PIONEER INSTITUTE OF PROFESSIONAL STUDIES,

INDORE

Diligence & Excellence

(Since 1996)
SESSION
(2012-2014)
A
SUMMER INTERNSHIP PROGRAMM REPORCT
ON
WORKING CAPITAL

GUIDED BY:
SUBMITTED BY:
Mr. C.A. SUMIT AGRAWAL
SHIVRAJ TOMAR

1 |Page

A SUMMER INTERNSHIP REPORT

On
Working capital
At
Birla Cement Satna

MBA F.T Course semester III

Batch 2012-14
PIONEER INSTITUTE OF PROFESSIONAL STUDIES INDORE
DAVV UNIVERSITY INDORE

GUIDED BY
Mr. C.A SUMIT AGRAWAL

2 |Page

SUBMITTED BY
SHIVRAJ TOMAR

ACKNOWLEDGEMENT
The path to the successful completion of this project report has seen its own
share up sand downs. Patience, determination and perseverance coupled with
the help and encouragement from several classes have paved the path to
success. We avail this opportunity to express deep sense of gratitude and
sincere thanks to everybody for the expert guidance, intelligent critics and
encouragement which help me to prepare my report. We would like to express
my deep sense of gratitude to my project guide Mr. Sumit Agrawal for
providing me the opportunity to undertake my project report.
Last but not least we appreciate the improvements suggested by my
colleagues, during the design and implementation. We thank all for the help
and guidance they have provided me for completion of this work. At the end,
we are grateful to god who inspired and gave me all kind of moral help and
support for doing this project report.

3 |Page

DECLARATION
We hereby declare that this project report Working capital is my original
work carried under the guidance and Supervision of my guide
Mr. Sumit Agrawal, in partial fulfillment for requirement for the award of
degree of Master of Business Administration (MBA) adhering to the condition
lay down by the Management Department of Pioneer Institute of Professional
Studies, Indore. This project neither in full nor in part has ever been submitted
for any award to either any college of university.

Project report Guide by

Mr. C.A SUMMIT AGRAWAL

4 |Page

Project report Submitted by

SHIVRAJ TOMAR

BIRLA CEMENT CERTIFICATE

5 |Page

DECLARATION

This is to verify that Mr. SHIVRAJ TOMAR Of Pioneer Institute of

Professional Studies, Indore has Undergone training from BIRLA CEMENT
WORKS & BIRLA VIKAS CEMENT for a period of, 30 days (From
15/06/2013 to 15/07/2013) in the field of Finance,
During the training the student has abided by the rules and Regulation of our
organization and his code of conduct were satisfactory.

Signature of Authorized PersonName of the Person: - Mr. SUMIT AGRAWAL (C.A)

Designation: - Dy. Manager (Accounts)
Email Id: - sumit@satnacement.com
Contact No. (Desk):- (07672) - 412000

6 |Page

Table of contents:-

S. No.

Contents

1.

Chapter-1
Introduction

Page No.

8-11

cement industry
cement product

2.

Chapter-2

12-23

History of
organization
Promoters
Vision/mission
Quality policy
& Product range

3.

Chapter-3

24-27

Plant location in India

Plant chart
Highlights & Features
of plant

4.

Chapter-4

28-29

Department flow-chart
Department detail

5.

Chapter-5
Major finding
Cash management
Working capital
management
Cash flow statement

6.

Chapter-6
Conclusion

7.

Chapter-7
bibliography

7 |Page

30-42

CHAPTER-1

8 |Page

INTRODUCTION:GLOBAL SCENARIO:-

Cement is one of the key infrastructure industries .Price and distribution controls were lifted
on the 1st march 1989 and licensing was dispensed with since 25th July 1991.
However, the performance of the industry and prices of cement are monitored on a regular
basis. The industry is subject to quality control order issued on 17.02.2003 to ensure quality
standards.
OVERVIEW OF THE PERFORMANCE OF THE CEMENT SECTOR:The Indian cement industry not only ranks second in the production of cement in the world
but also produces quality cement, which meets global standards. However, the industry
faces a number of constraints in terms of high cost of power, high railway tariff, high
incidence of state and central levies and duties, lack of private and public investment in
infrastructure project, poor quality coal and inadequate growth of related infrastructure like
sea and rail transport , ports and bulk terminals .In order to utilize excess capacity available
with the cement industry , the government has identified the following thrust areas for
increasing demand for cement :
(I) Housing development programmers;
(ii) Promotion of concrete highways and roads;
(iii) Use of ready-mix concrete in large infrastructure projects
(iv) Construction of roads in rural areas under prism ministers Gram Sadak Yojana
INDIAN SCENARIO OF CEMENT INDUSTRY:-

Indian cement industry is modern and uses latest technology. Only a small
segment of industry is using old technology based on wet and semi dry
process. Efforts are being made to recover waste heat and success in this area
has been.

9 |Page

What is cement and how is it made?:Cement is a soft powdery-type substance. It is made from a mixture of element found in
nature material such a limestone, clay and/or shale when cement mix with water it can bind
sand and gravel into a hard solid mass called concrete.
Four essential elements are needed to make cement they are silicon, aluminum, iron, and
calcium (which is the main ingredient) can be obtained from limestone, sand/clay.
For making cement mainly four Raw materials are required:1) Limestone
2) Gypsum
3) Laterite / Blue Dust
4) Fly Ash
Limestone is obtained by blasting in mines. In mines there are several layers of soil, hard
rocks, etc. After 5-6 Layers Company gets limestone in the form of big rocks. By blasting
these big rocks of limestone be get limestone in smaller form which are easier to transport.
Now through conveyer belt these limestones are moved to plant. These limestone breaks up
into smallest part by grinder. Now this grinded lime stone transfer to kiln. The temperature
of kiln approximately 1400C. In kiln limestone and other raw materials like Gypsum,
Laterite and Fly Ash were mixed with each other. The high temperature of kiln melts all the
raw materials. After kiln all these materials take a round shape which is generally known as
Clinker. Clinker is a semi-finished product of company. After grinding these clinkers we
get final cement which is used for domestic as well as construction purpose.
Cement product is very fine one kilo (2.2ibs) contains over 300 billion gram we havent
actually counted them to see if that is completely accurate the powder will pass through a
slave capable of holding water.

Applications: Suitable for all types of construction like building, roads, bridges, culverts and cement
base products.
Mass concrete work like dam, machine foundation work.
Concrete works in environment involving chemicals in soil and water.
Sewage and effluent treatment plant.
All kinds of marine works, like jetty etc.

10 | P a g e

Types of Cement:Two types of cement1. PPC

2. OPC
PPC: - (Portland Pozzolona Cement) with the brand name Champion is general-purpose
cement popular for all applications during house construction by individuals. It is finely
ground blend of high quality clinker and carefully selected high quality Pozzolona material
(Fly Ash) with high fineness an optimum range of chemical composition.
OPC:

- (Ordinary Portland cement) is made in three grades i.e. 33 Grade, 43 Grade, and 53

Grade cement. Prism Cements OPC is in demand for specialized cement concrete
applications like high-rise buildings, bridges, manufacturing AC sheets, pipes, poles etc.
43 Grade Features: Achieve more than the specified strength as per the relevant IS code through
proper adjustment in the chemical composition.
High quality limestone deposit result in:
- Higher strength of cement.
- Moderate sulphate resisting properties.
- Lower level of chloride concentration
Efficient quality control and high level of process parameter results in reduced free
lime, low insoluble residue and loss on ignition.
Applications:Optimally higher strength of cement makes it suitable for:
All General and semi specialized construction works like plain and reinforced
cement concrete works, brick and stone masonry, plastering and flooring.
Manufacturing of concrete pipes, blocks, tiles and poles.
Suitable for applications like pre-cast, pre stressed and slipform construction work.
Also suitable for all types of specialized concrete repair works like gunniting etc.
Grade 53:- Features: Higher strength than 43 Grade is achieved through further improvement in the raw
meal chemical composition and also grinding finer than 43 Grade cement.
High quality limestone deposit result in
- Higher strength of cement.
- Moderate sulphate resisting properties.
- Lower level of chloride concentration.

11 | P a g e

 Efficient quality control and high level of process parameter results in reduced free
lime, low insoluble residue and loss on ignition.
Optimally higher fineness results in early strength improvement.
Closed circuit cement grinding system using high efficiency separator controls the
particle size distribution resulting proper hydration character.
Applications: High strength of cement makes it suitable for:
Making high grade concrete with proper mix design.
Economical usage of cement due to high strength through proper concrete mix
design.
All type of plain and R.C.C., semi and specialized construction work, like bridges,
culverts, slipform work, pre-stressed pipe / poles etc.
Also suitable for all types of specialized concrete repair work like gunniting etc.

12 | P a g e

CHAPTER_-2

13 | P a g e

History of Organization:-

Company Founded in1919 by the visionary industrialist Shri G.D. Birla, at the outskirts of
the Kolkata, Birla jute manufacturing company Ltd. Was the first company of the Birla
Industrial Conglomerate Under the stewardship of his nephew Shri M.P. Birla, the company
diversified and expand its business interest beyond jute, to encompass cement PVC coated
fabric, PVC floor covering and auto trims.
After the demise of Late Mr. M.P. Birla in 1990, his wife, Mrs. Priyamvada Birla took over
as chairman of Birla Corporation and continued to lead the company till her death on 3 July
2004. She was an entrepreneur of distinction strong business acumen and, under her
leadership; the company crossed the Rs. 1,300-plus turnover mark.
The company renamed Birla Corporation Limited, to reflect the wide range of operation, is
the flagship company of the M. P. Birla group. The strategic focus of the company has been
on steady growth by developing and assimilating technologies of tomorrow to
Manufacturing an ever widening range of value-added product, while striving for complete
customer satisfaction in India and abroad. Birla Corporation Limited is proud of safe work
practice followed at all its factories and go downs. As an enlightened corporate citizen,
Birla Corporation Limited is keenly aware of social responsibilities too, and provides
education and health care facilities for its employees, their families and the community at
large.
Its export in 2004-05 stood at Rs. 85.28crores. Over the year, BCLs business has grown
from strength to strength.
OVERVIEW OF BIRLA CORPORATION:The cement division of Birla Corporation Limited has seven plants, two each at Satna
(M.P.) Satna Cement Works & Birla Vikas Cement, Chanderia (Rajasthan) Birla
Cement Works & Chanderia Cement Works, and Durgapur (W.B.) Durgapur Cement
Works & Durga Works & Durga Hitech Cement and one at Raebareli (U.P.) the total
capacity of these plants is 57.80 lakh tones. This plant manufacture varieties of Cement like

14 | P a g e

Ordinary Portland Cement (OPC), 43 & 53 grades, Portland Pozzolona Cement (PPC), Fly
Ash based PPC, Low Alkali Portland Cement, Portland Slag Cement, Low Heat Cement
and Sulphate resisting Portland cement.

The cement is marked under the brand name of Birla Cement KHAJURAHO, Birla cement
CHETAK, Birla cement and Birla premium cement, bringing the product under a common
brand of Birla cement while retaining the niche identity of Khajuraho (for the OPC product
of Satna), Chetak (for OPC product of Chanderia) and Samrat of blended cement, i.e. PPC
& PSC, for all the units.
The division export large quantity of cement to Nepal and Bangladesh, under the brand
name of Khajuraho, Samrat, Camel, Royal tiger.
The special variety of SAMRAT cement, begun produced by the company is ideal for mass
concrete. RCC / pre-stressed pre-cast structure (for reduced thermal crack), increased
water tightness of concrete, increase resistance to Sulphate soils and aggressive water and
increased resistance to alkali aggregate reaction beside corrosion resistance properties.
SCW, BVC and DVC have received the ISO 9001-2000 quality system certification,
covering the entire range of production and marketing. SCW & BVC have received the IS /
ISO 14001 certificate, an international recognition for Implementation of Environmental
Management System BVC have got the Best productivity of Performance award from
NPC during 1986-88, NCCBM recognized it for best in energy performance during 198687. It received National Safety Award for outstanding performance in achieving the
longest accident free-period during 1994.
In 1996, it received the runner cup under scheme 1 of National Safety Award, for the
lowest average frequency rate accident. BVC has also received Fuller Energy Conservation
Award as first for Lowest Thermal Energy
Consumption (for group B category plants) for three consecutive years i.e. 1997-98, 199899, 1999-2000 SCW has been adjudged by NCCBM the Best In Energy Performance
during 1993-94, 1994-95, 1995-96, 1997-98. It was the second best for Improvement in
Energy Performance during 1996-97. SCW has also got Fuller Energy Conservation
Award as first prize for Lowest Thermal Energy Consumption (for group A category
plants) for three consecutive years i.e. 1997-98, 1998-99, & 1999-2000.
BCW & SCW have received the ISO 9001-2000 certification for Quality Management
system, covering the entire range of production and marketing and also have received the IS
/ ISO: 14001 certification for BCW & CCW have bagged various awards from
NCCBM. CCW have received the Best Productivity award during 1989-90 & 1993-94.
NCCBM recognized it for Best Improvement in Thermal Energy Performance during
1993-94. It has won Lal Bahadur Shastri Memorial National award for Excellent
Pollution Control Implementation for 2001-02 by International Greenland Society.

15 | P a g e

BCW was awarded Best Improvement in Energy Performance and Best Improvement in
Thermal Energy Performance during 1992-93.
The Rajasthan Government gave Bhama Shah Samman it during 1996. VEC-IIT Madras
chose Chanderia unit for excellence in Improving Machinery Health Condition during
1997. VEC, Chennai chose Chanderia unit for sustained implementation of condition
Monitoring and continued Machine Health Improvement Award during 2001-02. The
Central Board awarded the Worker Education Trophy for worker education, Udaipur
Ministry of Labor, Government of India for excellent contribution and Implementation of
Workers training during 1998-99 and again in 2001-02. BCW has received excellence
award in Cement Sector from the Rajasthan State Council, Jaipur, during 2002-03.
The DWC plant has received IS / ISO 9001-2000 license for Quality Management system
certification (accredited by road boor accredited Netherlands). The capacity of the 6, 00,000
tons plant increased by another 10, 00,000 tons, making it the largest plant in West Bengal,
The new grinding unit, Durga Hi-tech Cement, has one ball mill of 165 TPH capacities.
This environment-friendly project, commissioned in 2005-06, utilized thermal power station
fly ash to produce PPC. DCW recorded 114% capacity utilization in 2004-05, emerging as
the highest growing cement unit in the eastern region.
Cement plant were set up in MP and Rajasthan and Grinding units in West Bengal and UP.

Satna Cement Works

1959

Birla Cement Works

1967

Durgapur Cement Works

1974

Birla Cement Works

1982

Chittor Cement Works

1986

SCW-Conversion Plant

1989

Raebareli Unit

1998

16 | P a g e

Awards earned by BIRLA Corporation Limited

(M.P.)

S. No.
1.

2.

3.

4.

5.

6.

Award

Awarded By

Cement Satna

Year

Unit

1986-87

BVC

1993-98

SCW

2001-02

SCW

Fuller
energy MP Chamber of Cement
conservation
Manufactures.
Award.

1997-99

SCW

2000-03

BVC

Best Productivity

1987-90

BVC

1993-98

BVC

1990-92

BVC

1993-98

BVC

1999-01

SCW

1999-2k

Both

1994-95

BVC

1996-97

BVC

for RWTUV Germany

July 1995

BVC

BIS New Delhi

Sep 1999

Both

Best
Energy NCB, New Delhi &
Performance
Ministry. Of Power
Govt. of India.

National
Productivity
Council New Delhi.

Top
Award

Exports CAPEXIL. Calcutta.

Special
Award

Exports CAPEXIL. Calcutta.

National
Award

safety Ministry of Labors Govt.

of India

7.

ISO-9002
Quality.

8.

IS/ISO-1400
Environment
Management.

9.

Rajiv
Gandhi Green tech foundation
National Award Hyderabad
for
Energy
Conservation

2003-04

Both

10.

Workers
Education
Trophy.

1998-99

SCW

2001-03

BVC

17 | P a g e

Central
Board
Workers Education

of

COMPANY PROFILE:PROMOTERS & DIRECTORS:-

Mr. M.P.BIRLA
BIRLA Corporation Limited is the flagship Company of the M.P. BIRLA Jute
Manufacturing Company Limited in 1919; it was Mr. Madhav Prasad BIRLA who gave
shape to its present form. As Chairman of the Company, Shri Madhav Prasad BIRLA
transformed it from a manufacturer of jute goods to a leading multiproduct corporation with
widespread activities. Under the Chairmanship of Mrs. Priyamvada ji BIRLA, the Company
crossed the Rs. 1300 crore turnover mark and the name was changed to BIRLA
Corporation Limited in 1998.

Smt. Priyamvada ji BIRLA

After the demise of Mrs. Priyamvada ji BIRLA, the Company continues to consolidate and
grow under the leadership of Mr. Rajendra S. Lodha, who is now the Chairman. The
company has posted its best ever results in the year ended 31.3.2005 and, thereafter, once
again in the year ended 31.3.2006.

18 | P a g e

Mr. Rajendra S Lodha

(1942-2008) (chairman)
After the demise of Mrs. Priyamvada Birla, the Company continued to consolidate in terms
of profitability, competitiveness and growth under the leadership of Mr. Rajendra S.
Lodha, late Chairman of the M.P. Birla Group. Under his leadership, the Company posted
its best ever results in the years ended 31.3.2006, 31.3.2007 and 31.3.2008. The Company
continued to record impressive growth in 2008-09 and 2009-10. Mr. H. V. Lodha is now
Chairman of the Company. Birla Corporation Limited has products ranging from cement to
jute goods, PVC floor covering, as well as auto trims (jute felt-based car interiors).

MANAGEMENT, BORD OF DIRECTORS:-

Mr. Harsh V. Lodha

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

19 | P a g e

Mr. Pracheta Majumdar

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

Mr. Vikram Swarup

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

Mr. Anand Bordia

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

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

20 | P a g e

99
Mr. D N Ghosh
Mr Deepak Nayyar
Mr. D N Ghosh, former Chairman of the State Bank of India and the
Mr
Deepak Nayyar,
Professor
of Economics
at was
JNUFounder-Chairman
at New Delhi, is
Management
Development
Institute,
Gurgaon,
also
University
ProfessorLucknow.
of Economics
at the New
of
thedistinguished
Indian Institute
of Management,
Presently,
he is the
School
for
Social
Research,
New
York.
He
is
Honorary
Fellow
of the
Chairman of ICRA Limited, ICRA Management Consulting Services
Balliol
College,
Oxford.
He
has
authored
a
number
of
books
on
a wide
Limited and Sundaram BNP Paribas Asset Management Company
range
of and
subjects.
onof
thethe
Boards
of several
large companies,
Limited
is on He
the was
Board
Housing
Development
Finance
including
SBI,
Exim
Bank,
Maruti
Udyog
and
SAIL.
Corporation Limited. He has served as Chairman in several large
companies, including Larsen & Toubro Limited and Phillips (India)
Limited. Mr. Ghosh also served various Central and State Government
departments in various capacities such as Financial Advisor, Additional
Secretary and Secretary.
999999999999999999999999999999999999999999999999999999
99999999999999999999999999999999999999999999999999999999999
Mr. B R Nahar
Managing Director
Mr B R Nahar, Fellow Member of the Institute of Chartered
Accountants of India, possesses rich professional experience of more
than 33 years. He has served in diverse fields, at senior positions, in
various large corporate houses. The prestigious Businessworld
magazine has identified him as one of Indias Most Valueable
CEOs in its issue dated 29 November 2010.

99999999999999999999999999999999999999999999999999999999999
99999999999999999999999999999999999999999999999999999999999
CHIEF FINANCIAL OFFICER: Shri P.K. Chand

ACTING COMPANY SECRETARY : Shri Girish Sharma

AUDITORS:H.P. Khandelwal & company charted Accountants

Company Vision and Mission:-

21 | P a g e

Vision:-

To be acknowledged as a leading player in the industry

with the highest level of integrity.

Mission:-

State of the art cement plants

Transparent dealings with all stakeholders

Committed to the principles of good corporate governance

Quality Policy:22 | P a g e

Cement is the flagship of BIRLA Corporation Limited. Nearly 93% of BCL turn over
comes from the cement division.

Cement:A binding material exhibiting hydraulic strength hence known as Hydraulic cement
Finally ground material which on addition of requisite quantity water is capable of Harding
both under water and air by the chemical interaction of its constituents with water and is
also capable of blending together

Raw Material: - Lime stone, clay iron fuel used

Important Pro parties of cement: Compressive strength
Sorting time
Specific surface area
Resistance to chemical attack
Heat of duration

Application area of cement: Dams and bridges

Concrete roads
All type of general construction
Underwater construction

Application of product:-LICATIONS
BIRLA Cement Khajuraho/Chetek 43 grades Ordinary Portland Cement

Brick and stone masonry.

Plastering and flooring.
Plain and reinforced cement concrete.
Pre-cast and pre-stressed concrete.

BIRLA cement Khajuraho/chetak-53 grade ordinary Portland cement

Railway sleepers
Per-stressed girders and electric poles.
M25 &above concrete.
Roads, runways, industrial buildings, RCC bridges& lofty buildings.
Pre-cast concrete elements

23 | P a g e

BIRLA Samrat- Portland Pozzolona Cement

Brick and flooring.

Plastering and flooring.
Plain and reinforced cement concrete.
Ordinary Pre-cast concrete work

BIRLA Cement Khajuraho-sulphate Resisting Portland cement Building near sea coast.
Below ground, where concrete or mortar is used in foundation, aqua ducts, canals &
culverts.
Desert conditions.
In swampy areas for footing, plinth beams, piles etc.
Industrial
effluent
treatment
plant,
cooling
towers,
chimneys, sewerage treatment plant.
Marine structures.
BIRLA cement Khajuraho Low Alkali cement Bridges
Dams
Reservoirs
BIRLA Cement Khajuraho IRS-T40 Cement

Railway sleepers.

Product Range

24 | P a g e

P.P.C.
(Pozzolona Cement)
BIRLA Cement
Samrat

P.S.C.
(Portland Slag Cement)

(Ordinary Portland

Satna

Cement) Khajuraho

Cement

Cement

Product Profile:Facts: 1300 Crores plus Turnover.

93%turnover comes from cement
All six plant capacity 57.80 tons per annum
40.58 corers export in year 2006-07

25 | P a g e

O.P.C.

CHAPTER-3

ORGANIZATION CHART:Location Of Plant In India:-

26 | P a g e

27 | P a g e

28 | P a g e

29 | P a g e

Highlights & Features

Highlights of Plant Design Features: The plant presently capable of producing 6800MT clinker per day is all set to be
increased to 15800MT per day with the expansion work by September 2010.
The capacity will further be increased to 24800MT per day once the work on Andhra
Pradesh Plant is commissioned by the year 2011.

Some special Design Features of our Plant: The entire cement manufacturing process at all Prism Cement Plant represents the
latest relevant state-of-the-art technology.
Our all Plant equipments are supplied by M/s F.L. Smith & Co., Denmark and its
subsidiaries, Ventomatic; Krupp Industries Ltd., ABB Siemens and Crompton
Greaves.
Computerized mining activities using three dimensional imaging for optimum
blending of raw material.
The Vertical Roller Press mill for efficient grinding of raw meal.
Six Stage low pressure drop pre-heater for lower power consumption.
Online computerized quality control by x-ray spectrometer to ensure raw meal control
and consistency from raw meal to final product cement.
Fuzzy logic control for kiln and cement mill to ensure instantaneous corrective
response through computer based control system.
A combination of Roller Press and Boll Mill for improved fresh grinding of cement.
Quality grinding through closed circuit grinding system.
Pollution control system e.g. ESP and Bag filters for all Plant Building to meet
stringent pollution control requirement.
All Electronic Packers each capable of packing accurately 120MT of finished cement
per hour.
Automatic Truck Loader each capable of loading 15MT of cement in 10 minutes.
Wagon loader each capable of loading one full rake in 5 hours.
30 | P a g e

 Total self reliance in power requirement through DG Sets.

CHAPTER-4

31 | P a g e

DEPATMENTS:-

32 | P a g e

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

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

33 | P a g e

CHAPTER-5

34 | P a g e

Major Activities Performed:Major Findings:Statement Showing Difference from Previous Year

(Amt. in lacks)
Particulars

10-11

11-12

Investments

24476.15

21392.64

by 140%

by 51%

3686.5

5785.99

by 35%

by 40%

474.25

448.78

by 21%

by 16%

-2483.17

-303.77

by 42%

by 9%

-1660.26

6016.37

by 6.44%

by 25%

17500

10000

by 233%

by 40%

Inventories

Sundry Debtors

Cash & Bank

Current Liabilities

General reserve

1. BCLs NPAT is increasing day by day from last three years and the growth is
remarkable.
2. BCL has shown that it is very strong competitor in cement sector of India.
3. Cement can be said as true fruitful business for BCL from last many years.
4. Overall all ratios of the company are good and company need to work with more
efficiency.
5. The additional capacity of cement production at Durgapur will create new
milestones for the BCL.
6. Lack of advertisement can be said as weak point of the BCL.
7. BCLs investment policies are very much reliable.
8. Position of the stock is increasing per year that is good sign to face the competition
35 | P a g e

coming ahead.
9. Highest ever net profit of Rs. 393.57 Crores
10. Highest ever dividend pay out of Rs. 36.04 crore

Cash Management:-

Necessity of CMP: Previously, the cement was sold through our depot network at various locations
situated in MP, UP, Bihar, Jharkhand, and Uttaranchal & West Bengal.

Against above sales, funds were collected in the form of Cheque / Demand Draft
and the same were presented at various branches of SBI at depot locations by our
representatives.

Funds deposited at depot banks were remitted to our Cash Credit bank account with
SBI, Satna.

Traditional Methods of Funds Transfer: Telegraphic Transfer

Electronic Transfer

Agencies involve: Funds Remitting Branch

Post Office (In case of TT)
Funds Receiving Branch

SHORTCOMINGS OF TRADITIONAL METHOD: Blockage of Funds at remitting branch/ in transit

Requirement of opening of account at collection centre
Comparatively higher cost
MIS support not available for Internal Control & Funds Planning
No value date credit is allowed in case of delay (In case of TT)

Cash Management Product is the service provided by SBI for collection/payment

36 | P a g e

keeping following targets:

Speedier movement of funds for reducing transit float to the minimum

Competitive Cost

MIS Support for Internal Control & Proper Fund Planning

Interest Cost reduction on borrowings

STATE BANK OF INDIA provides cash management services to Corporate Clients

under the brand name SBI FAST (Funds Available in Shortest Time). SBI FAST
eliminates the inherent delays of the traditional funds transfer mechanism and enhances
liquidity to ensure optimum planning and utilization of funds.

Working Capital Management:Capital required for a business can be classified under two main categories via,
1)

Fixed Capital

2)

Working Capital

Every business needs funds for two purposes for its establishment and to carry out its
day- to-day operations. Long terms funds are required to create production facilities through
purchase of fixed assets such as p & m, land, building, furniture, etc. Investments in these
assets represent that part of firms capital which is blocked on permanent or fixed basis and
is called fixed capital. Funds are also needed for short-term purposes for the purchase of
raw material, payment of wages and other day to- day expenses etc.
These funds are known as working capital. In simple words, working capital refers to that
part of the firms capital which is required for financing short- term or current assets such as
cash, marketable securities, debtors & inventories. Funds, thus, invested in current assts
keep revolving fast and are being constantly converted in to cash and this cash flows out
again in exchange for other current assets. Hence, it is also known as revolving or
circulating capital or short term
Working capital may be regarded as the life blood of business. Working capital is of major
importance to internal and external analysis because of its close relationship with the
current day-to-day operations of a business. Every business needs funds for two purposes.
37 | P a g e

* Long term funds are required to create production facilities through purchase of fixed
assets such as plants, machineries, lands, buildings & etc
* Short term funds are required for the purchase of raw materials, payment of wages, and
other day-to-day expenses.
. It is other wise known as revolving or circulating capital
It is nothing but the difference between current assets and current liabilities. i.e.

Working Capital = Current Asset Current Liability.

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

Concept of working capita:

Gross Working Capital = Total of Current Asset

Net Working Capital = Excess of Current Asset over Current Liability
Current Assets
Cash in hand / at bank

38 | P a g e

Current Liabilities
Bills Payable

Bills Receivable

Sundry Creditors

Sundry Debtors

Outstanding expenses

Short term loans

Accrued expenses

Investors/ stock

Bank Over draft

Temporary investment

Prepaid expenses

Accrued incomes

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

2. Accounts receivable: - Many businesses extend credit to their customers.

If you do, is the amount of accounts receivable reasonable relative to sales? How rapidly are
receivables being collected? Which customers are slow to pay and what should be done
about them.

3. Inventory: - Inventory is often as much as 50 percent of a firm's current assets,

so naturally it requires continual scrutiny. Is the inventory level reasonable compared with
sales and the nature of?
Your business, whats the rate of inventory turnover compared with other companies in
your type of business?

4. Accounts payable:- Financing by suppliers is common in small business; it

is one of the major sources of funds for entrepreneurs. Is the amount of money owed
suppliers reasonable relative to what you purchase? What is your firm's payment policy
doing to enhance or detract from your credit rating?

5. Accrued expenses and taxes payable: - These are obligations

of your company at any given time and represent a future outflow of cash.

39 | P a g e

Types of Working Capital:-

SIGNIFICANCE OF WORKING CAPITAL:-

40 | P a g e

Factors requiring consideration while estimating working capital:

The average credit period expected to be allowed by suppliers.

Total costs incurred on material, wages.

The length of time for which raw material are to remain in stores before they are
issued for production.

The length of the production cycle (or) work in process.

The length of sales cycle during which finished goods are to be kept waiting for
sales.

The average period of credit allowed to customers

The amount of cash required to make advance payment

Importance of Working Capital Ratio:

Ratio analysis can be used by financial executives to check upon the efficiency with
which working capital is being used in the enterprise. The following are the
important ratios to measure the efficiency of working capital. The following, easily
calculated, ratios are important measures of working capital utilization.

41 | P a g e

Ratio
Stock
Turnover
(in days)

Interpretation
Formulae Result
Average Stock *=
xOn average, you turn over the value of your entire
365/
days stock every x days. You may need to break this

down into product groups for effective stock

management.
Obsolete stock, slow moving lines will extend
overall stock turnover days. Faster production, fewer
product lines, just in time ordering will reduce
average days.
Receivables Debtors * 365/
=
xIt takes you on average x days to collect monies due
Ratio
Sales
days to you. If your official credit terms are 45 day and it
(in days)
takes you 65 days.
One or more large or slow debts can drag out the
average days. Effective debtor management will
minimize the days.
Payables Creditors
*=
xOn average, you pay your suppliers every x days. If
you negotiate better credit terms this will increase. If
Ratio
365/
days
you pay earlier, say, to get a discount this will
(in days) Cost of Sales
decline. If you simply defer paying your suppliers
(or Purchases)
(without agreement) this will also increase - but your
reputation, the quality of service and any flexibility
provided by your suppliers may suffer.
Current Ratio Total
Current= x times Current Assets are assets that you can readily turn in
Assets/
to cash or will do so within 12 months in the course
Total
Current
of business. Current Liabilities are amount you are
Liabilities
due to pay within the coming 12 months. For
example, 1.5 times means that you should be able to
lay your hands on $1.50 for every $1.00 you owe.
Less than 1 times e.g. 0.75 means that you could
have liquidity problems and be under pressure to
generate sufficient cash to meet oncoming demands.
Quick Ratio (Total
Current= x times Similar to the Current Ratio but takes account of the
Assets
fact that it may take time to convert inventory into
Inventory)/
cash.
Total
Current
Liabilities
Working
(Inventory+
As
%A high percentage means that working capital needs
Capital Ratio ReceivablesSales
are high relative to your sales.
Payables)/
Sales
Cost
Sold

42 | P a g e

of

Goods

Statement showing change in working capital for BCL:( Rs.in lacs)

Particulars

11-12

10-11

Increase
(+)

Decrease
(- )

Inventories

20044.82

14258.83

5785.99

Sound. Debtors

3171.25

2722.47

448.78

Cash & Bank

3135.65

3439.42

Loan & Advances

47311.27

30525.34

Total ( A )

73662.99

50946.06

C.L.

30109.32

24092.95

6016.37

Provisions

35306.92

19215.28

16091.64

Total ( B )

65416.24

43308.23

( A-B )

8246.75

7637.83

Current Assets

303.77
16785.93

Current Liabilities

in working capital
Total

43 | P a g e

23020.70

608.92
8246.75

8246.83

22411.78
608.92

23020.70

23020.70

Statement showing change in working capital for BCL:

(Rs. in lacks)
Particulars

11-12

10-11

Increase ( + )

Decrease ( - )

Inventories

14258.83

10572.33

3686.5

Sund. Debtors

2722.47

2248.22

474.25

Cash & Bank

3439.42

5922.59

2483.17

Other C.A.

-----------

28.38

28.38

Loan & Adv.

30525.34

12442.01

Total ( A )

50946.06

31213.53

C.L.

24092.95

25753.21

Provisions

19215.28

4489.21

Total ( B )

43308.23

302242.42

( A-B )

7637.83

971.11

Current Assets

18083.33

Current Liabilities
1660.26
14726.07

23904.34

17237.62

in working
capital

6666.72

6666.72

Total

7637.83

23904.34

44 | P a g e

Calculation of working capital for Birla Corporation

limited: (Rs.in lacks)

YEAR

31.03.11

31.03.12

CURRENT ASSETS
INVENTORIES

10572.33

14258.83

20044.82

SUNDRY DEBTORS

2248.22

2722.47

3171.25

CASH AND BANK

5922.59

3439.42

3135.65

OTHER CURRENT ASSETS

LOANS & ADVANCES

28.38
12442.01
--------------

TOTAL CURRENT ASSESTS

--30525.34
--------------

31213.53

50946.06

--------------

--------------

--47311.27
---------------

73662.99
-------------

CURRENT LIABILITIES AND PROVISION:-

CURRENT LIABILITIES
PROVISION

25753.21
4489.21
--------------

TOTAL CURRENT LIABILITIES

30242.42
----------------

NET CURRENT ASSETS

45 | P a g e

971.11

24092.95
19215.28
-------------43308.23
---------------7637.83

30109.32
35306.92
-----------65416.24
---------8246.75

Fund flow Statement of Birla Corporation Limited:S.N.

Sources of Funds

11-12

10-09

09-08

08-07

07-06

06-05

1.

Generation from Operations

a. Surplus/(deficit) after taxes

39357

32623

12576

8687

4301

419

b. Depreciation

4144

3965

3416

2983

3367

3220

c. .Deferred Tax

116

--------

-----

-----

------

245

43617

36588

15992

11670

7688

3884

2.

Borrowings ( net )

(1039)

1087

3022

3445

(5774)

(9)

3.

Reduction in Working capital

-------

------

5707

----

661

832

4.

Decrease in Capital Reserve

(4)

-----

----

----

-----

----

Total Sources Of Fund

42574

37675

24721

15115

2555

4707

Application of Funds

1.

Fixed Assets

14289

3637

16234

10813

2569

3037

2.

Investments

21393

24476

6511

1211

(883)

1670

3.

Increase in Working Capital

3288

6409

----

1774

-----

----

4.

Dividend

3604

3153

1976

1317

869

-----

Total Application of Funds

42574

31675

24721

15115

2555

4707

46 | P a g e

Cash Flow Statement Birla Corporation :Particulars

Mar 12 Mar 11 Mar 10 Mar 09 Mar 08

Profit Before Tax

551.18

461.74

144.09

93.70

41.58

Net Cash Flow-Operating Activity

394.09

295.91

213.54

107.07

114.04

Net Cash Used In Investing Activity

-334.41 -291.98 -181.43 -122.94 -7.09

Net Cash Used in Fin. Activity

-62.71

-28.75

-1.96

0.22

-81.63

Net Inc/Dec In Cash And Equivalent

-3.04

-24.83

30.15

-15.65

25.32

Cash And Equivalent Begin of Year

34.39

59.23

29.07

44.72

19.40

Cash And Equivalent End Of Year

31.36

34.39

59.23

29.07

44.72

47 | P a g e

CHAPTER-6

CONCLUSION:The overall performance of Birla Corporation Limited is getting on a good track. The total
48 | P a g e

turnover of the company has registered a growth of 11.27% where as the operating profits
for the year were higher by 18.03% mainly on the accounts of increase in the volume or
blended cement in the overall cement sales, higher realization and effective cost control
measures taken by the company. The profit before tax was up by 19.37% at Rs. 551.18
Crores at against Rs. 461.74 crore in the previous year. The cash earning of the company
improved substantially to Rs. 501.39 Crores as against Rs.179.25 Crores in the last financial
year. With the increase in capacity on account of expansion projects being undertaken by
the company, it is expected that the company would be in a position to maintain the growth
in future years.
Company has parked its surplus fund in the various debt schemes of mutual fund. There is
an increase of 140% in investment from the previous year. Company is cash rich but as
there are expansion and diversification plans under the pipeline, company is not utilizing
these funds. For meeting the working capita l needs and capacity expansion needs it has
borrowed from banks.
The recent boom in the housing, construction and retail sector in India coupled with
continued thrust of the Government on infrastructure projects is expected to sustain healthy
growth of cement demand. During the year 2007-08, Indian cement industry has registered
a growth of 9.34% in terms of cement production. Almost all the major players in the
industry including Birla Corporation Ltd have announced substantial increase in capacity
and the possibility of oversupply situation cannot be ruled out.
During the year company has embarked upon expansion projects at Satna and Chanderia
which would effectively enhance the cement c capacity by 1.7 million tones. With the
capacitive power plants already in operation and expansion projects under implementation,
it is expected that the cement division of the company will do well in the foreseeable future.
The concern about the cement industry is that it is one of the most taxed industries in the
country where the government levies and taxes, taken together, constitute over 70% of the
ex-factory price. On the top of the above the increase in the cost of coal, railway freight and
transportation charge have further added worries of cement manufactures.

49 | P a g e

CHAPTER-7

50 | P a g e

BIBLIOGRAPHY:-

www.birlacorporation.com
www.birlacement.com
www.satnacement.com

Financial Management S.N. Maheshwari

Annual Reports of BCL 10-11,11-12

www.birlacement.com

51 | P a g e