essar shipping project

Vadinar Oil terminal Ltd. 1


SUMMER PROJECT REPORT

ON

VADINAR OIL TERMINAL LIMITED ( JAMNAGAR )

IN PARTIALY FULFILMENT OF THE REQUIREMENT OF

THE AWARD FOR THE DEGREE OF

MASTER of BUSINESS ADMINISTRATION

SUBMITTED TO :

GUJARAT TECHNOLOGICAL UNIVERSITY

SOM-LALIT INSTITUTE OF BUSINESS MANAGMENT,

NAVRANGPURA,

AHMEDABAD.

PREPARED BY :

VIRAT K KOTHARI

BATCH YEAR : MBA –I (2009-2011)

ROLL NO : 26

GUIDED BY :

MR.ANAND THITE


DECLARATION

I Virat Kothari, a student of Master of Business Administration, Som lalit Institute of

Business Management, Ahmedabad, hereby declare that the summer training project

prepared on VOTL(ESPLL), is the outcome of my own work and the same has not been

submitted to any other university for acquiring any professional degree.

Signature :

Date :


ACKNOWLEDGEMENT I would like to thank my project guide Mr. ANAND THITE (Deputy General Manager – F & A) for his kind support and invaluable guidance in term of theoretical as well as practical knowledge and experience. His willingness to motivate us and showing us some examples that related to the topic of our project, has contributed tremendously to my project. Along with the project work, his real life examples and motivational talks have given me a new way to see the world in a different way. A successful project can never be prepared by an individual efforts but it also needs a guardianship and full support of some people who actively participated in guiding and completing the project. I would also like to thank Mr. HARDIK VAIDYA (Assistant Manager) whose guidance and co-operation have helped me in completing the project successfully. I would also thankful to Mr. BHARAT KAKKAD (Joint General Manager ) who has given me opportunity to enhance myself and my potentials for the purpose of summer internship project. I would also like to thank all my colleagues who directly or indirectly supported me for betterments and improvements. I would also like to thank SOM-LALIT INSTITUTE OF BUSINESS MANAGEMENT for Higher Education for permitting me to do my summer internship in VADINAR OIL TERMINAL Ltd.(ESPLL) and all faculties who were there with me to provide guidance and support. All these have helped me to make this project successful. This project has given me an exposure in terms of great learning, knowledge and practical experience. Knowledge in itself is a continuous process. At this moment, of this substantial enhancement I rarely find enough words to express our gratitude towards those who were constantly involved with me until successfully completion of my project.


TABLE OF CONTENT

Sr No. Title Page No.

1 Executive Summery 1

2 Beginning of Essar Group 2

3 Essar Group – An Overview 4

4 Companies under Essar Group 6

5 Some Facts of Essar Group 17

6 Social activities at Vadinar 21

7 Vadinar Oil Terminal Ltd. 22

8 Operation Project � Operation At VOTL 24 � Gantry Capacity 25 � Turn Around Time 28 � Problem Definition & Data collection 29 � MCO 30 � NE Gate 32 � Vehicle Tracking System 36 � Time Office 37 � Tank Farm Area 38 � Procedure 41 � Truck Loading System 46 � Out Gate 47 � Total TAT 48 � Recommendation 51

23

9 Cost – Benefit Analysis 52

10 Financial Project

Meaning of Ratio Analysis 55

Financial Statements 56

Ratios Of VOTL 58

54

11 Conclusion & Suggestion 71

12 Bibliography 72


Executive Summary:

A Summer Internship has been an outstanding experience from ’HOW to WOW‘. In Summer Internship, first of all, we have been given Health-Safety-Fire-Environment Workshop‘ to teach us that how we have to keep our self safe in the refinery. Then after, we have studied the whole activities going on in different – different departments. I have made a project on General Management including Two projects of operation and Finance.

In operation project, we have been given a topic of ―MIS of dispatch areas. It is all about the optimization of time and resources. Here, we have to analyze the whole procedure of truck loading at each office / stage and then we have to put our efforts to minimize the total time taken by each TT and in this way, we have to reduce the average turnaround time of whole process. To make this system more efficient and effective, we have, first, analyzed the existing system of truck loading at Essar. In finance project, we have been given a topic of ―Ratio analysis. In this project, first of all annual reports of Essar has been analyzed fully. The main objective of doing this project is to see the current situation and try to make it more efficient and effective.


Beginning of Essar Group:

The Essar Group was founded in 1969 by brothers Shri Shashi Ruia and Shri Ravi Ruia.

The Ruia family’s origins are in Rajasthan. Sometime in the 19th century, it moved to Mumbai and set up its own business. In 1956, Shri Nandkishore Ruia, father to Shri Shashi and Ravi Ruia, moved to Chennai, capital of the south Indian state of Tamil nadu, to begin independent business activities. He mentored his two sons in the intricacies of business. When Shri Nandkishore Ruia passed away in 1969, the brothers laid the foundation of the Group.

The Essar Group began its operations with the construction of an outer breakwater in Chennai port. It quickly moved to capitalize on every emerging business opportunity, becoming India’s first private company to buy a tanker in 1976. The Group also invested in a diverse shipping fleet and oil rigs, when the Government of India opened up the shipping and drilling businesses to private players in the 1980s.

Through the 1990s, with the gradual liberalization of the Indian economy, Essar seized every opportunity that came its way. It diversified its shipping fleet, started oil & gas exploration and production, laid the foundation of its oil refinery at Vadinar, Gujarat, and set up a power plant near the steel complex in Hazira. The Construction business helped the Group build most of its business assets. Essar also entered the GSM telephony business, establishing India’s first mobile phone service in Delhi (branded Essar Cell phone) with Swiss PTT as the joint venture partner.

The 21st century for the Essar Group has been all about consolidating and growing the businesses, with M & As, new revenue streams and strategic geographical expansion.

The name of the company ESSAR‘ is getting from the first letter of the two brothers SHASHI‘ and RAVI‘ S‘ as ESS‘ and R‘ as AR‘ thus the combination of them make ―ESSAR.


Reaching Millions of Lives:

For decades, they have quietly reached the lives of millions of people with the steel to build cars, the oil to fuel factories, the power to light up thousands of lives and the pipelines to bring drinking water to remote villages. Today, they have come closer by connecting customers with their cellular phone services and talking to thousands of people through their call centers, a countrywide chain of fuel outlets and marketing steel at the retail level. Essar Group is a multinational conglomerate in the sector of oil, steel, energy, power, communication, shipping ports and logistics. Essar began as a construction company in 1969 and diversified into manufacturing, services and retail.


ESSAR GROUP - AN OVERVIEW

Essar is one of India’s largest corporate houses with leadership positions in the high-growth infrastructure sectors of Steel, Energy, Power, Communications, Shipping & Logistics, and Construction. It employs 24,000 people in 50 locations worldwide. The Group’s revenue guidance for the year march 2008 is over USD 4.5 billion. All the groups’ investments have been consolidated under Essar Global Ltd., along with its six sect oral holding companies: Essar Steel Holdings Limited, Essar Energy Holdings Limited, Essar Power Holdings Limited, Essar Communications Holdings Limited, Essar Shipping &Logistics Limited and Essar Constructions. The group’s enterprise value is approximately US$ 18 billion (Rs.77500 Crores).

ESSAR GROUP PHILOSOPHY “The success of the Essar group is dependent on the development and realization of the potential of each one of us. The mindset of yesterday’s managers was to accept compromise and keep things neat and orderly which leads to complacency. We should no be afraid to go against today’s currents because we know that tomorrow is ours. We must work on a vision of what business can become.” - Shashi Ruia

Essar Group

Shipping Ports &

Logistics

Steel Energy Power Projects

Essar Steel Ltd 4.6 MTPA integrated steel plant Essar Steel (Hazira) 4 MTPA integrated steel plant (under implementation) Essar Steel Orissa 6 MTPA pellet plant (under implementation) Algoma Steel, Canada 4.0 MTPA integrated steel plant Minnesota Steel 6 MTPA pellet plant (planned) 1.5 billion tonne iron ore reserves PT Essar Indonesia 0.4 MTPA cold rolling complex

Essar Oil 10.5 MTPA refinery complex 1,500 retail outlets Refinery expansion to 34 MTPA Exploration & Production Assets E&P rights in valuable oil & gas blocks in India and abroad

Essar Shipping Fleet of 25 vessels, DWT of 1.49 mn Vadinar Oil Terminal Terminal facility of 32 MTPA – Liquid Cargo Bulk Terminal Dry bulk port facilities Essar Oilfields A drilling company with 13 rigs Essar Logistics Owns and operates transshipment assets

Essar Power / Bhander Power 1015 MW combined cycle Vadinar Power 125 MW co-generation; expanding to 1250 MW Essar Power MP 1200 MW coal based (under implementation) Essar Power Gujarat 1200 MW coal based (under implementation) Essar Power Jharkhand 1200 MW coal based (under implementation)

Essar Construction - Engineering - Fabrication - Construction Fully geared to execute turnkey EPC jobs in India and overseas Essar Engineering Services Ltd Detailed design & engineering Global Supplies (UAE) FZE Global procurement company Heavy Engineering Services Project Management Consultancy Asia’s largest equipment bank

Communications

Vodafone Essar 55 million subscribers Essar Telecom Infrastructure 5,000 Telecom Sites by end 2008; 20,000 by 2010 The MobileStore Chain of 2,500 retail outlets by 2010 Aegis - BPO 30,000 people in offices in the Philippines, Costa Rica, USA and India BPL Mobile More than 1.8 million subscribers


ESSAR VISION

The vision of Essar Group can be defined by the seven E’s: We will be a respected global entrepreneur, through the power of Positive Action. � EFFECTIVENESS: doing the right thing at the right time � EFFICIENCY: doing things the right way by conserving resources, being cost

effective and simple � ENTREPRENEURSHIP: creating and leveraging opportunities, taking initiative

and innovations � EMPOWERMENT: through self esteem, self respect, self worth and trust � EDUCATION: learning, communicating and sharing information and

knowledge � ETHICS: having transparent business operations � ENVIRONMENTAL HARMONY: adding value to society and creating

sustainable development

ESSAR MISSION

We are committed to innovative growth, through our personal passion, reinforced by a professional mindset, creating value for all those we touch.


Some of the companies run under the Essar Group are: Essar Oil

� Essar Oil has a 13.5 Million Metric Tones Per annum (MMTPA) refinery in Jamnagar, west coast of India and over 1,350 Essar oil branded retail outlets across India. Essar is planning to increase its capacity to 34 MMTPA and open 3,000 outlets countrywide. � Essar‘s global portfolio of onshore and offshore oil and gas blocks with about 70,000 sq.km. Is available for exploration. � Essar has over 2,80,000 Barrels Per day of crude refining capacity that is being expanded to 6,80,000 barrels Per Day, with a goal to reach a global capacity of 1 million Barrels Per Day. � Essar has 50% stake in Kenya Petroleum Refineries Ltd., which operates a refinery in Mombasa, Kenya, With a capacity of 80,000 Barrels Per Day. � Essar‘s Exploration & Production business has participating interests in several hydrocarbon blocks for exploration & production of oil and gas. This includes: 1. The Ratna and R-series blocks on Bombay High.


2. An E&P block in Mehsana, Gujarat, which has currently started commercial production. 3. Coal Bed Methane block at Raniganj in West Bengal. 4. Two E&P blocks in Assam. 5. Essar has an overseas E&P assets include three onshore oil and gas blocks in Madagascar, Africa and one offshore block each in Vietnam and Nigeria.

� A refinery in Jamnagar has the capability to produce petrol and diesel suitable for use in India as well as advanced international markets. It also produces LPG, Naphtha, light diesel oil, aviation turbine fuel and kerosene. The refinery has been designed to handle a diverse range of crude – from sweet to sour and light to heavy. It is supported by an end-to-end infrastructure set up including SBM (Single Buoy Mooring), crude oil tankage, water intake facilities, a captive power plant(currently 125 MV, being expanded to 1,200 MV)product jetty and dispatch facilities by road, rail and sea. � A refinery is strategically located in Jamnagar, Vadinar coast, a natural all-weather; deep draft port that can accommodate very large crude carries. Vadinar also receives 70% of India‘s crude imports.


Essar Steel

� Essar is a fully integrated flat carbon steel manufacturer – from iron ore to ready-to-market products with a current capacity of 14 million tones per annum (MTPA) capacity. With our aggressive expansion plans in India, as well as in Asia and America, we aim to achieve a capacity of 20 to 25 MTPA. � Its steel products have wide acceptance in sectors like automotive, white goods, construction, engineering and shipbuilding. � Essar Steel is one of India's largest exporters of flat products, exporting to the highly demanding US and European markets, and to the growing markets of South East Asia and the Middle East. � A number of major client companies have approved Essar steel for their use including Caterpillar, Hyundai, Swaraj Mazda, the Konkan Railway, and Maruti Suzuki.


Essar Power

� Essar power is India‘s first new generation independent power plant set up as soon as the power sector was opened up to private sector. � Essar power has India‘s first multi-fuel power plant, with the lowest manpower to megawatt ratio and one of the lowest capital per mega watt in India. � Essar Power has two gas-based plants, of 500MW and 515MW capacities, and one liquid fuel-based 32MW power plant in Hazira, a 120MW co-generation plant in Vadinar and a 25MW coal-based plant in Visakhapatnam. � Work is currently under way to expand the current generation capacity of 1,200MW to 6,000MW by 2012, with a target to reach 10,000 MW in the near future. � The company will set up three coal-based plants of 1,200MW each in Gujarat, Madhya Pradesh and Jharkhand, aggregating 3,600MW. � An additional 1,200MW (co-generation plant of equivalent capacity) is also under development in Vadinar to supply power and steam to the expanded refinery.


� As the first private company with a license to enter the transmission and power trading segments, Essar is now a fully integrated, end-to-end player in the power sector. � By using the latest technology and equipment, Essar generates and supplies power at very competitive price points. Essar currently has complete fuel linkages secured for all projects under execution. � Essar power is exploring opportunities for new projects based on thermal, wind and hydro energy. � The investments made towards the projects under execution is over USD4 billion. � Work is currently under way to increase generation capacity to 6000MW. The company will set up 3 coal based plant of 1200 MW each in Gujarat, Madhya Pradesh and Jharkhand, aggregating 3600 MW. An additional 1200 MW (co-generation plant of equivalent capacity) is also under development in Vadinar to supply power and steam to the expanded refinery. � With a license to enter the transmission, distribution and power training segments, Essar Power is now a fully integrated, end-to-end player in the power sector. By using the latest technology and equipment, Essar power can generate and supply power at very competitive price points. The also has the capability to generate power projects for other companies. � Essar Power is exploring opportunity for new projects based on thermal, wind and hydro energy. It is also committed to reducing emissions form its plants and earning carbon credits. � The 500 MW combined cycle power plant at Hazira is eligible for Certified Emission Reductions (CERs) under the Kyoto Protocol‘s Clean Development Mechanism (CDM).


ESSAR TELECOME

� Vodafone-Essar is a joint venture of Essar Communication Holdings Ltd and the UK-based Vodafone Group. It is one of India‘s largest cellular service companies. � Essar Telecom Infrastructure is one of the largest independent telecom infrastructure service provisioning companies in the country. � It builds telecom tower infrastructure and shares it with several telecom operators in India. � It has a pan-India presence in telecom tower infrastructure with more than 4,500 telecom towers operational. Essar has a 14 per cent stake in Indus Towers, India‘s largest tower company, which has over 100,000 towers. � Essar Communications Holdings Limited acquired a 49 per cent stake in Econet Wireless International Limited by subscribing to fresh capital in the company. � Essar and Econet Wireless Kenya have launched 'yu' — Kenya‘s third mobile cellular network. This is a GSM-based mobile services network in Kenya with close to a million subscribers. � Essar has launched India‘s first national chain of multi-service outlets in the telecom retail space. The Mobile Store ltd currently runs over 1300 ―The Mobile Store‖ outlets. Over 2500 Stores outlets are expected across 650 cities. � Expected across 650 cities.


Essar Construction

� Essar Constructions/Projects is a 4000 people strong global engineering procurement and construction company headquartered in Dubai. It has offices in India, China and the Czech Republic. It provides complete construction solution under one roof. It operates through five main businesses. 1. Essar Construction: This division has over four decades of experience in executing projects involving industrial plants, civil and irrigation projects, lying of onshore pipelines, and highway and expressways. With a pipeline division certified at ISO 9001, it has developed capabilities to undertake turnkey projects. 2. Essar Offshore Sub Sea: The marine construction expertise within Essar oil, Essar shipping, Essar project and Essar construction has now demerge in to a single entity namely Essar Offshore Sub sea Ltd (EOSSL). The business provides Engineering Procurement, Construction and Installation (EPCI) services in this sector in domestic as well as overseas markets. In the high-growth oil & gas sector, EOSSL provides EPC service for offshore logistics support and marine construction projects. 3. Global Supplies: The global supplies team specializes in procurement, with a presence in India, Chine, Middle East and Europe. It has excellent relationships with vendors across the globe, giving it the ability to procure materials in a timely manner and at a competitive price.


4. Heavy Engineering Services: Has modern facilities for manufacturing pressure vessels, reactors, vacuum vessels, cranes etc. the business is strategically located in the waterfront at Hazira on the west coast of India. 5. Project management Consultants: An independent team of project management consultants ensures compliance to processes in project execution. The team is also pitching for third party projects. Essar projects also own a vast bank of sophisticated construction equipment used in large projects.


Essar BPO (Agies Ind Ltd.)

� This has led Essar to emerge as one of the biggest corporate group not only in India, but gained huge reputation and image internationally. Essar group has played a major role not only in present but also in past. Their contribution to the nation is a significant one. � On I.T. Front Essar has incorporated Aegis Communication Group which provides multi-channel customer relationship management, including database management, analytical services and market intelligence to progressive companies. � Aegis has a strong team of 13000 Employees and provides services to blue-chip and multinational companies through a network of nine client‘s services in US and ten in India.


Essar Shipping ports and logistics

� Essar Shipping Ports & Logistics Ltd is an end-to-end logistics provider with sea and surface transportation services, oilfield drilling services, dry and liquid terminals, tankage and associated pipelines. It provides supply chain � Management services to client in oil and gas, steel and power generation industries. � The sea transportation business provides transportation management services for a crud oil and petroleum products, and dry bulk cargo to global energy, steel and power industries. With an experience of more than 220 ship years, it owns a diverse fleet of 26 vessels, which is being expanded to 38 vessels. � Essar‘s integrated business model provides opportunities to cater to the complete supply chain management services to clients in oil and gas, steel and power generation industries. We are one of India‘s largest operators of ports and, building a cargo handling capacity (both dry and bulk cargo) of over 150 million tons. � Essar ports and terminals business operates a crude oil and petroleum products terminal at Vadinar and includes the construction of a dry bulk port at Hazira and a coal jetty at Salaya, all in the state of Gujarat. � The Vadinar terminal is an all-weather, deep-draft port, which provides crude oil and petroleum products storage, handling and terminal services. The port has a Single Point


Mooring system capable of handling crude capacity of up to 27mmtpa, and marine facility for export of petroleum products of up to 6.5mmtpa. � The dry bulk port being constructed at Hazira involves setting up a 30mtpa all-weather, deep-draft port and jetty facility. � Essar's logistics business provides end-to-end logistics services – from ships to ports, lighterage services, intra-plant logistics and dispatch of finished products. � We own trans-shipment assets to provide lighterage support services, and onshore and offshore logistics services. � We also operate a fleet of 4,200 trucks (38 of which we own) to provide inland transportation of steel and petroleum products. � Essar‘s sea transportation business provides transportation management services for crude oil and petroleum products, and dry bulk cargo to the global energy, steel and power industries.


Some Facts of Essar Group � The group‘s enterprise value is approximately US$ 15 billion (Rs. 67,000 crores). � The Essar group is one of India's largest spenders on continuous training, investing about Rs. 1.4 crore (US $3 m) annually. � Essar has the world's largest gas-based HBI plant at Hazira, Gujarat. � Essar Steel is India's largest exporter of flat steel products. � Essar Steel is the largest steel manufacturer on the West Coast of India. � Essar Steel has the first Indian steel plant to receive ISO 14001 award for environment management and ISO 9002 for the entire plant operations. � Essar Shipping is the first Indian shipping company to comply with the IMO's International Safety Management Code. � Essar Shipping owns India‘s largest double hull double bottom VLCC, MT Ashna. � Essar Power is India's first independent power plant and first multi-fuel plant. � Essar Power has India's lowest manpower to megawatt ratio. � Essar Power is one of the few recipients of the Sword of Honour' from the British Safety Council and India's only power plant with the ISRS level-3 safety rating. � Vodafone Essar is the second largest cellular service provider in India. � Essar Oil is the first private sector company in India to enter into petroleum retailing in the last 100 years. � The oil refinery of Essar Oil at Vadinar will have a capacity of 34 MMTPA in near future. � Essar Constructions is a more than three decade old EPC contractor in India


� Essar Constructions is among India's largest companies in its sector. The Base of Essar Group (Management Team)

Promoter Directors

Shri. Shashi Ruia Chairman

Essar Group

Shri. Ravi Ruia Vice Chairman Essar Group

Shri. Prashant Ruia Group Chief Executive

Essar Group

Shri. Anshuman Ruia Promoter Director

Essar Group

Shri. Rewant Ruia Promoter Director

Essar Group


Global Management Committee

Mr. Adil Malia Group President - Human Resources

Mr. J Mehra CEO - Steel Business Group

Mr. Naresh Nayyar CEO - Energy Business Group

Mr. Sanjay Mehta CEO - Shipping & Logistics Business Group

Mr. Rajiv Sawhney CEO - Telecom Business Group

Mr. Alwyn Bowden CEO - Projects Business Group

Mr. Aparup Sengupta CEO - Aegis BPO Services

Mr. V G Raghavan CFO - Essar Group

Mr. Vikash Saraf Director – Strategy & Planning - Essar Group

Mr. Shishir Agarwal CEO - Exploration & Production Business

Mr. Pradeep Mittal CEO - Minerals & Mining Business

Mr. S M Lodha Group President - Assurance & Cost Control

Group Investment Committee

Promoter Directors

Mr. J. Mehra CEO - Steel Business Group

Mr. Naresh Nayyar CEO - Energy Business Group

Mr. Sanjay Mehta CEO - Shipping & Logistics Business Group

Mr. Rajiv Saxena Head - Mergers & Acquisitions

Mr. V.G. Raghavan CFO - Essar Group

Mr. Vikash Saraf Director – Strategy & Planning - Essar Group

Global Finance Committee

Mr. V G Raghavan CFO - Essar Group

Mr. Mahadev Iyer CFO - Steel Business Group

Mr. P Sampath CFO - Energy Business Group


Mr. V Ashok CFO - Shipping & Logistics Business Group

Mr. V Suresh CFO - Power Business Group

Mr. S. Subramaniam CFO – Telecom Business Group

Mr. Tapash Bhattacharya CFO – Projects Business Group

Mr. C.M. Sharma CFO – Aegis Ltd

Mr. Neeraj Gupta CEO - Essar Capital Ltd.

Mr. Amar Fadia Head, Corporate Finance - Essar Group

Mr. N S Paramsivam Group Head - Forex & Treasury

Mr. Partha Bhattacharyya Group Head – Forex & Treasury

Dr. Paritosh Basu Group Controller – Essar Group

Mr. Komal Seshagiri General Counsel, Finance – Essar Group

Mr. Mahabir Agarwal Convener

Management Grade Structure at ESSAR :

Level Designation

M1 Managing Director/ Executive Director/ CEO/Head of Corporate functions

M2 Senior Vice President

M3 Vice President

M4 General Manager

M5 Joint General Manager

M6 Deputy General Manager

M7 Senior Manager

M8 Deputy Manager

M9 Manager

M10 Senior Officer

M11 Officer


Social activities at Vadinar :

� Two major ponds have been deepened in Kathi Devaria & Kajurda villages for rain

water harvesting.

� Water tankers are sent periodically to Kajurda, Vijaynagar and Bharana villages to

help them deal with water shortage.

� Two school buildings at Bharana & Jankhar villages have been renovated.

� More than 150,000 kg of fodder has been supplied to 14 surrounding village

gaushalas. August 2007 onwards a Fodder Financial Assistance is provided to villages near

the refinery.

� Around 12,000 patients from the refinery’s 10 surrounding villages benefited from an

arogya vahini (mobile clinic)’ around 3,000 patients benefited at our Mother & Child Centre

at Vadinar, a joint venture with the District Panchayat, Jamnagar.

� Four eye camps were organised in 2007-08, with 500 patients receiving treatment and

25 patients being operated free of cost.

� A skin treatment camp was also organised at Timbdi village whereby 100 patients

were diagnosed and necessary medicine distributed.

� Since November 2007, a 24-hour Essar Community Health Centre started in Jankhar

village, with three doctors, three paramedics and an ambulance. The centre also has a full-

fledged laboratory that is available round the clock.

� Two medical camps were organised in 2007-08 at Jankhar and Kajurda villages where

1,100 people from 10 – 12 villages were treated.

� At the Primary School Mahotshav 2007, 1,450 school bag kits were distributed to

students from 74 villages of Khambhalia and Lalpur talukas.


Vadinar Oil Terminal Limited (VOTL):

VOTL is in the business of providing crude oil and petroleum products storage, handling and terminalling facilities. VOTL has invested in port and terminal facilities to support 13.5 million tones per annum (MTPA) refinery capacity at Vadinar in Gujarat on the West Coast of India set up by Essar Oil. The facilities of VOTL include a product port, crude oil and petroleum product tankages, single point mooring, cross country and sub sea pipelines, and rail and road gantry.

Key Data : Order Year 1996 Construction Started 1996 but was delayed, restarted in

2005 Project Type Grass roots refinery Location Vadinar, Jamnagar, Gujarat, India Estimated Investment Rs.98,740 ($2.26bn) Completion 2006

Key Players : Sponsors

Essar Oil Ltd, Essar Shipping Ltd , Petronet India Ltd, Lead Contractors and Designers, ABB Lummus, TCE, Larsen and Toubro, Semb Co E&C, Essar Shipping Ltd

Financial ICIC Bank, IDBI Bank, IFCI Bank, Essar Oil Ltd, Essar Shipping Ltd, Vadinar Oil Terminal Ltd, Essar Projects, Housing and Urban Development Corporation Ltd (HUDCO)


Operation Project

“Turn Around Time”


Operation at VOTL:

Consumer is the key of the market and his need and wants are the goal of

the business activities of Essar oil ltd. For achieving this goal whole the services for inward of raw material to dispatch of finished products including management of inventory VOTL takes these steps :

� First of all VOTL has it’s own jetty with 1 single point mooring for import of crude and 2 birth for dispatch of finished product via marine. � Whenever vessel of crude comes on jetty, it’s weight is minimum 2.5 lac matrix tone. So it’s not possible to take vessel on jetty and for that VOTL has Single Point Morring (SPM) with attached pipeline direct to Crude Oil Tank (COT area). � After this whenever Refinery wants crude it directly sends to refinery via pipeline. � Then these Finished Product directly send to tank farm area. � Now these finished products is directly dispatch through ROAD, RAIL, PIPING & MARINE.

Essar is reaching out to consumers deep in India's heartland with the

mission to create enduring value for customers and stakeholders in core Manufacturing and service businesses, through world-class operating standards, state-of-the-art technology and the 'positive attitude' of their people .Let‘s Understand how the Marketing practically applied under the Essar oil Ltd.

Oil is a product whose demand is always Latent demand i.e. (A strong

Demand that can‘t be satisfied by existing product) so its production remain on Continuous basis. A product planning is a company plan for marketing its Products. Product planning means planning for the product to be produced or What need or what requirements the products the product should satisfy.

Essar Oil Limited produces its products on continuous basis and so it


does not have to do much product planning. As Essar Oil's Refinery has a Production capacity of 13.5 Million Metric Tones Per Annum (MMTPA) or 280,000 (BPD.) barrels per day. Domestic demand coupled with demand from

– IOCL, Reliance, HPCL, BPCL etc. For cope with facility of Essar Oil ltd. VOTL also has capacity of 12.5 MMTP.

GANTRY CAPACITY : TANK TRUCK GANTRY (ROAD) Gantry Configuration TANK LORRY GANTRY CONFIGURATION BAY

S 1 2 3 4 5 6 7 8 9 10

MSII MSII MSII MSII MSII MSII MSII MSII Gantry I HSD II HSD II HSD II HSD II HSD II HSD II HSD II HSD II SKO SKO MSII MSII MS III MS III MS III MS III Gantry II ATF ATF HSD II HSD II HSD II HSD III HSD III HSD III

Gantry III LPG LPG LPG LPG LPG LPG LPG LPG Gantry IV

LPG LPG LPG LPG LPG LPG LPG LPG

BIT BIT BIT BIT Gantry V FO FO FO FO FO FO FO FO FO FO

A. Each TT takes 40 minutes ( Considering ramping, idle time etc). Free loading time available per shift is 7 Hours. Number of TT can be loaded in 7 hours is 10 TT per bay per shift ie 200 KL per bay per shift.

B. Each loading arm capacity is 60 KL/Hr Gantry I Total 8 bays . Each bays are having MSII and HSDII. Gantry capacity per shift = 200 X 8 = 1600 KL per shift Gantry II 2 bays for SKO or ATF 3 bays for MSII or HSDII 3 bays for MSIII or HSDIII SKO can be loaded per shift = 2 X 12 X 10 = 240 KL MSII or HSD II can be loaded per shift = 3 X 20 X 10 = 600 KL MSIII or HSD III can be loaded per shift = 3 X 20 X 10 = 600 KL Gantry capacity per shift = 240+600+600 = 1440 KL per shift Gantry III


8 bays for LPG Gantry Capacity per shift = 56 X 17 = 952 MT per shift Gantry IV 8 bays for LPG Gantry Capacity per shift = 56 X 17 = 952 MT per shift Gantry V 6 bays for FO 4 bays for FO or Bitumen ( Presently Bitumen bay used for 380 CST FO ) Each bay can fill 6X15 = 90 MT per shift ie 360 MT 380 CST FO and 540 MT FO Gantry Capacity per shift = 540 + 360 = 900 MT per shift Total TT Gantry capacity considering three shift operation for Oil and General Shift Operation for LPG per day: 11673MT/Day ie 3.85 MMTPA TANK WAGON GANTRY (RAIL) SPUR : Two LENGTH : Full ie 54 BTPN / 80 Conventional PRODUCT: MS II, MS III, HSD II, HSD III, FO, SKO The optimum capacity of the gantry is 5 rakes per day ie 12000 MT per day or 3.96 MMTPA The gantry to be operated round the clock. MARINE JETTY (VESSEL) Jetty: Max dwt 100000 Draft at jetty : 20 M Draft of channel: 14.5 M LOA Pipe Line (PIPING) Line No Service Dia in Inch Length in M Line

Quantity in KL

Designed Flow Rate in KL/Hr

76950-A01-1 WO 24” 22000 5750** 2000 76900-A01-1 VGO 24” 22000 5750 2000 76700-A01-1 Slop 24” 22000 5750 2000 **Line quantity from Pig receiving point to jetty per line ( each line is bifurcated into seven no 34”dia Finger Line) is 250 CUM


The average utilization of the jetty as per present varied planning of the vessels is as below 40% loading, 39% jetty idling, 2% stoppage during operation, 19% stoppage after & before cargo loading Hence the jetty capacity = 365 X 24 X 0.4 X 2000 KL/Hr = 5.43 MMTPA After Night Navigation, double line loading the jetty idling will go down and loading time will increase so the capacity as follows. Minimum 45 TMT vessels to be handled with two LA connection and with night navigation. One vessel may take about 2.5 days. Hence total vessel to be handled = 12 Capacity = 12 X 45000 X 12 = 6.48 MMTPA TOTAL EVACUATION CAPACITY EX VOTL: Present ROAD : 3.85 MMTPA RAIL : 3.96 MMTPA JETTY : 5.43 MMTPA [After Night Navigation, double line loading the jetty idling will go down and loading time will increase so the capacity as follows. Minimum 45 TMT vessels to be handled with two LA connection and with night navigation. One vessel may take about 2.5 days. Hence total vessel to be handled = 12 Capacity = 12 X 45000 X 12 = 6.48 MMTPA] TOTAL : 13.24 MMTPA 14.29 SBM SPM: Line No Service Dia in Inch Length in M Line

Quantity in KL

Designed Flow Rate in KL/Hr

Crude 48” 21000* 22000 * Sub sea portion is 8 KM. Capacity for handling the ship size 85000DWT to 325000DWT. Maximum draft: 35Mtr. Line Size 1X48”, volume approx: 22000 M3. Capacity 27 mmtpa crude


Turn Around Time:

It is the time that takes to get a job done and deliver the output, once the

Job is submitted for processing. Turnaround may be as simple as unloading and reloading a delivery truck before sending it out again, or as complex as Completing a merge/purge of several rented lists, getting a product into the Buyer’s hands once it is ordered, or receiving approval on a proof that has been Submitted to the print buyer. In most cases, a short turnaround time is economically advantageous, making the most efficient use of time and Resources. TAT starts when FAN is generated. Research Methodology:

Research methodology is a way to systematically solve the research

Problem. It may be understood as a science of studying now research is done Systematically. In that various steps, those are generally adopted by a researcher in studying his problem along with the logic behind them.

It is important for research to know not only the research method but

also know methodology.

� work of describing, explaining and predicting phenomenon are called methodology. � Methods comprise the procedures used for generating, collecting

and evaluating data. All this means that it is necessary for the researcher to design his methodology for his problem as the same may differ from problem to Problem.

Data collection is important step in any project and success of any

project will be largely depend upon now much accurate you will be able to collect and how much time, money and effort will be required to collect that necessary data, this is also important step.

Data collection plays an important role in research work. Without proper

data available for analysis you cannot do the research work accurately.


Problem Definition:

At Essar we analyzed turnaround time of TTs loading process. Currently

the average time to load a truck is around 2hrs 5min and we are able to load near about 450 TTs a day which is a huge success for road supply.

The objective of our study is to make this process more effective and

efficient by reducing turnaround time at its optimal level. In short, the project is about optimization of time and resources. Data collection:

To make our study more on the practical basis and not theoretical all the

data we used is primary and collected by analyzing each stage of process.

Marketing Co-ordination Office (MCO) Layout:




NE gate Office :


The process of truck loading starts from here. � This office is situated at North-East side of refinery. That‘s why it is called ‗North-East Gate (NE Gate)‘.

� There are three windows in this office: Window – 1 Window – 2 Window – 3

� In Window – 1, the activity of creating database including information like TT Number, Driver‘s Name, and Khalasi‘s Name, Transporter‘s Name and Other details.

� For this, different-different forms have been generated according to the Customers.

[A] Annexure 1A:

IOCL HPCL BPCL

Shell India [B] Annexure 1B:

ELL/Essar Dairy Gold Plus Shah Alloys Gill

[C] Annexure 1C: Kotak Vinergy Ramdoot G L Khanna Alishan

GSEC Shiv Petroleum West Coast Chetak

Form – 1

Form – 2 Form – 3


� In Window – 2 & 3, an activity of putting TTs into the Online Vehicle Tracking System (VTS) is done. In these two windows, basically, checking is done. The following is the Check List Slip issued at NE Gate Office to TT drivers and the mentioned things are checked.

Document Checklist:

� Valid Original Driving License & Registration Book

� Valid Insurance Certificate & Fitness Certificate (Original or notarized)

� Valid Explosive License & Calibration Certificate ( Original or notarized)

Physical Checklist

� Approved Spark Arrester (Welded in front of TTs towards driver's side

� DCP fire extinguisher (2 No. 10 KG. Working condition)

� Value manifold: Flange cover tightened

� Electrical Junction Box & double pole wiring. No electrical loose wires

� Regd. No. printed on the body / number plate � Emergency Information Panel printed properly on the body ( All the three

sides)

� Crew wearing proper PPEs. ( Helmet / shoes / socks) � Extra load with mollified intentions e.g. iron plates, stone bags, extra water

bags / buckets, extra jack and Tommy bars and any other items

� Driver and cleaner training and have TREM card

� Proper Earthling Strip is available

� General overall conditions of Tank Lorries

Additional Check List in case of LPG Tankers


� LPG height barriers, Earthling Strip of cabin / compartment

� LPG emergency kit ( For LPG carriers only) � Condition of pressure gauge ( For LPG carriers only) � Condition of temperature gauge ( For LPG carriers only)

After all these checking if everything is all right, then the particular TT is entered into the Online Vehicle Tracking System by following way: Time taken at NE Gate Office is 2 minutes.


Vehical Tracking System :


� The average time taken at NE gate Office 2.1793 minutes. � Three people are there at NE Gate Office, who handles all the activities there. � Once the checking is done, the TTs are allowed to move to Time Office.

Time Office :

� Time Office is the second place after the TTs have been entered into

the Vehicle Tracking System. � Between NE Gate to Time Office TTs are checked by security. � Once the process gets over, TTs are parked in the parking in front of Time

Office where it has a capacity of 700 TTs. � First of all, mails are received from the parties in which Purchase Orders / Indents have been placed. After that it is checked the amount has been received in advance to Essar.


� After entering into the time office area, the driver sits in the truck while the khalasi comes to the Window – 1 and produce the Check List Slip to the officer, sitting in Window – 1.

� After this, an Outbound Delivery Number is generated. Here, Outbound Delivery Numbers are generated according to the No. of products placed in the indent. � At Window – 2, shipments are generated for PSUs (Here, the procedure is going on according to shift wise.) and then it is delivered to particular drivers. � At Window – 3, Terminal Automation System (TAS) is made by which we can trace any TT in the refinery. Then, Filling Authorization Note (FAN) is generated in which all the information like TT Number, Products to be loaded, in what quantity, Gantry No., Bay No., etc. are recorded. After that Touch Key is issued. � At Window – 4, planning for FO and Bitumen is done. Generally, in Time Office, the work at window – 4 is somewhat more important and with full of responsibility. It is also called ―The Hot Seat‖ and it becomes hotter as day passes. � The average time taken at Time Office is 20 minutes.

Tanks Farm Area:

� Tanks Farm is the area which comes under the S&D Department. Generally, S&D Department has four different areas like TLCB, RLCB, Gantry and Tank Farms. � Tanks Farm is the area which act as an intermediately between PIT Area and Gantry. � There are three types of tanks in Tanks Farm Area: External Floating Tanks:


Internal Floating Tanks Cone Floating Tanks

� .First of all, crude oil is refined in the refinery. Then sample from each product like MS, HSD, SKO, ATF, FO, Bitumen, LPG is taken for testing in lab and after testing these products are certified. � After this, all these products are stored safely Product Intermediate Tanks

(PIT). According to the requirements, products are transferred PIT to Tanks Farm Area by pipelines.

� In Tank Farm, there are 23 tanks. 1) 4 Tanks – HSD 2) 4 Tanks – MS 3) 4 Tanks – FO 4) 4 Sphere – LPG 5) 1 Tank – ATF 6) 2 Tanks – SKO 7) 2 Tanks – Bitumen 8) 2 Tanks – Ethanol

� Tanks Farm Area is also known as ―Dispatch Tanks‖. There are some rules

and regulations and procedure before storing products in the tanks Farm Area.

� First of all, samples from Dispatch Tanks are collected for testing. � These samples are again tested and certified in the lab. The result from

testing at both places PIT and Dispatch Tanks should be same. � Once the sample is same then only, products are allowed to transfer to Tanks

Farm Area. If there is inequality in testing then retesting is done. � Testing the sample always proves to be correct. There are very less chance

retesting for inequalities in the products.



Procedure :


Tanks Information:

SR NO Tank No Service Type

Nominal Cap (m3)

Diameter (m)

Height (m)

1 200A GASOLINE BS III EFT 4000 20.0 13.5

2 200B GASOLINE BS II EFT 4000 20.0 13.5

3 201 GASOLINE BS II EFT 500 10.0 9.0

4 202 GASOLINE BS III EFT 500 10.0 9.0

5 301A SKO EFT 900 12.0 10.0 6 301B SKO EFT 900 12.0 10.0 7 302 ATF IFR 200 9.0 5.4 8 400A HSD BS III EFT 10000 30.0 15.0 9 400B HSD BS II EFT 10000 30.0 15.0 10 401A HSD BS III EFT 3000 17.5 13.5 11 401B HSD BS II EFT 3000 17.5 13.5 12 500A FO CR 4000 20.0 13.5 13 500B FO CR 4000 20.0 13.5 14 501A FO CR 800 10.0 10.8 15 501B FO CR 800 10.0 10.8 16 502A BITUMEN CR 800 10.0 10.8 17 502B BITUMEN CR 800 10.0 10.8 18 701A ETHANOL IFR 300 8.0 7.0 19 701B ETHANOL IFR 300 8.0 7.0

20 100 A LPG SPHERE 3600 20.0

21 100 B LPG SPHERE 3600 20.0

22 100 C LPG SPHERE 3600 20.0

23 100 D LPG SPHERE 3600 20.0


TOTAL STORAGE IN CUM 63200 mmt IFR : Internal Floating Roof EFT : External Floating Roof CR : Curvature Roof

No. of Pumps :

S.NO PUMP SL NO PUMP NO CAPACITY-m3/hr PRODUCT RAIL / ROAD

1 970191 77P-502 S 100 FO MV-2 ROAD

2 970190 77P-502 A 100 FO MV-2 ROAD

3 970189 77P-501 S 100 FO MV-2 ROAD

4 970188 77P-501 A 100 FO MV-2 ROAD

5 970237 77P-500 S 600 FO MV-2 RAIL

6 970236 77P-500 A 600 FO MV-2 RAIL

7 970166 77P-401 S 300 HSD-3 ROAD

8 970165 77P-401A 300 HSD-3 ROAD

9 970250 77P-400 S 600 HSD-3 RAIL

10 970249 77P-400 D 600 HSD-3 RAIL

11 970248 77P-400 C 600 HSD-3 RAIL

12 970247 77P-400 B 600 HSD-3 RAIL

13 970246 77P-400 A 600 HSD-3 RAIL

14 971213 77P-203 B 600 MS II RAIL

15 971212 77P-203A 600 MS II RAIL

16 970187 77P-302 120 ATF ROAD

17 970186 77P-301 S 120 SKO ROAD

18 970185 77P-301 A 120 SKO ROAD

19 970164 77P-202 100 MS-2/3 ROAD

20 970163 77P-201 S 100 MS-2 /3 ROAD

21 970162 77P-201 A 100 MS-2/3 ROAD


22 970245 77P-200 S 600 MS-3 RAIL

23 77P - 200 B 600 MS - 3 RAIL

24 970243 77P-200 A 600 MS - 3 RAIL

25 970242 77P - 100S 400 LPG ROAD

26 970242 77P - 100B 400 LPG ROAD

27 970242 77P - 100A 400 LPG ROAD

Details Written on Each Tank:

1) Fabrication & Eriction By – Artson Engineering Ltd, Mumbai 2) Owner – Vadinar Oil Terminal Ltd 3) Project Management – Essar Projects Ltd 4) NES – TCE Consulting Engineering Ltd, Mumbai 5) Designed By – Artson Engineering Ltd, Mumbai 6) Item No. – 7) Fabrication Serial No. – 8) Capacity – 9) Tank No. – All these information are there on each and every tank. ‖ In each and every tank, a minimum level of 1.5Metre is kept. ‖ Maximum tank height is 20 Meters. ‖ There are three pipelines connected to each tanks. These are

1) Inlet 2) Outlet 3) Water

‖ Inlet pipeline is for product receipt. ‖ Outlet pipeline is for product dispatch. ‖ Water pipeline is to sort out water from tanks at the time of raining.

Gantry:

� The Gantry is the place where all the TTs are loaded.


� First of all, trucks are parked in the bays. � Then ‗Earthling Strip’ connected to TTs and then Touch Key is touched at Batch Control Unit Machine.

� Yellow Light – For Acknowledgement � Green Light – For Process � Red Light – For Emergency

There is new Gantry 6 starting in year 2009-10 which is due to Expansion in the capacity to 18 mmtp from 12.5 mmtp for HSD 3.

Other Gantries are also proposed due to expansion.


Truck loading system :

� In each Gantry, there is one officer to handle all operations. This officer

is called ‗Gantry Officer‘. � ‗Gantry Log Book‘ is maintained at each Gantry to record all information about loading. This information is recorded from Filling Authorization Note (FAN).

Gantry log book :


� The Average time taken at Gantry is 35 minutes.

Out Gate Office :

� Out Gate Office is the last place after the TTs have been loaded. � Here, before going out side of the refinery, the driver parks the truck near

by road and goes to Out Gate Office with Invoice / Bill, Indent and FAN.


� The Officer, sitting at Out Gate Office do the checking as following: 1) Check TT Number 2) Check Products and its quantity in Invoice / Bill and Indent both. 3) Check Invoice No.

� After all these procedures, Essar‘s bill‘s copies and FAN are kept in Out Gate Office and Company‘s (IOCL, HPCL, BPCL) Indent / bill is given to TT driver / cleaner by stamping on it.

� At last, TTs are made ‗Out from Vehicle Tracking System‘ and then allowed to go outside the refinery.

� The average time taken at Out Gate Office is 3 minutes.

� Here, Total Time 128 Min and 29 Sec includes time from Time Office to Out gate.

Existing System:

Advantages:


[A] NE Gate:

‖Security Checking: As we are supplying the most explosive and valuable products, it is

very necessary for the company to maintain full security checking to avoid any uncontrollable circumstances. Security Checking helps to Maintain and precede the regular procedure easily.

‖Online Tracking of TTs: Essar Oil Ltd. Uses vehicle Tracking System (VTS) to track any

TTs at any stage and at any time. Due to this we have been able to control all the TTs and manage daily turn over of 700 TTs approximately. It is also useful to prevent any misconduct or malpractices into the company Premises during the loading process.

‖Records of drivers / khalasis and TTs are maintained: At the time of entering into the NE Gate, it is the first and primary

activity to enter the TTs into the Vehicle Tracking System (VTS). At this time, information like driver‘s name, khalasis‘ name, TT Number, etc. are Recorded. so that, it is very easy to judge responsibility at the time of any critical situation.

[B] Physical Checking for Safety:

� It is necessary to know that the vehicle that has come for loading is completely fit to load the respective product, so any accident can be Avoided from the scratch.

[C] Time Office:

Planning and management of information of TTs:

Time office does very complex work that is planning the dispatch

on the bases of TT capacity and availability of product as well as gantry for the loading. It crates balance between all stages of loading process and avoids unnecessary rush of TTs at a single stage.


Maintains flow of information:

Time office does the work of entering TTs into Terminal

Automation System (TAS) and maintaining the flow of information Throughout the process using SAP system.

[D] Gantry:

� Essar Oil has fully automated gantry system which reduces manpower cost and at the same times makes loading system more efficient and smooth.

Disadvantages:

[A] NE Gate:

‖Wastage of Time and Manpower: At NE gate physical checking of all documents related to driver

and TTs are checked. This process creates unnecessary wastage of time and manpower as this process can be avoided by maintaining database of Drivers and TTs and making the whole system automated so it will tack Optimum time and will be worth full for the company.

‖ less utilization of Resources than their capacity : In 2008- 09 only 1179 Rail rakes has been dispatch through two birth of rail Gantry. Generally railway authority gives 6 hours to fulfill the rakes and send it back. And dispatch area takes maximum of 4 hours to fulfill it. Gantries are working 24*7. in each Rake there are 5 tankers with different capacity , different


type & different demand. So we can say that per rail birth only 118 trains dispatch which takes maximum of 708 hours means 1 or 1.5 month with 20 hours of working. In full year they have work only of 1 to 1.5 month and remaining of months they have just waste the Resources. RECOMMENDATION: 1. We have two berths with service of only Rail with just 10 loading pipes. We can do multi purpose Pipes. Like we can have FO & HSD both at 1 point with different pipes so whenever tankers with same requirement comes we should not wait for filling up of one and than other. So we can fulfill the requirements of train less than 4 hours and can load more & more trains. With this change we can save our time at loading of rail rakes and utilize more & more of resources. 2. As we visit the Gantries and look at their system all the procedure of filling the tankers are handled through control room. At both the road & rail Gantry for accounting and receipt SAP is used. In this software fully pre generated challan comes out with all the detail of demand, purchaser, qty, product, time and many more things.


3. We can change the some variable of SAP with the help of IT Department and make Rail Gantry as multi-purposed Gantry. After this we can fulfill the demand of trucks also at the time where there is no train on rail gantry. For that we just have to construct road parallel to railway tracks and make some change in SAP. With these thing now we should not establish new road gantry and the cost of that gantry can be saved and use at other place.

We can also control on the time of waiting of truck at parking nearly 35 minutes. And by this we can give full satisfaction to our customer.


Cost – Benefit Analysis For Expansion of capacity of Essar oil , VOTL also has to increase the capacity of transportation to 16.5 from 13.5. for expansion project these all things must be needed. PART - I:- TANK AREA PART – II:- POWER PLANT PART – III:- SEA WATER COOLING TOWER & RETURN RESERVOIR PART – IV:- PROCESS AREA – ISOM & DHDT HALF PORTION WEST SIDE PART – V:- ARU UNIT SOUTH SIDE PART – VI:- DCU – 1, DCU – 2, ESSAR HOUSE AND NARMADA RESERVOIR PART – VII:- ETP AREA, COOLING TOWER AND WEST SIDE COOLING TOWER, HMU AREA, N2 PLANT AREA PART – VIII: - REMAINING BOREHOLES FOR D AND B BLOCK. PART – IX: - LPG AND DESPATCH AREA Here for comparison we are calculating only for dispatch area that is for gantry. We are doing cost-benefit analysis of new road gantry and our recommendation of using rail gantry as multy purpose.

� Additional gantry Land for construction: 45 crore Construction: 9 crore Piping : 23 crore Pumps & Machinery : 46 crore IT department: 12 crore Extra man power: 1 crore (per year) Total 136 crore For additional gantry service with 8 bays VOTL can have 8 filling station with same product.

� Alternative For changing in SAP: 5 crore Construction of road: 9 crore Addition of pipes & pumps: 33 crore


Total 47 crore Conclusion of this analysis of costing of two alternatives gives the perfect answer for increasing the capacity of VOTL. we can see that when we made new gantry it have all the capital cost which we mention earlier and additionally it have expense of additional staff salary, depreciation of gantry , expense of safety measures and many more. Instead of this we can see that VOTL is not using their Rail gantry as per their capacity. They uses very less just 1179 rakes (1179/5 =236 trains).it simply means 1 train at 1.5 day. But instead of this VOTL has dispatch 8 trains per day maximum. Even though we don’t compare with maximum capacity they must have minimum 3 to 4 trains per day. So we can say that our alternative is better than expansion of new gantry.


Finance Project

“Ratio Analysis”


MMeeaanniinngg && UUttii ll ii ttyy ooff RRaattiioo aannaallyyssiiss && FFiinnaanncciiaall SSttaatteemmeenntt

MM eeaanniinngg ooff RRaatt iioo AAnnaallyyssiiss:: RRaattiioo aannaallyyssiiss iiss aa wwiiddeell yy uusseedd ttooooll ooff ff iinnaanncciiaall aannaall yyssiiss.. II tt iiss ddeeff iinneedd aass tthhee ssyysstteemmaattiicc uusseess ooff rraattiioo ttoo iinntteerrpprreett tthhee ff iinnaanncciiaall ssttaatteemmeenntt ssoo tthhaatt ssttrreennggtthh && wweeaakknneessss ooff aa ff ii rrmm aass wweell ll aass ii ttss hhiissttoorriiccaall ppeerrffoorrmmaannccee && ccuurrrreenntt ff iinnaanncciiaall ccoonnddii ttiioonn ccaann bbee ddeetteerrmmiinneedd.. UUtt ii ll ii tt iieess::

((11)) RRaattiioo aannaallyyssiiss hheellppss ttoo aapppprraaiissee tthhee ff ii rrmm iinn tteerrmm ooff tthheeii rr pprrooff ii ttaabbii ll ii ttyy && eeff ff iicciieennccyy ooff ppeerrffoorrmmaannccee,, eeii tthheerr iinnddiivviidduuaall ll yy oorr iinn rreellaattiioonn ttoo tthheessee ooff ootthheerr ff ii rrmmss iinn tthhee ssaammee iinndduussttrryy..

((22)) PPrrooppeerr CCoommppaarriissoonn ooff rraattiiooss mmaayy rreevveell wwhheerree aa ff ii rrmm iiss ppllaacceedd aass ccoommppaarreedd wwii tthh

eeaarrll iieerr ppeerriioodd oorr iinn ccoommpprriissee wwii tthh ootthheerr ff ii rrmmss iinn tthhee ssaammee iinndduussttrriieess.. ((33)) RRaattiioo aannaallyyssiiss iiss oonnee ooff tthhee bbeesstt ppoossssiibbllee tteecchhnniiqquueess aavvaaii llaabbllee ttoo tthhee

mmaannaaggeemmeenntt ttoo iimmppaacctt tthhee bbaassiicc ffuunnccttiioonn tthhee ppllaannnniinngg && ccoonnttrrooll .. ((44)) RRaattiioo’’ ss ccaallccuullaatteedd oonn tthhee bbaassiiss ooff hhiissttoorriiccaall ff iinnaanncciiaall ssttaatteemmeenntt mmaayy bbee ggoooodd

aassssiissttaanntt ttoo pprreeddiicctt tthhee ffuuttuurree.. MM eeaanniinngg ooff FFiinnaanncciiaall SSttaatteemmeennttss:: TThhee pprroocceessss ooff ff iinnaanncciiaall aaccccoouunnttiinngg iinn tthhee bbooookkss ooff aaccccoouunntt wwhhiicchh uull ttiimmaatteell yy aaiimmss aatt pprreeppaarriinngg wwhhaatt iiss ccaall lleedd ff iinnaanncciiaall ssttaatteemmeennttss.. UUssuuaall llyy tthhee tteerrmm ff iinnaanncciiaall ssttaatteemmeenntt rreeffeerrss ttoo ttwwoo kkiinndd ooff ssttaatteemmeenntt..

•• BBaallaannccee sshheeeett •• PPrrooff ii ttaabbii ll ii ttyy SSttaatteemmeenntt


BBaallaannccee ––sshheeeett AAss aatt 3311sstt mmaarr cchh,, 22000099


SSttaatteemmeenntt ooff PPrr ooff ii tt && lloossss ffoorr tthhee yyeeaarr eennddeedd 3311sstt mmaarr cchh,, 22000099


RRAATTIIOOSS ooff VVOOTTLL

�� CCuurr rr eenntt RRaatt iioo :: TThhee ccuurrrreenntt rraattiioo iiss tthhee rraattiioo ooff ttoottaall ccuurrrreenntt aasssseettss ttoo ttoottaall ccuurrrreenntt ll iiaabbii ll ii ttiieess.. II tt iiss ccaallccuullaatteedd bbyy ddiivviiddiinngg ccuurrrreenntt aasssseettss bbyy ccuurrrreenntt ll iiaabbii ll ii ttiieess.. TThhiiss mmoosstt wwiiddeell yy uusseedd rraattiioo iiss aallssoo kknnoowwnn aass ‘‘ WWoorrkkiinngg CCaappii ttaall RRaattiioo’’ aass ii tt iiss aa mmeeaassuurreedd ooff wwoorrkkiinngg ccaappii ttaall aavvaaii llaabbllee aatt aa ppaarrttiiccuullaarr ttiimmee.. II tt iiss mmeeaassuurree ooff ssoorrtt--tteerrmm ff iinnaanncciiaall ssttrreennggtthh ooff tthhee bbuussiinneessss aanndd sshhoowwss wweeaatthheerr tthhee bbuussiinneessss wwii ll ll bbee aabbllee ttoo mmeeeett ii ttss ccuurrrreenntt ll iiaabbii ll ii ttyy,, aass aanndd wwhheenn tthheeyy mmaattuurree.. RReemmeemmbbeerr tthhaatt aa ll iiaabbii ll ii ttyy wwhhiicchh wwii ll ll mmaattuurree wwii tthhiinn aa ppeerriioodd ooff ttwweellvvee mmoonntthhss iiss aa ccuurrrreenntt ll iiaabbii ll ii ttyy aatt tthhee bbuussiinneessss aanndd sshhoowwss wweeaatthheerr tthhee bbuussiinneessss wwii ll ll bbee aabbllee ttoo mmeeeett ii ttss ccuurrrreenntt ll iiaabbii ll ii ttyy,, aass aanndd wwhheenn tthheeyy mmaattuurree.. RReemmeemmbbeerr tthhaatt aa ll iiaabbii ll ii ttyy wwhhiicchh wwii ll ll mmaattuurree wwii tthhiinn aa ppeerriioodd ooff ttwweellvvee mmoonntthhss iiss aa ccuurrrreenntt ll iiaabbii ll ii ttyy..

FFoorrmmuullaa:: CCuurrrreenntt RRaattiioo == CCuurrrreenntt AAsssseettss

CCuurrrreenntt LLiiaabbii ll ii ttyy

PPaarr tt iiccuullaarr ss 22000088 22000099

CCuurrrreenntt AAsssseettss 22448888887766881177 22225511554477990000

CCuurrrreenntt ll iiaabbii ll ii ttyy 664422777744889988 22773388668800447722

CCuurr rr eenntt RRaatt iioo 33..88772211 00..88222211

3.8721

0.8221

0

1

2

3

4

2008 2009

2008

2009


II nntteerr pprr eettaatt iioonn::

TThhee rreellaattiioonnsshhiipp bbeettwweeeenn ccuurrrreenntt aasssseettss aanndd ccuurrrreenntt ll iiaabbii ll ii ttyy ii tt iiss uussee ttoo jjuuddggee tthhee ll iiqquuiiddii ttyy ppoossii ttiioonn ooff ccoommppaannyy.. AAnndd iiddeeaall ccuurrrreenntt rraattiioo iiss 22::11..II tt iiss ggeenneerraall ll yy bbeell iieevveedd tthhaatt 22::11 rraattiioo sshhoowwss aa ccoommffoorrttaabbllee wwoorrkkiinngg ccaappii ttaall ppoossii ttiioonn ii ..ee.. tthhee ccuurrrreenntt aasssseettss sshhoouulldd bbee ttwwiiccee tthhee ccuurrrreenntt ll iiaabbii ll ii ttiieess.. HHoowweevveerr,, tthhiiss rruullee sshhoouulldd nnoott bbee ttaakkeenn aass aa hhaarrdd aanndd ffaasstt rruullee,, bbeeccaauussee aa rraattiioo wwhhiicchh iiss ssaattiissffaaccttoorryy ffoorr oonnee bbuussiinneessss mmaayy nnoott bbee ssaattiissffaaccttoorryy ffoorr tthhee ootthheerr.. TThheerree mmaayy bbee iinnssttaanncceess wwhheenn aann eenntteerrpprriissee mmaayy ffuunnccttiioonn ssaattiissffaaccttoorrii ll yy eevveenn wwiitthh aa ccuurrrreenntt rraattiioo ooff oonnee ttoo oonnee oorr lleessss aanndd ssoommee eenntteerrpprriisseess rreeqquuii rreedd mmuucchh hhiigghheerr rraattiioo tthhaann 22 ttoo 11.. II ff tthhee aammoouunntt ooff ssttoocckk--iinn--ttrraaddee iiss uunndduull yy llaarrggee,, tthheenn tthhee 22 ttoo 11 rraattiioo mmaayy nnoott bbee ssaattiissffaaccttoorryy.. ssoo,, tthhee ccuurrrreenntt ll iiaabbii ll ii ttyy mmuusstt bbee rreedduucceedd ii ff ppoossssiibbllee.. AAnndd dduuee ttoo iinnccrreeaassee iinn ccuurrrreenntt ll iiaabbii ll ii ttyy ccuurrrreenntt rraattiioo iiss ddeeccrreeaasseedd ttoo 00..88222211 aanndd ii tt iiss wwoorrsstt ssii ttuuaattiioonn ffoorr tthhee ccoommppaannyy,, tthhee rraattiioo mmuusstt bbee 22::11..aanndd tthhee rreeaassoonn ooff tthhaatt iiss dduuee ttoo eexxppaannssiioonn aanndd wwii tthh tthhiiss tthhee ccaappii ttaall eexxppeennddii ttuurree iiss ssoo iinnccrreeaasseedd uuppttoo 22551100006611663388 rrss.. FFrroomm 332233888866559922..

�� AAcciidd TTeesstt RRaatt iioo :: QQuuiicckk rraattiioo sshhoowwss tthhaatt oonnee ddeeffeecctt ooff tthhee ccuurrrreenntt rraattiioo iiss tthhaatt ii tt ffaaii llss ttoo ccoonnvveeyy aannyy iinnffoorrmmaattiioonn oonn tthhee ccoommppoossii ttiioonn ooff tthhee ccuurrrreenntt aasssseettss ooff aa ff ii rrmm.. AA rruuppeeee ooff ccaasshh iiss ccoonnssiiddeerreedd eeqquuiivvaalleenntt ttoo aa rruuppeeee ooff iinnvveennttoorryy oorr rreecceeiivvaabbllee.. BBuutt ii tt iiss nnoott ssoo.. AA rruuppeeee ooff ccaasshh iiss mmoorree rreeaaddii ll yy aavvaaii llaabbllee ttoo mmeeeett ccuurrrreenntt oobbll iiggaattiioonnss tthhaann aa rruuppeeee ooff ,, ssaayy,, iinnvveennttoorryy.. TThhiiss eemmppii rreess tthhee uusseeffuullnneessss ooff tthhee ccuurrrreenntt rraattiioo.. TThhee aacciidd--tteesstt rraattiioo bbeeccaauussee iiss aa mmeeaassuurree ooff ll iiqquuiiddii ttyy ddeessiiggnneedd ttoo oovveerrccoommee tthhiiss ddeeffeecctt ooff tthhee ccuurrrreenntt rraattiioo.. II tt iiss ooff tteenn rreeffeerrrreedd ttoo aass qquuiicckk rraattiioo bbeeccaauussee ii tt iiss aa mmeeaassuurreemmeenntt ooff aa ff ii rrmm’’ ss aabbii ll ii ttyy ttoo ccoonnvveerrtt ii ttss ccuurrrreenntt aasssseettss qquuiicckkll yy iinnttoo ccaasshh iinn oorrddeerr ttoo mmeeeett ii ttss ccuurrrreenntt ll iiaabbii ll ii ttyy.. TThhuuss,, ii tt iiss aa mmeeaassuurree ooff qquuiicckk oorr aacciidd ll iiqquuiiddii ttyy.. TThhee aacciidd--tteesstt rraattiioo iiss tthhee rraattiioo bbeettwweeeenn ccuurrrreenntt aasssseettss –– iinnvveennttoorryy aanndd ccuurrrreenntt ll iiaabbii ll ii ttyy aanndd iiss ccaallccuullaatteedd bbyy ddiivviiddiinngg tthhee ((CCAA--IInnvveennttoorryy)) bbyy tthhee ccuurrrreenntt ll iiaabbii ll ii ttyy..

FFoorr mmuullaa:: QQuuiicckk RRaattiioo ((AAcciidd--tteesstt rraattiioo)) == ((CCuurrrreenntt AAsssseettss –– IInnvveennttoorryy))

CCuurrrreenntt LLiiaabbii ll ii ttyy TTaabbllee ooff QQuuiicckk RRaattiioo:: ((IInn RRss..))

PPaarrttiiccuullaarrss 22000088 22000099

QQuuiicckk AAsssseettss 22447722772299773388 22221100776600778899


LLiiqquuiidd LLiiaabbii ll ii ttyy 664422777744889988 22773388668800447722

RRaattiioo 33..88447700 00..88007722

3.847

0.8072

0

0.5

1

1.5

2

2.5

3

3.5

4

2008 2009

20082009

IInntteerrpprreettaattiioonn::--

TThhiiss rraattiioo mmeeaassuurreedd tthhaatt tthhee aabbssoolluuttee ll iiqquuiiddii ttyy mmaayy bbee oobbttaaiinneedd bbyy ccoommppaarriinngg oonnll yy ccaasshh aanndd bbaannkk bbaallaannccee aass wweell ll aass rreeaaddii ll yy mmaarrkkeettaabbllee aanndd ii tt iiss ssaattiissffaaccttoorryy ii ff tthhee rraattiioo iiss 00..55 :: 11..TThhiiss rraattiioo ccaallccuullaatteedd ttoo kknnooww tthhaatt wweeaatthheerr tthhee ff ii rrmm wwii ll ll bbee aabbllee ttoo ppaayy ii ttss ccuurrrreenntt ll iiaabbii ll ii ttiieess iimmmmeeddiiaatteellyy ?? AAllssoo ii tt iiss uusseedd aannaallyyssiiss ppoossii ttiioonn ooff aa ccoommppaannyy iinnttoo ddeettaaii ll .. DDuuee ttoo iinnccrreeaassee iinn ccuurrrreenntt ll iiaabbii ll ii ttyy tthhiiss rraattiioo iiss ddeeccrreeaasseess aanndd aannootthheerr rreeaassoonn ffoorr tthhiiss tthhee mmoonneeyy iiss bblloocckkeedd mmoorree iinn iinnvveennttoorryy tthhaann tthhee pprreevviioouuss..

�� GGrr oossss PPrr ooff ii tt RRaatt iioo ::

GGrroossss pprrooff ii tt rraattiioo eexxpprreessssiinngg rreellaattiioonnsshhiipp bbeettwweeeenn ((NNeett SSaalleess –– CCoosstt ooff GGoooodd SSoolldd)) eeaarrnneedd ttoo NNeett SSaalleess.. II tt iiss aa uusseeffuull iinnddiiccaattiioonn ooff tthhee pprrooff ii ttaabbii ll ii ttyy ooff bbuussiinneessss.. GGrroossss PPrrooff ii tt rraattiioo iiss tthhee rreessuull ttss ooff pprriicceess,, ssaalleess vvoolluummee aanndd ccoossttss.. AA CChhaannggee iinn tthhee SSaalleess ccaann bbee bbrroouugghhtt aabboouutt bbyy cchhaannggeess iinn aannyy ooff tthheessee ffaaccttoorrss..

TThhee GGrroossss PPrrooff ii tt RRaattiioo rreepprreesseennttss tthhee ll iimmii tt bbeeyyoonndd wwhhiicchh ffaall ll iinn ssaalleess pprriiccee aarree oouuttssiiddee tthhee ttoolleerraannccee ll iimmii tt.. FFuurrtthheerr tthhee GGrroossss PPrrooff ii tt RRaattiioo ccaann aallssoo bbee uusseedd iinn ddeetteerrmmiinniinngg tthhee eexxtteenntt ooff lloossss ccaauusseedd bbyy tthheeff tt,, ssppooii llaaggee,, ddaammaaggee aanndd ssoo oonn iinn tthhee ccaassee ooff tthhoossee ff ii rrmmss wwhhiicchh ffaall llooww tthhee ppooll iiccyy ooff ff iixxeedd ggrroossss pprrooff ii tt rraattiioo iinn pprriicciinngg tthheeiirr pprroodduuccttss..


FFoorr mmuullaa:: GGrroossss PPrrooff ii tt RRaattiioo == SSaalleess -- CCoosstt ooff GGooooddss SSoolldd xx 110000 NNeett SSaalleess TTaabbllee ooff GGrr oossss PPrr ooff ii tt RRaatt iioo :: -- (( II nn RRss..))

22000088 22000099

GGrroossss PPrrooff ii tt 11009933226644335522 33221122551166442200

SSaalleess 11440044337766883300 33886677331188660088

RRaattiioo 7777..8855%% 8833..0077%%

77.85%

83.07%

75.00%

76.00%

77.00%

78.00%

79.00%

80.00%

81.00%

82.00%

83.00%

84.00%

2008 2009

2008

2009

II nntteerr pprr eettaatt iioonn::-- GGrroossss PPrrooff ii tt RRaattiioo ooff tthhee ccoommppaannyy ffoorr ttwwoo yyeeaarr ccoonnsseeccuuttiivvee yyeeaarrss iiss 7777..8855%%aanndd 8833..0077%% rreessppeeccttiivveell yy.. AAss tthhee rraattiioo iiss bbeetttteerr iinn bbootthh tthhee ttwwoo yyeeaarrss ii tt sshhoowwss tthhaatt tthheerree iiss aabbii ll ii ttyy ooff tthhee mmaannaaggeemmeenntt ttoo iimmpprroovvee ggrroossss pprrooff ii tt rraattiioo ddaayy bbyy ddaayy..

�� NNeett PPrr ooff ii tt RRaatt iioo ::

NNeett pprrooff ii tt rraattiioo iiss mmeeaassuurree tthhee rreellaattiioonnsshhiipp bbeettwweeeenn nneett pprrooff ii tt aanndd nneett ssaalleess.. TThhee oobbjjeeccttiivvee iiss ttoo ddeetteerrmmiinnee tthhee oovveerraall ll pprrooff ii ttaabbii ll ii ttyy dduuee ttoo vvaarriioouuss ffaaccttoorrss ssuucchh aass ooppeerraattiioonnaall eeff ff iicciieennccyy aanndd ttrraaddiinngg oonn eeqquuii ttyy.. TThhee nneett pprrooff ii tt rraattiioo iiss iinnddiiccaattiivvee ooff mmaannaaggeemmeenntt’’ ss aabbii ll ii ttyy


ttoo ooppeerraattee tthhee bbuussiinneessss wwii tthh ssuuff ff iicciieenntt ssuucccceessss nnoott oonnllyy ttoo rreeccoovveerr ff rroomm rreevveennuueess ooff tthhee ppeerriioodd,, tthhee ccoosstt ooff mmeerrcchhaannddiissee oorr sseerrvviicceess,, tthhee eexxppeennsseess ooff ooppeerraattiinngg tthhee bbuussiinneessss aanndd tthhee ccoosstt ooff tthhee bboorrrroowweedd ffuunnddss,, bbuutt aallssoo ttoo lleeaavvee aa mmaarrggiinn ooff rreeaassoonnaabbllee ccoommppeennssaattiioonn ttoo tthhee oowwnneerrss ffoorr pprroovviiddiinngg tthheeii rr ccaappii ttaall aatt rriisskk.. TThhee rraattiioo ooff nneett pprrooff ii tt ttoo ssaalleess eesssseennttiiaall ll yy eexxpprreesssseess tthhee ccoosstt pprriiccee eeff ffeeccttiivveenneessss ooff tthhee ooppeerraattiioonn..

FFoorr mmuullaa:: NNeett PPrrooff ii tt RRaattiioo == PPrrooff ii tt AAfftteerr TTaaxx xx 110000 NNeett SSaalleess TTaabbllee ooff NNeett PPrr ooff ii tt RRaatt iioo :: -- (( II nn RRss..))

22000088 22000099

PPrrooff ii tt AAff tteerr TTaaxx ((555599112211006677)) ((11443388881177339944))

II nntteerr pprr eettaatt iioonn :: NNeett rraattiioo iiss ccoommppuutteedd oonn tthhee bbaassiiss ooff nneett pprrooff ii tt eeaarrnneedd ff rroomm ooppeerraattiioonn ooff bbuussiinneessss aanndd nnoonn--ooppeerraattiinngg eexxppeennsseess aanndd iinnccoommeess aarree eexxcclluuddeedd.. EE..gg.. iinnccoommee ff rroomm iinnvveessttmmeennttss ooff ssuurrpplluuss ffuunnddss ooff bbuussiinneessss iiss nnoonn--ooppeerraattiinngg iinnccoommee aanndd ssoo ii tt iiss ttoo bbee eexxcclluuddeedd.. LLoossss oonn ssaallee ooff aasssseett iiss nnoonn--ttrraaddiinngg lloossss aanndd ii tt iiss nnoott ttaakkeenn iinnttoo aaccccoouunntt.. GGeenneerraall ll yy,, ttaaxx iiss ddeedduucctteedd ff rroomm pprrooff ii tt wwhhii llee ccaallccuullaattiinngg tthhiiss rraattiioo..

AAll tthhoouugghh nneeaarr aabboouutt 8833%% aanndd 7777%% ggrroossss pprrooff ii tt mmaarrggiinn,, tthhee ccoommppaannyy iiss iinn lloossss dduuee ttoo hhiigghheerr iinntteerreesstt ppaaiidd ttoo tthhee ddeeppoossii ttoorrss aanndd ootthheerr ff iinnaanncciiaall iinnssttii ttuuttiioonnss.. SSoo,, nneett pprrooff ii tt rraattiioo ccaann’’ tt bbee ffoouunndd oouutt dduuee ttoo lloossss iinn tthhee ccoommppaannyy..

�� OOppeerr aatt iinngg RRaatt iioo ::

OOppeerraattiinngg rraattiioo sshhoowwss tthhee eeff ff iicciieennccyy ooff tthhee mmaannaaggeemmeenntt.. TThhiiss rraattiioo iiss ttoo bbee mmeeaassuurreedd bbyy 11--OOppeerraattiinngg pprrooff ii tt rraattiioo.. TThhee hhiigghheerr tthhee rraattiioo,, tthhee lleessss wwii ll ll bbee tthhee pprrooff ii tt aavvaaii llaabbllee ttoo pprroopprriieettoorrss.. TThhee lleesssseerr tthhee rraattiioo,, tthhee hhiigghh wwii ll ll bbee tthhee pprrooff ii tt aavvaaii llaabbllee ttoo pprroopprriieettoorrss.. TThhiiss rraattiioo iiss aallssoo uussuuaall ll yy eexxpprreesssseedd aass aa ppeerrcceennttaaggee.. OOppeerraattiinngg rraattiioo sshhooww aabboouutt hhooww aannyy eexxppeennsseess dduurriinngg tthhee yyeeaarr ffoorr mmaakkiinngg mmoorree pprrooff ii tt iinn tthhee ff ii rrmm..


Formula : OOppeerraattiinngg RRaattiioo == CCoosstt ooff ggoooodd ssoolldd ++ ooppeerraattiinngg eexxppaannsseess

SSaalleess

Table of Operating Ratio :- ( In Rs. )


OOppeerraattiinngg eexxppeennsseess 331111111122447788 665544880022118888 SSaalleess 11440044337766883300 33886677331188660088 OOppeerraattiinngg RRaattiioo 2222..1155%% 1166..9933%%

22.15%

16.93%

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

2008 2009

20082009

II nntteerr pprr eettaatt iioonn:: -- OOppeerraattiinngg RRaattiioo ooff tthhee ccoommppaannyy ffoorr ttwwoo yyeeaarr iiss 2222..1155%% && 1166..9933%%.. ii tt sshhoowwss tthhee ssaattiissffaaccttoorryy ssii ttuuaattiioonn.. II tt iinnddiiccaatteedd tthhaatt tthhee mmaajjoorr sshhaarree ooff pprrooff ii tt wwii ll ll bbee aavvaaii llaabbllee ffoorr tthhee rreeaall oowwnneerr ooff tthhee ccoommppaannyy �� EExxppeennsseess RRaatt iioo ::

TThhiiss RRaattiioo iiss ffoorr tthhee ppuurrppoossee ooff aasscceerrttaaiinniinngg rreellaattiioonnsshhiipp bbeettwweeeenn TToottaall eexxppeennsseess aanndd nneett ssaalleess.. TThhee eexxppeennsseess rraattiioo iiss,, tthheerreeffoorree,, vveerryy iimmppoorrttaanntt ffoorr aannaall yyzziinngg tthhee pprrooff ii ttaabbii ll ii ttyy ooff aa ff ii rrmm.. II tt sshhoouulldd bbee ccoommppaarreedd oovveerr aa ppeerriioodd ooff ttiimmee wwii tthh tthhee iinndduussttrryy


aavveerraaggee aass wweell ll aass ff ii rrmmss ooff ssiimmii llaarr ttyyppee.. AAss aa wwoorrkkiinngg pprrooppoossii ttiioonn,, aa llooww rraattiioo iiss ffaavvoorraabbllee,, wwhhii llee aa hhiigghh oonnee iiss uunnffaavvoorraabbllee.. TThhee iimmppll iiccaattiioonn ooff aa hhiigghh eexxppeennsseess rraattiioo iiss tthhaatt oonnll yy aa rreellaattiivveellyy ssmmaall ll ppeerrcceennttaaggee sshhaarree ooff ssaalleess iiss aavvaaii llaabbllee ffoorr mmeeeettiinngg ff iinnaanncciiaall ll iiaabbii ll ii ttiieess ll iikkee iinntteerreesstt,, ttaaxx aanndd ddiivviiddeennddss,,

FFoorrmmuullaa:: EExxppeennsseess RRaattiioo == TToottaall EExxppeennsseess xx 110000 NNeett SSaallee TTaabbllee ooff EExxppeennsseess RRaattiioo ::-- (( IInn RRss.. ))


EExxppeennsseess 11992299554455998811 33118833442299007722

SSaalleess 11440044337766883300 33886677331188660088

RRaattiioo 113377..3399%% 8822..3322%%

TToottaall eexxppeennsseess ddooeessnn’’ tt iinncclluuddee eessttaabbll iisshhmmeenntt eexxpp..

137.39%

82.32%

0.00%

20.00%

40.00%60.00%

80.00%100.00%

120.00%

140.00%

2008 2009

20082009


AAnn EExxppeennssee RRaattiioo iiss sshhoowwss tthhee rreellaattiioonnsshhiipp bbeettwweeeenn TToottaall eexxppeennsseess ooff tthhee ccoommppaannyy oouutt ooff nneett ssaalleess.. TThhiiss rraattiioo iiss DDeeccrreeaasseess ttoo 8822..3322 %% iinn yyeeaarr 22000099 ff rroomm 113377..3399%% iinn yyeeaarr 22000088 bbeeccaauussee iinnccoommee iinnccrreeaassee nneeaarrllyy tthhrriiccee wwhheerreeaass eexxppeennsseess jjuusstt ttwwiiccee..


�� RReettuurr nn oonn CCaappii ttaall EEmmppllooyyeedd ::

TThhee RReettuurrnn oonn CCaappii ttaall EEmmppllooyyeedd iiss tthhee sseeccoonndd ttyyppee ooff RROOII.. II tt iiss ssiimmii llaarr ttoo tthhee RROOAA eexxcceepptt iinn oonnee rreessppeecctt.. HHeerree tthhee pprrooff ii ttss aarree rreellaatteedd ttoo tthhee ttoottaall ccaappii ttaall eemmppllooyyeedd.. TThhee tteerrmm ccaappii ttaall eemmppllooyyeedd rreeffeerrss ttoo lloonngg--tteerrmm ffuunnddss ssuuppppll iieedd bbyy tthhee ccrreeddii ttoorrss aanndd oowwnneerrss ooff tthhee ff ii rrmm.. II tt ccaann bbee ccoommppuutteedd iinn ttwwoo wwaayyss.. FFii rrsstt,, ii tt iiss eeqquuaall ttoo nnoonn--ccuurrrreenntt ll iiaabbii ll ii ttiieess pplluuss oowwnneerrss’’ eeqquuii ttyy.. AAll tteerrnnaattiivveell yy,, ii tt iiss eeqquuiivvaalleenntt ttoo nneett wwoorrkkiinngg ccaappii ttaall pplluuss ff iixxeedd aasssseettss.. TThhuuss,, tthhee ccaappii ttaall eemmppllooyyeedd bbaassiiss pprroovviiddeess aa tteesstt ooff pprrooff ii ttaabbii ll ii ttyy rreellaatteedd ttoo tthhee ssoouurrcceess ooff lloonngg--tteerrmm ffuunnddss.. AA ccoommppaarriissoonn ooff tthhiiss rraattiioo wwii tthh ssiimmii llaarr ff ii rrmmss,, wwiitthh tthhee iinndduussttrryy aavveerraaggee aanndd oovveerr ttiimmee wwoouulldd pprroovviiddee ssuuff ff iicciieenntt iinnssiigghhtt iinnttoo hhooww eeff ff iicciieennttll yy tthhee lloonngg--tteerrmm ffuunnddss ooff oowwnneerrss aanndd ccrreeddii ttoorrss aarree bbeeiinngg uusseedd.. TThhee hhiigghheerr tthhee rraattiioo,, tthhee mmoorree eeff ff iicciieenntt iiss tthhee uussee ooff ccaappii ttaall eemmppllooyyeedd.. FFoorr mmuullaa::--

Return on Capital Employed (ROCE) = Profit after Tax x 100 Total Capital Employed TTaabbllee ooff RReettuurrnn CCaappii ttaall EEmmppllooyyeedd ::-- (( IInn RRss..))

PPaarrttiiccuullaarrss 22000088 22000099 PPrrooff ii tt aafftteerr TTaaxx ((555599112211006677)) ((11443388881177339944))

II nntteerr pprr eettaatt iioonn:: -- RReettuurrnn oonn ccaappii ttaall eemmppllooyyeedd rraattiioo ooff tthhee ccoommppaannyy ffoorr ttwwoo ccoonnsseeccuuttiivvee yyeeaarr ccaann’’ tt bbee ffoouunndd oouutt bbeeccaauussee ccoommppaannyy iiss tthhee ssttaarrttiinngg ffaazzee aanndd wwoorrkkiinngg iinn lloossss.. ssttii ll ll iinn ccoommppaarriissoonn ttoo llaasstt yyeeaarr nneett lloossss ddeeccrreeaasseess II tt iinnddiiccaatteess tthhaatt tthhee mmaannaaggeemmeenntt ooff tthhee ccoommppaannyy hhaass ppeerrffoorrmmeedd tthheeii rr jjoobb ssuucccceessssffuull ll yy.. �� RReettuurr nn oonn SShhaarr eehhoollddeerr ss’’ FFuunnddss ::

TThhiiss rraattiioo iiss iinn oorrddeerr ttoo jjuuddggee tthhee eeff ff iicciieennccyy wwii tthh wwhhiicchh tthhee pprroopprriieettoorrss’’ ffuunnddss aarree eemmppllooyyeedd iinn bbuussiinneessss,, tthhiiss rraattiioo iiss aasscceerrttaaiinneedd.. PPrroopprriieettoorrss’’ EEqquuii ttyy oorr pprroopprriieettoorrss’’ ffuunnddss iinncclluuddee sshhaarree ccaappiittaall aanndd rreesseerrvveess.. II tt iiss ooff ggrreeaatt pprraaccttiiccaall iimmppoorrttaannccee ttoo tthhee pprroossppeeccttiivvee iinnvveessttoorrss.. AAss ii tt eennaabblleess tthhee pprrooff ii ttaabbii ll ii ttyy ooff aa ccoommppaannyy ttoo bbee ccoommppaarreedd wwii tthh tthhaatt ooff tthhee oovveerr ccoommppaannyy.. II tt aallssoo iinnddiiccaatteess wwhheetthheerr tthhee rreettuurrnn oonn pprroopprriieettoorrss’’ ffuunnddss iiss eennoouugghh iinn rreellaattiioonn ttoo


tthhee rriisskkss tthhaatt tthheeyy uunnddeerrttaakkee.. TThhiiss rraattiioo sshhoowwss wwhhaatt aammoouunntt ooff ddiivviiddeenndd iiss ll iikkeellyy ttoo bbee rreecceeiivveedd oonn sshhaarree.. TThhiiss rraattiioo iiss uussuuaall llyy eexxpprreesssseedd iinn ppeerrcceennttaaggee

FFoorr mmuullaa:: RReettuurrnn oonn SShhaarreehhoollddeerrss’’ FFuunnddss == PPrrooff ii tt aaff tteerr TTaaxx xx 110000 SShhaarree hhoollddeerrss FFuunndd

TTaabbllee ooff RReettuurrnn SShhaarreehhoollddeerrss’’ FFuunndd ::-- (( IInn RRss..))


PPrrooff ii tt aafftteerr TTaaxx ((555599112211006677)) ((11443388881177339944))

II nntteerr pprr eettaatt iioonn:: --

TThhiiss rraattiioo iiss vveerryy iimmppoorrttaanntt ttoo ff iinndd oouutt bbeeccaauussee tthhiiss rraattiioo sshhoowwss aabboouutt tthhee ccoommppaannyy pprrooff ii tt oouutt ooff tthhee sshhaarreehhoollddeerrss ffuunndd.. HHooww mmuucchh sshhaarreehhoollddeerrss’’ FFuunndd iinnvveesstteedd iinn tthhee ccoommppaannyy sshhooww tthhiiss rraattiioo.. RReettuurrnn oonn sshhaarree hhoollddeerr’’ ss ffuunnddss ooff tthhee ccoommppaannyy ffoorr ttwwoo ccoonnsseeccuuttiivvee yyeeaarr ccaann’’ tt bbee ffoouunndd oouutt bbeeccaauussee ooff tthhee ssaammee rreeaassoonn aass eeaarrll iieerr tthhaatt ccoommppaannyy iiss wwoorrkkiinngg uunnddeerr lloossss..

�� EEaarr nniinngg PPeerr SShhaarr ee ::

EEaarrnniinngg ppeerr sshhaarree mmeeaassuurreess tthhee pprrooff ii tt aaff tteerr ttaaxx aavvaaii llaabbllee ttoo eeqquuii ttyy sshhaarree hhoollddeerr oonn aa ppeerr sshhaarree bbaassiiss,, ii ..ee.. tthhee aammoouunntt tthhaatt tthheeyy ccaann ggeett oonn eevveerryy sshhaarree hheelldd.. II tt iiss ccaallccuullaatteedd bbyy pprrooff ii tt aaff tteerr ttaaxx bbyy tthhee nnuummbbeerr ooff .. EEqquuii ttyy sshhaarree eeaarrnniinngg ppeerr sshhaarree iiss aa wwiiddeellyy uusseedd rraattiioo.. II tt ddooeess nnoott rreeccooggnniizzee tthhee eeff ffeecctt ooff iinnccrreeaassee iinn eeqquuii ttyy ccaappii ttaall aass aa rreessuull tt ooff rreetteennttiioonn ooff eeaarrnniinnggss.. II ff EEaarrnniinngg ppeerr sshhaarree hhaass iinnccrreeaasseedd oovveerr tthhee yyeeaarrss,, ii tt ddooeess nnoott nneecceessssaarrii ll yy ffooll llooww tthhaatt tthhee ff ii rrmm’’ ss pprrooff ii ttaabbii ll ii ttyy hhaass iimmpprroovveedd bbeeccaauussee tthhee iinnccrreeaasseedd pprrooff ii ttss ttoo tthhee oowwnneerrss mmaayy bbee tthhee eeff ffeecctt ooff aann eennllaarrggeedd eeqquuii ttyy ccaappii ttaall aass aa rreessuull tt ooff pprrooff ii tt rreetteennttiioonnss,, tthhrroouugghh tthhee nnuummbbeerr ooff oorrddiinnaarryy sshhaarreess oouuttssttaannddiinngg ssttii ll ll rreemmaaiinnss ccoonnssttaanntt..

FFoorrmmuullaa::

EEaarrnniinngg ppeerr SShhaarree == PPAATT .. NNoo.. ooff EEqquuii ttyy SShhaarree


II nntteerr pprr eettaatt iioonn:: -- EEaarrnniinngg ppeerr sshhaarree aannaall yyzzee tthhaatt tthhee rraattiioo sshhoowwss tthhee rreellaattiioonnsshhiipp bbeettwweeeenn tthhee pprrooff ii tt aaff tteerr ttaaxx aanndd nnuummbbeerr ooff eeqquuii ttyy sshhaarreess.. TThhiiss rraattiioo iiss ddeetteerrmmiinnee tthhaatt tthhee hhooww mmuucchh pprrooff ii tt eeaarrnn bbyy tthhee sshhaarree.. TThhiiss iiss vveerryy nneecceessssaarryy ttoo ff iinndd tthhiiss rraattiioo..iinn tthhiiss rraattiioo aallssoo ssaammee pprroobblleemm wwee aarree ffaacciinngg tthhaatt wwee ccaann’’ tt ffoouunndd oouutt rraattiioo..

�� DDiivviiddeenndd PPaayyoouutt RRaatt iioo ::

DDiivviiddeenndd ppaayyoouutt rraattiioo iiss aallssoo kknnoowwnn aass ppaayyoouutt rraattiioo ii tt mmeeaassuurreess tthhee rreellaattiioonnsshhiipp bbeettwweeeenn ddiivviiddeenndd ppeerr sshhaarree aanndd eeaarrnniinngg ppeerr sshhaarree.. IInn ootthheerr wwoorrdd,, tthhee ddiivviiddeenndd ppaayyoouutt rraattiioo sshhoowwss wwhhaatt ppeerrcceennttaaggee sshhaarree ooff tthhee nneett pprrooff ii tt aaff tteerr ttaaxxeess aanndd pprreeffeerreennccee sshhaarree ddiivviiddeenndd iiss ppaaiidd oouutt aass ddiivviiddeenndd ttoo eeqquuii ttyy hhoollddeerr ii tt ccaann bbee ccaallccuullaatteedd bbyy ddiivviiddiinngg tthhee ddiivviiddeenndd ppeerr sshhaarree aanndd eeaarrnniinngg ppeerr sshhaarree.. TThhee ddiivviiddeenndd ppaayyoouutt rraattiioo iiss aann iimmppoorrttaanntt aanndd wwiiddeellyy uusseedd rraattiioo.. TThhee ppaayyoouutt rraattiioo ccaann bbee ccoommppaarreedd wwii tthh tthhee ttrreenndd oovveerr tthhee yyeeaarrss oorr aann iinntteerr--ff ii rrmm aanndd iinnttrraa--iinndduussttrryy ccoommppaarriissoonn wwoouulldd tthhrrooww ll iigghhtt oonn ii ttss aaddeeqquuaattee.. FFoorr mmuullaa:: DDiivviiddeenndd PPaayyoouutt RRaattiioo == DDiivviiddeenndd ppeerr SShhaarree .. EEaarrnniinngg PPeerr SShhaarree

IInntteerrpprreettaattiioonn::-- HHeerree iinn VVOOTTLL wwee ccaann ssaayy tthhaatt ccoommppaannyy iiss nneewwllyy eessttaabbll iisshheedd aanndd wwoorrkkiinngg iinn lloossss .. ssoo,, tthheerree iiss nnoo mmaatttteerr ooff ddiivviiddeenndd.. AAnndd tthhee ootthheerr tthhiinngg iiss aall ll tthhee sshhaarreehhoollddeerrss aarree tthheeii rr hhoollddiinngg ccoommppaannyy oonnllyy ssoo ddiivviiddeenndd ppaayy oouutt rraattiioo iiss nnoott tthhee mmeeaassuurreemmeenntt ooff ggoooodd mmaannaaggeemmeenntt..

�� SSttoocckk TTuurr nnoovveerr RRaatt iioo ::

TThhee nnuummbbeerr ooff ttiimmeess tthhee aavveerraaggee ssttoocckk iiss ttuurrnneedd oovveerr dduurriinngg tthhee yyeeaarr iiss kknnoowwnn aass ssttoocckk ttuurrnnoovveerr.. II tt iiss ccoommppuutteedd bbyy ddiivviiddiinngg tthhee ccoosstt ooff ggoooodd ssoolldd bbyy ssttoocckk iinn tthhee bbuussiinneessss.. AAvveerraaggee ssttoocckk iiss tthhee aavveerraaggee ooff ooppeenniinngg aanndd cclloossiinngg ssttoocckk ooff tthhee yyeeaarr.. II ff hhoowweevveerr tthhee mmoonntthhllyy ff iigguurreess ooff tthhee ssttoocckk wwii ll ll ggiivveess aa bbeetttteerr ttuurrnnoovveerr rraattiioo..


FFoorr mmuullaa::-- SSttoocckk TTuurrnnoovveerr rraattiioo == CCoosstt ooff ggoooodd ssoolldd xx110000 AAvveerraaggee SSttoocckk II nntteerr pprr eettaatt iioonn::

VVOOTTLL iiss bbaassiiccaall ll yy ssuubbssiiddiiaarryy ccoommppaannyy ooff EESSSSAARR SSHHIIPPPPIINNGG,, PPOORRTT && LLOOGGIISSTTIICCSS.. II tt oonnllyy ggiivveess sseerrvviiccee ooff ttrraannssppoorrttaattiioonn ooff ccrruuddee && ff iinniisshheedd pprroodduucctt.. SSoo,, tthheerree iiss nnoo ssttoocckk ttuurrnn oovveerr rraattiioo..

�� TToottaall AAsssseettss TTuurr nnoovveerr RRaatt iioo ::

TThhee ttoottaall aasssseettss aammoouunntt ttuurrnnoovveerr rraattiioo aammoouunntt iinnvveesstteedd iinn bbuussiinneessss aarree iinnvveesstteedd iinn aall ll aasssseettss jjooiinnttll yy aanndd ssaalleess aarree aaff ffeecctteedd tthhrroouugghh tthheemm ttoo eeaarrnn pprrooff ii ttss.. SSoo iinn oorrddeerr ttoo ff iinndd oouutt rreellaattiioonn bbeettwweeeenn ttoottaall aasssseettss ttoo ssaalleess.. TToottaall aasssseettss ttuurrnnoovveerr iiss ccaallccuullaatteedd.. TThhiiss rraattiioo iiss iimmppoorrttaanntt ttoo kknnooww tthhee oovveerraall ll eeff ff iicciieennccyy ooff tthhee bbuussiinneessss.. TThhee hhiigghheerr tthhiiss rraattiioo,, ii tt sshhoowwss tthhaatt wwii tthh lleessss aammoouunntt ooff iinnvveessttmmeenntt iinn ttoottaall aasssseettss,, tthhee bbuussiinneessss hhaass aa ccaappaaccii ttyy ttoo sseell ll mmoorree aanndd aass ssuucchh ii ttss pprrooff ii ttaabbii ll ii ttyy iiss aallssoo mmoorree.. WWhhii llee uussiinngg tthhiiss rraattiioo,, ssoommee ccaarree mmuusstt bbee ttaakkeenn jjuusstt ll iikkee aabboovvee mmeennttiioonneedd ff iixxeedd aasssseettss rraattiioo.. II ff tthhee aasssseettss aarree vveerryy oolldd aanndd mmoorree ddeepprreecciiaattiioonn hhaass bbeeeenn ddeedduucctteedd,, tthheenn tthhee ttuurrnnoovveerr sseeeemmss ttoo bbee mmoorree wwhhiicchh iinn ffaacctt ddooeess nnoott sshhooww mmoorree eeff ff iicciieennccyy..

FFoorrmmuullaa:: TToottaall AAsssseettss TTuurr nnoovveerr RRaatt iioo == NNeett SSaalleess .. TToottaall AAsssseettss ((FFAA ++ CCAA ++ II nnvveessttmmeenntt ))

TTaabbllee ooff TToottaall AAsssseettss TTuurrnnoovveerr RRaattiioo:: -- (( IInn RRss.. ))


NNeett SSaalleess 1,404,376,830

3,867,318,608

TToottaall AAsssseettss 3333442255558800889911 3355992277552211119977


RRaattiioo 00..004422 00..1111

TToottaall AAsssseettss ccoonnttaaiinn tthhee ttoottaall ooff AAsssseettss ssiiddee iinn BB\\SS..

0.042

0.11

0

0.02

0.04

0.06

0.08

0.1

0.12

2008 2009

2008

2009


TThhee ccaallccuullaattiioonn ooff tthhiiss rraattiioo iiss ddiivviiddiinngg bbyy tthhee nneett ssaalleess aanndd ttoottaall aasssseettss ((FFiixxeedd AAsssseettss ++ IInnvveessttmmeenntt ++ CCuurrrreenntt AAsssseettss)).. TThhiiss rraattiioo iiss ddeeff iinneedd aass tthhee ttyyppee ooff aasssseettss wwhheetthheerr nneeww oorr oolldd aanndd ddeepprreecciiaattiioonn aanndd tthhee ssaalleess ooff tthhiiss rraattiioo ddeeppeenndd oonn oovveerraall ll eeff ff iicciieennccyy oonn tthhee ppaarrtt ooff mmaannaaggeemmeenntt..

�� DDeebbttoorr ss RRaatt iioo ::

TThhiiss RRaattiioo sshhoowwss tthhee rraattee aatt wwhhiicchh ccuussttoommeerrss aarree ppaayyiinngg ffoorr tthhee ccrreeddii tt ssaalleess.. TThhiiss rraattiioo sshhoouulldd aapppprrooxxiimmaatteell yy ttoo tthhee aauuddii tt tteerrmmss aall lloowweedd bbyy tthhee bbuussiinneessss aanndd iiss tthheerreeffoorree aa ccoommmmeenntt oonn tthhee eeff ff iicciieennccyy ooff aauuddii tt ccoonnttrrooll .. TThhee rraattiioo iiss ccoommppuutteedd bbyy ddiivviiddiinngg tthhee aammoouunntt ooff ddeebbttoorrss aanndd bbii ll llss rreecceeiivvaabblleess bbyy tthhee aavveerraaggee ddaaii ll yy ssaalleess.. FFoorr mmuullaa:: DDeebbttoorrss RRaattiioo == DDeebbttoorrss ++ BBii ll llss RReecceeiivvaabblleess xx NNoo.. ooff DDaayyss

CCrreeddii tt SSaalleess


II nntteerr pprr eettaatt iioonn:: DDeebbttoorrss RRaattiioo ooff tthhee ccoommppaannyy wwee aarree nnoott rreeqquuii rree ttoo ffoouunndd oouutt bbeeccaauussee aall ll tthhee ddeebbttoorrss aarree tthheeii rr hhoollddiinngg // ssiisstteerrss ccoommppaannyy..

�� CCrr eeddii ttoorr ss RRaatt iioo ::

CCrreeddii ttoorr’’ ss rraattiioo mmeeaassuurreess tthhee aavveerraaggee ttiimmee ttaakkeenn ttoo ppaayy ssuuppppll iieerrss.. II tt iiss aa vveerryy iimmppoorrttaanntt rraattiioo bbeeccaauussee tthhee ppootteennttiiaall ssuuppppll iieerrss wwoouulldd ll iikkee ttoo kknnooww tthhee ttiimmee wwii tthhiinn tthheeyy ggeett ppaaiidd ffoorr tthheeii rr ssuuppppll iieerrss.. TThhee ssmmaall lleerr tthhee rraattiioo tthhee llaarrggee tthhee ppeerriioodd ooff ccrreeddiitt eennjjooyyeedd bbyy tthhee ccoommppaannyy ssiiggnnii ff iiccaannttllyy lloonngg ppaayymmeenntt ppeerriioodd mmaayy mmeeaann tthhaatt tthhee bbuussiinneessss mmaayy hhaavvee sseerriioouuss ppaayymmeenntt pprroobblleemm bbeeccaauussee ii tt ccrreeddiittss sseennssee iimmppeennddiinngg ffaaii lluurree oorr bbeeccoommee iimmppoorrttaanntt wwii tthh wwaaii ttiinngg tthheeyy dduuee ttoo tthhee ccoommppaannyy.. FFoorr mmuullaa:: -- CCrr eeddii ttoorr ’’ ss RRaatt iioo == CCrr eeddii ttoorr ss ++ BBii ll llss PPaayyaabbllee xx NNoo.. DDaayyss CCrr eeddii tt PPuurr cchhaassee

II nntteerr pprr eettaatt iioonn::--

CCrreeddii ttoorrss RRaattiioo ooff tthhee ccoommppaannyy wwee aarree nnoott rreeqquuii rree ttoo ffoouunndd oouutt bbeeccaauussee aall ll tthhee CCrreeddii ttoorrss aarree tthheeii rr hhoollddiinngg // ssiisstteerrss ccoommppaannyy..

..


Conclusion : Finally I can Say that it’s my great fortune that I can work in Vadinar Oil Terminal Ltd. That is subsidiary of Essar Shipping, Port and Logistics. � From VOTL I can learn many things like How corporate world work?, Some Financial Aspects & also how they operate such a big company so nicely. Here I can also learn MIS of VOTL that is used for transportation of tankers, trains, pipes & marine. � From Financial ratio analysis we can say that VOTL is newly established subsidiary of ESOLL is working under loss due to highly paid interest to their holding / sister companies only. Still in comparison to 2008 it’s better in 2009. � From Asset turn over ratio we can found out that company can do turn over only 10 % (approx) of total turn-over. � From operation project we can say that VOTL is not working under full utilization of their assets. But all the Findings are due to the Reason that VOTL is newly established. And the other Reason is that VOTL is working only for their holding company. So, it has to be dependent on holding company. But as per my suggestion VOTL should also work for other companies for more utilization of resources.


Bibliography :

1) http://www.essar.com/

2) http://www.essarnet.com

3) Essar‘s past management reports

4) Financial Annual Reports

Documents

essar shipping project