Description
The part of an organization that manages its money. The business functions of a finance department typically include planning, organizing, auditing, accounting for and controlling its company's finances. The finance department also usually produces the company's financial statements.
CASE STUDIES IN FINANANCE DEPARTMENT ON HCL/MCP
INDEX
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Chapter 1 2 3 4 5 6 7 8 9 10
Description Executive Summary Introduction Company Profile Objectives Research Methodology Activities Analyzing Status of Share Conclusion Suggestion
Page no 6 12 16 38 40 43 52 75 80 83
11 12
Advantages & Limitation 86 Bibliography 89
EXECUTIVE SUMMARY
(1) Copper has been known to man since 4000 BC and its popular alloys i.e.Bronze and Brass have been known since 3000 BC and 1000 BC respectively. The usage of copper increased substantially with the industrial revolution in 18 th century. Copper and its alloys are widely being construction, transportation etc. Its conductivity, resistance to used today in electrical & electronics industry, properties of high electrical and
thermal
corrosion, ductility and malleability, lack of
magnetism makes it a versatile metal.
(2) Copper deposit exists as sulphide, carbonates or silicates and sulphide ores account for approx. 40-50% of the world copper reserves. Peru, Chile, Papua New Guinea, Indonesia, Philippines have large quantities of sulphide ores which have small copper content (0.3-2% range),Zambia and Zaire have copper deposits with higher copper content (2- 6% range). The reserves of copper in the world are estimated at 525 million tonne in terms of metal content.
(3) The first copper smelter was set up at Ghatsila (Bihar) in 1928. An electrolytic refinery for cathodes and wire bar plant was commissione at Ghatsila in 1965. Flash smelter based on Outokumpu Flash smelting technology was set up in 1971. The first continuous cast rod unit was established in the country during 1984.
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(4) Hindustan Copper Ltd (HCL) was set up in 1967 for production of primary copper in the public sector. Presently HCL is the sole producer of copper in India and has following four units : Khetri Copper Complex, Rajasthan (31,000 TPA of Blister Copper, has the following operations such as Ore mining, Beneficiation, Smelting, Electrolytic refining etc; Indian Copper Complex, Ghatsila, Bihar (16,500 TPA of Blister Copper) has same operations as in Khetri and has a precious metal recovery plant (Gold, Silver, Selenium etc); Malanjkhand Copper Project, M.P. (2 million TPA mining and beneficiation) has operations of ore mining and beneficiation. The concentrate is sent for further processing to KCC and ICC and excess quantity is sent abroad for toll smelting; Taloja Copper Project, Maharastra (60,000 TPA) has C.C. rod facility.
(5) The production of copper ore in India has remained stagnant over the years i.e. 51.36 lakh tonne in 1987-88 and 51.13 lakh tonne during 1992-93. This is because of low level of ore deposit establishment. The present ore deposits are estimated at 734 million tonne (with 9.4 million tonne of copper metal). Nearly 90% of the copper reserves are concentrated in the states of Bihar, Madhya Pradesh and Rajasthan.
(6) During the year 1992-93 production of copper concentrates, blister copper and refined copper by HCL was as follow :Concentrate : 52.53 lakh tonne Blister Copper : 48006 tonne Refined Copper : 45275 tonne The capacity utilization at HCL plants was high about 98% in mining sector and 100% in metallurgical sector during 1992-93.
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(7) The demand of copper in India during 1992-93 was of the order of 1.8 lakh TPA which is expected to increase at a rate of 5-6% per annum. In order to meet the requirement, copper was imported to the tune of 70% of the requirement. With a number of smelters being planned & executed in the private sector as well at Malanjkhand by HCL, it isestimated that the imports could be reduced to a level of 35-40% by the year 1999-2000.
(8) The dereservation of non-ferrous industry by the Government of India has opened doors to the private sector. Sterlite Industries (India) Ltd is implementing a 60,000 TPA Capacity (Cu Cathode) project with an estimated cost of Rs 700 crore. The technology has been provided by MIM Holdings, Australia and the input material would be copper concentrates which would be imported.
(9) The plants of HCL to produce primary copper are based on technology of Outokumpu, Finland who are known world wide and have installed about 30 plants world over. The process is based on semi-autogenous smelting of copper concentrates in flash smelter followed by conversion in PS converter, Fire refining, electrorefining etc. The initial agreement (xviii) period is over and a new agreement has been executed effective from April, 1992 towards modernisation & expansion of KCC plant.
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(10)The process of manufacture of primary copper at HCL's plants is summarized below:Copper ore containing about 1% copper are reduced from 150 mm size to 25 mm size in cone crushers. The crushed ore is grinded in rod & ball mills to 74 micron size. The ore is further refined through Froth Flotation process comprising of rougher cells and second stage cell where xanthates and pine oil are used as reagents. Copper comes in the froth and slurry containing about 15% copper, is thickened in rake type thickner from a level of 30% solid content to 60% solid content. The thickened slurry is treated in vacuum disc filters to remove water and powder concentrate so obtained has 12% moisture. The moisture content in the concentrate is further reduced to a level of 0.2% in rotary air dryer. Concentrate along with preheated air enriched in oxygen is fed to the Flash Smelter where separate layers of molten material are formed i.e. Matte (rich in copper contains 43-50% Cu) and slag (4-5% copper). Gases rich in sulphur dioxide are formed in the smelter which are utilised to produce sulphuric acid. Matte is further refined in PS converter to obtain blister copper (99% purity) and fire refined in Anode furnace and casted in Anode Casting wheel to obtain 99.4% pure copper anodes. The Anodes are electro-chemically refined to obtain copper cathodes of 99.99% purity. Precious metals
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i.e. Gold, Silver, Tellurium, Selenium etc. are recovered by refining of Anode slime obtained from electrolytic refinery.
(11) Malanjkhand Copper project of HCL, Madhya Pradesh has the largest open cast mine of capacity 2 million TPA with a matching concentrator capacity. The plant incorporates State-of-the-art equipments & techniques i.e. hydraulic excavators of large bucket capacities (10-12 cu.m) drill masters capable of larger diameter hole drilling (200 mm), computerized instream analysers and large capacity & energy efficient rougher floatation cells (120 cu.ft) etc.
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INTRODUCTION
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INTRODUCTION
Hindustan copper ltd was incorporated on 9-Nov-1967. It was the only vertically Integrated multi-unit copper producer in India , engaged in a wide spectrum Of activities
Hindustan Copper Limited the premier copper producer for he last 37 years, Has made its landmark in the history of copper mining ,smelting and refining
In India . H.C.L operation in short include mining, crushing and grinding of Ore to produce concentrate, which is then smelted and electro refined to Produce copper cathodes ,wire bars and continous cast copper wire rods.
These operation involve highly Mechanized Mining Technology. In
1967
H.C.L
established itself as an "A" grade company with four producing unit ,one each in Rajasthan, Jharkhand, Madhaya Pradesh, Maharastra and a series of commercial office all over India .
These units are:Khetri copper complex [Rajasthan] Indian copper complex [Jharkhand] Malanjkhand Copper Project [Madhya Pradesh] Taloja Copper Project [Maharastra]
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Opportunities and Threats
In India, there is under-capacity at the mining stage as compared to domestic copper demand. HCL is the only fully integrated copper producing company in the country having its own copper mines. Therefore, the Company has ample opportunity to augment its mining capacity by inceasing production from the existing mines and by developing new mines and thereby improving the bottomline. The present market scenario offers ample opportunity to being in value added niche products into HCL's portfolio, such as 'oxygen free copper', besides developing niche markets for existing products.The export market in Asian region presents a strong opportunity for refined copper producer like HCL.The threat perception for the company includes great volatility of world copper prices and increasing cost of inputs, particularly power and fuel due to global
inflationary trends. Further, HCL may also witness threat to its existing market share onaccount of intense competition from imports and domestic manufacturers of refined copper. The gradual but inevitable lowering of import duty on cathode / wire rod will impact sales realization.
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Business Scenario
During the year, the demand for copper in the global market has been growing steadily. Demand growth in Asian countries, particularly China & India is driving the LME copper prices in the global market and the trend is expected to continue in the near future. Growth of copper usage in the country is projected to be about 6% this year, exceeding the world average of about 3-4%. In 2005-06, the total refined copper usage in the country was around 420,000 MT; in the coming years, this is expected to rise to about 600,000 MT which argues well for the Company.
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COMPANY PROFILE
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ABOUT MALANJKHAND COPPER PROJECT,(H.C.L)
INTRODUCTION Malanjkhand Copper Project (MCP) is the single largest Copper deposit of India with nearly 50% of Country's Copper reserves and contributes to around 70% of HCL's total Copper production. It is located in Central India at an altitude of 575 MRL and is connected by roads to the nearest broad gauge Railway station at Gondia and Durg which are located at 130 and 150 Kms away from MCP respectively. Airports located nearby are at Jabalpur (M.P), Raipur (Chhattisgarh) and Nagpur (Maharashtra).
The Project consists of an open pit mine having initial rated production capacity of 2.0 million Tonnes copper ore per annum with matching Concentrator plant, Tailing disposal system and other auxiliary facilities. The minerable ore reserves with the Open Pit Mine have been estimated at 60 million tonnes, averaging a grade of 1.2% Cu. at 0.45% cut-off.Malanjkhand copper project which is under (H.C.L), i.e Hindustan copper limited. Malanjkhand copper project is fall in the tahsil of Baihar ,which is 22 k.m away from the project. Government sanction for the Project was obtained in June 1977 and stripping operation started in August 1979, after the first shovel was commissioned and haul roads and shovel faces constructed. The mine at full production capacity will remove 11.5 million tones of overburden and waste rock, to recover 2 million tones of chalcopyrite ore of average grade 1.2 cu per annum. A total of 22.6 Km of diamond drilling in 91 bore holes has been carried out till September 1978 to explore ore reserves upto a depth 376 MRL
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The detailed project report was prepared by Russian Consultants in 1976, and the mine design work was done by M/S RTZC In 1978. Construction of mine concentration plant and other facilities started in 1978 and regular production started in 1982, as per schedule. With the liberalization of Indian economy, the supportive measures like canalization of copper import, administrative pricing policy restricting the investment in copper Mining to public sector were disponeed with along this , the import duty was progressively and drastically reduced and copper was placed under general license. Copper prices in India linked with the prices of London Metal Exchange (L.M.E) Were bulk of non furious metal is traded could not sustain the fluctions of L.M.E Prices which in turn depend several factor like its world wide production, consumption, its inventory and were houses. H.C.L was making profit till 1996 even after the arrival economic liberalization but it could not survive the sudden, crashing Of international prices in spite of its best physical performance or the last five years a drastic drop in the L.M.E prices of copper and custom duty had presented a firm. In the past liberalisation era, H.C.L came free to face with some of the unforeseen challenges which forced H.C.L to evolve a turn around strategy for surviving the shift competition in the International market. of
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19
[Malanjkhand Copper Project]
Present Operation Open Pit Mines Concentrator Infrastructure Facility
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PRESENT OPERATION
Hindustan Copper Limited have constructed an Open pit mine to produce 2.0 million tones of copper ore annually.
A concentrator Plant of manufacturing capacity and other infrastructure facilities such as power and Water supply, rearing facility, tailing disposal etc.
Open Pit Mine
Open pit mines is designed to produce 64 million tones of ores 1.2% at an overall strip ratio of 1:4. The ultimate pit design to provide for Deepings the pit up to 376 MRL i.e around 200m from surface.
Total length of the pit - 2200m Total width of the pit - 600 meter
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THE CONCENTRATOR
The concentrator plant has been designed to treat 2 millions tones of copper ore annually. The plant consists of the following section.
Crushing section Grinding section Flotation Thickeing & filtration Tailing disposal and water recirculation
The basic design of the plant was done atmeggha be institute Leningrad based on the pilot-plant studies conducted at National Metallurgical labrotory and Jamsedpur and also Mekhnastore institute.
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INFRASTURCTURE FACILITIES
Malanjkhand Copper Project has infrastructure facility as under:
(1) Repairing Facility: Facility like Mechanical maintenance, electrical maintenance, civil maintenance are existing in Malanjkhand CopperProject.
(2) Power supply System: There is 132kv main receiving sub-station which has two 20/26 MVA, 132/11 kv transformers step down sub-stations have been constructed suiting to requirement of various equipment and utilities.
(3) Water supply system: Water from concentrator plant as well as protactable for the project and township is drawn from Banjar River.
(4)
Residential Township: With shopping complex's to cater to almost all house hold requirement and clubs, play grounds parks for recreation.
(5) Health and Medical facility.
(6) Education facility.
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FINANCE DEPARTMENT
These are the various section under financial Department in M.C.P. The structure of finance sections are as under.
The Structure of Finance Sectionsss
FINANCE DEPARTMENTS
ESTABLISHMENT SECTION
SALARY SECTION
MIS SECTION
STOTREESSECCITOIN ON S ORS SE T
SUPSPLPILEERS SSEETIONON UP I RS C CTI
CONTRACT/WORK SECTION
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ESTABLISHMENT SECTION
In establishment section nature of job is dealing with all types of receipts and payments.
Receipts
(1) Outside agencies are depositing cash towards the cost of tender document (2) House rent if allotted (3) Electricity if allotted (4) Excess payment if made
Employees Receipts
Deposited by cash as Travel allowance and dearness allowance.
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Payments
(1). Payment to irrigation department (2). Electricity payment (3). Commercial rate (4). Water supply payment (5).Royalty (6).Office and administration (7).Property tax to Municipal council of Mahugaon.
Employees Payments
(1) Medical advance (2) Travel allowances (3) L.T.C advance (4) Advance some company work(impress advance) and all types of adjustments
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Payments to outside agencies(contractor)
Property tax to Municipal council of Mahangaon Approx 5000000/month
Royalty 6000000 paid to collector of Balaghat Electricity paid by the company 2.5corore 10 lakhs for water supply
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SALARY SECTION
Number of employees of MCP & their scale of pay
Technical :Level T-1 T-2 T-3 T-4 T-5 T-6 Revised scale of pay 4000-80-5600 4200-90-6000 4400-100-6400 4600-110-6800 4800-125-7300 5000-140-7800
T-7 T-8 T-9 T-10
5300-155-8400 5600-170-9000 6000-185-9700 6400-200-11200
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CLERICAL:Level C-1 C-2 C-3 C-4 C-5 C-6 Revised scale of pay 4000-80-5600 4200-90-6000 4800-110-6600 5500-155-8400 5600-170-9000 6000-185-9700
EXECUTIVE:Level E-0 E-1 E-2 E-3 E-4 E-5 E-6 E-7 E-8 E-9 Revised scale of pay 6550-200-11350 8600-250-14600 10750-300-16750 13000-350-18250 14500-350-18700 17500-400-22300 18500-450-23900 18500-450-23900 20500-500-26500 23750-600-28500
SALARY Salary leave
Three types of leave (1) Earn leave (18days) (2)Seek leave 12days (3)Casual leave 12 days
Earn leave 33 days for executive
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SUPPLIER SECTION
Nature of job:
Passing Suppliers.
t he
bi lls
of
suppliers
of
material
by various
Passing of bills of repairs and maintance against various work order.
(1) Purchase order (2) Work order
(1) User department shall give the indent requirement of material to purchase department.
(2) Then purchase department shall float the enquiry to the Registered supplier for submitting quotations after with a submitted time.
(3) Received the quotation from various parties all the quotation shall be open by the tender comity by the complaint authority
(4) After receiving it comparative statement prepared by purchase department of all the quotation and submit the files to the finance concerance.
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After receiving the financial concerance for Placement of order purchase department will issued the purchase order to the suppliers with all term the condition.
(1) Payment term
(2) Quantity
(3) Specification
(4) Security deposited specially
Security Deposit: In the from of draft In the form of bank guarantee.
10% of the w.o or p.o for performance of material
* If the particular has not achieved the penalty should be recovered from the amount security deposit.
* After receiving and acceptance of the purchase order
* The order will be cleared by various competitive authorities according to their powers.
After receiving and acceptance of the purchase order the supplier will start the supply of the material either by his own transport or by authorized
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STORE SECTION
Nature of job:-
Store section received the Receipt voucher on the issue vouche on the basis of these issue statements and receipts statements is prepared for maintain the statement following procedure must be followed.
(1) raised the indent (concerned department)
(2) Material department (float the enquiry tender enquiry to all department.
(3) then make party quotation.
(4) Material department made a (comparative statement)
(5) The send purchase order to the supplier section. . (6) Daily receipt Register maintain all records.
(7) Receipts voucher made.
(8) Bin card.
(9) Store section received it then they will send it to system department. System department after checking it. Send again to store section (PSL) price Store ledger maintain.
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WORK / CONTRACTS
Nature of job: Pass the tender proposal and the estimate were made. i.e NIT - Notice inventory tender LIE - Limited tender enquiry OTE- Open tender Comparative statement according to
SR - Delhi schedule of rates CPWD - Central public worries depth Mine development Press tender Work order passed Bills also passed E.M.D earnest money deposit 10% security deposit of contract amount Secured advance - [fixed items only] Mobilized items [to mobilized the work]
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Management Information System
MIS [section]
According to various: receipts voucher Payment voucher Issue voucher
MIS Section prepared the journal voucher all the daily records are recorded in it
Debit and credit entries passed in it and balance amount in last A y o f t he m ont h.
According to the journal voucher *trail balance *and ledger prepared *costing
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Trial Balance
The trail balance include
.. All receipt and expenditure .. Debtors and Creditors .. Assets and liabilities are recorded
With The help of trial balance final accounts are prepared i.e. In the shape of balance sheet and profit & loss A/C.
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COST SHEET in making of cost sheet the following items should be included .
(1) Summarized production and cost data (2) Ore (3) Over burden removal (4) Excavation (5) Milling (6) Concentrate (7) Consumptions of major material (8) Calculation of input cost in conc. (9) Amortizations Calculation
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DISTRUBUTION OF COST SHEET The cost sheet of the organization should be distributed to the following staffs:
(1) TA to CMD (2) D (f), HO (3) DGM (tec), HO (4) Advisor Finance (5) AGM (finance)/KCC (6) GM/MCP (7) Office copy
The cost sheet is prepared at the end of every month.
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OBJECTIVES
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OBJECTIVES
As a student of M.B.A previous it is a great honour for me to complete my summer training on H.C.L. We are mainly considering the Department of finance in H.C.L, under (M.C.P), Malanjkhand Copper Project.
Main Motive Of This Training
(1) To increase our knowledge in depth.
(2) To convert our bookish knowledge into practical knowledge.
(3) To increase our efficiency to deal with the people who are very experienced and knowledgeable.
(4) The data which we have collected from Malanjkhand Copper Project is for our purpose of acquiring the knowledge not for any other purpose.
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RESEARCH METHODOLOGY
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RESEARCH METHODOLOGY
The purpose of research is conducted when there are few or no earlier studies to which references can be made for information. The aim is to look for patterns, ideas or hypotheses rather than testing or confirming a hypotheses. In research the focus is on gaining insights and familiarity with the subject area for more rigorous investigation later. In an undergraduate dissertation it is likely that you will drawing on previous studies and so pure exploratory research is not generally appropriate for studies at this level-it is more appropriate for postgraduate research. However, it ispossible that you may carry out an initial survey to establish areas of concerns and then research these issues in more depth . Research is also an academic activity and as such the term should be used in technical sense. According to Clifford research comprises defining and redefining problems ,formulating suggested solution; collecting, organizing and evaluating data; making deductions and reaching conclusion; and at last carefully testing the conclusion to determine whether they fit the formulating hypothesis. The research programmed is focused on the causal relationship between the finance department & their development. It will also try to identify a core of financial services that are necessary for poverty reducing growth and their institutional structures that have been more successful in providing them.
In the period of my summer project I collect the information, Datas, ideas through various sources and each of these sources are very useful & very helpful for me for completing my summer project in HCL (Malanjkhand Copper Project).
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The various types of sources are as follows.
*. My discussion with senior and experienced persons working in Malanjkhand Copper Project.
*. Discussion with other friends and colleagues, and other workers of the organization.
*. The research on past data, information available in the organization.
*. Web-sites of HCL is very useful for collecting the information.
*. Various types of files, notes, books that were provided and referred by the manager of Malanjkhand Copper Project.
*. By see the working pattern of the worker help me for collecting the information regarding the work
*. The library of Malanjkhand Copper Project provide knowledge and ideas.
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VARIOUS TYPES OF ACTIVITIVES DONE UNDER MCP
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Basis of Preparation of Accounts :
1.The accounts have been prepared to comply in all material aspects with applicable accounting principles in India, mandatory Accounting Standards issued by the Institute of Chartered Accountants of India consistently being followed and the relevant provisions of the Companies Act, 1956. The Financial Statements have been prepared under the historical cost convention on an accrual basis in a going concern concept.
2. Financial statements have been prepared based on in-house technical estimates in respect of the following : - Allocation of service shaft expenses, underground mining expenditure between revenue and capital. - Metal content in raw materials, WIP and finished goods. Credit of anode scrap generation in refinery plant. - Mineable ore reserves in underground mines. - Stripping ratio in open cast mines.
BALANCE SHEET : 3. Fixed Assets :
3.1 Fixed assets are recorded at cost net of CENVAT and VAT credit wherever applicable less accumulated depreciation and impairment loss,if any.
3.2 Pending reconciliation/receipt of the final bills against capital items, capitalization is done on the basis of cost booked and depreciation is charged accordingly. Price differences, if any, are adjusted in the year of finalization of bills.
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3.3 In respect of expenditure during construction of a new unit in a new location, all direct capital expenditure as well as all indirect expenditure incidental to construction are capitalized allocating to various items of fixed assets on an appropriate basis. Expansion programme involving
construction concurrently run with normal production activities in an existing unit, all direct capital expenditure in relation to such expansion are capitalized but indirect expenditure are charged to revenue.
3.4 Project expenses incurred for implementation of new projects are carried forward against respective project till execution. Project expenses rendered infructuous or abandoned are charged to the Profit & Loss Account.
3.5 Physical verification of fixed assets is carried out once in every five years.
4. Depreciation : Depreciation on fixed assets is provided on straight line method at the rates prescribed in Schedule XIV to the Companies Act, 1956. Depreciation on assets acquired prior to
01.04.93 is charged on derived rates by allocating the unamortized value over the remaining life arrived at on the basis of rates prescribed under the Schedule XIV to the Companies Act,1956. Depreciation in respect of plant & machinery and building of new project is charged from the date of commercial production.
Impairment of Assets :
An asset is treated as impaired when the carrying cost of assets exceeds its recoverable value. An impairment loss is charged to the Profit and Loss Account in the year in which
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an asset is identified as impaired. The impairment loss recognized in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.
7. Mine Development Expenditure :
7.1 In case of underground mines : The expenditure on development of a new mine in all cases and on subsequent development of a working mine in specified cases is capitalized and amortized on the basis of ore raised during the year and the mineable ore reserves estimated from time to time. The ore obtained during development activity is adjusted against such expenditure at its derived realizable value.
7.2 In case of working mines, where development activities are going on simultaneously : Expenses are apportioned between capital or revenue on the basis of sinhouse technical estimates.
7.3 In respect of open cast mines : The expenditure on removal of waste and overburden, is capitalized and the same is amortized in relation to actual ore production during the year and the stripping ratio of the mine as determined by the company at the weighted average rate.
7.4 Expenditure incurred on exploration of new deposits is included in mine development expenditure. If the exploration activities are found to be not fruitful, the expenditure on such exploratory work included in mine development expenditure is written off in the year in which it is decided to abandon the project.
8. Major Overhauling Expenses : The expenditure attributable to major overhaul of smelter/refinery is charged to the Accounts in the year of incurrence.
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9. Inventories : 9.1 Stocks of raw materials, stores and spare parts, loose tools and materials in-transit are valued at cost. Loose tools when issued are charged off to revenue.
9.2 Finished goods and work-in-process are valued at the lower of the net realizable value and weighted average cost to the unit. The cost is exclusive of financing cost, such as, interest, bank charges etc. The value of slag under work in process is taken at equivalent value to the extent credited to the process, where the said products have been generated. The reverts under work- in-process are valued at lower of cost (equivalent value of concentrates) and net realizable value. Subsidy on fertilizers is not considered for the purpose of fertilizer stock valuation.
9.3 The stock of anode slime arising from treatment and refining processes are valued at realizable value based on the year end London Metal Exchange price for gold and silver after making due adjustments of their physical recovery and the treatment and refining charges.
9.4. Liability for excise duty on finished goods in stock lying at works or warehouses, is provided for in the accounts and also considered in stock valuation.
9.5 The inventories out of inter-unit transfers at the close of the year are valued on the basis of cost or net realizable value whichever is lower to the transferor unit. No adjustment is made in respect of difference between the cost and transfer price for such transferred products in case of partly processed materials lying at various stages of production and finished stocks at the end of the year, since this is not practically ascertainable.
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9.6 Imported materials are valued at weighted average cost at a provisional price pending finalization of invoice price and customs duty. Variations are accounted for in the year of finalization.
9.7 Once in every three years provision is made in the accounts for non-moving stores and spares (other than insurance spares) which have not moved for more than five years.
9.8 Scraps are accounted for on realization.
PROFIT AND LOSS ACCOUNT :
10. Sales : Sales are net of discounts other than cash discounts.
11. 1. Other Income 11.1 1.1 Claims :
Claims on account of liquidated damages and insurance are accounted for as and when these are deducted and/or considered recoverable by the company.
11.2 1.2 Conversion charges : Income from conversion of job work is accounted for on the basis of dispatches made .
11.3 1.3 Interest on L/C bills : Interest up to the date of Balance Sheet on all outstanding bills is accounted for on accrual basis.
12. Retirement Benefit 12.1 Gratuity and Leave encashment :
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Gratuity and leave encashment liability on retirement are provided based on actuarial valuation.
12.2 Deficit in Provident Fund : Deficit, if any, on account of Provident Fund Trust is accounted for on the basis of accrued liability, as ascertainable on the basis of last accounts closed by the Provident Fund Trust.
13. Borrowing cost : Interest/finance cost on loans specifically borrowed for new and expansion projects up to the start of commercial production is charged to the capital cost of the projects concerned. All other borrowing cost are charged to revenue.
14. ACCOUNTING FOR TAXES ON INCOME : Income Tax Expense comprises current tax and deferred tax charge. Deferred Tax is recognized on timing differences, being the difference between Taxable Income and Accounting Income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred Tax Assets are recognized only if there is virtual certainty that sufficient future taxable income will be available against which Deferred Tax Assets will be realized. Such balances of Deferred Tax Assets are reviewed as at each Balance Sheet Date to reassess the realisability thereof.
15. General : 15.1 For Foreign Currency Transactions ransactions : Transactions in foreign currencies are recognized at the rates existing at transaction time at which the transaction is settled. Year-end balances of receivables/payables are translated at applicable forward contract/year-end rates and resultant translation differences relating to fixed assets are adjusted against fixed assets and the balance is recognized in the Profit and Loss Account.
15.2 Recognition of Contingent Liability :
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A contingent liability is recognized when as a result of past events there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources and are disclosed by way of Notes.
15.3 Events occurring after the Balance Sheet Date :
Assets and Liabilities are adjusted for events occurring after the Balance Sheet that provide additional evidences to assist the estimation of accounts relating to conditions existing at the Balance Sheet Date.
15.4 Prior Period & Extra Ordinary Items : (i)The nature and amount of prior period items (ii) extra-ordinary items are separately disclosed in the statement of Profit & Loss in a manner that their impact on the current Profit & Loss can be perceived.
15.5 Research and Development Expenditure : Expenditure on research and development is charged off to Profit & Loss account in the year it is incurred. Expenditure on fixed assets in this regard is capitalized.
15.6 Mine Closure Expenditure : Financial implications towards final mine closure plans under relevant Acts and Rules are technically estimated and the involvement, not being material, are charged off on actual incurrence.
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16. Voluntary Retirement Expenses :
16.1 Paid out of own fund : In respect of Voluntary Retirement expenditure incurred by the company out of own funds is charged off to revenue over a period of 60 months.
16.2 Paid out of Government Grant : Voluntary Retirement Expenditure is charged to the Profit & Loss Account on receipt of Grants from the Government of India with corresponding credits to the Profit & Loss Account.
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ANALYSIS OF FINANCIAL REPORTS & COST SHEET
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Financial Report of H.C.L of last 10 years
10 Year At A Glance(Rs. In Lakhs) 20052006 (12 months) 1 20042005 (12 months) 2 20032004 (12 months) 3 20022003 (12 months) 4 20012002 (12 months) 5 19992001 (18 months) 6 19981999 (12 months) 7 19971998 (18 months) 8 19961997 (12 months) 9 19951996 (12 months) 10
FOR THE YEAR
Turnover Profit/(Loss) Depreciation a nd Amortisation Net Profit/(Loss) Value Added Value of production
105376 16425 5837
55911 11173 5575
51887 289 5905
50568
60498
94558
47949 120348 (1725) 8848
98024 111802 (7677) 5384 13099 5515
(8999) (12592) (10626) (11276) 5771 5812 9019 5925
10588 43102 104837
5598 35042 63124
(5616) (14770) (18404) (19644) 22901 53443 14737 50153 15309 33591
17201 16724
10573 28946
13062 21937
7584 41359
58666 100166
51347 118022 100529 118627
AT THE YEAR END
Share Capital Internal Resources Long-term loans Cash credit from banks Capital expenditure gross Working Capital Capital employed Manpower
94895
94895
90895
79511
71011
54361 (49) 64332 12270
53661 19097 37236 8416
52511 33896 11527 11960
33820 42018 17456 12322
33820 53305 17456 10709 97772
(11057) (29884) (35030) (31039) (16945) 18750 481 97789 22275 11823 96771 27562 7611 29182 13949 29182 12204
99431 100559 102477 106076 106621 105082 101630
6278 24747 5583
3394 23455 5665
(102) 21528 5995
(2595) 20389 7865
751 24929 9502
1798 28306 12043
649 29871 15271
8635 40368 18234
14440 45978 19884
24529 57081 20108
53
Quarterly Performance Report 0f Hindustan Copper Ltd.
First Quarter (Apr 2007 to Jun 2007) Particulars (Lakh Rs.) Q1 (2007-08) Q1 (2006-07) Change %
Gross Sales & Operating Revenue Other Income Total Expenditure PBDIT Interest Depreciation Profit before Tax Provision for Tax Net Profit Earning Per Share(Rs.)
43,325.27 1,717.73 34,649.53 10,393.47 922.36 459.25 9,011.86 1,467.00 7,544.86 0.98
38,035.34 113.20 32,818.30 5,330.23 774.58 464.34 4,091.31 7.50 4,083.81 0.56
13.91 1417.43 5.58 94.99 19.08 -1.1 120.27 19460 84.75 75
Second Quarter (July 2006 to Sept 2006) Particulars (Lakh Rs.) Q2 (2006-07) Q2 (2005-06) Change %
Gross Sales & Operating Revenue Other Income Total Expenditure PBDIT Interest Depreciation Profit before Tax Provision for Tax
36,618.51 628.64 -9,231.02 10,568.72 883.82 317.52 9,367.38 7.50
22,568.99 208.04 18,270.67 4,506.36 919.92 478.41 3,108.03 0
62.25 202.17 -150.52 134.53 -3.92 -33.63 201.39 -
54
Net Profit Earning Per Share(Rs.)
9,359.88 1.29
3,108.03 0.43
201.15 200
Third Quarter (Oct 2006 to Dec 2006) Particulars (Lakh Rs.) Q3 (2006-07) Q3 (2005-06) Change %
Gross Sales & Operating Revenue Other Income Total Expenditure PBDIT Interest Depreciation Profit before Tax Provision for Tax Net Profit Earning Per Share(Rs.)
55,189.06 332.44 41,184.28 14,337.22 706.86 462.53 13,167.83 7.50 13,160.33 1.71
30,170.23 116.98 22,392.63 4,026.51 840.52 486.41 2,699.58 6.70 2,692.88 0.37
82.93 184.19 83.92 256.07 -15.9 -4.91 387.77 11.94 388.71 362.16
Fourth Quarter (Jan 2007 to Mar 2007) Particulars (Lakh Rs.) Q4 (2006-07) Q4 (2005-06) Change %
Gross Sales & Operating Revenue Other Income Total Expenditure PBDIT Interest Depreciation Profit before Tax Provision for Tax Net Profit Earning Per Share(Rs.)
50,213.21 1,275.64 43,180.63 8,307.22 992.40 466.35 6,848.47 2,109.52 4,738.95 0.62
38,413.25 358.42 34,033.41 4,738.26 784.10 484.35 3,469.81 6.22 3,463.59 0.48
30.72 255.91 26.88 75.32 26.57 -3.72 97.37 33815.11 36.82 29.17
55
Sales Report of H.C.L:Sales Revanue
2007) Item Description Q1 (2007-08) Q1 (2006-07) Change %
Copper Cathode Copper CC Rods Copper Sulphate Copper wire-bar Gold Nickel Plladium Selenium Silver Sulphuric Acid
2,975.01 39,781.17 36.85 0 0 0 0 0 257.97 0
804.74 32,362.83 41.20 2,048.90 646.53 0 0 92.41 213.44 187.35
269.69 22.92 -10.56
-
20.86
Second Quarter (July 2006 to Sept 2006) Item Description Q2 (2006-07) Q2 (2005-06) Change %
Copper Cathode Copper CC Rods Copper Sulphate Copper wire-bar Gold Nickel Plladium Selenium Silver
1,234.52 34,102.28 56.74 0 857.14 0 0 43.57 216.88
1,900.75 20,777.76 35.37 250.53 0 4.21 0 67.18 17.38
-35.05 64.13 60.42
-
-35.14 1147.87
56
Sulphuric Acid
82.95
171.81
-51.72
Third Quarter (Oct 2006 to Dec 2006) Item Description Q3 (2006-07) Q3 (2005-06) Change %
Copper Cathode Copper CC Rods Copper Sulphate Copper wire-bar Gold Nickel Plladium Selenium Silver Sulphuric Acid
3,210.19 39,959.09 43.17 0 0 0 0 0.60 0 175.44
1,986.00 26,606.80 23.21 992.86 0 0 0 101.46 106.61 361.67
61.64 50.18 86
-99.41
-51.49
Fourth Quarter (Jan 2007 to Mar 2007) Item Description Q4 (2006-07) Q4 (2005-06) Change %
Copper Cathode Copper CC Rods Copper Sulphate Copper wire-bar Gold Nickel Plladium Selenium Silver Sulphuric Acid
2,604.79 44,211.05 66.64 0 0 0 0 0 0 287.06
1,042.25 35,645.05 48.67 1,272.80 393.56 0 0 0 235.32 241.37
149.92 24.03 36.92
-
57
COST SHEET
In making of cost sheet there are types of cost included Like variable expenses, fixed expenses lets know about These types of expenses.
Variable cost:-
Variable cost is the aggregate of direct material, direct labour and direct expenses and variable overheads (i.e prime cost + variable overheads), variable cost in total is termed as a 'Marginal Cost' it is deduct from sales and contribution is ascertained. "Variable cost is in operating expenses, or a group of operating expenses that vary directly and in proportion to the level of activity, viz. sales or production. Examples are materials consumed, direct labour, power, sales, commission, utilities, freight, packaging etc. ICMA, India
58
Fixed Cost :-
Fixed cost means total of all fixed overheads. But it is important to note that in India,where * Most of the labour force is on daily wages. * Most of labour costs consists of Dearness allowance(DA) * 'Reternchment' & 'Lay-off' is not possible in the ordinary course of business. Labors cost is also sometimes treated as fixed and included in fixed cost. Treatment of the fixed cost in marginal costing is very peculiar 'Fixed Cost' are also as 'time cost', 'period Cost', 'capacity cost', 'stand-by-cost', or 'constant cost'. Fixed Costs are not concerned with the output level. They are rather period costs. During the given period, they are required to be incurred irrespective of the fact, whether the output is produced or not. Therefore fixed cost are written-off to a marginal cost profit & loss account. They are not included in cost of good sold, neither in closing stock. At the end of the period, contribution (i.e difference between sales & marginal cost) is credited to marginal costing profit & loss account to which fixed cost are debited. The contribution first recopes fixed cost and then earns profit. It fixed cost is more than contribution, then there is a loss.
59
There are various types of activity will be done under costing department of HCL (Malanjkhand Copper Project) let us see with the help of cost sheet of Malanjkhand copper project up to the month of March 2007.
SUMMARISED PRODUCTION & COST DATA
A.PRODUCTION DATA UNIT for march 2007 up to march 2007 _______________________________________________________________
1. Deptt. Excavation 2 .Deptt. OB Removal 3. Deptt ore prod+Reclamed Ore 4. Deptt Ore Grade 5. Deptt MIO+MIO Reclamed or 6. Cont. Excavation 7. Deptt OB Removval 8. Deptt. Ore Production 9. Deptt Ore Grade 10 Deptt. Metal in Ore 11.Ore Milling 12.Grade of Ore 13.Metal in Ore Milled 14.Concentrates (25%Gr.) 15.Metal in Conc. 16.Rate of Recovery M3 M3 MT % MT M3 M3 MT % MT MT % MT MT MT % 230000.000 158509.294 192310.000 1.058 2035.640 746000.000 66557.993 21633.000 0.704 152.375 211284.000 1.096 2257.823 8460.708 2115.177 93.682 2510000.000 1820685.874 1854255.000 1.016 18842.221 1272346. 000 1109396.929 438333.000 1.081 4739.986 2154691.000 1.035 22305.789 83854.036 20963.509 93.982
60
B.
COST DATA
Unit
for march 07
upto march 07
I.DEPARTMENTAL: 01.Ore production 02.Ore pro.with intt.&HO Exp 03. Metal in Ore 04.Overburden Removal 05.Excavation 06.-do-with intt.& HO Exp. 07.Ore Milling 08.-do-with intt.& HO Exp 09.Concenrates(25% Gr.) 10.-do-with intt,HOExp. & Transportation 11.Metal in conc. 12.-do-with intt,Ho Exp. & Transportation II.CONTRACTUAL 01. Ore Production 02. Metal in ore 03. Excavation/OB Removal 04. Excavation/OB Removal (with blasting) Rs/MT Rs/MT Rs/M3 Rs/M3 375.24 53273.74 185.00 203.54 427.03 39489.54 185.00 204.48 Rs/MT Rs/MT Rs/MT Rs/M3 Rs/M3 Rs/M3 Rs/MT Rs/MT Rs/MT Rs/MT Rs/MT Rs/MT 444.19 471.22 44538.94 297.10 297.10 319.70 279.29 303.89 20709.82 24543.13 73220.77 86773.67 437.59 471.87 46436.63 279. 66 279.66 304.99 271.41 300.91 19374.95 23191.63 73074.69 87469.71
61
Cost sheet Sub Centre :- ORE
Particulars For Mar 07 Upto Mar 07 -----------------------------------------------------------------------------------------------------------------Ore prod.+ Reclaimed from OB(MT) 192310.00 1854255.00 Grade (%) 1.06 1.02 MIO + Reclaimed from OB (MT) 2034.64 18842.22 -----------------------------------------------------------------------------------------------------------Cont.Ore Production (MT) 21633.00 438333.00 Grade(%) 0.70 1.08 Metal in Ore 152.38 4739.99 Value Cost Value Cost (Rs lacs) (Rs/T) (Rs lacs) (Rs/T) ---------------------------------------------------------------------------------------------------------------------
A .VARIABLE COST
OPERATING MATARIALS -Explosives Drills Bits Detonators Others-tyre & tubes Other Diesel -Other Lubricants Others SUB TOTAL 13.26 0.15 0.00 19.56 37.64 5.29 0.42 76.31 6.89 0.08 0.00 10.17 19.57 2.75 0.22 39.68 131.33 1.34 0.00 141.30 331.00 47.12 7.34 659.43 7.08 0.07 0.00 7.62 17.85 2.54 0.40 35.56
STORES SPARES (1/3) POWER INCENTIVES BONUS COMPRESSED AIR ROYALITY AMORTISATION OTHERS
3.47 12.90 4.15 1.07 6.33 185.69 456.13 2.23
1.80 6.71 2.16 0.56 3.29 96.56 237.19 1.16
19.77 98.46 68.61 11.20 62.34 1864.97 4344.73 20.75
1.07 5.31 3.70 0.60 3.36 100.58 234.31 1.12
----------------------------------------------------------------------------------------------------------------Total variable cost 748.28 389.10 7150.26 385.61
62
Value
Cost
Value
Cost
(Rs/lacs) (RS/T) (Rs/lacs) (Rs/T) ----------------------------------------------------------------------------------------------------------------------
B.DIRECT FIXED COST
SALARIES & WAGES -operations -repairs & mantaince 7.80 10.33 4.06 5.37 75.81 100.30 4.09 5.41
SUB TOTAL 18.13 9.43 176. 11 9.50 SPARES (2/3) 25.80 13.42 196.93 10.62 CONTRACTUAL REPAIRS 20.28 10.54 114.89 6.20 CENTRAL SERVICES -salary & wages 3.66 1.90 35.52 1.92 power 0.53 0.27 6.10 0.33 stores & repairs 2.33 1.21 28.26 1.52 others 0.00 0.00 0.00 0.00 SUB TOTAL 6.51 3.39 69.88 3.77 MINES SERVICES -salary & wages 5.75 2.99 55.86 3.01 -power 0.00 0.00 0.00 0.00 -stores 0.61 0.32 53.07 2.86 -others 0.00 0.00 0.00 0.00 SUB TOTAL 6.36 3.31 108.93 5.87 GENRAL OVERHEADS -salary & wages 9.12 4.74 87.10 4.7 power 0.28 0.14 3.63 0.2 stores & spares 0.96 0.50 10.78 0.58 -others 0.78 0.40 8.14 0.44 SUB TOTAL 11. 14 5.79 109.66 5.9 SOCIAL OVERHEADS -salary 1.92 1.00 20.10 1.08 -power 2.71 1.41 29.77 1.61 -stores & spares 0.96 0.50 10.78 0.58 -others 0.78 0.40 8.14 0.44 SUB TOTAL 6. 37 3.31 68.80 3.71 DEPERCATION 11.33 5.89 118.66 6.40 ---------------------------------------------------------------------------------------------------------------------Total fixed cost (B) 105. 94 55.09 963.85 51.98 ----------------------------------------------------------------------------------------------------------------------
63
(Rs/lacs) (Rs/T) (Rs/lacs) (Rs/T)----------------------------------------------------------------------------------------------------------------------
C.ALLOCATED FIXED COST
HO EXPENSES 29.93 15.56 333.88 18.01 INTREST IN C/C & OTHERS 7.64 3.97 82.43 4.45 INTREST ON BONDS(old) 0.00 0.00 0.00 0.00 INTREST ON BONDS(new) 12.12 6.30 133.83 7.22 INTREST ON ICICI DEBENTURE 2.31 1.20 53.58 2.89 INTREST ON GOVT LOAN 0.00 0.00 0.00 0.00 ---------------------------------------------------------------------------------------------------------------------Total allocated fixed cost(C) 51. 99 27.03 635.58 34.28 ---------------------------------------------------------------------------------------------------------------------Total cost (A+B+C) 906.21 471.22 8749.69 471.87 ----------------------------------------------------------------------------------------------------------------------
64
SUB CENTRE :- OVER BURDEN
Particulars Dept.over burden Removed(M3)
for March 07 158509.29
upto March 07 1829037. 92
Cont.over burden Removed(M3) 66557.99 1109396. 93 ----------------------------------------------------------------------------------------------------------------Value Cost Value Cost (Rs/lacs) (Rs/T) (Rs/lacs) (Rs/T)
------------------------------------------------------------------------------------------------A.VARIBLE COST
OPERATING MATARIALS -explosives 29.39 18.54 352. 74 19.29 -drill bits 0.33 0.21 3.59 0.20 detonators 0.00 0.00 0.00 0.00 -others-tyre & tubes 43.38 27.37 379.54 20.75 -other-diesel 83.44 52.64 889.05 48.61 -others-lubricants 11.72 7.40 126.57 6.92 -others 0.94 0.59 19.71 1.08 SUB TOTAL 169.20 106.75 1771.20 96.84 STORES 7.69 4.85 53.09 2.90 SPARES (1/3) 28.60 18.04 264.47 14.46 POWER 9.20 5.80 184.29 10.08 INCENTIVES BONOUS 2.37 1.50 30.09 1.65 COMPRESSED AIR 14.03 8.85 167.44 9.15 ROYALTY 0.00 0.00 0.00 0.00 AMORTISATION 0.00 0.00 0.00 0.00 OTHERS 4.95 3.13 55.73 3.05 ----------------------------------------------------------------------------------------------------------------Total variable cost 236.05 148.92 2526.31 138.12 -----------------------------------------------------------------------------------------------------------------
B.DIRECT FIXED COST
SALARIES & WAGES -operations repairs & maintance SUB TOTAL SPARES(2/3) CONTRACTUAL REPAIRS CENTRAL SERVICES 17.30 22.91 40. 21 57.20 44.96 10.92 14.45 25.37 36.09 28.37 203.62 269.40 473.02 528.94 308.59 11.13 14.73 25.86 28.92 16.87
65
-salary & wages power stores & spares others SUB TOTAL MINES SERVICES -salary & wages power stores & spares others SUB TOTAL GENERAL OVERHEADS -salary & wages -power stores & spares
8.11 1.17 5.16 0.00 14.44 12.76 0.00 1.35 0.00 14.11 20.22 0.62 2.14
5.12 0.74 3.26 0.00 9.11 8.05 0.00 0.85 0.00 8.90 12.76 0.39 1.35
95.40 16.39 75.91 0.00 187.70 150.03 0.00 142.54 0.00 292.57 233.95 9.76 28. 96
5.22 0.90 4.15 0.00 10.26 8.20 0.00 7.79 0.00 16.00 12.79 0.53 1.58
-others 1.72 1.09 21.86 1.20 SUB TOTAL 14.13 8.92 184.79 10.10 DEPRECIATION 25.12 15.85 318.70 17.42 ----------------------------------------------------------------------------------------------------------------Total Fixed Cost (B) 234.88 148.18 2588.86 141.54 -----------------------------------------------------------------------------------------------------------------
C. Allocated Fixed Costs
HO EXPENSES INTREST ON C/C & OTHERS 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
----------------------------------------------------------------------------------------------------------------Total allocated fixed cost (c) 0.00 0.00 0.00 0.00 ----------------------------------------------------------------------------------------------------------------Total cost (A+B+C) 470.93 297.10 5115.17 279.66 ----------------------------------------------------------------------------------------------------------------Cont with blasting exp. 135.47 203.54 2268.47 204.48
66
SUB SECTION;- EXCAVATION
-------------------------------------------------------------------------------------------Particulars for March 07 up to March 07
Dept.Excavation (M3) 230000.00 2510000.00
Cont.Excavation(M3) 74600.00 1272346.00 ------------------------------------------------------------------------------------------------------------Value Cost Valu e Cost (Rs/lacs) (Rs/M3) (Rs/lacs) (Rs/M3)
-------------------------------------------------------------------------------------------A.VARIABLE COST
OPERATING MATARIALS -explosives 42.65 18.54 484.07 19.29 drill bits 0.48 0.21 4.93 0.20 detonators 0.00 0.00 0. 00 0.00 others ;tyres &tubes 62. 94 27.37 520.84 20.75 other -Diesel 121.08 52.64 1220.05 48.61 other -lubricants 17.01 7.40 173.69 6.92 others 1.36 0.59 27.05 1.08 SUB TOTAL 245. 52 106.75 2430.63 96.84 STORES 11.16 4.85 72.86 2.90 SPARES(1/3) 41.50 18.04 362.94 14.46 POWER 13.35 5.80 252.90 10.08 INCENIVES BONUS 3.44 1.50 41.29 1.65 CONT.DRILLING 20.35 8.85 229.78 9.15 ROYALTY 0.00 0.00 0.00 0.00 AMORTISATION 0.00 0.00 0.00 0.00 WATER 7.19 3.13 76.48 3.05 ---------------------------------------------------------------------------------------------------------------Total variable Cost(A) 342.51 148.92 3466.87 138..12 --------------------------------------------------------------------------------------------------------------B.DIRECT FIXED COST. SALARIES & WAGES -operation 25.10 10.92 279.43 11.13 Repairs & Maintenance 33.24 14.45 369.70 14.73 SUB TOTAL 58.34 25.37 649.13 25.86
SPARES(2/3) CONTRACTUAL REPAIRS
83.00 65.24
36.09 28.37
423.48 423.48
16.87 16.87
67
--------------------------------------------------------------------------------------------------------------Value Cost Value Cost (Rs/lacs) (Rs/M3) (Rs/lacs) (Rs/M3) --------------------------------------------------------------------------------------------------------------CENTRAL SERVICES -salary & wages 11.77 5.12 130.92 5.22 -power 1. 69 0.74 22.49 0.90 stores & spares 7.49 3.26 104.17 4.15 -others 0.00 0.00 0.00 0.00 SUB TOTAL 20.96 9.11 257.58 10.26 MINES SERVICES -salary & wages 18.51 8.05 205.89 8.20 -power 0.00 0.00 0.00 -stores & spares 1.96 0.85 195.61 7.79 others 0. 00 0. 00 0.00 0.00 SUB TOTAL 20.47 8.90 401.50 16.00 GENRAL OVERHEADS -salary & wages 29.35 12.76 321.05 12.79 -power 0.90 0.39 13.40 0.53 stores & spares 3.10 1.35 39.74 1.58 others 2. 50 1.09 30.00 1.20 SUB TOTAL 35.84 15.58 404.19 16.10 SOCIAL OVERHEADS -salary & wages 6.18 2.68 74.10 2.95 power 8.73 3.80 109.75 4.37 stores & spares 3.10 1.35 39.74 1.58 others 20.51 8.92 253.59 10.10 SUB TOTAL 20.51 8.92 253.59 10.10 DEPRECATION 36.45 15.85 437.36 17.42 --------------------------------------------------------------------------------------------------------------total fixed cost (B) 340.82 148.18 3552.71 141.54 --------------------------------------------------------------------------------------------------------------Value Cost Value Cost (Rs/lacs) (Rs/M3) (Rs/lacs) (Rs/M3) --------------------------------------------------------------------------------------------------------------C.ALLOCATED FIXED COST HO EXPENCES 29.93 13.01 333.88 13.30 INTREST ON C/C & OTHERS 7.64 3. 32 82.43 3.28 INTREST ON BONDS(old) 0.00 0.00 31.86 3. 28 INTREST ON BONDS (new) 12.12 5.27 133.83 5.33 INTREST ON ICICI DEB. 2.31 1.00 53.58 2.13 INTREST N GOVT .LOAN 0.00 0.00 0.00 0.00 68
--------------------------------------------------------------------------------------------------------------total allocated fixed cost (C) 51.99 22.60 635.58 25.32 --------------------------------------------------------------------------------------------------------------total cost (A+B+C) 51.99 22.60 635.58 25.32 --------------------------------------------------------------------------------------------------------------cont with blasting exp. 151.84 203.54 2601.66 204.48
]
69
SUB CENTRE :-
MILLING
MILL ING
Particulars Ore Milled Metal Grade (%) Metal in ore(MT) Recovery (%) Metal in Concentrate
For March 07 211284.00 1.07 2257.82 93.68 2115.18 Value (Rs/lacs) Cost (Rs/T)
Up to March 07 2154691.00 1.04 22305.79 93.98 20963.51 Value (Rs/lacs) Cost (Rs/T)
A.INPUT MATARIAL COST
OWN ORE 958.66 453.73 9470. 95 439.55 IUT ORE 0.00 0.00 0.00 0.00 -----------------------------------------------------------------------------------------------------------------------TOTAL INPUT MATARIAL COST (A) 958.66 453.73 9470.95 439.55 -----------------------------------------------------------------------------------------------------------------------OPERATING MATARIALS -grinding media 129.33 61.21 1275.30 59.19 pine oil 3.89 1.84 44.44 2.06 xanthate 0.67 0.32 6.62 0.31 lime 2.32 1.10 26.85 1.25 others 7.00 3.31 30.62 1.42 SUB TOTAL 143.21 67.78 1383.82 64.22 STORES 33.42 15.82 183.00 8.49 SPARES(1/3) 16.90 8.00 118.76 5.51 POWER 178.80 84.63 1963.26 91.12 INCENTIVES 4.89 2.32 58.70 2.72 WATER 29.45 13.94 313.85 14.57 -----------------------------------------------------------------------------------------------------------------------Total Variable Cost (B) 406.68 192.48 4021.39 186.63 -----------------------------------------------------------------------------------------------------------------------B.DIRECT FIXED COST SALRIES & WAGES -operation 25.11 11.88 279.29 12.96 -repairs & maintenance 27.34 12.94 304.15 14.12 SUB TOTAL 52.45 24.82 583.44 27.08
70
SPARES (2/3) 33.80 16.00 237.53 11.02 CONTRACTUAL REPAIRS 22.76 12.90 182.52 8.47 CENTRAL SERVICES -salary & wages 8.74 4.14 97.18 4.51 -power 1.13 0.54 15.04 0.70 -stores & spares 5.01 0.00 0. 00 0.00 -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------others 0.00 0.00 0.00 0.00 SUB TOTAL 14.88 7.04 181.86 8.44 GENRAL OVERHEADS -salary & wages 21.78 10.31 238.31 11.06 -power 0.60 0.28 8.96 0.42 stores & spares 2.07 0.98 26.57 1.23 others 4.46 2.11 51.35 2.38 SUB TOTAL 28.91 13.69 325.19 15.09 SOCIAL OVERHEADS -salary & wages 4.58 2.17 55.01 2.55 power 5.84 2.76 73.38 3.41 stores & spares 2.07 0.98 26.57 1.23 others 4.46 2.11 51.35 2.38 SUBTOTAL 16.95 8.02 206.31 9.57 DEPRECTION 9.15 4.33 109.84 5.10 -----------------------------------------------------------------------------------------------------------------------Total fixed cost (C) 183.41 86.81 1826.68 84.78 -----------------------------------------------------------------------------------------------------------------------C. ALLOCATED FIXED COST
HO EXPENSES 29.93 14.17 333.88 15.50 INTREST ON C/C & OTHERS 7.64 3.61 82.43 3.83 INTREST ON BONDS(old) 0.00 0.00 31.86 1.48 INTREST ON BONDS(new) 12.12 5.73 133.83 6.21 INTREST ON ICICI DEB 2.31 1.09 53.58 2.49 INTREST ON GOVT.LOAN 0.00 0.00 0.00 0.00 -----------------------------------------------------------------------------------------------------------------------total allocated fixed cost (D) 51.99 24.61 635. 58 29.50 -----------------------------------------------------------------------------------------------------------------------total cost (A+B+C+D) 642.08 303.89 6483.65 300.91
-------------------------------------------------------------------------------------------------------
71
COST CENTRE: CONCENTRATE
----------------------------------------------------------------------------------------------------Particulars For March 07 upto March 07 ---------------------------------------------------------------------------------------------------------------------ORE MILLED (MT) 211284.00 2154691.00 METAL GRADE (%) 1.07 1.04 METAL IN ORE (MT) 2257.82 22305.79 RECOVERY(%) 93.68 93.98 METAL IN CONCENTRATE(MT) 2115.18 20963.51 CONCENTRATE(25%GRADE) 7478.33 79066.10 ---------------------------------------------------------------------------------------------------------------------Value Cost Value Cost (Rs/lacs) (Rs/T) (RS/lacs) (Rs/T) ---------------------------------------------------------------------------------------------------------------------A.INPUT MATARIAL COST OWN ORE 958.66 45323.03 9470.95 45178.25 IUT ORE 0.00 0.00 0.00 0.00 ---------------------------------------------------------------------------------------------------------------------Total input material cost 958.66 45323.03 9470.95 45178.25 ---------------------------------------------------------------------------------------------------------------------OPERATING MATARIALS -grinding media 129.33 6144.15 1275.30 6083.41 -pine oil 3.89 184.05 44.44 211.99 xanthate 0.67 31.77 6.62 31.59 lime 2.32 109.76 26.85 128.06 others 7.00 330.94 30.62 146.06 SUB TOTAL 143.21 6770.67 1383. 82 6601.11 STORES 33.42 1580.01 183.00 872.95 SPARES(1/3) 16.90 798.99 118.76 566.52 POWER 178.80 231.26 58.70 280.00 INCENTIVE BONUS 4.89 231.26 58.70 280.00 OT HE R 29.45 1392.50 313.85 1497.11 ----------------------------------------------------------------------------------------------------------------Total variable cost (B) 406.68 19226.75 4021.39 19182.81
72
B.DIRECT FIXED COST
SALARIES & WAGES -operations -repairs & maintenance 25.11 27.34 1187.13 1292.34 279.29 304.15 1332.25 1450.87
SUB TOTAL 52.45 2479.47 583.44 2783.12 SPARES (2/3) 33.80 1597.98 237.53 1133.05 CONTRACTUAL REPAIRS 22.76 1288.70 182.52 870.64 CENTRAL SERVICES -salary & wages 8.74 413.17 97. 18 463.54 power 1.13 53.57 15.04 71.74 ---------------------------------------------------------------------------------------------------------------------Value Cost Valu e Cost (Rs/lacs) (RS/T) (Rs/lacs) (Rs/T) ---------------------------------------------------------------------------------------------------------------------stores & spares 5.01 236.80 69.65 332.24 others 0.00 0.00 0.00 0.00 SUB TOTAL 14.88 703.54 181.86 867.52 GENERAL OVERHEADS -salary & wages 21.78 1029.80 238.31 1136.77 power 0.60 28.33 8.96 42.73 stores & spares 2.07 98.04 26.57 126.76 others 4.46 210.82 51.35 244.96 SUB TOTAL 28.91 1366.99 325.19 1551.22 SOCIAL OVERHEADS -salary & wages 4.58 216.71 55.01 262.39 -power 5.84 276.00 73.38 350.02 -stores & spares 2.07 98.04 26.57 126.76 others 4.46 210.82 51.35 244.96 SUB TOTAL 16.95 801.57 206.31 984.13 DEPRECIATION 9.15 432.75 109.84 523.96 ---------------------------------------------------------------------------------------------------------------------Total fixed cost (C) 183.41 8670.99 1826.68 8713.63
C.ALLOCATED FIXED COST
HO EXPENSES INTREST ON C/C & OTHERS INTREST ON BONDS(old) INTREST ON BONDS(new) INTREST ON ICICI DEB. 59.86 15.27 0.00 24.23 4.62 73 2830.02 721.93 0.00 1145.53 218.42 667.76 164.86 0.00 267.66 107.16 3185.34 786.41 0.00 1276.79 511.17
INTREST ON GOVT. LOAN 0.00 0.00 0.00 0.00 ---------------------------------------------------------------------------------------------------------------------Total allocated fixed cost (D) 103.98 4915.90 1271.16 6063.68 ---------------------------------------------------------------------------------------------------------------------TANSPORTATION (E) 182.69 8637.00 1746.54 8331.34
---------------------------------------------------------------------------------------------------------------------TOTAL COST (A+B+C+D+E) 1835.42 86773.67 18336.72 87469.71
-----------------------------------------------------------------------------------------------------
74
STATUS OF SHARE
75
Share Holding pattern of H.C.L
76
Share Transfer System :
Share transfer requests received by the Company are processed and certificates dispatched to the buyers within 30 days from the date of receipt as stipulated in Listing norms of Stock Exchanges.
Distrubtion of Share Holding
77
Stock Market Price Data :
Monthly high and low quotations of shares traded on The Bombay Stock Exchange Limited (BSE) during the financial year was as follows :
78
FINDINGS
All the section of finance department (1) Follow same procedure [according to the rules of govt].and all their section are linked with each other (2) In each department centralized authority may finally pass for all the orders and payments.
(3) In all the finance department Paper work is more so it is better to say that paper work i nvol ve m us t . (4) In finance departments authority may not be delegated to each and every person the work is delegated to only efficient and experienced person . (5) All the work is done as per rules and regulation and every step follow procedures. (6) For every movement of activities they maintain the record so lots of paper work followed here, so proof or evidence of any loop holes in activity easily recognized. (7) Efficiency in work, accuracy in all work done, maintain discipline. (8) On comparing the turn over, profit & loss of the company it is found that the company turn over is good on the year 95-96,04-05,05-06 otherwise the company is in loss. (9)The company internal resources is decrease year after year. (10) The percentage of net profit of first, second, third fourth quarter is by 84.75%, 201.15%, 388.71%,36.82%. (11) The company makes sales of various items namely Copper cathode, Copper CC rod, Copper Sulphate, Copper Wire bar, gold, nickel, palladium, selenium, sulphur and sulphuric acid. (12) Under costing department cost sheet is prepared for Ore, Overburden, Excavation, Milling, Concentrate and cost sheet is distributed to mainly director finance, DGM, Advisor Finance, AGM(finance), GM.
79
CONCLUSION
80
CONCLUSION
Hindustan copper project [M.C.P] is a big organization. All the work is done very efficiently and effectively. But some where its inefficiency was observed, Technology which are used here is not efficient
(1) All the department in finance adopt same type of procedure so it is important that Some research and development section is to be made by which work is to be done in fast and effective manner.
(2) Authority for some important work also delegated to inefficient employee and by which the employees are motivated and emphasized by the superior for best performance and are rewarded for incentives and promotions.
(3) There are lots of old techniques
used in finance department of MCP
which
is time consuming and people working by those techniques take more time to do their work so It is time consuming as well as there maintenance is more and there is also wastage of money e.g., typewriter is used instead of computer.
(4) The organization has lots of paper work which take lots of extra time and there is chance of misuse of important papers, documents etc, so there should be reduction in paper work.
(5) Because it is a govt organization so discipline is not maintained in a proper way. The organization should be more disciplined.
81
(6) On the survey it is clear that the various internal resources and human resources of the company decrease year after year and the main important resources which is man power resources also decreases. (7) On seeing the Profit & loss statement it is found that the loss is more as compare to profit. (8) By comparing the monthly high and low quotations of share traded on Bombay stock exchange limited the price go high on the year August 2005 and low in October 2005.
82
SUGGESTION
83
SUGGESTION
(1) Time consuming : every activity follow long procedure, and it take more time so it is important to avoid such types of long procedure and adopt the short cut method.
(2) Money wastage : office and administration require lots of paper and administrative things, by which the money were waste so it is necessary to adopt new types of methods and technologies.
(3) Technology : It is important that out dated technology are not used for administrative purpose.
(4) Jobs have limitation some times employees take more time to do small and same type of work therefore the employees are also bored to do the same activities all the time and their also efficiency decreases, and the worker who is efficient in their work
do not work up to the mark. So in this types of situation such types of conditions are made by which employee enjoy their work and not to be bore.
(5) Because it is a Government organization so employee can not fell any pressure in regarding with their work, so as result they do not do their work properly, so this types of situation also avoid.
(6) I the organization such types of environment is made which is not fill with politics and diplomacy, and it is found that there are lot of unnecessary types of work is done in the organization so this is also avoid.
84
(7) On comparing the last ten year financial reports the loss is more as compare to profit, so organization take some action on this. (8) The success of organization depend upon their internal and man power resourses and these resourses decrease year after year so the organization take some action on this also.
(9) Before delegated the authority to the worker it is important to give some training and instruction to the worker by which he complete the work in effective manner. And in case of accounts & cost sheet their should be a advisor or a guide who guide the new or ineffective worker to whom work is delegated.
85
ADVANTAGES & LIMITATION OF PROJECT
86
ADVANTAGES & LIMITATION OF PROJECT
ADVANTAGES
*. It helped me to increase my knowledge in management field while working within the organisation.
*. I got the practical knowledge by doing project in the company.
*. The working pattern of the organization is understood.
*. The behavior of colleagues , workers and managers is understood.
*. It helped me to analysis the different departments of the organisation.
87
LIMITATION OF THE PROJECT
*. Some times workers refused to corporate properly.
*. The environment of Malanjkhand Copper Project is full with diplomacy & politics.
*. Exact and update information can not be obtained or provided by the employee.
*. Response was not good by the people.
*. Lack of co-operative people in the organization.
*. Some times discussion take extra time, because the discussion was done with the permission of manager and for this appointment is required which is time consuming.
88
BIBLOGROPHY
89
BIBLOGRAPHY
? Analysing of MCP department ? HCL monthly magazines ? Tamra Patari Magazines ? MCP notes (collection of different data of department) ? Websites of MCP ? Websites of HCL
90
doc_232437817.docx
The part of an organization that manages its money. The business functions of a finance department typically include planning, organizing, auditing, accounting for and controlling its company's finances. The finance department also usually produces the company's financial statements.
CASE STUDIES IN FINANANCE DEPARTMENT ON HCL/MCP
INDEX
-4-
Chapter 1 2 3 4 5 6 7 8 9 10
Description Executive Summary Introduction Company Profile Objectives Research Methodology Activities Analyzing Status of Share Conclusion Suggestion
Page no 6 12 16 38 40 43 52 75 80 83
11 12
Advantages & Limitation 86 Bibliography 89
EXECUTIVE SUMMARY
(1) Copper has been known to man since 4000 BC and its popular alloys i.e.Bronze and Brass have been known since 3000 BC and 1000 BC respectively. The usage of copper increased substantially with the industrial revolution in 18 th century. Copper and its alloys are widely being construction, transportation etc. Its conductivity, resistance to used today in electrical & electronics industry, properties of high electrical and
thermal
corrosion, ductility and malleability, lack of
magnetism makes it a versatile metal.
(2) Copper deposit exists as sulphide, carbonates or silicates and sulphide ores account for approx. 40-50% of the world copper reserves. Peru, Chile, Papua New Guinea, Indonesia, Philippines have large quantities of sulphide ores which have small copper content (0.3-2% range),Zambia and Zaire have copper deposits with higher copper content (2- 6% range). The reserves of copper in the world are estimated at 525 million tonne in terms of metal content.
(3) The first copper smelter was set up at Ghatsila (Bihar) in 1928. An electrolytic refinery for cathodes and wire bar plant was commissione at Ghatsila in 1965. Flash smelter based on Outokumpu Flash smelting technology was set up in 1971. The first continuous cast rod unit was established in the country during 1984.
-7-
(4) Hindustan Copper Ltd (HCL) was set up in 1967 for production of primary copper in the public sector. Presently HCL is the sole producer of copper in India and has following four units : Khetri Copper Complex, Rajasthan (31,000 TPA of Blister Copper, has the following operations such as Ore mining, Beneficiation, Smelting, Electrolytic refining etc; Indian Copper Complex, Ghatsila, Bihar (16,500 TPA of Blister Copper) has same operations as in Khetri and has a precious metal recovery plant (Gold, Silver, Selenium etc); Malanjkhand Copper Project, M.P. (2 million TPA mining and beneficiation) has operations of ore mining and beneficiation. The concentrate is sent for further processing to KCC and ICC and excess quantity is sent abroad for toll smelting; Taloja Copper Project, Maharastra (60,000 TPA) has C.C. rod facility.
(5) The production of copper ore in India has remained stagnant over the years i.e. 51.36 lakh tonne in 1987-88 and 51.13 lakh tonne during 1992-93. This is because of low level of ore deposit establishment. The present ore deposits are estimated at 734 million tonne (with 9.4 million tonne of copper metal). Nearly 90% of the copper reserves are concentrated in the states of Bihar, Madhya Pradesh and Rajasthan.
(6) During the year 1992-93 production of copper concentrates, blister copper and refined copper by HCL was as follow :Concentrate : 52.53 lakh tonne Blister Copper : 48006 tonne Refined Copper : 45275 tonne The capacity utilization at HCL plants was high about 98% in mining sector and 100% in metallurgical sector during 1992-93.
-8-
(7) The demand of copper in India during 1992-93 was of the order of 1.8 lakh TPA which is expected to increase at a rate of 5-6% per annum. In order to meet the requirement, copper was imported to the tune of 70% of the requirement. With a number of smelters being planned & executed in the private sector as well at Malanjkhand by HCL, it isestimated that the imports could be reduced to a level of 35-40% by the year 1999-2000.
(8) The dereservation of non-ferrous industry by the Government of India has opened doors to the private sector. Sterlite Industries (India) Ltd is implementing a 60,000 TPA Capacity (Cu Cathode) project with an estimated cost of Rs 700 crore. The technology has been provided by MIM Holdings, Australia and the input material would be copper concentrates which would be imported.
(9) The plants of HCL to produce primary copper are based on technology of Outokumpu, Finland who are known world wide and have installed about 30 plants world over. The process is based on semi-autogenous smelting of copper concentrates in flash smelter followed by conversion in PS converter, Fire refining, electrorefining etc. The initial agreement (xviii) period is over and a new agreement has been executed effective from April, 1992 towards modernisation & expansion of KCC plant.
-9-
(10)The process of manufacture of primary copper at HCL's plants is summarized below:Copper ore containing about 1% copper are reduced from 150 mm size to 25 mm size in cone crushers. The crushed ore is grinded in rod & ball mills to 74 micron size. The ore is further refined through Froth Flotation process comprising of rougher cells and second stage cell where xanthates and pine oil are used as reagents. Copper comes in the froth and slurry containing about 15% copper, is thickened in rake type thickner from a level of 30% solid content to 60% solid content. The thickened slurry is treated in vacuum disc filters to remove water and powder concentrate so obtained has 12% moisture. The moisture content in the concentrate is further reduced to a level of 0.2% in rotary air dryer. Concentrate along with preheated air enriched in oxygen is fed to the Flash Smelter where separate layers of molten material are formed i.e. Matte (rich in copper contains 43-50% Cu) and slag (4-5% copper). Gases rich in sulphur dioxide are formed in the smelter which are utilised to produce sulphuric acid. Matte is further refined in PS converter to obtain blister copper (99% purity) and fire refined in Anode furnace and casted in Anode Casting wheel to obtain 99.4% pure copper anodes. The Anodes are electro-chemically refined to obtain copper cathodes of 99.99% purity. Precious metals
- 10 -
i.e. Gold, Silver, Tellurium, Selenium etc. are recovered by refining of Anode slime obtained from electrolytic refinery.
(11) Malanjkhand Copper project of HCL, Madhya Pradesh has the largest open cast mine of capacity 2 million TPA with a matching concentrator capacity. The plant incorporates State-of-the-art equipments & techniques i.e. hydraulic excavators of large bucket capacities (10-12 cu.m) drill masters capable of larger diameter hole drilling (200 mm), computerized instream analysers and large capacity & energy efficient rougher floatation cells (120 cu.ft) etc.
- 11 -
INTRODUCTION
12
INTRODUCTION
Hindustan copper ltd was incorporated on 9-Nov-1967. It was the only vertically Integrated multi-unit copper producer in India , engaged in a wide spectrum Of activities
Hindustan Copper Limited the premier copper producer for he last 37 years, Has made its landmark in the history of copper mining ,smelting and refining
In India . H.C.L operation in short include mining, crushing and grinding of Ore to produce concentrate, which is then smelted and electro refined to Produce copper cathodes ,wire bars and continous cast copper wire rods.
These operation involve highly Mechanized Mining Technology. In
1967
H.C.L
established itself as an "A" grade company with four producing unit ,one each in Rajasthan, Jharkhand, Madhaya Pradesh, Maharastra and a series of commercial office all over India .
These units are:Khetri copper complex [Rajasthan] Indian copper complex [Jharkhand] Malanjkhand Copper Project [Madhya Pradesh] Taloja Copper Project [Maharastra]
13
Opportunities and Threats
In India, there is under-capacity at the mining stage as compared to domestic copper demand. HCL is the only fully integrated copper producing company in the country having its own copper mines. Therefore, the Company has ample opportunity to augment its mining capacity by inceasing production from the existing mines and by developing new mines and thereby improving the bottomline. The present market scenario offers ample opportunity to being in value added niche products into HCL's portfolio, such as 'oxygen free copper', besides developing niche markets for existing products.The export market in Asian region presents a strong opportunity for refined copper producer like HCL.The threat perception for the company includes great volatility of world copper prices and increasing cost of inputs, particularly power and fuel due to global
inflationary trends. Further, HCL may also witness threat to its existing market share onaccount of intense competition from imports and domestic manufacturers of refined copper. The gradual but inevitable lowering of import duty on cathode / wire rod will impact sales realization.
14
Business Scenario
During the year, the demand for copper in the global market has been growing steadily. Demand growth in Asian countries, particularly China & India is driving the LME copper prices in the global market and the trend is expected to continue in the near future. Growth of copper usage in the country is projected to be about 6% this year, exceeding the world average of about 3-4%. In 2005-06, the total refined copper usage in the country was around 420,000 MT; in the coming years, this is expected to rise to about 600,000 MT which argues well for the Company.
15
COMPANY PROFILE
16
ABOUT MALANJKHAND COPPER PROJECT,(H.C.L)
INTRODUCTION Malanjkhand Copper Project (MCP) is the single largest Copper deposit of India with nearly 50% of Country's Copper reserves and contributes to around 70% of HCL's total Copper production. It is located in Central India at an altitude of 575 MRL and is connected by roads to the nearest broad gauge Railway station at Gondia and Durg which are located at 130 and 150 Kms away from MCP respectively. Airports located nearby are at Jabalpur (M.P), Raipur (Chhattisgarh) and Nagpur (Maharashtra).
The Project consists of an open pit mine having initial rated production capacity of 2.0 million Tonnes copper ore per annum with matching Concentrator plant, Tailing disposal system and other auxiliary facilities. The minerable ore reserves with the Open Pit Mine have been estimated at 60 million tonnes, averaging a grade of 1.2% Cu. at 0.45% cut-off.Malanjkhand copper project which is under (H.C.L), i.e Hindustan copper limited. Malanjkhand copper project is fall in the tahsil of Baihar ,which is 22 k.m away from the project. Government sanction for the Project was obtained in June 1977 and stripping operation started in August 1979, after the first shovel was commissioned and haul roads and shovel faces constructed. The mine at full production capacity will remove 11.5 million tones of overburden and waste rock, to recover 2 million tones of chalcopyrite ore of average grade 1.2 cu per annum. A total of 22.6 Km of diamond drilling in 91 bore holes has been carried out till September 1978 to explore ore reserves upto a depth 376 MRL
17
The detailed project report was prepared by Russian Consultants in 1976, and the mine design work was done by M/S RTZC In 1978. Construction of mine concentration plant and other facilities started in 1978 and regular production started in 1982, as per schedule. With the liberalization of Indian economy, the supportive measures like canalization of copper import, administrative pricing policy restricting the investment in copper Mining to public sector were disponeed with along this , the import duty was progressively and drastically reduced and copper was placed under general license. Copper prices in India linked with the prices of London Metal Exchange (L.M.E) Were bulk of non furious metal is traded could not sustain the fluctions of L.M.E Prices which in turn depend several factor like its world wide production, consumption, its inventory and were houses. H.C.L was making profit till 1996 even after the arrival economic liberalization but it could not survive the sudden, crashing Of international prices in spite of its best physical performance or the last five years a drastic drop in the L.M.E prices of copper and custom duty had presented a firm. In the past liberalisation era, H.C.L came free to face with some of the unforeseen challenges which forced H.C.L to evolve a turn around strategy for surviving the shift competition in the International market. of
18
19
[Malanjkhand Copper Project]
Present Operation Open Pit Mines Concentrator Infrastructure Facility
20
PRESENT OPERATION
Hindustan Copper Limited have constructed an Open pit mine to produce 2.0 million tones of copper ore annually.
A concentrator Plant of manufacturing capacity and other infrastructure facilities such as power and Water supply, rearing facility, tailing disposal etc.
Open Pit Mine
Open pit mines is designed to produce 64 million tones of ores 1.2% at an overall strip ratio of 1:4. The ultimate pit design to provide for Deepings the pit up to 376 MRL i.e around 200m from surface.
Total length of the pit - 2200m Total width of the pit - 600 meter
21
THE CONCENTRATOR
The concentrator plant has been designed to treat 2 millions tones of copper ore annually. The plant consists of the following section.
Crushing section Grinding section Flotation Thickeing & filtration Tailing disposal and water recirculation
The basic design of the plant was done atmeggha be institute Leningrad based on the pilot-plant studies conducted at National Metallurgical labrotory and Jamsedpur and also Mekhnastore institute.
22
INFRASTURCTURE FACILITIES
Malanjkhand Copper Project has infrastructure facility as under:
(1) Repairing Facility: Facility like Mechanical maintenance, electrical maintenance, civil maintenance are existing in Malanjkhand CopperProject.
(2) Power supply System: There is 132kv main receiving sub-station which has two 20/26 MVA, 132/11 kv transformers step down sub-stations have been constructed suiting to requirement of various equipment and utilities.
(3) Water supply system: Water from concentrator plant as well as protactable for the project and township is drawn from Banjar River.
(4)
Residential Township: With shopping complex's to cater to almost all house hold requirement and clubs, play grounds parks for recreation.
(5) Health and Medical facility.
(6) Education facility.
23
FINANCE DEPARTMENT
These are the various section under financial Department in M.C.P. The structure of finance sections are as under.
The Structure of Finance Sectionsss
FINANCE DEPARTMENTS
ESTABLISHMENT SECTION
SALARY SECTION
MIS SECTION
STOTREESSECCITOIN ON S ORS SE T
SUPSPLPILEERS SSEETIONON UP I RS C CTI
CONTRACT/WORK SECTION
24
ESTABLISHMENT SECTION
In establishment section nature of job is dealing with all types of receipts and payments.
Receipts
(1) Outside agencies are depositing cash towards the cost of tender document (2) House rent if allotted (3) Electricity if allotted (4) Excess payment if made
Employees Receipts
Deposited by cash as Travel allowance and dearness allowance.
25
Payments
(1). Payment to irrigation department (2). Electricity payment (3). Commercial rate (4). Water supply payment (5).Royalty (6).Office and administration (7).Property tax to Municipal council of Mahugaon.
Employees Payments
(1) Medical advance (2) Travel allowances (3) L.T.C advance (4) Advance some company work(impress advance) and all types of adjustments
26
Payments to outside agencies(contractor)
Property tax to Municipal council of Mahangaon Approx 5000000/month
Royalty 6000000 paid to collector of Balaghat Electricity paid by the company 2.5corore 10 lakhs for water supply
27
SALARY SECTION
Number of employees of MCP & their scale of pay
Technical :Level T-1 T-2 T-3 T-4 T-5 T-6 Revised scale of pay 4000-80-5600 4200-90-6000 4400-100-6400 4600-110-6800 4800-125-7300 5000-140-7800
T-7 T-8 T-9 T-10
5300-155-8400 5600-170-9000 6000-185-9700 6400-200-11200
28
CLERICAL:Level C-1 C-2 C-3 C-4 C-5 C-6 Revised scale of pay 4000-80-5600 4200-90-6000 4800-110-6600 5500-155-8400 5600-170-9000 6000-185-9700
EXECUTIVE:Level E-0 E-1 E-2 E-3 E-4 E-5 E-6 E-7 E-8 E-9 Revised scale of pay 6550-200-11350 8600-250-14600 10750-300-16750 13000-350-18250 14500-350-18700 17500-400-22300 18500-450-23900 18500-450-23900 20500-500-26500 23750-600-28500
SALARY Salary leave
Three types of leave (1) Earn leave (18days) (2)Seek leave 12days (3)Casual leave 12 days
Earn leave 33 days for executive
29
SUPPLIER SECTION
Nature of job:
Passing Suppliers.
t he
bi lls
of
suppliers
of
material
by various
Passing of bills of repairs and maintance against various work order.
(1) Purchase order (2) Work order
(1) User department shall give the indent requirement of material to purchase department.
(2) Then purchase department shall float the enquiry to the Registered supplier for submitting quotations after with a submitted time.
(3) Received the quotation from various parties all the quotation shall be open by the tender comity by the complaint authority
(4) After receiving it comparative statement prepared by purchase department of all the quotation and submit the files to the finance concerance.
30
After receiving the financial concerance for Placement of order purchase department will issued the purchase order to the suppliers with all term the condition.
(1) Payment term
(2) Quantity
(3) Specification
(4) Security deposited specially
Security Deposit: In the from of draft In the form of bank guarantee.
10% of the w.o or p.o for performance of material
* If the particular has not achieved the penalty should be recovered from the amount security deposit.
* After receiving and acceptance of the purchase order
* The order will be cleared by various competitive authorities according to their powers.
After receiving and acceptance of the purchase order the supplier will start the supply of the material either by his own transport or by authorized
31
STORE SECTION
Nature of job:-
Store section received the Receipt voucher on the issue vouche on the basis of these issue statements and receipts statements is prepared for maintain the statement following procedure must be followed.
(1) raised the indent (concerned department)
(2) Material department (float the enquiry tender enquiry to all department.
(3) then make party quotation.
(4) Material department made a (comparative statement)
(5) The send purchase order to the supplier section. . (6) Daily receipt Register maintain all records.
(7) Receipts voucher made.
(8) Bin card.
(9) Store section received it then they will send it to system department. System department after checking it. Send again to store section (PSL) price Store ledger maintain.
32
WORK / CONTRACTS
Nature of job: Pass the tender proposal and the estimate were made. i.e NIT - Notice inventory tender LIE - Limited tender enquiry OTE- Open tender Comparative statement according to
SR - Delhi schedule of rates CPWD - Central public worries depth Mine development Press tender Work order passed Bills also passed E.M.D earnest money deposit 10% security deposit of contract amount Secured advance - [fixed items only] Mobilized items [to mobilized the work]33
Management Information System
MIS [section]
According to various: receipts voucher Payment voucher Issue voucher
MIS Section prepared the journal voucher all the daily records are recorded in it
Debit and credit entries passed in it and balance amount in last A y o f t he m ont h.
According to the journal voucher *trail balance *and ledger prepared *costing
34
Trial Balance
The trail balance include
.. All receipt and expenditure .. Debtors and Creditors .. Assets and liabilities are recorded
With The help of trial balance final accounts are prepared i.e. In the shape of balance sheet and profit & loss A/C.
35
COST SHEET in making of cost sheet the following items should be included .
(1) Summarized production and cost data (2) Ore (3) Over burden removal (4) Excavation (5) Milling (6) Concentrate (7) Consumptions of major material (8) Calculation of input cost in conc. (9) Amortizations Calculation
36
DISTRUBUTION OF COST SHEET The cost sheet of the organization should be distributed to the following staffs:
(1) TA to CMD (2) D (f), HO (3) DGM (tec), HO (4) Advisor Finance (5) AGM (finance)/KCC (6) GM/MCP (7) Office copy
The cost sheet is prepared at the end of every month.
37
OBJECTIVES
38
OBJECTIVES
As a student of M.B.A previous it is a great honour for me to complete my summer training on H.C.L. We are mainly considering the Department of finance in H.C.L, under (M.C.P), Malanjkhand Copper Project.
Main Motive Of This Training
(1) To increase our knowledge in depth.
(2) To convert our bookish knowledge into practical knowledge.
(3) To increase our efficiency to deal with the people who are very experienced and knowledgeable.
(4) The data which we have collected from Malanjkhand Copper Project is for our purpose of acquiring the knowledge not for any other purpose.
39
RESEARCH METHODOLOGY
40
RESEARCH METHODOLOGY
The purpose of research is conducted when there are few or no earlier studies to which references can be made for information. The aim is to look for patterns, ideas or hypotheses rather than testing or confirming a hypotheses. In research the focus is on gaining insights and familiarity with the subject area for more rigorous investigation later. In an undergraduate dissertation it is likely that you will drawing on previous studies and so pure exploratory research is not generally appropriate for studies at this level-it is more appropriate for postgraduate research. However, it ispossible that you may carry out an initial survey to establish areas of concerns and then research these issues in more depth . Research is also an academic activity and as such the term should be used in technical sense. According to Clifford research comprises defining and redefining problems ,formulating suggested solution; collecting, organizing and evaluating data; making deductions and reaching conclusion; and at last carefully testing the conclusion to determine whether they fit the formulating hypothesis. The research programmed is focused on the causal relationship between the finance department & their development. It will also try to identify a core of financial services that are necessary for poverty reducing growth and their institutional structures that have been more successful in providing them.
In the period of my summer project I collect the information, Datas, ideas through various sources and each of these sources are very useful & very helpful for me for completing my summer project in HCL (Malanjkhand Copper Project).
41
The various types of sources are as follows.
*. My discussion with senior and experienced persons working in Malanjkhand Copper Project.
*. Discussion with other friends and colleagues, and other workers of the organization.
*. The research on past data, information available in the organization.
*. Web-sites of HCL is very useful for collecting the information.
*. Various types of files, notes, books that were provided and referred by the manager of Malanjkhand Copper Project.
*. By see the working pattern of the worker help me for collecting the information regarding the work
*. The library of Malanjkhand Copper Project provide knowledge and ideas.
42
VARIOUS TYPES OF ACTIVITIVES DONE UNDER MCP
43
Basis of Preparation of Accounts :
1.The accounts have been prepared to comply in all material aspects with applicable accounting principles in India, mandatory Accounting Standards issued by the Institute of Chartered Accountants of India consistently being followed and the relevant provisions of the Companies Act, 1956. The Financial Statements have been prepared under the historical cost convention on an accrual basis in a going concern concept.
2. Financial statements have been prepared based on in-house technical estimates in respect of the following : - Allocation of service shaft expenses, underground mining expenditure between revenue and capital. - Metal content in raw materials, WIP and finished goods. Credit of anode scrap generation in refinery plant. - Mineable ore reserves in underground mines. - Stripping ratio in open cast mines.
BALANCE SHEET : 3. Fixed Assets :
3.1 Fixed assets are recorded at cost net of CENVAT and VAT credit wherever applicable less accumulated depreciation and impairment loss,if any.
3.2 Pending reconciliation/receipt of the final bills against capital items, capitalization is done on the basis of cost booked and depreciation is charged accordingly. Price differences, if any, are adjusted in the year of finalization of bills.
44
3.3 In respect of expenditure during construction of a new unit in a new location, all direct capital expenditure as well as all indirect expenditure incidental to construction are capitalized allocating to various items of fixed assets on an appropriate basis. Expansion programme involving
construction concurrently run with normal production activities in an existing unit, all direct capital expenditure in relation to such expansion are capitalized but indirect expenditure are charged to revenue.
3.4 Project expenses incurred for implementation of new projects are carried forward against respective project till execution. Project expenses rendered infructuous or abandoned are charged to the Profit & Loss Account.
3.5 Physical verification of fixed assets is carried out once in every five years.
4. Depreciation : Depreciation on fixed assets is provided on straight line method at the rates prescribed in Schedule XIV to the Companies Act, 1956. Depreciation on assets acquired prior to
01.04.93 is charged on derived rates by allocating the unamortized value over the remaining life arrived at on the basis of rates prescribed under the Schedule XIV to the Companies Act,1956. Depreciation in respect of plant & machinery and building of new project is charged from the date of commercial production.
Impairment of Assets :
An asset is treated as impaired when the carrying cost of assets exceeds its recoverable value. An impairment loss is charged to the Profit and Loss Account in the year in which
45
an asset is identified as impaired. The impairment loss recognized in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.
7. Mine Development Expenditure :
7.1 In case of underground mines : The expenditure on development of a new mine in all cases and on subsequent development of a working mine in specified cases is capitalized and amortized on the basis of ore raised during the year and the mineable ore reserves estimated from time to time. The ore obtained during development activity is adjusted against such expenditure at its derived realizable value.
7.2 In case of working mines, where development activities are going on simultaneously : Expenses are apportioned between capital or revenue on the basis of sinhouse technical estimates.
7.3 In respect of open cast mines : The expenditure on removal of waste and overburden, is capitalized and the same is amortized in relation to actual ore production during the year and the stripping ratio of the mine as determined by the company at the weighted average rate.
7.4 Expenditure incurred on exploration of new deposits is included in mine development expenditure. If the exploration activities are found to be not fruitful, the expenditure on such exploratory work included in mine development expenditure is written off in the year in which it is decided to abandon the project.
8. Major Overhauling Expenses : The expenditure attributable to major overhaul of smelter/refinery is charged to the Accounts in the year of incurrence.
46
9. Inventories : 9.1 Stocks of raw materials, stores and spare parts, loose tools and materials in-transit are valued at cost. Loose tools when issued are charged off to revenue.
9.2 Finished goods and work-in-process are valued at the lower of the net realizable value and weighted average cost to the unit. The cost is exclusive of financing cost, such as, interest, bank charges etc. The value of slag under work in process is taken at equivalent value to the extent credited to the process, where the said products have been generated. The reverts under work- in-process are valued at lower of cost (equivalent value of concentrates) and net realizable value. Subsidy on fertilizers is not considered for the purpose of fertilizer stock valuation.
9.3 The stock of anode slime arising from treatment and refining processes are valued at realizable value based on the year end London Metal Exchange price for gold and silver after making due adjustments of their physical recovery and the treatment and refining charges.
9.4. Liability for excise duty on finished goods in stock lying at works or warehouses, is provided for in the accounts and also considered in stock valuation.
9.5 The inventories out of inter-unit transfers at the close of the year are valued on the basis of cost or net realizable value whichever is lower to the transferor unit. No adjustment is made in respect of difference between the cost and transfer price for such transferred products in case of partly processed materials lying at various stages of production and finished stocks at the end of the year, since this is not practically ascertainable.
47
9.6 Imported materials are valued at weighted average cost at a provisional price pending finalization of invoice price and customs duty. Variations are accounted for in the year of finalization.
9.7 Once in every three years provision is made in the accounts for non-moving stores and spares (other than insurance spares) which have not moved for more than five years.
9.8 Scraps are accounted for on realization.
PROFIT AND LOSS ACCOUNT :
10. Sales : Sales are net of discounts other than cash discounts.
11. 1. Other Income 11.1 1.1 Claims :
Claims on account of liquidated damages and insurance are accounted for as and when these are deducted and/or considered recoverable by the company.
11.2 1.2 Conversion charges : Income from conversion of job work is accounted for on the basis of dispatches made .
11.3 1.3 Interest on L/C bills : Interest up to the date of Balance Sheet on all outstanding bills is accounted for on accrual basis.
12. Retirement Benefit 12.1 Gratuity and Leave encashment :
48
Gratuity and leave encashment liability on retirement are provided based on actuarial valuation.
12.2 Deficit in Provident Fund : Deficit, if any, on account of Provident Fund Trust is accounted for on the basis of accrued liability, as ascertainable on the basis of last accounts closed by the Provident Fund Trust.
13. Borrowing cost : Interest/finance cost on loans specifically borrowed for new and expansion projects up to the start of commercial production is charged to the capital cost of the projects concerned. All other borrowing cost are charged to revenue.
14. ACCOUNTING FOR TAXES ON INCOME : Income Tax Expense comprises current tax and deferred tax charge. Deferred Tax is recognized on timing differences, being the difference between Taxable Income and Accounting Income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred Tax Assets are recognized only if there is virtual certainty that sufficient future taxable income will be available against which Deferred Tax Assets will be realized. Such balances of Deferred Tax Assets are reviewed as at each Balance Sheet Date to reassess the realisability thereof.
15. General : 15.1 For Foreign Currency Transactions ransactions : Transactions in foreign currencies are recognized at the rates existing at transaction time at which the transaction is settled. Year-end balances of receivables/payables are translated at applicable forward contract/year-end rates and resultant translation differences relating to fixed assets are adjusted against fixed assets and the balance is recognized in the Profit and Loss Account.
15.2 Recognition of Contingent Liability :
49
A contingent liability is recognized when as a result of past events there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources and are disclosed by way of Notes.
15.3 Events occurring after the Balance Sheet Date :
Assets and Liabilities are adjusted for events occurring after the Balance Sheet that provide additional evidences to assist the estimation of accounts relating to conditions existing at the Balance Sheet Date.
15.4 Prior Period & Extra Ordinary Items : (i)The nature and amount of prior period items (ii) extra-ordinary items are separately disclosed in the statement of Profit & Loss in a manner that their impact on the current Profit & Loss can be perceived.
15.5 Research and Development Expenditure : Expenditure on research and development is charged off to Profit & Loss account in the year it is incurred. Expenditure on fixed assets in this regard is capitalized.
15.6 Mine Closure Expenditure : Financial implications towards final mine closure plans under relevant Acts and Rules are technically estimated and the involvement, not being material, are charged off on actual incurrence.
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16. Voluntary Retirement Expenses :
16.1 Paid out of own fund : In respect of Voluntary Retirement expenditure incurred by the company out of own funds is charged off to revenue over a period of 60 months.
16.2 Paid out of Government Grant : Voluntary Retirement Expenditure is charged to the Profit & Loss Account on receipt of Grants from the Government of India with corresponding credits to the Profit & Loss Account.
51
ANALYSIS OF FINANCIAL REPORTS & COST SHEET
52
Financial Report of H.C.L of last 10 years
10 Year At A Glance(Rs. In Lakhs) 20052006 (12 months) 1 20042005 (12 months) 2 20032004 (12 months) 3 20022003 (12 months) 4 20012002 (12 months) 5 19992001 (18 months) 6 19981999 (12 months) 7 19971998 (18 months) 8 19961997 (12 months) 9 19951996 (12 months) 10
FOR THE YEAR
Turnover Profit/(Loss) Depreciation a nd Amortisation Net Profit/(Loss) Value Added Value of production
105376 16425 5837
55911 11173 5575
51887 289 5905
50568
60498
94558
47949 120348 (1725) 8848
98024 111802 (7677) 5384 13099 5515
(8999) (12592) (10626) (11276) 5771 5812 9019 5925
10588 43102 104837
5598 35042 63124
(5616) (14770) (18404) (19644) 22901 53443 14737 50153 15309 33591
17201 16724
10573 28946
13062 21937
7584 41359
58666 100166
51347 118022 100529 118627
AT THE YEAR END
Share Capital Internal Resources Long-term loans Cash credit from banks Capital expenditure gross Working Capital Capital employed Manpower
94895
94895
90895
79511
71011
54361 (49) 64332 12270
53661 19097 37236 8416
52511 33896 11527 11960
33820 42018 17456 12322
33820 53305 17456 10709 97772
(11057) (29884) (35030) (31039) (16945) 18750 481 97789 22275 11823 96771 27562 7611 29182 13949 29182 12204
99431 100559 102477 106076 106621 105082 101630
6278 24747 5583
3394 23455 5665
(102) 21528 5995
(2595) 20389 7865
751 24929 9502
1798 28306 12043
649 29871 15271
8635 40368 18234
14440 45978 19884
24529 57081 20108
53
Quarterly Performance Report 0f Hindustan Copper Ltd.
First Quarter (Apr 2007 to Jun 2007) Particulars (Lakh Rs.) Q1 (2007-08) Q1 (2006-07) Change %
Gross Sales & Operating Revenue Other Income Total Expenditure PBDIT Interest Depreciation Profit before Tax Provision for Tax Net Profit Earning Per Share(Rs.)
43,325.27 1,717.73 34,649.53 10,393.47 922.36 459.25 9,011.86 1,467.00 7,544.86 0.98
38,035.34 113.20 32,818.30 5,330.23 774.58 464.34 4,091.31 7.50 4,083.81 0.56
13.91 1417.43 5.58 94.99 19.08 -1.1 120.27 19460 84.75 75
Second Quarter (July 2006 to Sept 2006) Particulars (Lakh Rs.) Q2 (2006-07) Q2 (2005-06) Change %
Gross Sales & Operating Revenue Other Income Total Expenditure PBDIT Interest Depreciation Profit before Tax Provision for Tax
36,618.51 628.64 -9,231.02 10,568.72 883.82 317.52 9,367.38 7.50
22,568.99 208.04 18,270.67 4,506.36 919.92 478.41 3,108.03 0
62.25 202.17 -150.52 134.53 -3.92 -33.63 201.39 -
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Net Profit Earning Per Share(Rs.)
9,359.88 1.29
3,108.03 0.43
201.15 200
Third Quarter (Oct 2006 to Dec 2006) Particulars (Lakh Rs.) Q3 (2006-07) Q3 (2005-06) Change %
Gross Sales & Operating Revenue Other Income Total Expenditure PBDIT Interest Depreciation Profit before Tax Provision for Tax Net Profit Earning Per Share(Rs.)
55,189.06 332.44 41,184.28 14,337.22 706.86 462.53 13,167.83 7.50 13,160.33 1.71
30,170.23 116.98 22,392.63 4,026.51 840.52 486.41 2,699.58 6.70 2,692.88 0.37
82.93 184.19 83.92 256.07 -15.9 -4.91 387.77 11.94 388.71 362.16
Fourth Quarter (Jan 2007 to Mar 2007) Particulars (Lakh Rs.) Q4 (2006-07) Q4 (2005-06) Change %
Gross Sales & Operating Revenue Other Income Total Expenditure PBDIT Interest Depreciation Profit before Tax Provision for Tax Net Profit Earning Per Share(Rs.)
50,213.21 1,275.64 43,180.63 8,307.22 992.40 466.35 6,848.47 2,109.52 4,738.95 0.62
38,413.25 358.42 34,033.41 4,738.26 784.10 484.35 3,469.81 6.22 3,463.59 0.48
30.72 255.91 26.88 75.32 26.57 -3.72 97.37 33815.11 36.82 29.17
55
Sales Report of H.C.L:Sales Revanue
2007) Item Description Q1 (2007-08) Q1 (2006-07) Change %
Copper Cathode Copper CC Rods Copper Sulphate Copper wire-bar Gold Nickel Plladium Selenium Silver Sulphuric Acid
2,975.01 39,781.17 36.85 0 0 0 0 0 257.97 0
804.74 32,362.83 41.20 2,048.90 646.53 0 0 92.41 213.44 187.35
269.69 22.92 -10.56
-
20.86
Second Quarter (July 2006 to Sept 2006) Item Description Q2 (2006-07) Q2 (2005-06) Change %
Copper Cathode Copper CC Rods Copper Sulphate Copper wire-bar Gold Nickel Plladium Selenium Silver
1,234.52 34,102.28 56.74 0 857.14 0 0 43.57 216.88
1,900.75 20,777.76 35.37 250.53 0 4.21 0 67.18 17.38
-35.05 64.13 60.42
-
-35.14 1147.87
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Sulphuric Acid
82.95
171.81
-51.72
Third Quarter (Oct 2006 to Dec 2006) Item Description Q3 (2006-07) Q3 (2005-06) Change %
Copper Cathode Copper CC Rods Copper Sulphate Copper wire-bar Gold Nickel Plladium Selenium Silver Sulphuric Acid
3,210.19 39,959.09 43.17 0 0 0 0 0.60 0 175.44
1,986.00 26,606.80 23.21 992.86 0 0 0 101.46 106.61 361.67
61.64 50.18 86
-99.41
-51.49
Fourth Quarter (Jan 2007 to Mar 2007) Item Description Q4 (2006-07) Q4 (2005-06) Change %
Copper Cathode Copper CC Rods Copper Sulphate Copper wire-bar Gold Nickel Plladium Selenium Silver Sulphuric Acid
2,604.79 44,211.05 66.64 0 0 0 0 0 0 287.06
1,042.25 35,645.05 48.67 1,272.80 393.56 0 0 0 235.32 241.37
149.92 24.03 36.92
-
57
COST SHEET
In making of cost sheet there are types of cost included Like variable expenses, fixed expenses lets know about These types of expenses.
Variable cost:-
Variable cost is the aggregate of direct material, direct labour and direct expenses and variable overheads (i.e prime cost + variable overheads), variable cost in total is termed as a 'Marginal Cost' it is deduct from sales and contribution is ascertained. "Variable cost is in operating expenses, or a group of operating expenses that vary directly and in proportion to the level of activity, viz. sales or production. Examples are materials consumed, direct labour, power, sales, commission, utilities, freight, packaging etc. ICMA, India
58
Fixed Cost :-
Fixed cost means total of all fixed overheads. But it is important to note that in India,where * Most of the labour force is on daily wages. * Most of labour costs consists of Dearness allowance(DA) * 'Reternchment' & 'Lay-off' is not possible in the ordinary course of business. Labors cost is also sometimes treated as fixed and included in fixed cost. Treatment of the fixed cost in marginal costing is very peculiar 'Fixed Cost' are also as 'time cost', 'period Cost', 'capacity cost', 'stand-by-cost', or 'constant cost'. Fixed Costs are not concerned with the output level. They are rather period costs. During the given period, they are required to be incurred irrespective of the fact, whether the output is produced or not. Therefore fixed cost are written-off to a marginal cost profit & loss account. They are not included in cost of good sold, neither in closing stock. At the end of the period, contribution (i.e difference between sales & marginal cost) is credited to marginal costing profit & loss account to which fixed cost are debited. The contribution first recopes fixed cost and then earns profit. It fixed cost is more than contribution, then there is a loss.
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There are various types of activity will be done under costing department of HCL (Malanjkhand Copper Project) let us see with the help of cost sheet of Malanjkhand copper project up to the month of March 2007.
SUMMARISED PRODUCTION & COST DATA
A.PRODUCTION DATA UNIT for march 2007 up to march 2007 _______________________________________________________________
1. Deptt. Excavation 2 .Deptt. OB Removal 3. Deptt ore prod+Reclamed Ore 4. Deptt Ore Grade 5. Deptt MIO+MIO Reclamed or 6. Cont. Excavation 7. Deptt OB Removval 8. Deptt. Ore Production 9. Deptt Ore Grade 10 Deptt. Metal in Ore 11.Ore Milling 12.Grade of Ore 13.Metal in Ore Milled 14.Concentrates (25%Gr.) 15.Metal in Conc. 16.Rate of Recovery M3 M3 MT % MT M3 M3 MT % MT MT % MT MT MT % 230000.000 158509.294 192310.000 1.058 2035.640 746000.000 66557.993 21633.000 0.704 152.375 211284.000 1.096 2257.823 8460.708 2115.177 93.682 2510000.000 1820685.874 1854255.000 1.016 18842.221 1272346. 000 1109396.929 438333.000 1.081 4739.986 2154691.000 1.035 22305.789 83854.036 20963.509 93.982
60
B.
COST DATA
Unit
for march 07
upto march 07
I.DEPARTMENTAL: 01.Ore production 02.Ore pro.with intt.&HO Exp 03. Metal in Ore 04.Overburden Removal 05.Excavation 06.-do-with intt.& HO Exp. 07.Ore Milling 08.-do-with intt.& HO Exp 09.Concenrates(25% Gr.) 10.-do-with intt,HOExp. & Transportation 11.Metal in conc. 12.-do-with intt,Ho Exp. & Transportation II.CONTRACTUAL 01. Ore Production 02. Metal in ore 03. Excavation/OB Removal 04. Excavation/OB Removal (with blasting) Rs/MT Rs/MT Rs/M3 Rs/M3 375.24 53273.74 185.00 203.54 427.03 39489.54 185.00 204.48 Rs/MT Rs/MT Rs/MT Rs/M3 Rs/M3 Rs/M3 Rs/MT Rs/MT Rs/MT Rs/MT Rs/MT Rs/MT 444.19 471.22 44538.94 297.10 297.10 319.70 279.29 303.89 20709.82 24543.13 73220.77 86773.67 437.59 471.87 46436.63 279. 66 279.66 304.99 271.41 300.91 19374.95 23191.63 73074.69 87469.71
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Cost sheet Sub Centre :- ORE
Particulars For Mar 07 Upto Mar 07 -----------------------------------------------------------------------------------------------------------------Ore prod.+ Reclaimed from OB(MT) 192310.00 1854255.00 Grade (%) 1.06 1.02 MIO + Reclaimed from OB (MT) 2034.64 18842.22 -----------------------------------------------------------------------------------------------------------Cont.Ore Production (MT) 21633.00 438333.00 Grade(%) 0.70 1.08 Metal in Ore 152.38 4739.99 Value Cost Value Cost (Rs lacs) (Rs/T) (Rs lacs) (Rs/T) ---------------------------------------------------------------------------------------------------------------------
A .VARIABLE COST
OPERATING MATARIALS -Explosives Drills Bits Detonators Others-tyre & tubes Other Diesel -Other Lubricants Others SUB TOTAL 13.26 0.15 0.00 19.56 37.64 5.29 0.42 76.31 6.89 0.08 0.00 10.17 19.57 2.75 0.22 39.68 131.33 1.34 0.00 141.30 331.00 47.12 7.34 659.43 7.08 0.07 0.00 7.62 17.85 2.54 0.40 35.56
STORES SPARES (1/3) POWER INCENTIVES BONUS COMPRESSED AIR ROYALITY AMORTISATION OTHERS
3.47 12.90 4.15 1.07 6.33 185.69 456.13 2.23
1.80 6.71 2.16 0.56 3.29 96.56 237.19 1.16
19.77 98.46 68.61 11.20 62.34 1864.97 4344.73 20.75
1.07 5.31 3.70 0.60 3.36 100.58 234.31 1.12
----------------------------------------------------------------------------------------------------------------Total variable cost 748.28 389.10 7150.26 385.61
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Value
Cost
Value
Cost
(Rs/lacs) (RS/T) (Rs/lacs) (Rs/T) ----------------------------------------------------------------------------------------------------------------------
B.DIRECT FIXED COST
SALARIES & WAGES -operations -repairs & mantaince 7.80 10.33 4.06 5.37 75.81 100.30 4.09 5.41
SUB TOTAL 18.13 9.43 176. 11 9.50 SPARES (2/3) 25.80 13.42 196.93 10.62 CONTRACTUAL REPAIRS 20.28 10.54 114.89 6.20 CENTRAL SERVICES -salary & wages 3.66 1.90 35.52 1.92 power 0.53 0.27 6.10 0.33 stores & repairs 2.33 1.21 28.26 1.52 others 0.00 0.00 0.00 0.00 SUB TOTAL 6.51 3.39 69.88 3.77 MINES SERVICES -salary & wages 5.75 2.99 55.86 3.01 -power 0.00 0.00 0.00 0.00 -stores 0.61 0.32 53.07 2.86 -others 0.00 0.00 0.00 0.00 SUB TOTAL 6.36 3.31 108.93 5.87 GENRAL OVERHEADS -salary & wages 9.12 4.74 87.10 4.7 power 0.28 0.14 3.63 0.2 stores & spares 0.96 0.50 10.78 0.58 -others 0.78 0.40 8.14 0.44 SUB TOTAL 11. 14 5.79 109.66 5.9 SOCIAL OVERHEADS -salary 1.92 1.00 20.10 1.08 -power 2.71 1.41 29.77 1.61 -stores & spares 0.96 0.50 10.78 0.58 -others 0.78 0.40 8.14 0.44 SUB TOTAL 6. 37 3.31 68.80 3.71 DEPERCATION 11.33 5.89 118.66 6.40 ---------------------------------------------------------------------------------------------------------------------Total fixed cost (B) 105. 94 55.09 963.85 51.98 ----------------------------------------------------------------------------------------------------------------------
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(Rs/lacs) (Rs/T) (Rs/lacs) (Rs/T)----------------------------------------------------------------------------------------------------------------------
C.ALLOCATED FIXED COST
HO EXPENSES 29.93 15.56 333.88 18.01 INTREST IN C/C & OTHERS 7.64 3.97 82.43 4.45 INTREST ON BONDS(old) 0.00 0.00 0.00 0.00 INTREST ON BONDS(new) 12.12 6.30 133.83 7.22 INTREST ON ICICI DEBENTURE 2.31 1.20 53.58 2.89 INTREST ON GOVT LOAN 0.00 0.00 0.00 0.00 ---------------------------------------------------------------------------------------------------------------------Total allocated fixed cost(C) 51. 99 27.03 635.58 34.28 ---------------------------------------------------------------------------------------------------------------------Total cost (A+B+C) 906.21 471.22 8749.69 471.87 ----------------------------------------------------------------------------------------------------------------------
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SUB CENTRE :- OVER BURDEN
Particulars Dept.over burden Removed(M3)
for March 07 158509.29
upto March 07 1829037. 92
Cont.over burden Removed(M3) 66557.99 1109396. 93 ----------------------------------------------------------------------------------------------------------------Value Cost Value Cost (Rs/lacs) (Rs/T) (Rs/lacs) (Rs/T)
------------------------------------------------------------------------------------------------A.VARIBLE COST
OPERATING MATARIALS -explosives 29.39 18.54 352. 74 19.29 -drill bits 0.33 0.21 3.59 0.20 detonators 0.00 0.00 0.00 0.00 -others-tyre & tubes 43.38 27.37 379.54 20.75 -other-diesel 83.44 52.64 889.05 48.61 -others-lubricants 11.72 7.40 126.57 6.92 -others 0.94 0.59 19.71 1.08 SUB TOTAL 169.20 106.75 1771.20 96.84 STORES 7.69 4.85 53.09 2.90 SPARES (1/3) 28.60 18.04 264.47 14.46 POWER 9.20 5.80 184.29 10.08 INCENTIVES BONOUS 2.37 1.50 30.09 1.65 COMPRESSED AIR 14.03 8.85 167.44 9.15 ROYALTY 0.00 0.00 0.00 0.00 AMORTISATION 0.00 0.00 0.00 0.00 OTHERS 4.95 3.13 55.73 3.05 ----------------------------------------------------------------------------------------------------------------Total variable cost 236.05 148.92 2526.31 138.12 -----------------------------------------------------------------------------------------------------------------
B.DIRECT FIXED COST
SALARIES & WAGES -operations repairs & maintance SUB TOTAL SPARES(2/3) CONTRACTUAL REPAIRS CENTRAL SERVICES 17.30 22.91 40. 21 57.20 44.96 10.92 14.45 25.37 36.09 28.37 203.62 269.40 473.02 528.94 308.59 11.13 14.73 25.86 28.92 16.87
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-salary & wages power stores & spares others SUB TOTAL MINES SERVICES -salary & wages power stores & spares others SUB TOTAL GENERAL OVERHEADS -salary & wages -power stores & spares
8.11 1.17 5.16 0.00 14.44 12.76 0.00 1.35 0.00 14.11 20.22 0.62 2.14
5.12 0.74 3.26 0.00 9.11 8.05 0.00 0.85 0.00 8.90 12.76 0.39 1.35
95.40 16.39 75.91 0.00 187.70 150.03 0.00 142.54 0.00 292.57 233.95 9.76 28. 96
5.22 0.90 4.15 0.00 10.26 8.20 0.00 7.79 0.00 16.00 12.79 0.53 1.58
-others 1.72 1.09 21.86 1.20 SUB TOTAL 14.13 8.92 184.79 10.10 DEPRECIATION 25.12 15.85 318.70 17.42 ----------------------------------------------------------------------------------------------------------------Total Fixed Cost (B) 234.88 148.18 2588.86 141.54 -----------------------------------------------------------------------------------------------------------------
C. Allocated Fixed Costs
HO EXPENSES INTREST ON C/C & OTHERS 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
----------------------------------------------------------------------------------------------------------------Total allocated fixed cost (c) 0.00 0.00 0.00 0.00 ----------------------------------------------------------------------------------------------------------------Total cost (A+B+C) 470.93 297.10 5115.17 279.66 ----------------------------------------------------------------------------------------------------------------Cont with blasting exp. 135.47 203.54 2268.47 204.48
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SUB SECTION;- EXCAVATION
-------------------------------------------------------------------------------------------Particulars for March 07 up to March 07
Dept.Excavation (M3) 230000.00 2510000.00
Cont.Excavation(M3) 74600.00 1272346.00 ------------------------------------------------------------------------------------------------------------Value Cost Valu e Cost (Rs/lacs) (Rs/M3) (Rs/lacs) (Rs/M3)
-------------------------------------------------------------------------------------------A.VARIABLE COST
OPERATING MATARIALS -explosives 42.65 18.54 484.07 19.29 drill bits 0.48 0.21 4.93 0.20 detonators 0.00 0.00 0. 00 0.00 others ;tyres &tubes 62. 94 27.37 520.84 20.75 other -Diesel 121.08 52.64 1220.05 48.61 other -lubricants 17.01 7.40 173.69 6.92 others 1.36 0.59 27.05 1.08 SUB TOTAL 245. 52 106.75 2430.63 96.84 STORES 11.16 4.85 72.86 2.90 SPARES(1/3) 41.50 18.04 362.94 14.46 POWER 13.35 5.80 252.90 10.08 INCENIVES BONUS 3.44 1.50 41.29 1.65 CONT.DRILLING 20.35 8.85 229.78 9.15 ROYALTY 0.00 0.00 0.00 0.00 AMORTISATION 0.00 0.00 0.00 0.00 WATER 7.19 3.13 76.48 3.05 ---------------------------------------------------------------------------------------------------------------Total variable Cost(A) 342.51 148.92 3466.87 138..12 --------------------------------------------------------------------------------------------------------------B.DIRECT FIXED COST. SALARIES & WAGES -operation 25.10 10.92 279.43 11.13 Repairs & Maintenance 33.24 14.45 369.70 14.73 SUB TOTAL 58.34 25.37 649.13 25.86
SPARES(2/3) CONTRACTUAL REPAIRS
83.00 65.24
36.09 28.37
423.48 423.48
16.87 16.87
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--------------------------------------------------------------------------------------------------------------Value Cost Value Cost (Rs/lacs) (Rs/M3) (Rs/lacs) (Rs/M3) --------------------------------------------------------------------------------------------------------------CENTRAL SERVICES -salary & wages 11.77 5.12 130.92 5.22 -power 1. 69 0.74 22.49 0.90 stores & spares 7.49 3.26 104.17 4.15 -others 0.00 0.00 0.00 0.00 SUB TOTAL 20.96 9.11 257.58 10.26 MINES SERVICES -salary & wages 18.51 8.05 205.89 8.20 -power 0.00 0.00 0.00 -stores & spares 1.96 0.85 195.61 7.79 others 0. 00 0. 00 0.00 0.00 SUB TOTAL 20.47 8.90 401.50 16.00 GENRAL OVERHEADS -salary & wages 29.35 12.76 321.05 12.79 -power 0.90 0.39 13.40 0.53 stores & spares 3.10 1.35 39.74 1.58 others 2. 50 1.09 30.00 1.20 SUB TOTAL 35.84 15.58 404.19 16.10 SOCIAL OVERHEADS -salary & wages 6.18 2.68 74.10 2.95 power 8.73 3.80 109.75 4.37 stores & spares 3.10 1.35 39.74 1.58 others 20.51 8.92 253.59 10.10 SUB TOTAL 20.51 8.92 253.59 10.10 DEPRECATION 36.45 15.85 437.36 17.42 --------------------------------------------------------------------------------------------------------------total fixed cost (B) 340.82 148.18 3552.71 141.54 --------------------------------------------------------------------------------------------------------------Value Cost Value Cost (Rs/lacs) (Rs/M3) (Rs/lacs) (Rs/M3) --------------------------------------------------------------------------------------------------------------C.ALLOCATED FIXED COST HO EXPENCES 29.93 13.01 333.88 13.30 INTREST ON C/C & OTHERS 7.64 3. 32 82.43 3.28 INTREST ON BONDS(old) 0.00 0.00 31.86 3. 28 INTREST ON BONDS (new) 12.12 5.27 133.83 5.33 INTREST ON ICICI DEB. 2.31 1.00 53.58 2.13 INTREST N GOVT .LOAN 0.00 0.00 0.00 0.00 68
--------------------------------------------------------------------------------------------------------------total allocated fixed cost (C) 51.99 22.60 635.58 25.32 --------------------------------------------------------------------------------------------------------------total cost (A+B+C) 51.99 22.60 635.58 25.32 --------------------------------------------------------------------------------------------------------------cont with blasting exp. 151.84 203.54 2601.66 204.48
]
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SUB CENTRE :-
MILLING
MILL ING
Particulars Ore Milled Metal Grade (%) Metal in ore(MT) Recovery (%) Metal in Concentrate
For March 07 211284.00 1.07 2257.82 93.68 2115.18 Value (Rs/lacs) Cost (Rs/T)
Up to March 07 2154691.00 1.04 22305.79 93.98 20963.51 Value (Rs/lacs) Cost (Rs/T)
A.INPUT MATARIAL COST
OWN ORE 958.66 453.73 9470. 95 439.55 IUT ORE 0.00 0.00 0.00 0.00 -----------------------------------------------------------------------------------------------------------------------TOTAL INPUT MATARIAL COST (A) 958.66 453.73 9470.95 439.55 -----------------------------------------------------------------------------------------------------------------------OPERATING MATARIALS -grinding media 129.33 61.21 1275.30 59.19 pine oil 3.89 1.84 44.44 2.06 xanthate 0.67 0.32 6.62 0.31 lime 2.32 1.10 26.85 1.25 others 7.00 3.31 30.62 1.42 SUB TOTAL 143.21 67.78 1383.82 64.22 STORES 33.42 15.82 183.00 8.49 SPARES(1/3) 16.90 8.00 118.76 5.51 POWER 178.80 84.63 1963.26 91.12 INCENTIVES 4.89 2.32 58.70 2.72 WATER 29.45 13.94 313.85 14.57 -----------------------------------------------------------------------------------------------------------------------Total Variable Cost (B) 406.68 192.48 4021.39 186.63 -----------------------------------------------------------------------------------------------------------------------B.DIRECT FIXED COST SALRIES & WAGES -operation 25.11 11.88 279.29 12.96 -repairs & maintenance 27.34 12.94 304.15 14.12 SUB TOTAL 52.45 24.82 583.44 27.08
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SPARES (2/3) 33.80 16.00 237.53 11.02 CONTRACTUAL REPAIRS 22.76 12.90 182.52 8.47 CENTRAL SERVICES -salary & wages 8.74 4.14 97.18 4.51 -power 1.13 0.54 15.04 0.70 -stores & spares 5.01 0.00 0. 00 0.00 -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------others 0.00 0.00 0.00 0.00 SUB TOTAL 14.88 7.04 181.86 8.44 GENRAL OVERHEADS -salary & wages 21.78 10.31 238.31 11.06 -power 0.60 0.28 8.96 0.42 stores & spares 2.07 0.98 26.57 1.23 others 4.46 2.11 51.35 2.38 SUB TOTAL 28.91 13.69 325.19 15.09 SOCIAL OVERHEADS -salary & wages 4.58 2.17 55.01 2.55 power 5.84 2.76 73.38 3.41 stores & spares 2.07 0.98 26.57 1.23 others 4.46 2.11 51.35 2.38 SUBTOTAL 16.95 8.02 206.31 9.57 DEPRECTION 9.15 4.33 109.84 5.10 -----------------------------------------------------------------------------------------------------------------------Total fixed cost (C) 183.41 86.81 1826.68 84.78 -----------------------------------------------------------------------------------------------------------------------C. ALLOCATED FIXED COST
HO EXPENSES 29.93 14.17 333.88 15.50 INTREST ON C/C & OTHERS 7.64 3.61 82.43 3.83 INTREST ON BONDS(old) 0.00 0.00 31.86 1.48 INTREST ON BONDS(new) 12.12 5.73 133.83 6.21 INTREST ON ICICI DEB 2.31 1.09 53.58 2.49 INTREST ON GOVT.LOAN 0.00 0.00 0.00 0.00 -----------------------------------------------------------------------------------------------------------------------total allocated fixed cost (D) 51.99 24.61 635. 58 29.50 -----------------------------------------------------------------------------------------------------------------------total cost (A+B+C+D) 642.08 303.89 6483.65 300.91
-------------------------------------------------------------------------------------------------------
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COST CENTRE: CONCENTRATE
----------------------------------------------------------------------------------------------------Particulars For March 07 upto March 07 ---------------------------------------------------------------------------------------------------------------------ORE MILLED (MT) 211284.00 2154691.00 METAL GRADE (%) 1.07 1.04 METAL IN ORE (MT) 2257.82 22305.79 RECOVERY(%) 93.68 93.98 METAL IN CONCENTRATE(MT) 2115.18 20963.51 CONCENTRATE(25%GRADE) 7478.33 79066.10 ---------------------------------------------------------------------------------------------------------------------Value Cost Value Cost (Rs/lacs) (Rs/T) (RS/lacs) (Rs/T) ---------------------------------------------------------------------------------------------------------------------A.INPUT MATARIAL COST OWN ORE 958.66 45323.03 9470.95 45178.25 IUT ORE 0.00 0.00 0.00 0.00 ---------------------------------------------------------------------------------------------------------------------Total input material cost 958.66 45323.03 9470.95 45178.25 ---------------------------------------------------------------------------------------------------------------------OPERATING MATARIALS -grinding media 129.33 6144.15 1275.30 6083.41 -pine oil 3.89 184.05 44.44 211.99 xanthate 0.67 31.77 6.62 31.59 lime 2.32 109.76 26.85 128.06 others 7.00 330.94 30.62 146.06 SUB TOTAL 143.21 6770.67 1383. 82 6601.11 STORES 33.42 1580.01 183.00 872.95 SPARES(1/3) 16.90 798.99 118.76 566.52 POWER 178.80 231.26 58.70 280.00 INCENTIVE BONUS 4.89 231.26 58.70 280.00 OT HE R 29.45 1392.50 313.85 1497.11 ----------------------------------------------------------------------------------------------------------------Total variable cost (B) 406.68 19226.75 4021.39 19182.81
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B.DIRECT FIXED COST
SALARIES & WAGES -operations -repairs & maintenance 25.11 27.34 1187.13 1292.34 279.29 304.15 1332.25 1450.87
SUB TOTAL 52.45 2479.47 583.44 2783.12 SPARES (2/3) 33.80 1597.98 237.53 1133.05 CONTRACTUAL REPAIRS 22.76 1288.70 182.52 870.64 CENTRAL SERVICES -salary & wages 8.74 413.17 97. 18 463.54 power 1.13 53.57 15.04 71.74 ---------------------------------------------------------------------------------------------------------------------Value Cost Valu e Cost (Rs/lacs) (RS/T) (Rs/lacs) (Rs/T) ---------------------------------------------------------------------------------------------------------------------stores & spares 5.01 236.80 69.65 332.24 others 0.00 0.00 0.00 0.00 SUB TOTAL 14.88 703.54 181.86 867.52 GENERAL OVERHEADS -salary & wages 21.78 1029.80 238.31 1136.77 power 0.60 28.33 8.96 42.73 stores & spares 2.07 98.04 26.57 126.76 others 4.46 210.82 51.35 244.96 SUB TOTAL 28.91 1366.99 325.19 1551.22 SOCIAL OVERHEADS -salary & wages 4.58 216.71 55.01 262.39 -power 5.84 276.00 73.38 350.02 -stores & spares 2.07 98.04 26.57 126.76 others 4.46 210.82 51.35 244.96 SUB TOTAL 16.95 801.57 206.31 984.13 DEPRECIATION 9.15 432.75 109.84 523.96 ---------------------------------------------------------------------------------------------------------------------Total fixed cost (C) 183.41 8670.99 1826.68 8713.63
C.ALLOCATED FIXED COST
HO EXPENSES INTREST ON C/C & OTHERS INTREST ON BONDS(old) INTREST ON BONDS(new) INTREST ON ICICI DEB. 59.86 15.27 0.00 24.23 4.62 73 2830.02 721.93 0.00 1145.53 218.42 667.76 164.86 0.00 267.66 107.16 3185.34 786.41 0.00 1276.79 511.17
INTREST ON GOVT. LOAN 0.00 0.00 0.00 0.00 ---------------------------------------------------------------------------------------------------------------------Total allocated fixed cost (D) 103.98 4915.90 1271.16 6063.68 ---------------------------------------------------------------------------------------------------------------------TANSPORTATION (E) 182.69 8637.00 1746.54 8331.34
---------------------------------------------------------------------------------------------------------------------TOTAL COST (A+B+C+D+E) 1835.42 86773.67 18336.72 87469.71
-----------------------------------------------------------------------------------------------------
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STATUS OF SHARE
75
Share Holding pattern of H.C.L
76
Share Transfer System :
Share transfer requests received by the Company are processed and certificates dispatched to the buyers within 30 days from the date of receipt as stipulated in Listing norms of Stock Exchanges.
Distrubtion of Share Holding
77
Stock Market Price Data :
Monthly high and low quotations of shares traded on The Bombay Stock Exchange Limited (BSE) during the financial year was as follows :
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FINDINGS
All the section of finance department (1) Follow same procedure [according to the rules of govt].and all their section are linked with each other (2) In each department centralized authority may finally pass for all the orders and payments.
(3) In all the finance department Paper work is more so it is better to say that paper work i nvol ve m us t . (4) In finance departments authority may not be delegated to each and every person the work is delegated to only efficient and experienced person . (5) All the work is done as per rules and regulation and every step follow procedures. (6) For every movement of activities they maintain the record so lots of paper work followed here, so proof or evidence of any loop holes in activity easily recognized. (7) Efficiency in work, accuracy in all work done, maintain discipline. (8) On comparing the turn over, profit & loss of the company it is found that the company turn over is good on the year 95-96,04-05,05-06 otherwise the company is in loss. (9)The company internal resources is decrease year after year. (10) The percentage of net profit of first, second, third fourth quarter is by 84.75%, 201.15%, 388.71%,36.82%. (11) The company makes sales of various items namely Copper cathode, Copper CC rod, Copper Sulphate, Copper Wire bar, gold, nickel, palladium, selenium, sulphur and sulphuric acid. (12) Under costing department cost sheet is prepared for Ore, Overburden, Excavation, Milling, Concentrate and cost sheet is distributed to mainly director finance, DGM, Advisor Finance, AGM(finance), GM.
79
CONCLUSION
80
CONCLUSION
Hindustan copper project [M.C.P] is a big organization. All the work is done very efficiently and effectively. But some where its inefficiency was observed, Technology which are used here is not efficient
(1) All the department in finance adopt same type of procedure so it is important that Some research and development section is to be made by which work is to be done in fast and effective manner.
(2) Authority for some important work also delegated to inefficient employee and by which the employees are motivated and emphasized by the superior for best performance and are rewarded for incentives and promotions.
(3) There are lots of old techniques
used in finance department of MCP
which
is time consuming and people working by those techniques take more time to do their work so It is time consuming as well as there maintenance is more and there is also wastage of money e.g., typewriter is used instead of computer.
(4) The organization has lots of paper work which take lots of extra time and there is chance of misuse of important papers, documents etc, so there should be reduction in paper work.
(5) Because it is a govt organization so discipline is not maintained in a proper way. The organization should be more disciplined.
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(6) On the survey it is clear that the various internal resources and human resources of the company decrease year after year and the main important resources which is man power resources also decreases. (7) On seeing the Profit & loss statement it is found that the loss is more as compare to profit. (8) By comparing the monthly high and low quotations of share traded on Bombay stock exchange limited the price go high on the year August 2005 and low in October 2005.
82
SUGGESTION
83
SUGGESTION
(1) Time consuming : every activity follow long procedure, and it take more time so it is important to avoid such types of long procedure and adopt the short cut method.
(2) Money wastage : office and administration require lots of paper and administrative things, by which the money were waste so it is necessary to adopt new types of methods and technologies.
(3) Technology : It is important that out dated technology are not used for administrative purpose.
(4) Jobs have limitation some times employees take more time to do small and same type of work therefore the employees are also bored to do the same activities all the time and their also efficiency decreases, and the worker who is efficient in their work
do not work up to the mark. So in this types of situation such types of conditions are made by which employee enjoy their work and not to be bore.
(5) Because it is a Government organization so employee can not fell any pressure in regarding with their work, so as result they do not do their work properly, so this types of situation also avoid.
(6) I the organization such types of environment is made which is not fill with politics and diplomacy, and it is found that there are lot of unnecessary types of work is done in the organization so this is also avoid.
84
(7) On comparing the last ten year financial reports the loss is more as compare to profit, so organization take some action on this. (8) The success of organization depend upon their internal and man power resourses and these resourses decrease year after year so the organization take some action on this also.
(9) Before delegated the authority to the worker it is important to give some training and instruction to the worker by which he complete the work in effective manner. And in case of accounts & cost sheet their should be a advisor or a guide who guide the new or ineffective worker to whom work is delegated.
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ADVANTAGES & LIMITATION OF PROJECT
86
ADVANTAGES & LIMITATION OF PROJECT
ADVANTAGES
*. It helped me to increase my knowledge in management field while working within the organisation.
*. I got the practical knowledge by doing project in the company.
*. The working pattern of the organization is understood.
*. The behavior of colleagues , workers and managers is understood.
*. It helped me to analysis the different departments of the organisation.
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LIMITATION OF THE PROJECT
*. Some times workers refused to corporate properly.
*. The environment of Malanjkhand Copper Project is full with diplomacy & politics.
*. Exact and update information can not be obtained or provided by the employee.
*. Response was not good by the people.
*. Lack of co-operative people in the organization.
*. Some times discussion take extra time, because the discussion was done with the permission of manager and for this appointment is required which is time consuming.
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BIBLOGROPHY
89
BIBLOGRAPHY
? Analysing of MCP department ? HCL monthly magazines ? Tamra Patari Magazines ? MCP notes (collection of different data of department) ? Websites of MCP ? Websites of HCL
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doc_232437817.docx