1

A SUMMER INTERNSHIP REPORT

On
FINANCE
At
Birla Cement Satna

Submitted by
ANARUDHA PRASAD DWIVEDI
MBA (FT) semester- III
Batch 2012-14
PIONEER INSTUTE OF PROFESSIONAL STUDIES
INDORE (M.P.)



2013

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DECLARATION FORM

This is to verify that Mr. Anarudha Prasad Dwivedi of Pioneer Institute of
Professional Studies, Indore has undergone training from Birla Cement,
Satna for a period of 30 days (15 june to 15 july 2013) in the field of
Finance.



During the training the student has abided by the rules and regulation of
our organization and his code of conduct was satisfactory.



Signature of Reporting Officer

Details of Reporting Officer :
Name of the Person :- C.A. Sumit Agrawal
Designation :- Dy. Manager (Accounts)
Email id :- sumit@satnacement.com
Contact no. (Desk.) :- (07672) - 412000
Mobile No. :- 09827241295

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INDEX
S.N. TOPICS COVERERD
1. OVERVIEW
2. HISTORY OF ORGANIZATION
3. PROMOTERS & MANAGEMENT
4. PLANTS & PRODUCT
5. VISION
6. MISSION
7. QUALITY POLICY
8. ORGANIZATION CHART
9. DEPARTMENT DETAIL
10. MAJOR ACTIVITIES
11. TYPE OF PROJECT
12.
INTERNAL; DEPARTMENTAL
COORDINATION
13. MAJOR FINDING
14. CONCLUSION
15. RECOMMENDATION
16. BIBLIOGRAPHY
17. ANNEXURE


4

Overview of Birla Cement

The Cement Division of Birla Corporation Limited has seven plants, two
each at Satna (M.P.) - Satna Cement Works & Birla Vikas Cement, Chanderia
(Rajasthan) - Birla Cement Works & Chanderia Cement Works, Durgapur
(W.B.) - Durgapur Cement Works & Durga Hitech Cement - and one at
Raebareli (U.P.)-Raebareli Cement Works. They manufacture varieties of
cement like Ordinary Portland Cement (OPC), 43 & 53 grades, Portland
Pozzolana Cement (PPC), Fly Ash - based PPC, Low Alkali Portland Cement,
Portland Slag Cement, Low Heat Cement and Sulphate Resistant Cement.
The cement is marketed under the brand names of Birla Cement SAMRAT,
Birla Cement KHAJURAHO, Birla Cement CHETAK, Birla Cement and Birla
Premium Cement, bringing the product under the common brand of Birla
Cement while retaining the niche identity of SAMRAT for blended cement,
i.e. PPC & PSC, for all the units, KHAJURAHO (for the OPC product of Satna)
and CHETAK (for the OPC product of Chanderia).
The Division exports large quantities of cement to Nepal, under the brand
names of Birla Cement Samrat, Birla Cement Khajuraho and Birla Cement.
The special variety of Birla Cement SAMRAT, being produced by the
company, is ideal for mass concrete, RCC/pre-stressed/precast structure
(for reduced thermal crack), increased water tightness of concrete,
increased resistance to sulphate soils and aggressive water and increased
resistance to alkali aggregate reaction besides corrosion resistant
properties.

All our cement plants are ISO 9001:2000 Certificated, covering the entire
range of production and marketing.

5

SATNA CEMENT WORKS
Counted amongst the larger
plants of the Cement Division,
Satna Cement Works and Birla
Vikas Cement at Satna (MP)
along with Raebareli Cement
Works (UP) have an installed
capacity of 2.36 million tonnes
at present, which is projected
to rise to 2.84 million tonnes
after the present
expansion/modification. Birla
Cement Samrat and Birla
Cement Khajuraho are already
leading Brands and
frontrunners of companys
activities. Riding on the glory of
very high standards of quality,
the company products are
premierly priced in all the
markets where it is available.




Overview : Cement Industry


Satna (Madhya Pradesh), Chanderia (Rajasthan),
Durgapur (West Bengal), Raebareli (Uttar Pradesh)

The Cement Division of Birla Corporation Limited has
seven plants, two each at Satna (M.P.) - Satna Cement
Works & Birla Vikas Cement, Chanderia (Rajasthan) - Birla
Cement Works & Chanderia Cement Works, Durgapur
(W.B.) - Durgapur Cement Works & Durga Hitech Cement -
and one at Raebareli (U.P.)-Raebareli Cement Works. They
manufacture varieties of cement like Ordinary Portland
Cement (OPC), 43 & 53 grades, Portland Pozzolana Cement
(PPC), Fly Ash - based PPC, Low Alkali Portland Cement,
Portland Slag Cement, Low Heat Cement and Sulphate
Resistant Cement.



The cement is marketed under the brand names of Birla Cement SAMRAT,
Birla Cement KHAJURAHO, Birla Cement CHETAK and Birla Premium
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Cement, bringing the product under the common brand of Birla Cement
while retaining the niche identity of SAMRAT for blended cement, i.e. PPC &
PSC, for all the units, KHAJURAHO (for the OPC product of Satna) and
CHETAK (for the OPC product of Chanderia).

The Division exports large quantities of cement to Nepal, under the brand
names of Birla Cement Samrat, Birla Cement Khajuraho and Birla
Cement. The special variety of Birla Cement SAMRAT, being produced by
the company, is ideal for mass concrete, RCC/pre-stressed/precast
structure (for reduced thermal crack), increased water tightness of
concrete, increased resistance to sulphate soils and aggressive water and
increased resistance to alkali aggregate reaction besides corrosion
resistant properties.

All our cement plants are ISO 9001:2000 Certificated, covering the
entire range of production and marketing. SCW & BVC have received the
IS/ISO 14001 certificate, an international recognition for "Implementation
of Environmental Management System". (SCW has been awarded
GREENTECH Safety Silver Award 2009 and GREENTECH Environment
Excellence Award 2008 by GREENTECH Foundation, New Delhi. It has also
received the First Prize for Maximum Reduction in KWH/ton of cement in
M.P. from FLS Energy Award, Bhopal, in 2008. The Satna units received the
Quality Circle Excellence Award from Quality Circle Forum of India,
Durgapur Chapter; Quality Circle Excellence Award and Quality Circle
Distinguish Award from Quality Circle Forum of India, Kanpur Chapter,
both in 2008, and Quality Circle Forum of India, Baroda. SCW has received
the National Award for Excellence in Water Management from CII,
Hyderabad and First Prize for Lowest Thermal Energy Consumption K.
Cal/kg clinker under the 10th FLS Energy Award 2007.

BVC has received the National Award for Excellence in Water Management
from CII, Hyderabad, National Award for Energy Efficiency in Indian
Cement Industry from NCCBM, New Delhi and Lowest Electrical Energy
Consumption K. cal/kg clinker under the 10th FLS Energy Award in 2007.
NCBM has given BVC the "Second Best Improvement in Electrical Energy
Performance" Award for 2006-07. SCW received the Best Energy
Conservation Implementation Gold Award from Rajiv Gandhi Memorial
National Award, Hyderabad, in 2004.

BCW & CCW have received the IS/ISO : 14001 Certification for
"Environmental Management System". BCW & CCW have bagged various
awards from the NPC & NCCBM. CCW has won the "Lai Bahadur Shastri
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Memorial National" award for "Excellent Pollution Control
Implementation" for 2001-02 by International Greenland Society. VEC,
Chennai, chose the Chanderia units for s stained implementation of
condition monitoring and continued Machine Health Improvement award
during 2001-02. The "Workers Education Trophy" was awarded by the
Central Board for Workers Education, Udaipur, Ministry of Labour,
Government of India, for excellent contribution and implementation of
workers training programmes during 1998-99 & again in 2001-02.
The laboratories of BCW & CCW have been accredited by NABL (National
Accreditation Board of Testing and Calibration Laboratories) as per
ISO/IEC 17025.

BCL has regularly been receiving CAPEXIL awards for cement exports since
the last more than 15 years.

Power Plants : The Cement Division has two high-ash coal-based captive
power plants at Satna (27 MW) and Chanderia (29.8 MW) each. The power
plant at Chanderia received the FIVE 'S' Workplace Management System
Certification from QCFI, Secunderabad.


Vindhyachal Steel Foundry
Vindhyachal Steel Foundry is a unit of BCL at Satna. It has access to the
latest technology and infrastructure to manufacture castings required by
cement plants as per national/international standards

Cement plant were set up in MP and Rajasthan and Grinding units in West
Bengal and UP.
Satna Cement Works - 1959
Birla Cement Works - 1967
Durgapur Cement Works - 1974
Birla Cement Works - 1982
Chittor Cement Works - 1986
SCW-Conversion Plant - 1989
Raebareli Unit - 1998
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HISTORY OF ORGANIZATION :-
Birla Corporation Limited a well known name in
the business world was established by late Shri Ghanshyam Das Birla in
the year 1919. He set up the first Indian owned jute mill near Calcutta and
named it Birla Jute Manufacturing Company Limited. The named of the
company was changed to Birla Jute I Industries Limited in 1983 and finally
to Birla Corporation Limited in 1998.
From G.D. Birla the unit passed on to his Nephew Late Shri M. P. Birla, who
with his entrepreneurial abilities and keen management mind expanded it
into an industrial empire with manifold diversification in various areas.
The company has seven divisions in six different states namely Rajasthan,
M.P. U.P. West Bengal, Maharashtra and Haryana.
The Company has following divisions -
1. Cement division
2. Jute division
3. Synthetics division
4. Carbides and Gases Division
5. Vinoleum division
6. Auto trim division

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Company Profile



Birla Corporation Limited is the
flagship Company of the M.P. Birla
Group. Incorporated as Birla Jute
Manufacturing Company Limited in
1919, it was Late Mr. Madhav Prasad
Birla who gave shape to it. As Chairman
of the Company, Mr. Madhav Prasad
Birla transformed it from a
manufacturer of jute goods to a leading
multi-product corporation with
widespread activities. Under the
Chairmanship of Mrs. Priyamvada
Birla, the Company crossed the Rs.
1300 - crore turnover mark and the
name was changed to Birla Corporation
Limited in 1998.




Mr. M P Birla
Mrs. Priyamvada
Birla



After the demise of Mrs. Priyamvada Birla, the Company
continued to consolidate in terms of profitability,
competitiveness and growth under the leadership of Mr.
Rajendra S. Lodha, late Chairman of the M.P. Birla
Group. Under his leadership, the Company posted its best
ever results in the years ended 31.3.2006, 31.3.2007 and
31.3.2008. The Company continued to record impressive
growth in 2008-09 and 2009-10. Mr. H. V. Lodha is now
Chairman of the Company. Birla Corporation Limited has
products ranging from cement to jute goods, PVC floor
covering, as well as auto trims (jute felt-based car
interiors).



Mr. Rajendra S
Lodha
(1942-2008)





10

Management - Board Of Directors



Mr. Harsh V. Lodha
Chairman

Mr. Harsh V Lodha, eminent Chartered Accountant, is on
the Boards of several reputed companies. He has served as
Chairman of Corporate Laws & Governance Committee
and Co-Chairman of Young Leaders Forum of FICCI
besides being Member of its Executive Committee. He has
also served as Member of the Accounting Standards Board
of the Institute of Chartered Accountants of India and
Member of the Working group on Corporate Governance,
set up by the Department of Company Affairs, Government
of India. He had been Vice-President of the Indian
Chamber of Commerce, Kolkata, and Chairman of its
Economic Affairs Committee, Banking and Finance and
Direct Tax Committees.




Mr. Pracheta Majumdar
Whole-time Director designated as Chief
Management Advisor

Mr Pracheta Majumdar, Whole-time Director designated
as Chief Management Advisor, is former Managing
Director of CEAT Tyres Limited. He has worked with
Hindustan Lever Limited for 12 years and has extensive
experience in the design and project management of
chemicals, petrochemicals and fertilizer plants.




Mr. Vikram Swarup

Mr Vikram Swarup, Mechanical Engineer and Managing
Director of Paharpur Cooling Towers Limited, is
acknowledged as an authority on thermal designing of
cooling towers in India. He has vast experience in
marketing, engineering and other management functions.
He is on the Boards of various companies also.




11

Mr. Anand Bordia

Mr Anand Bordia, M.A., held several senior positions in
the Central Government. He was First Secretary, Trade
High Commission of India, in London. He served the
Secretariat of the World Customs Organization, Brussels,
Belgium. He was also a Member of the Indian Revenue
Service and Member (Finance) of the National Highways
Authority of India. He has been consultant to the Asian
Development Bank. He has conducted several technical
assistance programmes on tariffs and trade matter,
border control and tax modernisation in Asia, Africa and
South American countries for the Harvard Institute for
International Development, UNCTAD, and the World
Customs Organization.




Mr. B B Tandon

Mr. B B Tandon, IAS, is former Election Commissioner of
India and was member of the Delimitation Commission. He
has served several Government offices in the capacity of
Secretary and Additional Secretary in the Union Ministries
of Personnel (under the direct charge of the Prime
Minister), Mines, Company Affairs, Finance, Industry and
Defence Production. Mr. Tandon headed the working
group on comprehensive revision of the Companies Act,
1956, which recommended several changes/amendments
in the said Act. He is also on the Boards of several reputed
companies.




Mr. D N Ghosh

Mr. D N Ghosh, former Chairman of the State Bank of India
and the Management Development Institute, Gurgaon, was
Founder-Chairman of the Indian Institute of Management,
Lucknow. Presently, he is the Chairman of ICRA Limited,
ICRA Management Consulting Services Limited and
Sundaram BNP Paribas Asset Management Company
Limited and is on the Board of the Housing Development
Finance Corporation Limited. He has served as Chairman


12

in several large companies, including Larsen & Toubro
Limited and Phillips (India) Limited. Mr. Ghosh also served
various Central and State Government departments in
various capacities such as Financial Advisor, Additional
Secretary and Secretary.

Mr Deepak Nayyar

Mr Deepak Nayyar, Professor of Economics at JNU at New
Delhi, is also distinguished University Professor of
Economics at the New School for Social Research, New
York. He is Honorary Fellow of the Balliol College, Oxford.
He has authored a number of books on a wide range of
subjects. He was on the Boards of several large companies,
including SBI, Exim Bank, Maruti Udyog and SAIL.




Mr. B R Nahar
Managing Director

Mr B R Nahar, Fellow Member of the Institute of Chartered
Accountants of India, possesses rich professional
experience of more than 33 years. He has served in diverse
fields, at senior positions, in various large corporate
houses. The prestigious Businessworld magazine has
identified him as one of Indias Most Valueable CEOs in
its issue dated 29 November 2010.






13

Plants :-
LOCATION OF PLANTS IN INDIA


State Town Units Capacity
Million.
Tons
Madhya
Pradesh
Satna Satna Cement Works / Birla
Vikas Cement
2.20
Rajasthan Chanderia Birla Cement Works / Chanderia
Cement Works / New Chanderia
Cement Works
4.00
West
Bengal
Durgapur Durgapur Cement Works / Durga
Hitech Cement
2.30
Uttar
Pradesh
Raebareli Raebareli Cement Works 0.80
Total 9.30
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Products



The Product and Brand names are as follows :-
Units Products BIS Specifications Brand names
Birla Cement
Works
Chanderia
Cement Works
Portland
Pozzolana Cement
(PPC)
Ordinary Portland
Cement (OPC) -
43 Gr, 53 Gr
IS 1489 (Part - I)
43 Gr - IS 8112
53 Gr - IS 12269
Birla Cement
Samrat
Birla Cement
Chetak
Satna Cement
Works
Birla Vikas
Cement
PPC
OPC (43 Gr.)
IS 1489 (Part - I)
IS 8112
Birla Cement
Samrat
Birla Cement
Khajuraho
Raebareli
Cement Works
PPC IS 1489 (Part - I) Birla Cement
Samrat
Durgapur
Cement Works
Portland Slag
Cement (PSC)
IS 455 Birla Cement
Birla
Premium
Cement
Durga Hitech
Cement
PPC IS 1489 (Part - I) Birla Cement
Samrat




Special Cements

Sulphate Resistant Cement IS 12330
Low-alkali Cement
Railway Sleeper Grade Cement IRS T-40 (OPC 53S)
Low Heat Cement IS 12600


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Company Vision and Mission


Vision :-


To be acknowledged as a leading player in the
industry with the highest level of integrity.



Mission :-


State of the art cement plants
Transparent dealings with all stakeholders
Committed to the principles of good corporate governance


16



QUALITY POLICY :-


Birla Corporation Limited, Chanderiya is committed to comply with the
requirements of customers to their entire satisfaction & continually
improve the effectiveness of Quality Management System by

1 Enhancing customer satisfaction by supplying consistent quality
cement.

2 Regular up gradation of technology, optimum utilization of resources
& upkeep of equipment for reducing costs.

3 Training & involvement of employees to develop quality culture in
the unit.

17

ORGANIZATION CHART :-
WHAT IS ORGANIZATIONAL STRUCTURE :-

The manner in which an organization divides its labour into specific
tasks and achieves coordination among these tasks.

HORIZONTAL DIVISION OF LABOUR groups the basic tasks to be
performed into jobs and then into departments so organizational
goals can be achieved.

BOARD OF
DIRECTORS
CEO
PRODUCTION
MANAGER
CHIEF ENGINEER
MAINTENANCE
MANAGER
WORK &
METHODS STUDY
MANAGER
QUALITY
CONTROL
MANAGER
PURCHASE
MANAGER
PERSONNEL
MANAGER
FINANCIAL
MANAGER
MARKETING
MANAGER
SALES MANAGER
MARKETING
RESEARCH
MANAGER
PRODUCT
PLANNING
MANAGER
ADVERTISING
MANAGER
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Chain of Command



19

Departmentation :-

It is the process of dividing the organization into manageable subunits.
The subunits are often referred to as departments, divisions, or sections.
By whatever name the units are called, the process is known as
departmentation.
The process through which an organizations activities are grouped
together and assigned to managers; the organization wide division of work.





CEO
PRODUCTION FINANCE MARKETING
ADVERTISEMENT SALES
MARKET
RESEARCH
PERSONNEL
20

DEPARTMENT DETAIL :-

Overview of Finance Department

As I was working in finance department in Birla Corporation Ltd. , so its
important to give a brief overview of what are the functions and workings of
this department. Mainly in manufacturing industry all departments are closely
integrated.

Functions and Responsibilities

Functions and responsibilities of the finance wing include the following:

1) Determine the financial resources required to meet the organizations
operating and capital expenditure program.
2) Forecast how much of fund requirement would be met by internal
mobilization of funds and how much has to be borrowed from outside.
3) Establish and maintain the system of financial control governing the
allocation and use of funds on daily basis.
4) Analysis of financial results of all the operations and making
recommendation concerning future operations.
5) Carry out special studies with a view to reduce cost and improve
efficiency and profitability.
6) Carry internal audits and also maintain financial records of the company.







21



Cash Management Product


Necessity of CMP
Previously, the cement was sold through our depot network at various
locations situated in MP, UP, Bihar, Jharkhand, Uttaranchal & West
Bengal.
Against above sales, funds were collected in the form of Cheque/
Demand Draft and the same were presented at various branches of SBI at
depot locations by our representatives.
Funds deposited at depot banks were remitted to our Cash Credit bank
account with SBI, Satna.


Traditional Methods of Funds Transfer
Telegraphic Transfer
Electronic Transfer


AGENCIES INVOLVED
Funds Remitting Branch
Post Office (In case of TT)
Funds Receiving Branch



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SHORTCOMINGS OF TRADITIONAL METHODS
Blockage of Funds at remitting branch/ in transit
Requirement of opening of account at collection centre
Comparatively higher cost
MIS support not available for Internal Control & Funds Planning
No value date credit is allowed in case of delay (In case of TT)

Introduction
Cash Management Product is the service provided by SBI for
collection/payment keeping following targets:
Speedier movement of funds for reducing transit float to the minimum
Competitive Cost
MIS Support for Internal Control & Proper Fund Planning
Interest Cost reduction on borrowings

STATE BANK OF INDIA provides cash management services to Corporate
Clients under the brand name SBI FAST ( Funds Available in Shortest
Time). SBI FAST eliminates the inherent delays of the traditional funds
transfer mechanism and enhances liquidity to ensure optimum planning and
utilization of funds.

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Major Activities :-
As I was working in finance department in Birla Corporation Ltd. , so its
important to give a brief overview of what are the functions and workings of
this department. Mainly in manufacturing industry all departments are closely
integrated.
DATE AMOUNT PLUS MINUS TOTAL INTEREST
01-Jun-13 36590290.45
02-Jun-13 25098016.45
03-Jun-13 -3384254.01 10000.00 -3394254.01 -925.2829425
04-Jun-13 -6178260.08 10000.00 -6168260.08 -1681.484597
05-Jun-13 9509478.91
06-Jun-13 -6600580.15 121915.35 -6722495.5 -1832.570691
07-Jun-13 4268408.35 121915.35 4390323.7
08-Jun-13 4224730.67 4224730.67 1151.673155
09-Jun-13 -2564432.33 -2564432.33 -699.071279
10-Jun-13 -16220702.63 12283.00 -16232985.63 -4425.156357
11-Jun-13 -2542375.64 12283.00 1461000.00 -3991092.64 -1087.982788
12-Jun-13 185401.03 1461000.00 215000.00 1431401.03
13-Jun-13 -5210182.85 215000.00 9832.00 -5005014.85 -1364.38076
14-Jun-13 11813432.69 9832.00 11823264.69
15-Jun-13 -26848307.72 -26848307.72 -7318.922241
16-Jun-13 -30070616.33 -30,070,616.33 -8197.332397
17-Jun-13 23094693.7 1165000 21929693.7
18-Jun-13 -5390902.72 1165000 218000.00 -4443902.72 -1211.420057
19-Jun-13 8214773.44 218000.00 1063000 7369773.44
20-Jun-13 -7947937.56 1063000 53,000.00 -6,937,937.56 -1891.300787
21-Jun-13 -6252270.1 53,000.00 258000 -6,457,270.10 -1760.26952
22-Jun-13 14442952.63 258000 14700952.63
23-Jun-13 7561612.63
24-Jun-13 -2706385.18 130000 -2836385.18 -773.206371
25-Jun-13 2006591.71 130000 100000 2036591.71
26-Jun-13 3254270.76 100000 3354270.76
27-Jun-13 -1379565.9 -1379565.9 -376.073444
28-Jun-13 19291646.06 73,109.00 19,218,537.06
29-Jun-13 4602971.91 73,109.00 100000 4,576,080.91
30-Jun-13 -4238609.09 -4238609.09 -1155.456451

-
33548.2375

24

What is cement and how is it made?
Cement is a soft powdery-type substance. It is made from a mixture of
element found in nature material such a limestone, clay and/or shale when
cement mix with water it can bind sand and gravel into a hard solid mass called
concrete.
Four essential elements are needed to make cement they are silicon,
aluminum, iron, and calcium (which is the main ingredient) can be obtained
from limestone, sand/clay.
For making cement mainly four Raw materials are required:-
1) Limestone
2) Gypsum
3) Laterite / Blue Dust
4) Fly Ash
Limestone is obtained by blasting in mines. In mines there are several layers of
soil, hard rocks, etc. After 5-6 layers company gets limestone in the form of big
rocks. By blasting these big rocks of limestone be get limestone in smaller form
which are easier to transport. Now through conveyer belt these limestone are
moved to plant. These limestone breaks up into smallest part by grinder. Now
this grinded lime stone transfer to kiln. The temperature of kiln approximately
1400C. in kiln limestone and other raw materials like Gypsum, Laterite and Fly
Ash were mixed with each other. The high temperature of kiln melts all the raw
materials. After kiln all these materials take a round shape which is generally
known as Clinker. Clinker is a semi-finished product of company. After
grinding these clinkers we get final cement which is used for domestic as well
as construction purpose.
25

Cement product is very fine one kilo (2.2ibs) contains over 300 billion gram we
havent actually counted them to see if that is completely accurate the powder
will pass through a slave capable of holding water.
Applications:-
Suitable for all types of construction like building, roads, bridges, culverts
and cement base products.
Mass concrete work like dam, machine foundation work.
Concrete works in environment involving chemicals in soil and water.
Sewage and effluent treatment plant.
All kinds of marine works, like jetty etc.
Types of Cement:-
Prism cement ltd manufactured two types of cement-
1. PPC
2. OPC
PPC (Portland Pozzolona Cement) with the brand name Champion is
general-purpose cement popular for all applications during house construction
by individuals. It is finely ground blend of high quality clinker and carefully
selected high quality Pozzolona material(Fly Ash) with high fineness an
optimum range of chemical composition.
OPC (Ordinary Portland Cement) is made in three grades i.e. 33 Grade, 43
Grade, and 53 Grade cement. Prism Cements OPC is in demand for specialized
cement concrete applications like high-rise buildings, bridges, manufacturing
AC sheets, pipes, poles etc.


26

43 Grade:-
Features:-
Achieve more than the specified strength as per the relevant IS code
through proper adjustment in the chemical composition.
High quality limestone deposit result in:
- Higher strength of cement.
- Moderate sulphate resisting properties.
- Lower level of chloride concentration
Efficient quality control and high level of process parameter results in
reduced free lime, low insoluble residue and loss on ignition.
Applications:-
Optimally higher strength of cement makes it suitable for:
All General and semi specialized construction works like plain and
reinforced cement concrete works, brick and stone masonry, plastering
and flooring.
Manufacturing of concrete pipes, blocks, tiles and poles.
Suitable for applications like pre-cast, pre stressed and slipform
construction work.
Also suitable for all types of specialized concrete repair works like
gunniting etc.





27

Grade 53:-
Features:-
Higher strength than 43 Grade is achieved through further improvement
in the raw meal chemical composition and also grinding finer than 43
Grade cement.
High quality limestone deposit result in
- Higher strength of cement.
- Moderate sulphate resisting properties.
- Lower level of chloride concentration.
Efficient quality control and high level of process parameter results in
reduced free lime, low insoluble residue and loss on ignition.
Optimally higher fineness results in early strength improvement.
Closed circuit cement grinding system using high efficiency separator
controls the particle size distribution resulting proper hydration character.
Applications:-
High strength of cement makes it suitable for:
Making high grade concrete with proper mix design.
Early form works removal due to high early strength development result
in quicker construction.
Optimally higher fineness gives better cohesiveness, improved
workability resulting denser concrete and superior surface finish.
Economical usage of cement due to high strength through proper concrete
mix design.
All type of plain and R.C.C., semi and specialized construction work, like
bridges, culverts, slipform work, pre-stressed pipe / poles etc.
Also suitable for all types of specialized concrete repair work like
gunniting etc.

28



29

TYPE OF PROJECT :-

WORKING CAPITAL - Meaning of Working Capital
Capital required for a business can be classified under two main categories
via,
1) Fixed Capital
2) Working Capital
Every business needs funds for two purposes for its establishment and to
carry out its day- to-day operations. Long terms funds are required to create
production facilities through purchase of fixed assets such as p&m, land,
building, furniture, etc. Investments in these assets represent that part of firms
capital which is blocked on permanent or fixed basis and is called fixed capital.
Funds are also needed for short-term purposes for the purchase of raw material,
payment of wages and other day to- day expenses etc.
These funds are known as working capital. In simple words, working
capital refers to that part of the firms capital which is required for financing
short- term or current assets such as cash, marketable securities, debtors &
inventories. Funds, thus, invested in current assts keep revolving fast and are
being constantly converted in to cash and this cash flows out again in exchange
for other current assets. Hence, it is also known as revolving or circulating
capital or short term capital.
Working capital means the part of the total assets of the business
that change from one form to another form in the ordinary course of
business operations.
30

Concept of working capital:-

The word working capital is made of two words 1.Working and 2. Capital
The word working means day to day operation of the business, whereas the
word capital means monetary value of all assets of the business.

Working capital : -

Working capital may be regarded as the life blood of business. Working
capital is of major importance to internal and external analysis because of
its close relationship with the current day-to-day operations of a business.
Every business needs funds for two purposes.

* Long term funds are required to create production facilities through
purchase of fixed assets such as plants, machineries, lands, buildings & etc

* Short term funds are required for the purchase of raw materials, payment
of wages, and other day-to-day expenses.
. It is other wise known as revolving or circulating capital
It is nothing but the difference between current assets and current
liabilities. i.e.

Working Capital = Current Asset Current Liability.
Businesses use capital for construction, renovation, furniture, software,
equipment, or machinery. It is also commonly used to purchase inventory,
or to make payroll. Capital is also used often by businesses to put a down
payment down on a piece of commercial real estate. Working capital is
essential for any business to succeed. It is becoming increasingly important
to have access to more working capital when we need it.

31


Concept of working capital

Gross Working Capital = Total of Current Asset
Net Working Capital = Excess of Current Asset over Current
Liability


Current Assets Current Liabilities
Cash in hand / at
bank
Bills Receivable
Sundry Debtors
Short term loans
Investors/ stock
Temporary
investment
Prepaid expenses
Accrued incomes
Bills Payable
Sundry Creditors
Outstanding expenses
Accrued expenses
Bank Over draft








32

Working capital in terms of five components:

1. Cash and equivalents: - This most liquid form of working capital
requires constant supervision. A good cash budgeting and forecasting
system provides answers to key questions such as: Is the cash level
adequate to meet current expenses as they come due? What is the timing
relationship between cash inflow and outflow? When will peak cash needs
occur? When and how much bank borrowing will be needed to meet any
cash shortfalls? When will repayment be expected and will the cash flow
cover it?

2. Accounts receivable: - Many businesses extend credit to their
customers. If you do, is the amount of accounts receivable reasonable
relative to sales? How rapidly are receivables being collected? Which
customers are slow to pay and what should be done about them?

3. Inventory: - Inventory is often as much as 50 percent of a firm's current
assets, so naturally it requires continual scrutiny. Is the inventory level
reasonable compared with sales and the nature of
your business? What's the rate of inventory turnover compared with other
companies in your type of business?

4. Accounts payable:- Financing by suppliers is common in small business;
it is one of the major sources of funds for entrepreneurs. Is the amount of
money owed suppliers reasonable relative to what you purchase? What is
your firm's payment policy doing to enhance or detract from your credit
rating?

5. Accrued expenses and taxes payable: - These are obligations of your
company at any given time and represent a future outflow of cash.

33

Two different concepts of working capital are:-

Balance sheet or Traditional concept
Operating cycle concept.

Balance sheet or Traditional concept:- It shows the position of the firm
at certain point of time. It is calculated in the basis of balance sheet
prepared at a specific date. In this method there are two type of working
capital:-
Gross working capital
Net working capital

Gross working capital:- It refers to the firms investment in current assets.
The sum of the current assets is the working capital of the business. The sum
of the current assets is a quantitative aspect of working capital. Which
emphasizes more on quantity than its quality, but it fails to reveal the true
financial position of the firm because every increase in current liabilities will
decrease the gross working capital.

Net working capital:- It is the difference between current assets and current
liabilities or the excess of total current assets over total current liabilities.






34

Working capital= current assets - current liabilities.

Net working capital: - It is also can defined as that part of a firms current
assets which is financed with long term funds. It may be either positive or
negative. When the current assets exceed the current liability, the working
capital is positive and vice versa.

Operating cycle concept:- The duration or time required to complete the
sequence of events right from purchase of raw material for cash to the
realization of sales in cash is called the operating cycle or working capital
cycle.




RAW MATERIAL
WORK IN PROGRESS
FINISH GOODS SALES
DEBTORS & BILLS
RECEIVABLES
CASH
OPERATING CYCLE
35

Types of Working Capital:-













TYPES OF
WORKING
CAPITAL
ON THE BASIS
OF B/S CONCEPT
GROSS
WORKING
CAPITAL
NET WORKING
CAPITAL
ON THE BASIS
OF TIME
REGULAR
WORKING
CAPITAL
TEMPORARY
WORKING
CAPITAL
SEASONAL
WORKING
CAPITAL
SPECIFIC
WORKING
CAPITAL
36

SIGNIFICANCE OF WORKING CAPITAL:-


Factors requiring consideration while estimating working capital.
The average credit period expected to be allowed by suppliers.
Total costs incurred on material, wages.
The length of time for which raw material are to remain in stores
before they are issued for production.
The length of the production cycle (or) work in process.
The length of sales cycle during which finished goods are to be kept
waiting for sales.
The average period of credit allowed to customers
The amount of cash required to make adance payment

SIGNIFICAN-
-CE OF
WORKING
CAPITAL
PAYMENT
TO
SUPPLIERS
DIVIDEND
DISTRIBUTI-
ON
INCREASE
DEBT
CAPACITY
INCREASE
IN FIX
ASSETS
INCREASE
EFFECIENC-
Y
EASY LOAN
FROM
BANKS
37

Statement showing change in working capital for BCL:-
( Rs.in lacs)
Particulars 11-12 10-11 Increase ( + ) Decrease (- )
Current Assets
Inventories 20044.82 14258.83 5785.99
Sund. Debtors 3171.25 2722.47 448.78
Cash & Bank 3135.65 3439.42 303.77
Loan & Advances 47311.27 30525.34 16785.93
Total ( A ) 73662.99 50946.06

Current
Liabilities

C.L. 30109.32 24092.95 6016.37
Provisions 35306.92 19215.28 16091.64
Total ( B ) 65416.24 43308.23

( A-B ) 8246.75 7637.83 23020.70 22411.78
in working
capital
608.92 608.92
Total 8246.75 8246.83 23020.70 23020.70


38

Statement showing change in working capital for BCL:
( Rs.in lacks)
Particulars 11-12 10-11 Increase ( + ) Decrease ( - )
Current Assets
Inventories 14258.83 10572.33 3686.5
Sund. Debtors 2722.47 2248.22 474.25
Cash & Bank 3439.42 5922.59 2483.17
Other C.A. ----------- 28.38 28.38
Loan & Adv. 30525.34 12442.01 18083.33
Total ( A ) 50946.06 31213.53

Current
Liabilities

C.L. 24092.95 25753.21 1660.26
Provisions 19215.28 4489.21 14726.07
Total ( B ) 43308.23 302242.42

( A-B ) 7637.83 971.11 23904.34 17237.62
in working
capital
6666.72 6666.72
Total 7637.83 23904.34
39

CALCULATION OF WORKING CAPITAL FOR BIRLA CORPORATION
LIMITED
(Rs.in lacks)

YEAR 31.03.11 31.03.12

CURRENT ASSETS
INVENTORIES 10572.33 14258.83
20044.82
SUNDRY DEBTORS 2248.22 2722.47
3171.25
CASH AND BANK 5922.59 3439.42
3135.65
OTHER CURRENT ASSETS 28.38 ---
---
LOANS & ADVANCES 12442.01 30525.34
47311.27
-------------- --------------
---------------
TOTAL CURRENT ASSESTS 31213.53 50946.06
73662.99
-------------- -------------- ---------------





40

CURRENT LIABILITIES AND PROVISIONS

CURRENT LIABILITIES 25753.21 24092.95
30109.32
PROVISION 4489.21 19215.28
35306.92
-------------- --------------
--------------
TOTAL CURRENT LIABILITIES 30242.42 43308.23
65416.24
---------------- ----------------
---------------

NET CURRENT ASSETS 971.11 7637.83
8246.75

0
2000
4000
6000
8000
10000
2010 2011 2012
A
M
O
U
N
T
(
I
N

L
A
C
K
S
)

YEAR
NET WORKING CAPITAL
41

Internal; Departmental Coordination

DIFFERENTIATION Differences in goals, time spans and
interpersonal styles between departments
INTEGRATION The process of attaining coordination across
differentiated departments.
PAPER WORK Memos
MEETINGS
LIAISON ROLE A person is assigned to help achieve
coordination between his or her department and another
department.
TASK FORCES AND TEAMS Groups set up to solve
coordination problems across several departments.


42



Departmental Coordination



43

Major Findings :-

Statement Showing Difference from Previous Year
(amt. in lacks)

Particulars 10-11 11-12

Investments 24476.15
by 140%
21392.64
by 51%
Inventories 3686.5
by 35%
5785.99
by 40%
Sundry Debtors 474.25
by 21%
448.78
by 16%
Cash & Bank -2483.17
by 42%
-303.77
by 9%
Current Liabilities -1660.26
by 6.44%
6016.37
by 25%
General reserve 17500
by 233%
10000
by 40%


44


1. BCLs NPAT is increasing day by day from last three years and the
growth is remarkable.

2. BCL has shown that it is very strong competitor in cement sector of
India.

3. Cement can be said as true fruitful business for BCL from last many
years.

4. Overall all ratios of the company are good and company need to work
with more efficiency.

5. The additional capacity of cement production at Durgapur will create
new milestones for the BCL.

6. Lack of advertisement can be said as weak point of the BCL.

7. BCLs investment policies are very much reliable.

8. Position of the stock is increasing per year that is good sign to face
the competition coming ahead.

9. Highest ever net profit of Rs. 393.57 crores

10. Highest ever dividend pay out of Rs. 36.04 crores

45


CONCLUSION:-

The overall performance of Birla Corporation Limited is getting on a good
track.The total turnover of the company has registered a growth of 11.27%
where as the operating profits for the year were higher by 18.03% mainly
on the accounts of increase in the volume or blended cement in the overall
cement sales, higher realization and effective cost control measures taken
by the company. The profit before tax was up by 19.37% at Rs. 551.18
crores at against Rs. 461.74 crores in the previous year. The cash earning of
the company improved substantially to Rs. 501.39 crores as against
Rs.179.25 crores in the last financial year. With the increase in capacity on
account of expansion projects being undertaken by the company, it is
expected that the company would be in a position to maintain the growth
in future years.

Company has parked its surplus fund in the various debt schemes of
mutual fund. There is an increase of 140% in investment from the previous
year. Company is cash rich but as there are expansion and diversification
plans under the pipeline, company is not utilizing these funds. For meeting
the working capital needs and capacity expansion needs it has borrowed
from banks.

The recent boom in the housing, construction and retail sector in India
coupled with continued thrust of the Government on infrastructure
projects is expected to sustain healthy growth of cement demand. During
the year 2007-08, Indian cement industry has registered a growth of 9.34%
in terms of cement production. Almost all the major players in the industry
including Birla Corporation Ltd have announced substantial increase in
capacity and the possibility of oversupply situation cannot be ruled out.

46


During the year company has embarked upon expansion projects at Satna
and Chanderia which would effectively enhance the cement capacity by 1.7
million tones. With the capacitive power plants already in operation and
expansion projects under implementation, it is expected that the cement
division of the company will do well in the foreseeable future.

The concern about the cement industry is that it is one of the most taxed
industries in the country where the government levies and taxes, taken
together, constitute over 70% of the ex-factory price. On the top of the
above the increase in the cost of coal, railway freight and transportation
charge have further added worries of cement manufactures.

47


BIBLIOGRAPHY :-



www.birlacorporation.com

Annual Reports of BCL 10-11,11-12

www.birlacement.com

Finance department of BCL

www.google.com


48








Annexure