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SAIL ISP BURNPUR TURN OVER STEEL AS ON 31- 03-2008
PRODUCT CODE QTY VALUE
JOISIS 5031101 938.510 34600741.75
CHANNELS 5031201 23597.309 768707815.12
ANGLES 5031301 16772.451 539717054.26
ROUNDS 5031701 559.350 11718377.06
TOR/ TMT 5031901 38839.080 1252057111.42FLATS 50383301RAILS 5038301 535.180 24156180.00
SAMIS 5030101 44440.930 1252057111.42SLABS 5030120Z.SECTION 5033902 10013.510 473674848.01
Z.PILING 5033903 365.690 17974330.75STEEL PAR BARCOLL ARCH 5033904RIBBED BAR 5031801TTASTAR 5031401SUB 96062.010 3225253924.02
STEEL SCRAP 5044001 8506.230 174620434.89INGOT 5044101SUB 16500.550 324785555.30
EXP INCENT 5260000 5833975.30
STEEL 5211901 4006.360 82230516.04…………………………………………………….TOTAL 116568.920 3636103970.88
A PROJECT REPORT ON SAIL-ISP BURNPUR
(WEST BENGAL)
STEEL AUTHORITY OF INDIA LIMITED
ACKNOWLEDGMENT
IT IS MY GREAT PLEASURE TO HAVE DONE PROJECT TRAINING IN FINANCE DEPARTMENT OF ISP, BURNPUR. DURING THE PROJECT WORKS , I GOT THE OPPORTUNITY TO VISIT ALMOST EVERY DEPARTMENT AND MEET THE FOLLOWING EXECTUTIVES, WHO GAVE PERSOLNAL ATTENTION TO ME WHILE EXPLAINING THE FUCTIONING OF THE FACTORY & THE ORGANIZATION AS A WHOLE. ANY PROJECT IS NOT AN OUTCOME OF A GREAT EXPERIENCE TO LEARN FROM THEM. I WOULD LIKE TO EXPRESS DEEP GRATITUDE AND RESEPECT TO ALL FOR THEIR WHOLEHEARTED SUPPORT, WITHOUT WHOSE HELP ME PROJECT WOULD NOT HAVE BEEN COMPLETED. A FEW AMOUNG THEM WERE.
MR. S.K. PRATIHER D.G.M [H.R.D CENTRE] MR. ISHWER LAL PATEL TRAINING OFFICER [H.R.D CENTRE] MR. A.K MONDAL A.G.M [H.R.D CENTRE] MR. KANAD CHATERJEE Jr. Manager [H.R.D CENTRE] MR. DILIP KUMAR NAG SR. ENGEENERE (EME)
I WOULD ALSO LIKE TO EXPRESS MY DEEPPEST GRATITUTE TO RESPECTED SIR, MR. JAPEN DAS (D.G.M FINANCE), FOR HIS WHOLEHEARTED SUPPORT, WITHOUT WHOST HELP THIS PROJECT WOULD NOT HAVE BEEN COMPLECTED. HE GUIDED ME THROUGH THE OROJECT AND HALPED IN THE RESEARCH PROCESS.
DECLARATION
I DO HEARBY UNDERTAKE TO STATE THAT I, SRI DEBASISH NAG, A STUDENT OF P.G.D.B.M / M.B.A
HAVE PREPARED THIS PROJECT ON THE STUDY OF INVOISEING & VAT SYSTEM OF SAIL-ISP BURNPUR.
TO FULFILL THE PARTIAL REQUIREMENT TO COURSE OF P.G.D.B.M / M.B.A TAKEN UP INN.I.M.T B- SCHOOL MOHAN NAGER GHAZIABAD (U.P). APPROPED BY A.I.C.T. E MINISTRY OF
H R D GOVT OF INDIA .
I ALSO FURTHER THAT THE PROJECT HAS BEEN PREPARED OF MY OWN WITH THE SECONDARY DETA PROVIDED BY THE COMPANY WHICH IS ESSENTIAL FOR THE COMPLETION OF THE PROJECT.
PRIYABRATA DAS NATIONAL INSTITUTE OF MANAGEMENT AND TECHOLOGY. MOHAN NAGAR GHAZIABAD (U.P) ENROLLMENT NUMBER: - 27344
TO WHOM SO EVER IT MAY CONCERN
This is certify Mr. Priyabrata Das a student of PGDBM, have prepared this project of the study
Of Finished goods with Central Excise & VAT system of SAIL- I.S.P on the basic of the information explanations by the company. This project is highly considered to fulfill the requirement for the course completion of PGDBM / MBA taken up, NIMT B-SCHOOL Ghaziabad (U.P).
I further add on the words that Mr. Priyabrata Das is a sincere and hard working student Who has prepared this project by his own with dignity and diligence.
Mr. Japen Das (D.G.M, Finance) External guide (I.S.P-SAIL) BURNPUR (W.B)
INTRODUCTION TO THE COMPANY
A BRIEF HISTORY OF SAIL-ISP, BURNPUR
SAIL-ISP BURNPUR IS ONE OF THE OLDEST STEEL PLANTS IN INDIA. IT WAS ESTABLISHED IN 1918 AS PIG IRON IRON PRODUCTION UNIT. IT WAS KNOWN AS INDIAN IRON & STEEL CO. LTD (IISCO). NOW IT WAS KNOWN AS SAIL-ISP, BURNPUR AFTER MERGING WITH STEEL AUTHORITY OF INDIA LTD.(SAIL) ON 16TH February 2006. THE BRIEF HISTORY OF SAIL-ISP, BURNPUR IS GIVEN BELOW IN CHRONOLOGICAL ORDER:-
1870:- BENGAL IRON WORKS WAS ESTABLISHED AT KULTI.
1874:- THE BENGAL IRON WORKS, KULTI, STARTED TO USE COAL IN PLACE OF CHARCOAL.
1882:- THE BENGAL PRESIDENCY GOVT. TOOK OVER THE BENGAL IRON WORKS AND RETAINED IT BARRACKPUR IRON WORKS.
1889:- THE BENGAL IRON & STEEL COMPANY ACQUIRED THE BARRACKPUR IRON WORKS . 1890:- KULTI PRODUCES 40 THOUSAND TONES OF PIG IRON PER ANNUM RENAME AS THE BENGAL IRON & STEEL CO. LTD.
1918:- INDIAN IRON & STEEL COMPANY WAS FORMED.
1922:- IISCO STARTED PRODUCING PIG IRON.
1926:- BENGAL IRON & STEEL COMPANY LTD. RENAMED AS BENGAL IRON CO LTD.
1936:- BENGAL STEEL COMPANY LTD. WORKS WENT INTO LIQUIDATION AND WAS MERGED WITH IISCO.
1936:- STEEL COMPANY. OF BENGAL FORMED.
1950:- PLANNING COMMISSION WAS SET UP IN MARCH.
1952:- STEEL CORPORATION OF BENGAL MERGED WITH IISCO.
1954:- HINDUSTAN STEEL LTD, WAS FORMED ON 14TH JANUARY.
1964:- IISCO STANTON PIPES & FOUNDERY LTD, FORMED AT UJJAIN.
1972:- GOVT, TOOK OVER THE MANAGEMENT OF IISCO ON 14TH JANUARY.
1973:- SAIL WAS FORMED ON 24TH January.
1978:- IISCO BECOMES WHOLLY OWNED AS A SUBSIDIARY OF SAIL.
2005:- SAIL TOOK THE CONTROL OF IISCO.
2006:- IISCO MARGED WITH SAIL ON 16TH February & IT IS KNOWN AS SAIL-ISP.
IISCO STEEL PLANT(ISP)ISCO Steel plant (ISP), an integrated steel plant in BURNPUR, has the capacity to produse
4.26 Lakh tonnes of saleable steel and 2.54 Lakh tonnes of pig iron annually. ISP, the erstwhileIndian iron & steel company (IISCO), which was 100% subsidiary of steel authority of India
Limited (SAIL), has been amalgamated the parent company with effect from 16th February2006.
ISP produced a large number of steel structural and special section as well as pig iron.The plant pioneered the production of centre – sill Z- section used in the fabrication of
Wagon and Z-type sheet piling section used in construction of barrages, bridge foundationAnd other projects and colliery arch section used for roof support in collieries. The plant has
Also developed slit rolling for diameter (10mm and 12TMT), which in high demand in theDomestic market.
The plant is set to modernization – cum – capacity expansion through which its hot metal Production capacity will be raised to 2.5 MT by 2011-12.
ISP is accredited with ISO 9001: 2000 QMS for its Heavy structural Mill and Marchent & Rod Mill. It has also Awarded ISO 14001:2004 EMS for its entire Rolling Mill complex
FINANCIAL HIGHLIGHTS
.
PARTICULARS SAIL IISCO STEEL PLANT
2004-05 2005- 06 2006-07 2004-05 2005-06 2006-07
Gross Sail 24178.48 31800.02 32279.75 1051.26 1487.29 1358.58Other Incomes 392.42 1617.03 2587.90 131.13 379.41 202.67Exenditure 19920.67 22319.70 27486.85 1117.77 1768.40 1776.73Operating profit 4650.23 11097.35 7380.80 64.62 98.30 (215.48)Depreciation 1122.59 1126.95 1207.30 13.76 27.25 26.73Interest&Financial Changes 899.43 605.05 467.76 13.77 24.46 15.41Profit befor tax 2628.21 9365.35 5705.74 27.09 46.59 (257.62)Provision for tax 116.13 2548.38 1692 0.00 0.00 0.00Profit after tax 2512.08 6816.97 4012.97 27.09 46.59 (257.62)Equity capital 4130.40 4130.40 4130.40 378.66 378.66 0.00Reserves & Surplus 528.77 5881.32 8255.19 (1007.88) (961.78) (1208.22)Net worth 4659.17 10011.72 12385.59 (620.22) (574.02) (1208.22)Total Loans 8688.76 5769.79 4297.62 268.01 205.61 64.00Capital work-in-progress 382.20 366.48 757.94 27.89 21.75 29.44Net fixed assets 13153.85 12485.07 12162.14 293.31 301.71 348.21Total current assets 8030.28 14187.43 17383.73 322.84 435.89 589.98Total current liabilities 5967.23 6608.11 8108.11 730.10 734.34 807.37Working capital 2063.05 7579.32 9275.62 (397.26) (298.45) 217.39Capital employed 12216.90 20064.39 21437.76 (103.99) 3.26 130.82Cumulative profit 22.69 4758.77 7950.78 (954.57) (910.27) (1167.89)Net sales 20786.77 27666.26 27084.20 928.96 1348.25 1334.69
BALANCE SHEET
PARTICULARS SAIL IISCOSteel plant
2004-05 2005-06 2006-07 2004-05 2005-06 2006-07A Source of funds
Equity capital 4130.40 4130.40 4130.40 378.66 378.66 0.00Reserve and surplus 907.27 6176.25 8471.01 5.70 6.59 1.70Deferred revenue exp (378.50) (294.93) (215.82) (59.01) (58.01) (42.03)Debit bal. of P/L a/c 0.00 0.00 0.00 (954.57) (910.27) (1167.89)
a) Net worth (1+2+3+4) 4659.17 10011.72 12385.59 (620.22) (574.12) (1208.22)b) Deferred tax liability 0.00 1844.31 1484.86 0.00 0.00 0.00c) Total loans 8688.76 5769.79 4297.62 268.01 205.61 64.00
Prov.A.Gratuity& A. leave 2419.11 2864.56 3513.57 243.95 349.52 434.05
Prov. Retirement benefits 366.30 479.93 490.33 24.62 36.70 41.50d) Total 2785.41 3344.49 4003.90 268.57 386.22 475.55
Total(A+B+C+D) 16133.34 20970.31 2171.57 (83.64) 17.71 (668.67)B Application of Funds
Gross fixed assets 27712.71 28043.48 29360.46 818.83 849.37 890.64Less: Depreciation 14558.86 15558.41 17198.32 525.52 547.66 542.43
e) Net Fixed Assetss 13153.85 12485.07 12162.14 293.31 301.71 348.21f) Net Capital WIP 202.22 153.01 441.81 20.24 14.39 24.61
OthersInvestment 543.17 606.71 292.00 0.07 0.06 0.06Lonans& Advanced to sub.co 171.05 146.20 0.00 0.00 0.00 0.00IUCA Net 0.00 0.00 0.00 0.00 0.00 (824.16)
g) Total others 714.22 752.91 292.00 0.07 0.06 (824.10)Curent ASSETSInventories 3081.44 4220.69 6210.06 147.12 222.43 368.12Sundry Debtors 1549.96 1908.45 1881.73 57.61 53.36 64.39Cash& bank Bal 2017.16 6132.12 6172.64 99.74 128.03 126.68Other current assets 86.18 142.18 85.48 0.18 1.28 1.35Loan & Adv. Toothers 1295.54 1783.99 3033.82 2801.90 30.79 29.44
h) Total Current Assets 8030.28 14187.43 17383.73 332.84 435.89 589.98
LESS CURRENT LIBILITIES
Sundry Creditors 1600.83 1994.03 2111.23 374.35 211.07 223.21
Security deposits 191.83 209.67 232.30 14.59 17.49 17.88
Other Liabilities 2433.36 2361.75 2532.04 321.64 167.06 146.74
Provisions 1741.21 2042.66 3232.54 19.52 338.72 419.54
Total current liabilities 5967.23 6608.11 8108.11 730.10 734.34 419.54
Working Capital (h-i) 2063.05 7579.32 9275.62 (397.26) (298.45) (217.39)
Total (e+f+g+j) 16133.34 20970.31 22171.57 (83.64) 17.71 (668.67)
Capital employed (e+j) 15216.90 20064.39 21437.76 (*103.95) 3.26 130.82
ISP CAPISITY EXPENSION PLAN
EXISTING FACILITIES
FACILITY CAPACITY mtpa Yr of installationCoke oven batteriesNo.8,9,&10
1.0 500m3 1922/24 1170m31958
Twin hearth furnace 0.55 1999/2004Blooming mill 0.55 1939Heavy structure mill 0.15 1939Light structure mill 0.10 1939Billet mill 0.30 1953M&R mill 0.18 1960
Need for expansion 1. plant is operating with outdated technology. Most of the equipment used for production purpose are very old not relevant also.
2. high coke rate and low productivity of blast furnace are all so a big problem.3. the steel making process at SAIL-ISP is a energy intensive process which result in
higher price for steel.
4. Low yield of finished steel du to ingote route.
5. Lack of automation.6. The main reason is high cost of production which is hampering its market and
Performance.
Silant features of major facilites as purposed Design consideration
1. Best commercially proven technology available in the world will be used for the Expansion plan.
2. Advance of economy of scale will be achieved through optimum sizing.3. It will be a fully automated plant.
4. Adherence to pollution control norms
INFRASTRUCTURE
Land total requrment ……………… 965 acres Already available ……………… 600 acres
Being acquired ………………. 365 acres
Railways Rites have been assigned for railway yard development There is all so planning for setting up a new raw material receiving yerd with linkage from SER and also to dispatch yard connecting ER ROAD New approach road from NH-2 to new site will be development
POWER
Maximum demand …………….160MW Own generation …………….65MW IMPORT …………… 95MV POWER WILL BE PROCURED EITHER BY SETTING JOINT VENTURE WITH BOKARO STEEL PLANT OR FROM DVC. DVC IS CONSTRUCTING A NEW 220 KV SUBSTATION.
WATER
Additional requirement of water is about 1000m3/hr,from Damodar river. GAS requirement OXGEN 1465TPD NITROGEN 520TDPe ARGON 41TDP All gases will be generated in the new capacity oxygen of SAIL-ISP IMPLEMENTATION SCHEDULE AND STRATEGE Completion within 36month from the date of final approval the total expansion plan has been divided into 45 Packets and most of them will be completed on basis major technological units up to blast furnace will be all Turnkry projects sms rolling mills excluding civil structural mill will also be constructed on turnkey basic.
.
MEJOR FACILITIES UNDER EXPANSION PLAN
UNITS FACILITY PRODUCTION MTPACOCK OVEN BATTERY NEW(7M*67OVENS)
REBUILT(405M*780OVENS)0.780.686
SINTER PLANT 2*204M2 3.8BLAST FURNACE 2NOS
NEWN1* 4060M3REBUILT 1*530M3
2.70.21
STEEL MELTING SHOP 3* 150TBOF 2.559BILLET CASTERBEAM BLANK CASTER
2*6STRND1*4STRND
1.670.8
ROLLING MILL NEW UNIVARSAL MILLNEW WIR&BAR MILLHEAVY STRUCTURAL MILLLIGHT STRUCTURAL MILLMARCHENT MILL
0.601.250.150.100.18
OXIZEN PLANT OWN 2*750tdp
CAPITAL BUDGETING ANALYSIS (PAYBACK PERIOD)
SUMMERY OF CAPITAL COST RS/CRORE
PLANT AND EQUPIEMENT INCLUDING EDG 8033 Enabling inastructure 213 Railway exchange yard 320 Contingency 404 Fixed capital cost 8974 IDC 618 Total capital cost 9529 Cenvat 721 Investment 8871
The total plant and equipment cost of the expensition project is estimated at rs 8033 crores and theTotal cost of the project is 9592 crores.Once the new plant will become operational the sails figherOf the IISCO steel plant is expected to be in the turn of rs 4000 crores and is supposed to increased10% year. The cost of production is also expected to the turn of rs2700 crore during year 2010-11And is expected to grow at the rate 8%-10% every year ,ISP follows straight-line depreciation for taxCalculation.
After completion the project cash inflow and cash outflow will be as follow.PARICULAR 2010-
112011-12
2012-13
2013-14
2014-15
2015-16
2016-17
SALES 40000 4400 4840 5320 5860 6500 7000EXPENDITURE 2700 2970 3250 3550 3550 4400 4900
OPRATINGPROFIT
1300 1430 1590 1770 1770 2100 2100
9-ODEPRECTION 803.30 803.30 803.30 803.30 803.30 803.30 803.30
PBT 496.70 656.70 786.70 967.70 1106.70 1296.70 1296.70- TAX @35% 173.84 219.35 275.35 338.55 408.45 453.85 453.85
PAT 322.86 407.35 511.35 628.75 698.25 82.85 842.85
DEPRECATION 803.30 803.30 803.30 803.30 803.30 803.30 803.30CFAT 1126.16 1210.65 1314.65 1432.05 1501.05 1646.15 1646.15
Pay back period of the project
YEAR CFAT CUMULATIVE
CFATPAY BACK PERIOD
1 1126.16 1126.16 8033-6689.06 = 1343.94 5 YEAR{1343.94/1646.15} YEAR= 5 YEAR 9 MONTHAND 23 DAYS
2 1210.65 2440.813 1314.65 3755.464 1432.05 5187.515 1501.55 6689.066 1646.15 8335.217 1646.15 9981.36
SHORT ANALYSIS STRENGHTS:
The importance of the Real Esate sector, as an engine of nations growth. It is the second largest employer next only to agriculture and its size is close to US $ 12billion. Five per cent of the counteys GDP is contributed by the housing sector. The real Esate Industry has significant linkages with several other sector of the ecnomy and over
250 associated industries. One Rupee invested in this sector results in 78 Paise added to the GDPOf the state.
WEAKNESS:
In some states the Stamp Duty is as high as 14-15% of the value of the transaction .
Astonishingly in the India context, not only are the rates high, but also the levy of Stamp Duty is applicable in every subsequent transaction.
The existing foreclosure laws are cumbersome as will as time consuming and make it practically impossible for housing Finance Industitutions (HFIs) to respossess a dwelling unit financed.
The land Acquisiting Act of 1894, still, to a large extent , governs the procurement of law land.
The Present FDIpolicy requiresa minimum capitalization of US $ 5million is in relation to a single foregion investoror is it the total contribution of multiply foregion investoror is it the total contribution of multiply foreign investorsinvesting in the project in India.
No rational has been provided for exclusion of services in relation to construction of residential bungalows which may not form part of a “residential comp
OPPORTUNITIES:
Builders and developers can construct the property and them hand it over to the retailers.
If the company grows at the rate of 10% the housing sector has the capacity to grow at 14% and generate 3.2 million new jobs over a decade.
A fast growing area is the I.T and I.T – enabled services along with the BPO boom. Estimates worked out show that 42 million sq.ft of speace will be required every year till2008.
The Tenth Five-Year plan estimated a shortage of 22.4 million dwelling units. Thus, over the next 10 to 15 year, 80 to 90 million housing dwelling unit will have to be Contructed.
The Government should consider sitting up of Real Estate Mutual Fund Investment trusts to provide the much needed support to the cash Investment trusts to provide the much needed support to the cash starved housing sector.
The decision to liberalise the FDI norms in the construction sector is perhaps the most significant economic policy decisions taken by the Government. Unit now, only Non-Resident Indians (NRIs) and Persons of Indian Origian (PIOs) were permitted to invest in the housing and the real esated sector. Foreign investors other than NRIs were allowed to invest only in development of integrated townships and settlements.
THREATS:
Abolition of service tax on the construction especially the housing sector. Conversely, if the abolition per se is not possible then drastic modifications in the existing service tax norms is the need of the hour. This sector is already overburdened with taxes; any future imposition of taxes in any form would adversely affect the growth of the company.
A necessary legal and policy framework has to be put in place to restrict growth of slums.
The land Acquisition Act of 1894, still to a large extent, governs the procurement of law land. With the changing investment scenario it has become necessary to review the existing law.
The government is currently talking about single window clearances in most sector to encourage investment, however as far as the real estate sector is concerned, presently clearances are required from 8/9 different agencies.
The Construction Industry is already subject to a number of taxes and is considered as one of the o rdened tax segment.
CASH FLOW STATEMENT
CASH FLOW STATEMENT 2005-06 2006-07
A. erating activitiesB. Cash flow from operating activities
Net profit(+) loss(-) before taxation extraordinary items 27.09 -182.23 Add. Adjustment for: Deprecation 24.05 23.22
Interest Expenses 13.77 10.33
Bad debts written off 0 0.34 Deferred revenue expenditure(Charged during the year) 15.20 13.89 Less: Adjustment for: Walver of loan 0 44.68
Walver of interest on FL’s & Bank 4.39 0.19
Interest income 0.02 0 Dividend income 28.35 -179.32
Operating profit before working capital change Less: Adjustment for: Inventory 8.69 -40.43
Sundary Debtors -5.51 -8.74
Loan & Advance 1.41 -3.93
Current Liabilitise & Provision 112.54 -241.13
Net cash form Operating Activities -162. 112.43
B.Cash flow form Investment Activities Purchase of Fixed Assets 45.95 5.38
Interest received -4.43 -0.28 Dividend received -0.02 0 Net Cash form Investment Activities 41.5 5.1
C.Cash flow from Financing Activities Bond issue Expencses -0.05 0
Differed Revenue Expenditure(Additions) 73.77 2.48 Proceeds from Borrowing(Net) 161.85 11.77
Interest and Finance Charges paid -5.90 -6.82
Net Cash for financing Activities 155.9 18.59
Net increase/ Decrease in cash cash Equivalent(A-B+C) -48.15 125.92
Cash &Cash Equvelents(Opening) 99.74 147.89
Cash & Cash Equvelents(Closing
.
FIANCIAL POSITION LIBILITIES 2005-06 2006-07 2007-08
a) Paid up Capital
1) Government 0.00 0.00 0.00
2) Other 387.66 387.66 387.66
b) Reserves&surplus 1) Free Govt of India 0.00 0.00 0.00
2) Share Premium Account 0.36 0.36 0.31
3) Special Reserve 3.15 3.10 5.39 c) Borrowing 1) From Govt India 0.00 0.00 0.00
2) From Financial Intitutes/Bank 31.95 31.95 1.50
3) Foreign Carrency Loans 0.00 0.00 0.00
4) Cash Credit 59.34 62.81 29.55
5) Other 44.68 8.30 233.86
Total Borrowing(1 to 5) 135.97 103.93 264.91
6) Intarest Accrued and due 43.42 46.93 3.10d)
1) 651.07 843.28 718.76
Current Liabilities & Provisions(excluding Gratuity, Accrued leave, Post Retirement Medical Benefit & TA and EFBS) 2) Provision for Gratuity, Accrued Leave, 209.14 271.42 287.56
Post Retiements Medical &TA and EFBS TOTAL 1430.77 1665.81 1667.67
ASSETS e) Gross Block 793.74 799.49 818.83
f) Less: Depreciation 487.57 506.48 g) Net Block 306.17 506.48 525.52
h) Capital Work in Progrss 11.93 6.65 27.89
i) Investment 0.07 0.07 0.07
j) Current Assets, Loan & Advances 797.14 979.37 954.57
TOTAL 1430.77 1665.81 1667.67
m) Working Capital -390.86 -513.85 -389.02
n) Capital Employed -84.69 -2.20 -95.71 O) Net worth -420.95 -591.79 -625.6
RAW MATERIALS BUDGET
SAIL-ISP BUDGET YEAR 2007-08 27 FEB- 08
ITEM PROCUREMENT CONSUMPTION
QUT RATE AMT QUT RATE AMT
A.COOKING COAL-Imported-IndigenousTOTAL(A)
B. OTHER RAW METRIALS:-Iron ore lump-Limestone-Limestone-SMS-LD slag-Dolomite-BF-Dolomite-SMS-Manganese ore-Ferro-Manganese-Si-Manganese-Furrow-Silicon-Aluminum-Copper-Sculptures Acid-Quartzite-OtherTOTALC.GRAND TOTAL
763.0480.01243.0
1764.0 100.0 46.0 105.0 125.0 76.0 ___ 5.0 3.0 0.7 0.2 0.182 9.0 9.0
627746115634
734 1216 2200 364 698 1113 _____ 31482 29438 38533 107819 399163 2938 419
478942213470028
12950 1216 1012 382 873 846 ____ 1574 883 250 226 718 264 38 450 21683
91711
740.3478.21218.5
1733.5 91.1 43.7 100.0 118.5 73.8 ____ 5.2 2.9 0.7 0.2 0.180 8.1 9.2
627746115623
734 1216 2200 364 698 1113 _____ 31482 29438 38533 107819 399163 2938 419
464682205268520
1273 1108 962 364 827 821 ____ 1629 842 252 226 718 238 38 41421166
89686
PRODUCTION PLAN – IRON & STEEL SAIL – ISP BUDGET YEAR : 2007-08 27 FEB 2008
PARTICULARS UNIT BESTACHIVEDIN LAST5 YEARS
PREVIOUS YEARACTUALS
CURRENT YEARBUDGET UPTO SEPT LIKELY
168.0 170.3 170.0740.6 381.2 756.0850.0 379.3 781.0270.0 81.7 179.0500.0 225.1 467.0510.0 207.5 455.2
12.0 15.8 36.0 74.0 22.9 50.5 120.0 53.9 115.5 83.0 35.8 79.9 135.0 51..6 121.5 424.0 180.0 403.4
BUDGET YEAR
CVEN PUSHINGBF &NUTCOKE(DRY)HOT METALPIG IRON-TOTALINGOT/LIQUID STEELINGOT ROLLINGSALEABLE STEEL:-BLOOMING MILL-BIILLET MILL-HS MILL-LS MILL-MR MILLTOTAL SALEABLESTEEL(including IPT Billet From DSP)
NOS/DAYOOOTOOOTOOOTOOOTOOOT
OOOTOOOTOOOTOOOTOOOTOOOT
1300
1000
165.9741.2779.6212.9433.5393.4
23.0 42.8 96.6 68.7 82.4313.8
170.0757.8900.0260.0540.0545.0
28.0 73.0130.0 95.0155.0481.0
STOCK ACCRETION/DECRETION SAIL-ISP BUDGET YEAR-2007-08 27-FEB-2008
TEYS OPENING STOCK AT CLOSEING STOCK AT STOCKACCR/TOTAL PLANT STOCK YEARD EXPORT YEARD TOTAL STOCK YARD EXPORT YARD TOTAL QUT AMT QUT AMT QUT AMT QUT AMT QUT AMT QUT AMT QUT AMT QUT AMT PIG IRON 15.0 227 15.0 2271 15.0 2771 SALEABLE STEEL 20.0 519 10.0 2618 30.0 7809 18.8 4935 10.0 2618 28.8 7553 412 -256 IN PROCESS 9860 8963 -897 SECONDERY PODUCT&OTHRES 5693 5693
TOTAL 7462 2618 0 7260 2618 0 -1153
POWER & FUEL BUDGET SAIL – ISP BUDGET YEAR :2007-08 27-FEB-2008 PREVIOUS YEAR ACTUAL CURRENT YEAR BUDGET BUDGET YEAR
PARTICULARS UNIT QTY RATE AMT QTY RATE AMT QTY RATE AMT
A- POWER
- DUTYON OWN MWH 139024 55 166440 200 333 135274 GENEITION -PURCHASE MWH 111236 3649 131400 3503 4603 209059 2996 6263 TOTAL 3704 4936 6263 B- FUELS -BOILER COAL OOOT 157.783 1655 2611 160.7 1407 2260 203.477 1587 3230
- FURNACE OIL OOKL 25
TOTAL FULE 2636 2260 3230
TOTALPOWER & FULE (A-B) 6340 7196 9493
TECNO NO – ECNOMIC INDICES
SAIL-ISP BUDGET YEAR: 2007-08 27-FEB-2008
PARTICULER UNIT BEST ACHIVEDIN LAST 5 YEAR
PREVIOUS YEARACTUALS
CURRENT YEARNORM UPTO SEPT
BUDGETYEAR
A . COKE OVEN- Important Coal in blend- Prime Coal in blend- Mediam/Blendable in blend-Coal charges per oven-Hending Loss: - Imported Coal - Indigenous Coal-Moisture Loss:-Imported Coke-Indigenous coke -BF / Nut Coke -Pearl Coke - Mixed Coke-Yields: - Gross Coke - BF / Nut Coke - Pearl Coke - Mixed Coke -CO Gas -Crude Tar -Crude Benzol -Benzene -Benzonal Motor Spirit -Tolune -Steel Bottom Oil -LS Naptha- Ammoniun Sulphate
-CV of CO Gas- Sulqhuric Acid Cons
C- STEEL MELTING SHOP: -Metallic Input: - Hot Metal- Iron Scrap(incl.Pig Iron)- Steel Scrap- Iron ore Lump- Ferro Silicon- Limestone-Dolomite-Ingot Moulds- Bottom Plates- Refractory cons- Aluminium cons- Oxyzen cons
%%% T
%%
%%%%%
%%%%Cu. M/TKG/TKG/TKG/TKG/TKG/TKG/TKg/TKG/T
K.Ca/Cu.MKg/ T
KG/TKG/TKG/TKG/TKG/TKG/TKG/TKG/TKG/TKG/TKG/TKG/TCum / T
37.173.024.917.5
3.04.0
77.268.96.64.230028.35.71850.29.712.74.510.2
4217756
1026.0 0.0 156.1 4.5 6.3 0.0 1.0 76.3 80.6 15.4 2.9 17.40 65.5
37.153.29.317.5
76.868.05.83.0299.027.65.38.250.24.47.32.78.4
4210773
1099.0 4.3 170.9 7.8 8.1 5.79 1.2 92.2 126.6 24.771 2.929 17.382 73.5
30.0 46.252.0 39.618.0 14.217.5 17.5
3.04.0
7.57.53.08.010.0
76.0 76.069.0 69.03.5 4.42.5 2.3299.0 30527.6 28.05.3 5.78.2 30.050.2 30.09.7 4.47.32.7 2.08.4 10.2 4210 4200773 782
1030.0 1046.034.0176.0 162.75.0 3.7 7.5 9.4 5.2 4.2 1.2 1.6 80.0 36.8 125.0 127 15.0 24.1 3.0 4.116.50 16.9465.0 73.3
61.034.05.017.5
3.04.0
7.57.53.08.010.0
77.069.64.52.930028.05.520.035.010.0
5.09.5
4200765
1080.0
160.0 5.0 9.5 5.25 1.2 80.0 135.0 22.0 4.0 16.5065.0
OTHER INFORMATION IN THIS PAGE:-
PARTICULARS UNIT BESTACHIEVENTIN LAST5 YEAR
PREVIOUS YEARACTUAL
CURRENT YEAR NORM UPTO SEPT
BUDGETYEAR
D. BLOOMING MILL: -Cold Ingot Charge
E. YIELD MILLS : - Blooming Mill -Billet Mill - HY. Structural Mill - Lt. Structural Mill -Merchant Mill
F. HEAT RATE : - Coke Ovens - Blast Furnace - Twin Heart - Blooming Mill - Lt. Structural Mill -Merchant Mill -Hy.Structural Mill
G. POWER CONS. AT MILL- Blooming Mill- Billet Mill - Hy. Structural Mill - Lt . structural Mill - Merchant Mill
%
%%%%%
Mcal / TMcal / TMcal / TMcal / TMcal / TMcal / TMcal / T
Kwh /TKwh /TKwh /TKwh /TKwh /T
6.8
90.895.589.592.895.2
590607160509395414337
29.936.7111.5 41.6 56.8
10.0
90.494.988.792.394.3
590630238544395418387
31.239.5114.142.363.5
7.5
90.995.790.093.095.0
595650220500380400400
30.037.9108.0 40.0 55.0
15.1
90.995.690.093.095.0
539657230532338414376
31.739.7114.6 42.9 66.8
7.5
90.995.790.993.094.5
595650220500380400370
30.037.9108.0 40.0 60.0
REPAIRS & MAINTENACE BUDGET
SAIL – ISP BUDGET YEAR: 2007-09 27- FEB – 2008 AMT : RS / LAKHS
PARTICULARS PREVIOUS YEARACTUALS
CURRENT YEAR BUDGET YEAR
BUDGET UPTOSEPT
LIKELY
BF RELINING
BUIDINGS
PLANT&MECHAINERY
TOWN SHIPS
OTHERS
6
31
741
354
192
200
22
1350
540
281
1
26
934
228
51
3000
70
1237
600
315
TOTAL 2324 2393 1240 2068 5222
STORE & SPAREA BUDGET SAIL – ISP BUDGET YEAR: 2007 – 08 27 FEB-2008 PARTICULARS PREVIOUS YEAR ACTUALS CURRENT YEAR BUDGET UPTO SEPT BUDGET YEAR OPRN CAPITAL TOTAL OPRN CAPITAL TOTAL OPRN TOTAL OPRN CAPITAL TOTAL REPAIRS REPAIRS REPAIRS INGOT&BOTTOM PLATES 61
REFRACTORIES 2404 2650 1219 2710 ROLLS 351 500 191 800
CONSUMABLES 3732 3200 1803 3000
MAINTENANCE SPARES 2542 3000 1146 2700
OXYGEN 1809 1700 1019 2370
TOTAL 10899 11050 5373 11580
SALES BUDGET – PIG IRON & SALEABLE STEEL SAIL – ISP BUDGET YEAR 2007- 08 27 FEB 2008
ITEMS EXPORT SALES DIRECT SALES STOCK YERD TOTAL QTY RATE AMOUNT QTY RATE AMOUNT QTY RATE AMOUNT QTY RATE AMOUNT OOOT RS/T RS/LACS OOOT RS/T RS/LAKH OOOT RS/T RS/LAKH OOOT RS / T RS / LAKH A . PIG IRON 260.0 16441 42746 260.0 16441 42746 B. Saleable Steel 6.0 17800 1068 100.0 26278 26278 375.0 26857 100714 431.0 26626 128069
C . Gross Sales 1068 69033 100714 170815 (A+B)
FREIGHT OUTWARD
SAIL – ISP BUDGET YEAR – 2007-08 27 – FEB – 2008
PARTICULARS UNIT BESTACHIEVEDIN LAST5 YEAR
PREVIOUS YEARACTUAL
CURRENT YEARNORN UPTO SEPT
BUDGETYEAR
B . BLAST FURNASH- Coke Rate- Coke Screening LOSS-Iron ore Lump- Lime Stone- LD Slage- Dolomite- Coal to HM(Ratio)-Manganese Ore-BF Gas yield- CV of BF gas-Slag Generation-Distribution of HM :- SMS-Pig Iron- BF Productivity- NO . 1 BF- NO .2 BF- NO . 3 BF- NO .4 BF
OVERALL
Kg / Thm %Kg / ThmKg / ThmKg / ThmKg / ThmRATIOKg / ThmCum / TKeal / CUMKg / Thm
000T000T
T / Cum /DT / Cum /DT / Cum /DT / Cum /D
T / Cum /D
7847.8145783331501.43334182874427
476.6330.6
0.976
0.8720.893
0.863
786121511160891501.56833053874512
476.6266.2
0.769
0.8720.893
0.863
745 8198.0
1511 1500160 14089 60150 1301.317 1.428
3100 3195860 884475 524
515.0 247.5317.6 103.2
0.825 0.881
0.850 0.8680.850 0.866
0.845 0.869
72510.015001001001301.306
3100860470
583.2295.5
0.8361.2090.9900.970
1.000
PARTICULARS------------------------------------------------------------
BLOOM
BILLETS
SHEET BARS
RAILS
HY STRUCTURALS
LT STRUTURALS
MED STRUTURALS
LT STRUTURALS
SPL SECTIONS
TOR / TMT
PLAIN ROUNDS
TOTAL
RATE(RS / T)-----------------------------------------------------------AMOUNT (RS / LAKHS)
AMOUNT-----------------
375.0
1013-----------------3798
BY PRODUCTION & SECONDARIES SALES
SAIL – ISP BUDGET – YEAR: 2007 -0827-FEB-2008
PARTICULARS PREVIOUS ACTUAL YEAR CURRENT YEAR BUDGET BUDGET YEAR
QUT RATE AMOUNT QUT RATE AMOUNT QUT RATE AMOUNT
1.Crude Tar2. Lt Crude Benzol3. Benzol Product - Wheezed Naptha -Barzene - Benzol / Moter Spirit -Steel bottom oil -Light Solvent Naptha -Toluene4. Ammonium Sulfhate 5. Granulated / Molten Slag6. Coke -BF / Nut Coke -Pearl coke: To Employee To other–Mixed Coke from CO & BF 7. Scrap 8. Iron ore Fines 9. Burnt Dolo Dust10. Raw Dolo Dust11. Burnt Dolo Chipe12. Mill Scale
18.8
0.10.21.50.20.10.19.1223.2
9.5
65.679.445.4356.50.6
10.0
8905
61623416731883809729385323134695344
9126
54894025137842501277
857
1678
1682469202642428767
868
360131966257893 7
86
17.8
0.90.9
0.10.210.9247.0
33.379.235.7214.02.02.00.412.0
8503
2675426172
25590318144700330
527140591198020030001504300756
1511
243237
1577512816
175532134277 428 60 3 17 91
17.2
0.5991.048
0.1500.29910.3261.0
47.0101.1 77.6338.0 2.0 2.0 0.4 12.0
14500
4562944447
3963349642 4700 305
5728 4011 13086 376 3000 150 4300 756
2497
273466
59149484795
269240541015512716031791
13. Bolter Ash14. Others15. Gross Sales (BP&Secon)16. Marketing Tool17. Net Sales(BF&Secon)
51.3 127 6512018621
18621
40.0 131 52
13307
13307
40.0 131 52
23113
23113
PRODUCTION PLAN – BY PRODUCT
SAIL-ISP BUDGET YEAR:-2007-08 27 – FEB -2008 PARTICULARS UNIT PREVIOUS YEAR ACTUALS CURRENT YEAR BUDGET BUDGET YEAR PRODUCTION ALLOCATION ODUCTION ALLOCTION PRODUCTION PURCHASES IPT ALLOCTION PURCHASES SAIL/IPT INTERNAL FORPROCESSING PRODUCTION IPT INTER FOR STO CONS NAL PROSS AC CONS ING DEC
CRUDE TAR OOOT 30.095 10853 30.055 17.774 12.281 30.448 17.220 13.268 CRUDE BENZOL OOOT 2.901 3.024 3.024 2.994
BENZENE 0.244 0.907 0.907 0.599 BENZOL / MOTER SPRITE 1.488 0.977 0.907 1.048
STEEL BOTTOM OIL 0.216
LIGHT SOLVENT NAPTHA 0.080 0.060 0.060 0.150
LUENE 0.130 0.242 0.242 0.299
MONIUM SULPHATE 9.189 9.107 247.0 247.0 10.300
RULATED / MELTON 223.9 223.2 247.0 247.0 261.000
PROFIT & LOSS ACCOUNT SAIL – ISP BUDGET FOR 2008 – 09 27 – FEB -2008
PARTICULARS FORM PREVIOUSYEAR ACTUALS
CURRENT YEAR BUDGET YEAR FLEXIBLEBUDGET
BUDGET UPTO SEPT LIKLY FIXED VARIABLE TOTAL +5% -5%A . INCOME: Turn over :-Direct- Stockyard- Export- By product & secn- Total Turnover-Inter Plant Transfar- Internal Consumtion- Total Revenue- Intarest Earned- Other Revenue- Prov no longer read- written back- Acj pertaining to Earlier yearNET INCOME(A)B. EXPENDITURE
-Stock (Accn) / Decn- Raw Meterial Excl Coking Coal- Sami / Finished Goods- Coking Coal & coke- Employees Rem & Ben- Store & Spares-Power & Fuel- Repair & Maint- Exice Duty- Fright Outward- Other Expenses & prov- Total ExpenditureC. GROSS MERGIN(A-B)D. INTERESTE . Cash Profit / (Loss)(C-D)F. DeprecitionG. Net Profit / (LOSS) From Open .(E-F)H. Reliefs & Concession from W.B Govt / Banks & FLS
NET PROFIT / (LOSS) (F+G)
202202
203
204
208
207209
209210211212213205206214
5084251145 309118621123699 2133 620126452 291 3837
605
51131236
(10184)173316183648083184710899 63402324 1466523897988154590(23354)1351(24705)161526230
3166
(23154)
809005908977313307154069
281154350
2947
157297
(1083)16289
5958431820110507196239320445269010001160335(3088) 1358 4446 2000 (6446)
3981
(2465)
1867227729318757551896405304618981351329
143
563510
(13843)107643797338891563953783141124069771612542674020(10510)128(10638)786(11424)
1302
(10122)
5213279627280165291485689156 469158215
2863
193
32161303
16252051651096729131470112386893206818427334111607179558(18255) 263(18518)1666(20184)
3451
(16773)
0
1150
193468
1150
335734200
5222
1247255467(54317)350(54667)2000(56667)
4405
59793
690331007141068231181939332457315196705
1763
193468
11532116650016852062173809493
254143798130061895741071350721200(1279)
4405
3126
690331007141068231181939332457315196705
2913
199618
11532116650016852034194115809493522225414 379813006198547 1971 350 721 2000(1279)
4405
3126
724851057501121242742036302580 331206540
3001
209541
12112222452517194634225119499968522226685398813033205701384035034902000(1490)
4625
6116
65581956781015219621842362334299186870
2625
189695
10952016847516509434163112119018522224143360812979191393(1696)350(2048)2000(4048)
4185
136
EXICE DUTY SAIL – ISP BUDGET YEAR 2007 – 08 27 FEB 2008.
PARTICULARS QUANTITYOOOT
LESS EXPORTOOOT
NET QTY OOT
RATE(RS / T)
AMOUNT(RS / LAKHS)
A . PIG IRON
B . SALEABLE STEEL
C .BY PRODUCT & OTHERS
SCRAP
OTHERS
TOTAL(C)
D . GROSS EXISE DUTY(A+B-C)
260
481
77.6
6
260
475
77.6
2307
3751
1836
5997
17819
1425
173
1598
25414
STATUS OF MEJOR PACKAGES:- 1. Contract for Mejor Packages are -
SL . NO. NAME OF PACKAGE & Pkg No.
Name of the party
Effective Date Of Contract
Completion time (Month)
1 . Coke Oven Battery (02)
Giprokoke, Ukraine (Leader)
13.10.2007 29.5
2 . By-Product Plant (05)
McNally Bharat India
12.10.07 29
3 . Sinter Plant(06) L & T, India Lrader
12.10.07 29.5
4 . Blast Furnace(07) POSCO E&C, South Korea (Leader)
16.10.07 30
5 . Coal Pulverzation& Injection(08)
CISRI, China (Leader)
13.10.07 24
6 . Pig Casting Machine (09)
METCO, India 09.10.07 24
7 . Continuous Casting Plant (12A)
Siemens VIA,Austria(Leader)
11.10.07 24
8 . Hot Metal Handling System(10)
Dalian Huarui, Chaina(Leader)
14.10.07 24
9 . Universal Section Mill(14)
SMS MeerGmbh,Germany(Leader)
13.10.07 26
10 . Reheating Furnaces(15) Bricmont Inc, USA(Leader)
11.10.07 24
11 . Wire Rod&Bar Mill(16) Danieli&C, Italy 13.10.07 26 12 . Oxygen Plant(17) Linde AG, Germany
(Leader)12.10.07 27
13 . Top Pressure Recovery Turbune(18)
Bejing Sino Steel,China(Leader)
13.10.07 24
14 . Power & Blowing Station(19)
BHEL, INDIA 12.10.07 26
15 . Main Receiving Station (21)
ABB Ltd, INDIA 09.10.07 24
16 . BOD Plant(27) UPL Environmental Engrs, India
12.10.07 28
II. Retendering for the following six (6) major packages have been taken up as detailed below :- 1. Raw Meterial Hendling System
SAIL board in its 333rd meeting held on 29/31.01.08 has approved placement of order for RMHS Package.
LOA / Date of Signing of Contract is given below
SL.NO Name of the Pkg.Pkg. No.
Name of the party
Effective Date Of Contract
CompletionTime(Month)(Form effective Date of contract
1. Ore HandlingPlant (01-A)
McNally Bharat Engg, KOLKATA
06.03.08 26
2. Coke HandlingPlant&Pipe Conveyors
L&T, Chenni 07.03.08 26
3. Base Mix HandingPlant(01-C)
L&T, Channi 07.03.08 26
4.Yard Machine(01-D)4.1 Wagen Tipplers and
SAC(01-D-Gr-1)Elecon Engg,Vallabh-Vijaynager, Gujarat
07.03.08 26
4.2 Stackers&BucketWheel Reclaimers(01-D-Gr-II)
Elecon Engg,Vallabh-Vijaynager, Gujarat
07.03.08 26
4.3 Barrel Reclaimers & Transfar Cars (01-D-Gr-lll)
Elecon Engg,Vallabh-Vijaynager, Gujarat
07.03.08 26
.
PERFACE
The study of Through book review is an important part in PGDBM syllabus as it provides an opportunity to get some exposure in the field of fiancé specialization. In the day of competition & Excellency , it required, for the student to get acquainted with the practical knowledge to achive success in the life.
This study enables particularly to the student of PGDBM with finance specialization to uplift their theoretical knowledge to relate with practical base. Since the business management & maintances of day to day business activitiesis the key attention of every business and every business want to maintain it properly , this project attaches some importance to the management students.
Considering the importance and value, it is great pleasure for me to prepare the project on of SAIL-ISP(Burnpur) and I remain obliged for ever to our college of Management, Ghaziabad(U.P) provide me support in completing this project this time.
I also provide my gratitude and thanks to our chairman Dr. K.P SINGH Sir.
I will remain always oblige to faculty in Finance, NIMT B-SCHOOL, GHAZIABAD (U.P), who has guided me a lot and without the help of which the project complement would not have been possible.
DEBASISH NAG PGDBM / MBA ENROLL NO:- 27688 NIMT B-SCHOOL
GHAZIABAD (U.P)
ABOUT SAIL
Steel Authority of India Limited (SAIL) is the leading steel-making company in India. It is fully integratediron & steels for domestic construction, engineering, power, railway, automotive and defense industries
and for sale in export markets.
Ranked amongst the top ten public sector companies in India in trams of turnover, SAIL, manufacture and sells a broad range of steel production, including hot and cold rolled sheet and coils, galvanized
sheets, electrical sheets, structural, railway products, plates, bar and rods, stainless steel and other alloy steels. SAIL products iron and steel at live integrated plants and three special steel plant , located
principally in the eastern and central regions of India and situated close to domestic sources of raw materials, including the Company’s iron ore limestone and dolomite mines.
The company has the distinction of being India’s largest product of iron ore and of having the company’sSecond largest mines network . This gives SAIL, a competitive edge tarms of captive availability of iron
ore, Limestone, and dolomite which are inputs for steel making.
SAIL’S wide range of long and flat steel products is much in demand in the domestic as will as internationalmarket . This vital responsibility is carried out by SAIL’S own central marketing organization (CMO) and
the international trade Division. CMO encompasses a wide network 84 branch offices and 54 stockyardslocated in major cities and towns throughout India.
Which technical and managerial expertise and known-how in steel making gained over four decades,SAIL’S Consultancy Division (SILICON) at NEW DELHI offers and consultancy to clients world-wise.
SAIL’S CHAIRMAN
Mr. S.K Rongta, chairman, Steel Authority of India (SAIL) is an engerineering graduate from BITS, Pilani and a post graduate in International Trade From
The Indian Institute of Foreign Trade (IIFT), NEW DELHI. He started hisCareer in SAIL as a Marketing Executive in 1972 and held several position
in marketing setup. Known and strategic thinking , he was elevated as amember of SAIL board in 2004 as Director (Commercial) and spearheaded
various key marketing initiatives for the company.
He later headed other strategic function of SAIL i.e. HR, Business Plainning and led initiatives for strategic alliances for meeting critical raw needs. He took over as (Chairman, SAIL, in August 2006).
Mr.Roongta takes keen interest in professional and in a Fellow member of All India Management Association (AIMA), Member of All India
Member of Indian of Metals (IIM), Institution of Engineers, etc. An avid reader, he has authored and presented papers in many
National / international conference.
SAIL & IISCO
With a production capacity of 12 million tons (MT) of crude steel, the steelAuthority of India Ltd (SAIL) is the India’s largest and among the
leading steel producers in the world SAIL achieved a record net profitof Rs.760 crore in the first six(6) months in current financial year, whichtranslated in to a1227 crore positive swing from the loss of Rs. 467 croreincurred during the corresponding year in 2002-03. The company also
recorded all- time best result in other performance parameters likesaleable steel production, sales, exports, and imports, and turnover duringApril-September of 2003-04. In Q2 of the current financial year. SAIL’sturnover reached Rs. 5647 crore, a 41% increase over the Rs. 3993 croreachieved in the corresponding period if 2002-03. The company owns andoperates four integrated steel plants at Bhilai, Durgapur, Rourkela , and
Bokaro producing carbon steels, and three Alloy steel unites at SalemDurgapur and Bhadravati making stainless and alloy steels. A subsidiary
at BURNPUR produced pig iron merchant products and heavy structuralswhile another at Chandrapur is a bulk producer of Ferro alloys. Owning
India’s second largest mines network provides SAIL a competitive edge interms of captive availability of iron ore limestone, dolomite etc.
The Indian iron steel company limited (IISCO), one of the nation’spremier suppliers of basic iron and steel items and one of the oldest
integrated steel plants, was owned in the pre 1872 by Sir Martin burn.Started production of iron as far back as 1875 in its Kulti unit, IISCO’s
Burnpur steel plant initially setup in the year 1918, began producing steel in1939. The iron and steel company limited (IISCO) originally in the privatesector became a subsidiary of SAIL in 1977. IISCO has central sales office
in KOLKATA. It has branch offices in Chennai, Bangalore, Kolkata,BURNPUR, Bhubaneswar, New Delhi, Ludhiana, Hyderabad and Mumbai
IISCO is amulti-product, multi unit organization. It has got an integrated steel plant at Burnpur, captive collieries at Chasnalla,Jitpur and Ramnagore
Its mines at Gua, Chiria and Monoharpur are considered to have Asia’slargest reserves of iron ore. IISCO produces a wide range of productsstarting from coke, pig iron, to finished steel products mainly heavy,
mediam and light structurals, light and heavy rails, plain rounds , TMTbar’s, sleeper bars and various special sections like Z-bar,Zpiling etc.IISCO achieved arecord net profit of 49.59 cores in the year ending
31st March 2005. Presently IISCO has the capacity to produce 0.4 million Tones of ingots annally.
On 16th June 2005, the Government of India approved to margeIISCO with SAIL. IISCO was suffering and facing huge losses as most of itsEquipments were old and becoming obsolete. IISCO was a holding company
earlier. But the government decided to merge IISCO with SAIL with theprime objective to strengthen IISCO. It is a benefit both for IISCO as willas SAIL will be able to use the captive ore mines of IISCO for its existing
plants, on the other hand SAIL will help aid IISCO in improving thetechnological in desiguise for the steel industry in India as will as for the
people living in Burnpur.
One has to agree that managing and investing towards newdevelopments in such a vast organization requires an efficient management
of the marketing system as a whole. The aim of this project report is toprovide an insight into the overall system followed in IISCO and mainly
about the marketing of primary and secondary product in IISCO,Burnpur. Subsequent chapters are all dedicated to bring out a sketch of
such a system.
IISCO STEEL PLANT – A PROFILE
IISCO STEEL PLANT (ISP) is an integrated plant in Burnpur.it has the capacity to produce 4.26 lakhs of saleable steel and 2.54lakhs tones of pig iron annually. Earlier INDIAN IRON ANDSTEEL COMPANY(IISCO) was 100% subsidiary of STEELAUTHORITY OF INDIA LIMITED(SAIL)-has been amalgamatedwith the parent company with effect from 15th February 2006.
ISP produced a large number of steel structurals and specialSections as will as pig iron. It is this plant which pioneered theproduction of center-sii Z-section used in construction of barrages,bridge foundations and other projects and colliery arch section usedfor roof support in collieries. The plant has also developed “slit rolling”for small diameter rounds(10mm and 12mm), which are in highdemand in the domestic market.
The plant is set to undergo- mordernization-cum capacityExpansion through which its hot production capacity will beRaised to 2.5 MT by 2011-12.
ISP is accrediting with ISO-9001-2000 QMS for its Heavystructural Mill and Merchant and Rod Mill. It has also beenawarded ISO 14001:2004 EMS for its entire Rolling MillComplex.
ISP is situated at Burnpur near Asansol in the BurdwanDistrict of West Bengal.
BRGINNING OF GLORIOUS JOURNEY
IISCO one of the oldest steel making plant in the company, was in the private sector till1972. After this management of IISCO was taken overby the Government of India. Over the year, IISCO’s performance has been unsatisfactory mainly due to old plant and machinery, obsolete
technology and lack of necessary capital inputs. But the success journey for IISCO, Burnpur commenced in 2003. The outlook changed and four nedecorative entry installed. More over more than twenty threegardens developed inside the work. Also Shramik Kalyan and someAquariums exhibited at some locations. IISCO Achieved the ISO-14001in mill complex on 14-04-2005.
The ED works building complex modified to give a new look decoratedwith fountain and plant.
The illumination has been improved with many internal roads modified with one way traffic. VIP roads to Coke oven development with gardens. The NO.3.B.F.was partilly relined in June 2003.NO.3.1 stove also repaired. A second Twin Hearth Furnace was also installed in April 2004 and thus the steel production increased. Alsothe NO.4.B.F partially relined in june 2004 successfully and furnaceoperating got stabilized to produce higher volume.
The Year 2003-04 ended with a net profit of 27 crores and the sametrend continued in the year 2004-05.On 15th February 2000, the cabinet approved a financial and businessRestructuring package for SAIL, envisaging waiver of loans advanced
to SAIL from the steel Development Fund to a value of Rs.381crore
from the Government of India. Finally in JUNE 16th 2005 the cabinat cleared a proposal forthe marger of IISCO ( The Iron And Steel Co Ltd) and SAIL (STEEL AUTHOURITY OF INDIA LTD) following anapproval of Board of the industrial and financial Reconstruction. The marger would ensure that there is more technological up gradation of IISCO, Burnpur with SAIL’S managerial and financial capabilities. The journey to excellent continues where the plant is bubbling with activities and visible attitudinal changes. The Board of Director of both IISCO and SAIL have given in-priancipal approved to the marger.
Now is a new morning for IISCO, Burnpur and we expect that IISCOSAIL will bring new standards for the steel industry in India in thetime to come.
MAN POWER IN IISCO STEEL PLANT
In an integrated steel plant like IISCO manpower plays a vary important role. Manpower is the backbone of any industry.Without effective manpower it is impossible to earn revenue for a company. It is therefore important to know in this context about the total number of manpower working in IISCO, Burnpur and also it’s other units and branch offices.
Total number of manpower working in IISCO is as fellows :
In IISCO, Burnpur works Executive ……… 650
Non-Executive ……... 10,500 (approx)
Contracted Labors ……… 2340 (approx)
In the other unit and branch office of IISCO Executive ……… 200
Non-Executive ……….. 3500 (approx)
(Chasnalla, Ramnagor, Gua, Monoharpur, and branch sales offices of IISCO.)
Steel industry in India
The history of iron and steel industry in India is nearly 4000 years old. The iron pillersat the outskirts of Delhi prove that Indians ware familiar with iron and steel even during the Vedic age. But the father of modern steel industry Sir Jumshedji Tata set up the Tata iron and steel company (TISCO) in 1907. The first steel ingorts were rolled in TISCO in 1911. The establishment of the Mysore iron and steel works in 1936, later renamed as Viseswaraya iron and steel works, followed this. In 1939. Indian iron steel company (IISCO), now a subsidiary of steel authority of India ltd (SAIL) was started. At the time of Independence, India possessed a small but viable steel industry with an annual capacity of 1.3 million tones. In 1951, India produced 1.1million tones of finished steel.In the era planned economy, iron and steel –a core and basic sector- received the full attention of government and with the foreign assistance and own resources, many new steel plant were set up.
Steel ministry, at present, has 12 public sector undertakings (PSU’s) including the steel authority of India limited (SAIL). National Mineral Development Corporation (NMDC), Kudramukh Iron Ore Company Limited (KIOCL), Rastriya Ispat of Nigam Limited (RINL), Metallurgical and Engineering Consultants India Limited (MECON).
CHANGES
Untill the 1990’s, the iron and steel sector was by and large the exclusive preserve of only the public sector, the sole exception being (TISCO). The new economic policy announced in 1991 was a significant milestone, which brought out a sea change Indian Iron and steel Industry. In the post-liberlisation ere, the structure of the steel industry underwent a sea change with the advent of major steel producers in the private sector with the world class Technologies and capacities. Mainly All India financial institutions came forward to support the private initiative and by sanctioning financial assistance, 19 steel projects involving an investment of about Rs.30,000 crore to create an additional capacity of 13 million tones (MT.)per annum. Today India is the10th largest steel producer in the world producing 27.82 million tones of finished steel a year.The industry represents nearly Rs.9,000 crore of capital and directly provides employment to over 0.5 million people. The world largest production of steel in China (107 mt.) followed by JAPAN(104mt.) and USA(97mt.)
PRODUCTION The health of the iron and steel industry is linked with the economic condition of the nation. The general slow down of economic and some other factors like dumping from the CIS and south Asian countries in the last two years, large-scale investment infrastructure and housing sectors, the iron and steel sector has shown growth. The production of finished steel has gone up by 12% during 1999-2000 compared to 1998-99 while that of pig iron increased by 5% and sponge iron by 2%.
EXPORT The export performance of Indian steel industry was vary good during 1999-2000. Export of finished steel increased by almost 51% to 2.6 million tones while exports of pig iron increased to 2.9 million tones. International prices have started firming up, and this would ensure the continued presence of Indian steel in the global markets. Exports are also expected to take care of the increased supply of some finished steel products especially from the new products in the country. Domestic steel prices have also farmed up in line with the international markets. This expected to improve the bottom line of the major steel producers in the countery. In the first quarter of the 1999-2000, the steel sector has keep up
its tempo of production and export of the last quarter of 2000-2001.
PER CAPITAL CONSUPTION India’s present per capital consumption of crude steel is only 24 kg. Which is very low compared to the developed and developing countries-422kg. In USA, 417kg. In Germany 109kg, in Russia and in China 87kg. Our consumption is less than 1/5th of the world average i.e 121kg. Government of India has taken a number of steps to boots up the per capital consumption of steel in the countery.
FINANCE
Finance is the life blood of any business. As like without blood a man cannot survive or run. Finance is aptly called as the science of money. It is study of the principles and methods of obtaining control of money from those who have saved it and administering for those whose control it passes to.
Traditionally the literature of business finance is either the management of working capital or the acquisition of funds. The principals of business finance are applicable to small and medium farms as will as for large firms. The business finance deals with the raising, administering and disbursing funds by the business units.
Scope of finance: The scope of finance consists of funds and also their effective use. Finance includes judgement about whether a company should hold, reduce or increase the investment in various assets.
These questions need to be answered by the finance:-
What specific assets should a company acquire? What total volume of funds should a firm collects? How should to funds be rieased?
All these questions are closely and another way of starting the context of these questions is to know:
How large and how fast a company should grow? In what specific forms should it hold it assets? What should be its composition of its liabilities?
Importance of finance in today’s world:
Finance helps business, entrepreneurs and management in getting over this business problems and accomplishingtheir goal of wealth maximization. Knowledge of finance and its tool and techniques provides strong and sound basis for making decisions in all business matters. One such very important matter pertains to investment. An entrepreneur has to decide as to what capital expenditure the enterprise should make, what volume of fund should be raised and how funds should be raised and how funds should be allocated to various investment outlets.
With the help of capital budgeting, simultaneous and sensitivity techniques the management can
gainfully choose most viable project promising the maximum result (profits) coupled with minimum risk.
The management also faces formidable problems of allocation of funds as among cash, receivable and inventories because they have to strike trade-off between. Higher the relative shares of the liquid in the business less will be the possibility of cash drain, other things being equal. However the profitability in that case will be less.
Besides dealing with day to day business problems, finance provides to the management such tool and techniques as are of considerable help in dealing with the episodic problems such as problem of re-organization, merger, consolidation and liquidation.
Thus finance is quinine for business management. It is equally important for shareholders too who do not directly participate in management of the company but are supposed to see that the management is working in their best interest. This can be achieved only if the members of the management teams havethe knowledge of principles and techniques of finance.
IISCO’s FINANCIAL DEPARTMENTS:- Central account section. Sales account section. Merchant billing section. Raw materials accounting section. Cost and budgeting section . Pay section . Fright section. Provident fund section. Cash section.
A) Central accounts sections: This section deals with the taxes, co-ordination of Accounts, maintenance of fixed assets register, reconciliation of inter unit current account and dealing with auditors. B) Sales account section: The section deals with all raising of bills and all excise matters. C) Merchant and billing section: This section deals with merchant billings, in other words this department is responsible for all incoming and outgoing bills of merchants. D) Raw materials account section: This section deals with all expenditure on raw materials. E) Cost budgeting section: This section deals with cost and budget management. Cost refers of the expenditure which is incurred at the of production of a product. Budget refers to allocation or estimation of expenditure for a particulars product or project. F) Pay section: The responsibility of this section is to deal with all the payments. Payments include the salaries and wages of employees and staffs of the organization. This section gives the accurate figure of the payments of all the employees. G) Fright section: This section is responsible for recording all the expenditures on fright that is carriage inward or outward, railway, trucks etc. These expenditure incurred during the import and export of goods.
H) Provident fund section: This section deals with the recognized provident funds of the employees. (A) It also maintains accounts of each of individual contribution in the provident fund. It also helps at the retirement of employees. (B)Cash section: This section is one of the most important section meets the day to day activity of the organization. Cash is required at the time of any important work during the course of production.
FINANCAL PERFORMANCE SINCE TAK OVER BY SAIL:-
YEAR Gross margin Interest Cash profit/(Loss) Depreciation Net profit/(Loss)1978-791979-801980-811981-821982-831983-841984-851985-861986-871987-881989-901990-911991-921992-931993-941994-951995-961996-971997-981998-991999-002000-012001-022002-032003-042004-052005-062006-07
0.02(10.17)11.424.85(9.58)25.45(32.73)(35.97)(56.57)(87.82)(89.36)(106.61)(96.99)26.34(7.89)(33.80)26.46(15.41)(60.56)(226.29)(138.14)(174.64)(146.81)(144.30)64.6298.30(215.48)(220.88)
9.3917.1631.0533.0948.4031.8935.8111.9111.2710.878.238.8811.2812.7516.3013.8710.9910.20126.91142.89193.6912.2711.2511.6310.3313.7724.4615.41
(9.37)(27.33)(19.63)(28.24)(6.44)(68.54)(47.88)(67.84)(98.69)(97.59)(115.49)(108.27)7.59(24.19)(47.46)15.47(25.61)(187.47)(369.18)(331.83)(186.91)(158.06)(155.93)(159.01) 50.8573.84(230.89)(234.21)
6.797.629.108.8711.7216.6212.8613.1114/0717.0621.9622.5925.2829.8834.7728.5121.7423.4425.5725.4123.4729.2523.9423.2223.7627.2526.7328.21
(16.16)(34.95)(28.73)(37.11)(69.70)(23.06)(81.40)(115.75)(119.55)(138.08)(133.55)(22.29)(58.96)(76.18)(6.27)(49.05)(213.04)(395.04)(357.24)(210.38)(187.31)(179.87)(182.23) 27.09 46.59 60.99(257.62)(260.00)
ASSETS FIGHER OF SAIL-ISP (in Rs.Crore)
Particulars opening Balance Closeing Balance As on 31/03/06 As on 31/03/07
Net block 297.48 301.71
Add Cap W-I-P 27.89 21.75 TOTAL 325.37 323.46
Net fixed assets 325.37 323.46
Current fixed assets -667.65 -692.03 ________ ________
Net assets -352.28 -368.57
Current assets 328.67 435.89
________ ________
Total assets -23.61 67.32
VAT (VALUE ADDED TAX)
INTRODUCTION- VAT has been introduced primarily in replacement of the exiting sales tax in most of the state of India with effect from 01/04/2005. Value added tax is a tax on the value added at each stage of production & distribution process. States would get 100% compensation of revenue losses, if any, in the first year, 75% in the second year &50% in the third year. Almost all the items are covered under value added tax. Some items like company liquor, lottery ticket , & motor spirits of different kinds like petrol, diesel , aviation fuel used in aircrafts etc, has been kept out this act & are continued to be government under schedule IV of West Bengal sales tax act. 1994, Under single point Tax system.
VAT MECHANISM- The basic principal of VAT is that when the raw marital passes through various stages of manufacturing process or the final product passes through variousstages of the distribution chine, tax should be levied on the “value added” at each stages only,and not on thegross sales value. This is because the purchased raw material has already been taxed &therefore should not be subjected to tax. Again otherwise there would have been tax on tax, as the same raw-material would continue to be taxed repeatedly. This is called the “cascading effect” of taxation.
Registration & Enrolment Under VAT APPLICATION FOR REGISTRATION
TINE LIMIT- Every dealer hable for registration shall be required make an application with in 90 days from the date when he becomes liable to pay tax. PRODEDURE- Application shall be made in form- 1, 1A, 1B, 1C, as application to the appropriate. Registering Authority in whose area the principal place of business of the dealer is located, affixing court fee stamp of Rs 100. DECLARATIONS- Declaration to be furnished in FROM A- for individual, HUFs, and partnership firm. FORM B- for company, Trusts.
ENCLOSURES- Along with the declaration in form A, a copy of recent passport size photograph of the proprietor is to be affixed.
DOCUMENT & OTHER REQUIREMENTS 1. Professional Tax Certificate2. Original 1st and last Trade license3. One colored passport size photograph4. Latest telephone bill5. PAN card (if applicable)6. Partnership deed7. Latest rent bills & Tax receipts/ownership deed-as a roof of lawful
occupancy.8. Voter ID card &Ration card- as a proof of residence.9. Latest Bank statement (personal & firm both)10. Purchase & sale bills11. Profit & Loss, Balance Sheet of the firm12. Central sale bill/central purchases in case of CST Registration13. Central excise registration certificate (only manufactracuring concerns) 14. Rubber stamp of firm.
Issue of certificate of RegistrationThe registration authority shall-
A. Assign a registration number to the dealer. B.Issue a certificate of registration with in twenty one days from the date of receipt of such application
Tax payer identification Number
All the registered dealer will be allotted an 11 digit TAX IDENTIFICATION NUMBER
exiting registered dealers have already been allotted such number. The short form of it is TIN.
Amendment of registration Certificate
The certificate of registration may be amended from time with retrospective effect on the basic of in formations furnished by dealer, in form 1, 1A, 1B, 1C after giving him due notice.
CALCULATION OF VAT OF SAIL I.S.P, BURNPUR
We all know that VAT value added tax. It is charged on the value of taxable product. The rates of VAT are different types like 4%, 12.5%, 1%, 0%.
The I.S.P is one of the organization where whenever the I.S.P purchases or sale any materials or finished goods, the organization has to pay VAT on sellers & receive VAT from purchaser to the Govt, rules regulation under VAT act. When I.S.P purchases goods or raw material from the party, I.S.P pays the VAT to the party & it is debited to I.S.P accounts. But when it sales it sales his own finished products, then I.S.P receives the VAT from the party & it credited to its accounts. After that vat is adjusted towards its conditions. When I.S.P purchases raw materials, the entry will be fallow:- Purchase A/C Dr. VAT credit receivable (input) A/C Cr.
To Party A/C.
When I.S.P sales finished goods, the entry will be as fellows :-
Party A/C. Dr.
To sales/C. To VAT output/C.
Suppose, I.S.P purchased raw materials worth Rs 1, 00,000 with 4% VAT & after producing the finished goods with this raw materials I.S.P sold that finished goods worth Rs 1,10,000 and changes VAT of 4%. Then The entries will be as follows:----
Purchases A/C Dr. Rs. 1,00,000 VAT Recivable(input)A/C Dr. Rs. 4,000
To party A/C Rs. 1,04,000
Party A/C ---Dr. Rs. 1, 14,400 To sales A/C. Rs. 1, 10,000
To VAT Output A/C. Rs.4, 400
Here we can see that VAT output is greater then input VAT, now adjustment entries will be
VAT output A/C. ---Dr. Rs. 4,400
To VAT Receival input A/C. --- Rs. 4,000
To Bank / Cash A/C. --- Rs. 400
If the VAT input is more than output VAT, than I.S.P received the VAT amount or it is adjusted to the next time.
TO WHOM SO EVER IT MAY CONCERN
This is certify Mr. Debasish Nag a student of PGDBM, have prepared this project of the study Of Invoicing & VAT system of SAIL- I.S.P on the basic of the information explanations by the company.
This project is highly considered to fulfill the requirement for the course completion of PGDBM / MBA taken up, NIMT B-SCHOOL Ghaziabad (U.P).
I further add on the words that Mr. Debasish Nag is a sincere and hard working student Who has prepared this project by his own with dignity and diligence.
Mr. P.V.S.U MAHESH EXTERNAL GUIDE SENIOUR MANAGER (F &A) SAIL-I.S.P BURNPUR (W.B).
TO WHOM SO EVER IT MAY CONSERN
This is certify that Mr. Debasish Nag, a student of PGDBM, have prepared this project on the Study of “invoicing with vat system with modernization plant in SAIL- ISP BURNPUR on basic of the Information and explanations by the company.” This project is highly considered to fulfill the requirement for the course completion of Master of business administration taken up, NIMT College of Management (Ghaziabad)(U.P)
I farther on the words that Mr. Debasish nag is sincere and hard working student who has prepared this project by his own with high dignity and diligence.
Internal Guide All faculty member & chairman Sir NIMT B-SCHOOL Mohan nager GHAZIABAD (U.P)
Submitted By:- DEBASISH NAG PGDBM/MBA BATCH: - (2007-09) ENROLL NO:-27688 NATIONAL INSTITUTE OF MANAGEMENT (NIMT) GHAZIABAD (U.P)
CONCLUATION
During one and half month vocational training I have gathered knowledge and experience. This knowledge helps us for our forth coming future. We have got a great opportunity to do our vocational training from SAIL- ISP BURNPUR. It is flagship of STEEL AUTHORITY OF INDIA LIMITED.
SAIL-ISP, BURNPUR always works with its innovativeness and initiatives. It has always responded will to challenges, training constraints into opportunities.
The great future is waiting for SAIL- ISP, BURNPUR.
