEII-53,JME COLONY, SHAKTINAGAR, Quotation No. SON-231 22 Quotation Date

Monday, KYMORE

~ 67 ~
Please supply the following goods in accordance with the terms and conditions appended below : Srl. Item Description Unit Quantity Rate Amount 1. FLYASH SHAKTI NAGAR MT 4,000.000 1.00000 4,000.00 Service Description Type Calculated On Rate Service Amount code 3037 DISCOUNT Ton Gross 1.00 -4,000.00 3024 TRANSPORT CHARGE Ton Previous 685.00 2,740,000.00 3040 ENTRY TAX Percent Previous 1.00 27,400.00 (NON VATABLE) Total Item Amount 2,767,400.00 PO Amount 2,767,400.00 Rs. Twenty Seven Lakhs Sixty Seven Thousand Four Hundred Only Terms and Conditions 1. Delivery Period 3 2. Terms/Conditions Terms & Conditions Entered for testing purpose 3. Packing Bags of 27kg, palletised into pallets of 945 kg net weight to be stuffed in 20' container 4. Payment Terms within 30 days after receipt 5. Insurance 6. Remarks PACKAGE TO BE MARKED To facilitate checking of Bills, Suppliers must LTD. quote this Purchase Order No. and Date SRC Menon Y. Srinivasa Rao Prepared By EIL - 09-KW-RPO-00000008 for EVEREST INDUSTRIES

Jawahar I. Rawtani Dy. General Manager (Technical) Executive Director (Operations)

Everest Industries Limited - KYMORE WORKS Everest Nagar, P.O. Kymore, Dist. Katni - 483880 Madhya Pradesh Regd. Office Gate no. 152, Lakhmapur, Taluka Dindori, nasik - 422202 Maharashtra Copyright Everest Industries Ltd.

MIN (MATERIALS INWARDS):-

~ 68 ~

When the materials will received by the purchaser or company, the materials will be checked or tested by the experts, if any fault is found on the materials or that material will be rejected.

Example of MIN:Everest Industries Limited - KYMORE WORKS Date-08/07/2011 Everest Nagar, P.O. Kymore, Dist. Katni - 483880 Madhya Pradesh Page 1 BIN ITEMS - MATERIAL INWARD NOTE Document No. : 10-KW-BMN-00000004 MIN No. Gate Entry No. PO No. Challan No. Supplier Transporter Item Details: Bin Item Received Quantity K3425360 Remarks 10-KW-BMN-00000004 10-KW-BGE-00000004 10-KW-BPO-00000412 xx 045045 UNIQUE TRADERS MR.BABOOBHAI, AL, JABAL, S & S ENCLOSURES MIN Date Gate Entry Date PO Date Challan Date 01/09/2010 01/09/2010 01/09/2010 01/09/2010

Description Balance Quantity HOSE, SPIRAL, DUCK, ELEPHANTA - 6" Mtr

Unit

PO Quantity

15.000

15.000

Rajeev Shrivastav Prepared By MaterialInwardNoteBI.rpt

Received By Copyright Everest Industries Ltd.

Store Officer M.k.sharma

~ 69 ~

APPROVAL OF MATERIALS:After checking all the materials the purchaser will approved the materials.

GOODS RECEIVED NOTES (GRN):When the goods will approved by the purchaser, he will give the Goods Received Notes (GRN) to the supplier that we received the goods and all the materials were ok.
Everest Industries Limited - KYMORE WORKS Date-08/07/2011 Everest Nagar, P.O. Kymore, Dist. Katni - 483880 Madhya Pradesh Page 1 NON BIN GOODS RECEIPTS NOTE Document No. : 10-KW-NGN-00000003 GRN No. Gate Entry No. PO No. Bill No. Challan No. Supplier 10-KW-NGN-00000003 10-KW-NGE-00000140 10-KW-GPO-00000041 241 241 043101 SETHI PRINTERS 10,KAWASJI BLDNG NAI BSTI KATNI, MIN Date Gate Entry Date PO Date Bill Date Challan Date 01/09/2010 01/09/2010 01/09/2010 08/09/2010 01/09/2010

Item Details: Bin Item Received Quantity K3425360 Remarks

Description Balance Quantity HOSE, SPIRAL, DUCK, ELEPHANTA - 6" Mtr

Unit

PO Quantity

15.000

15.000

~ 70 ~
Rajeev Shrivastav Prepared By MaterialInwardNoteBI.rpt Received By Copyright Everest Industries Ltd. Store Officer M.k.sharma

MODES OR TYPES OF PAYEMENT:The payment can be made in many different ways like by giving Cash, doing Telegraphic Transfer or Mail Transfer, via Money Order or Postal Order, Bill of Exchange, Promissory Note, Cheque, Bank Draft, etc.

~ 71 ~

1. Cash Payment
This is one of the oldest modes of payment. In this case, the buyer pays money in the form of notes and coins to the seller. The seller on receipt of cash, issues cash memo or cash receipt. This mode of payment is suitable only for small transactions.

2. Telegraphic Transfer or Mail Transfer In this system, the payer deposits the money along with other charges in a bank which has a branch office at the payee's place. On receipt of cash and other charges, the bank telegraphically informs the branch office to credit the amount to the payee's A/C. The payee is accordingly informed and can withdraw the money. The money can also be remitted by mail transfers, which takes a little longer time. This method helps for quick remittance, but it is not a popular one.

~ 72 ~

3. Money Order or Postal Order

Payment can also be remitted through money orders and postal orders. Businessmen may prefer more of postal orders because a large number of postal orders can be collected and encashed at a time. Postal order is safer than a money order. Postal orders can be crossed for safety purpose. However, traders normally do not use this method of payment.

4. Bill of Exchange According to the Section 5 of Indian Negotiable Instruments Act, 1881, "A bill of exchange is an instrument in writing containing an unconditional order, signed by the maker, directing a certain person to pay a certain sum of money only to, or to the order of, a certain person to the bearer of the instrument."

~ 73 ~

Some Advantages of Bill of Exchange are :1.

The holder of the bill can receive the money even before the due date of bill, by discounting the bill with his bank.

2.The bill can be transferred to another person.

3.

It enables the buyer to purchase the goods without making actual payment. He accepts the bill & make payment at a later date.

5. Promissory Note
A promissory note is an instrument in writing (not being a bank note or e currency note) containing an unconditional undertaking signed by the maker, to pay a certain sum of money only to, or to the order of a certain person, or to the bearer of the instrument.

~ 74 ~

6. Cheque
Every businessman has a bank account to facilitate his business transactions. When the bank account is opened, the bank gives a cheque book for making payments. cheque payment is a convenient and safer mode of payment. To ensure safety the cheque may be crossed generally or specially, so that the payment to a wrong person is prevented.

7. Bank Draft
A Bank Draft is defined as "An order to pay money, drawn by one office of a bank upon another office of the same bank for a sum of money payable to order on demand." Bank drafts are often used for the purpose of transferring funds from one place to another within a country or from one country to another. A bank draft is an order given by one bank upon another of its branch bank situated elsewhere to pay a certain sum of money. The contents of bank draft are more or less that of a cheque, but it is signed not by the payer but by the banker.

~ 75 ~

PAYMENTS:In the quotation letter the modes of payment will be decided by the purchaser or supplier. According to that, payment will be given to supplier or service provider.

INSTALLATION OF MATERIALS OR MACHINE:When all the process will finished the materials will ready to install, and the engineers will start installing the materials. All the materials will install in a systematic way.

TRIALS:After installing all the materials or completing the process the machine will be check or take trials by the engineers that it will working properly or not and if any fault is found the machine will be re-installed by the engineers. And then at last the machine will ready for production.

~ 76 ~

OBSERVATION
Training in Everest Industries Limited. This is fast growing company in the manufacture building materials used for false ceiling, partitioning, paneling, doors. It operates with only one subsidiary namely M/s Everest Building Solutions Ltd. The Groups plants are located at Madhya Pradesh, Maharashtra and Uttarakhand. . It is observed that EVEREST firmly believe on human and ethical value so, being a soft management they treat employee as a very important and appreciating assets of continuous growing. Not only this company that strive to ensure organization growth by raising strength of employees and providing various facilities for every individual to raise his\ her full potential.

~ 77 ~

CONCLUSION
From this study, it has concluded that in sector there is huge requirement of Corrugated Roofing sheets, accessories and building products. from Everest Industries Limited. The Production process in Everest Industries Limited. Systematic because of lots of testing of mechanism. All departments having there own responsibilities. Transaction system is become very easy to all of the employee in Everest by using ERP system.