Sales V/s Collection Reconciliation

Sales v/s Collection Reconciliation
CHAPTER 1
INTRODUCTION
Indian Petroleum Industry started its journey during the fiscal year 1890 in the northeastern provinces of India especially in the place called Digboi. The production of petroleum along with the exploration of new sites was primarily restricted to north-eastern India up to the 1970s. But the scenario changed drastically with the discovery of Bombay High. Indian Petroleum Industry was entirely state sponsored and was under the management control of all the industries involved in it were entirely with the government At the time of Independence in 1947, the Oil & Gas industry was controlled by international companies. India's domestic oil production was just 250,000 tonnes per annum and the entire production was from one state - Assam. The foundation of the Oil & Gas Industry in India was laid by the Industrial Policy Resolution, 1954, when the government announced that petroleum would be the core sector industry. In pursuance of the Industrial Policy Resolution, 1954, Governmentowned National Oil Companies ONGC (Oil & Natural Gas Commission), IOC (Indian Oil Corporation), and OIL (Oil India Ltd.) were formed. ONGC was formed as a Directorate in 1955, and became a Commission in 1956. In 1958, Indian Refineries Ltd, a government company was set up. In 1959, for marketing of petroleum products, the government set up another company called Indian Refineries Ltd. In 1964, Indian Refineries Ltd was merged with Indian Oil Company Ltd. to form Indian Oil Corporation Ltd. During 1960s, a number of oil and gas-bearing structures were discovered by ONGC in Gujarat and Assam. Discovery of oil in significant quantities in Bombay High in February, 1974 opened up new avenues of oil exploration in offshore areas.
During 1970s and till mid 1980s exploratory efforts by ONGC and OIL India yielded discoveries of oil and gas in a number of structures in Bassein, Tapti, KrishnaGodavari-Cauvery basins, Cachar (Assam), Nagaland, and Tripura. In 1984-85, India achieved a self-sufficiency level of 70% in petroleum products. In 1984, Gas Authority of India Ltd. (GAIL) was set up to look after transportation, processing and marketing of natural gas and natural gas liquids. GAIL has been instrumental in the laying of a 1700 km-long gas pipeline (HBJ pipeline) from Hazira in Gujarat to Jagdishpur in Uttar Pradesh, passing through Rajasthan and Madhya Pradesh. After Independence, India also made significant additions to its refining capacity. In the first decade after independence, three coastal refineries were established by multinational oil companies operating in India at that time. These included refineries by Burma Shell, and Esso Stanvac at Mumbai, and by Caltex at Visakhapatnam. Today, there are a total of 18 refineries in the country comprising 17 in the Public Sector, one in the private sector. The 17 Public sector refineries are located at Guwahati, Barauni, Koyali, Haldia, Mathura, Digboi, Panipat, Vishakapatnam, Chennai, Nagapatinam, Kochi, Bongaigaon, Numaligarh, Mangalore, Tatipaka, and two refineries in Mumbai. The private sector refinery built by Reliance Petroleum Ltd is in Jamnagar. It is the biggest oil refinery in Asia. By the end of 1980s, the petroleum sector was in the doldrums. Oil production had begun to decline whereas there was a steady increase in consumption and domestic oil production was able to meet only about 35% of the domestic requirement. The situation was further compounded by the resource crunch in early 1990s.
The Government had no money for the development of some of the then newly discovered fields (Gandhar, Heera Phase-II and III, Neelam, Ravva, Panna, Mukta, Tapti, Lakwa Phase-II, Geleki, Bombay High Final Development schemes etc.
This forced the Government to go for the petroleum sector reforms which had become inevitable if India had to attract funds and technology from abroad into the petroleum sector. The government in order to increase exploration activity, approved the New Exploration Licensing Policy (NELP) in March 1997 to ensure level playing field in the upstream sector between private and public sector companies in all fiscal, financial and contractual matters. This ensured there was no mandatory state participation through ONGC/OIL nor there was any carried interest of the government.
To meet its growing petroleum demand, India is investing heavily in oil fields abroad. India's state-owned oil firms already have stakes in oil and gas fields in Russia, Sudan, Iraq, Libya, Egypt, Qatar, Ivory Coast, Australia, Vietnam and Myanmar. Oil and Gas Industry has a vital role to play in India's energy security and if India has to sustain its high economic growth rate.
HIGHLIGHTS IN THE PETROLEUM & NATURAL GAS SECTOR DURING 2008-09

India has total reserves of 775 million metric tonnes of crude oil and 1074 billion cubic metres of natural gas as on 1.4.2009.
The total number of exploratory and development wells and metreage drilled in onshore and offshore areas during 2008-09 was 381 and 888 thousand metres respectively.
Crude oil production during 2008-09 at 33.51 million metric tonnes is 1.79% lower than 34.12 million metric tonnes produced during 2007-08.
Gross Production of Natural Gas in the country at 32.85 billion cubic metres during 2008-09 is 1.33% higher than the production of 32.42 billion cubic metres during 2007-08.
The production of Natural Gas at 50.95% and 0.06% of the total were highest and lowest in Mumbai High and West Bengal respectively during 2008-09.
The flaring of Natural Gas in 2008-09 at 3.29% of gross production is higher than at 2.89% in 2007-08.
The refining capacity in the country increased to 177.97 million tonnes per annum (MTPA) as on 1.4.2009 from 148.968 MTPA as on 1.4.2008. (Table14)
The total refinery crude throughput during 2008-09 at 160.77 million metric tonnes is 2.99% higher than 156.10 million metric tonnes crude processed in 2007-08 and the prorate capacity utilisation in 2008-09 was 107.9% as compared to 104.8% in 2007-08.
The production of petroleum products during 2008-09 was 152.678 million metric tonnes (including 2.162 million metric tonnes of LPG production from natural gas) registering an increase of 3.87% over last years production at 146.990 million metric tonnes (including) 2.060 million metric tonnes of LPG production from natural gas).
The country exported 36.932 million metric tonnes of petroleum products against the imports of 18.285 million metric tonnes during 2008-09.
The sales/consumption of petroleum products during 2008-09 were 133.400 million metric tonnes (including sales through private imports) which is 3.45% higher than the sales of 128.946 million metric tonnes during 2007-08.
The total number of retail outlets of Public Sector Oil Marketing Companies as on 1.4.2009 has gone up to 35066 from 34101 on 1.4.2008.
The total numbers of LPG consumers of Public Sector Oil Marketing Companies
as on 1.4.2009 were 105.632 million against 100.915 million as on 1.4.2008. (Table-23)
The number of persons employed (including contract employees) in petroleum industry reached 139823 in 2008 and is 138973 in 2009
OBJECTIVE OF THE STUDY Based on the kind of study, and its ramifications, the following objectives were created. It is hoped that the study would help achieve these objectives.
To understand the following aspects
The performance of the Dronagiri outlet since its inception
The profitability of the outlet
Purchases and Sales are going in order
Sales v/s Collections
Analysis of sales (Product wise)
Overview of different payments instruments like Cheque, DD, Cash,
RTGS
etc
NEED OF THE PROJECT The study was carried out in order to check the performance of the Dronagiri outlet since its inception and to check whether the Sales and Collection are going in order. Following needs have been identified.
To study and analyze the RECO of every month since its inception, and to make a summary
To carry out the feasibility study on Sales and Collection of the Dronagiri Outlet
To come out with the overall performance of the Outlet, with respect to Overall product wise sales
To identify the fluctuations in sales
To identify the Collections through different payment instruments
To make a report of overall Analysis of the outlet by finance department
RESEARCH METHODOLOGY
Research is an important aspect of any project. It is a systematic collection, recording and analysis of data concerning the related issues. The principle objective of this task is to unfold certain facts regarding a predicted area of inquiry.
The Research is carried out in the following given format: Data Collection Data Analysis & Findings Recommendations
While doing this Project both the data for Research have been used; i.e. primary and Secondary Data.
1. Primary Data: This data is collected first time through the observation and interaction with Employees of HPCL. It has been observed that on how different accounts are maintain how sales v/s collections reconciliation is done in the company.
2. Secondary Data: This data is collected from the information from various websites through Internet. Some data is extracted from the current proposal of Employees of HPCL.
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CHAPTER 2
11
COMPANY PROFILE: HPCL
Name Incorporation Constitution
: Hindustan Petroleum Corporation Limited (HPCL) : 1974 : Public Limited Company : Petroleum Refinery : Petroleum : Bitumen, LPG, CNG, and downstream petroleum products.
Sector
Industry Activities
Standard Vacuum Refining Company of India Limited on July 5, 1952

ESSO Standard Refining Company of India Limited on 31st March 1962 Hindustan Petroleum Corporation Limited comes into being after the takeover
and merger of erstwhile Esso and Lube India Undertaking

Caltex Oil Refining Ltd. is taken over by the Government of India and
subsequently merged with HPCL in 1978.
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Sales v/s Collection Reconciliation Kosan Gas Company, the concessionaries of HPCL in the domestic LPG market,
are taken over and merged with HPCL. HPCL thus comes into being after merging four different organisations at different points of time.
VISION To be a World Class Energy Company known for caring and delighting the customers with high quality products and innovative services across domestic and international markets with aggressive growth and delivering superior financial performance. The Company will be a model of excellence in meeting social commitment, environment, health and safety norms and in employee welfare and relation.
MISSION HPCL, along with its joint ventures, will be a fully integrated company in the hydrocarbons sector of exploration and production, refining and marketing; focusing on enhancement of productivity, quality and profitability; caring for customers and employees; caring for environment protection and cultural heritage.
It will also attain scale dimensions by diversifying into other energy related fields and by taking up transnational operations."
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BOARD OF DIRECTORS
Mr.Arun Balakrishnan
Chairman & Managing Director
Mr.S.Roy Choudhury
Director- Marketing
Mr.V. Vizia Saradhi
Director- HumanResources
Mr.B.Mukherjee
Director- Finance
Mr.K. Murali
Director- Refineries
Mr.P.K.Sinha
Director
Mr.L.N.Gupta
Director
Prof. Prakash G Apte
Director
Mr.P.V.Rajaraman
Director
Dr. Gitesh K Shah
Director
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Background of Company and Operations HPCL is the second largest player in Indian Oil sector and in highly competitive lubricants market. It was formed in 1974 on nationalization of ESSO India operations. HPCL has two refineries producing a wide variety of petroleum products-one in Mumbai (West Coast) and the other in Visakhapatnam (East Coast). The HPCL refinery in Mumbai is situated in Mahul, west coast. It is in an M.I.D.C. area, which also has other big industries like Indian Oil Corporation limited (IOCL), Bharat Petroleum Corporation limited (BPCL), Tata power plant etc. The Corporation also holds major equity in Mangalore Refinery and Petrochemicals Limited, and is proposing to set up a refinery in the state of Punjab.
Type of Industry HPCL refinery can be classified as an analytical type of industry. It is petrochemical industry i.e. broadly speaking chemical engineering industry. Petroleum refinery is a production industry where raw material crude petroleum is transformed into various useful products using some chemical processes.
Capacity HPCL Mumbai refinery has a capacity 5.5MMPTA. HPCL Mumbai is operating one of the largest lube oil refinery in the country which has a capacity of 335TMT. This Lube Refinery accounts for over 40% of the India's total Lube Base Oil production. The refining capacity steadily increased from 5.5 million tonnes in 1984/85 to 13.70 million metric tonnes (MMT) presently. According to Auto Fuel Policy, EURO-IV norms are to be followed in metro cities by 2010.To supply it in future additional capacity planning is being done. Diesel hydro treating (DHT) of about 2.2MMTPA will be introduced in HPCL. Majority of EURO-IV HSD will be produced in HPCL, Mumbai.
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Location selection criteria Oil Refineries process millions of gallons of oil that have been drilled from the Earths crust. Choosing the location of an oil refinery is not an easy task because a number of environmental and safety concerns need to be taken into account. India does not have high crude oil reserves, and hence it depends totally on import of petroleum crude oil. Gulf countries are the main suppliers to India. Transportations and refining costs are very high for any refinery and hence these factors take priority in considering plant location.Oil Refineries are often located on the coast and away from busy cities. When choosing the location for an oil refinery, the following factors need to be taken into consideration:
Coast: HPCL is located at its Chembur in Mumbai and Vizag in Andhra Pradesh because of the proximity of sea routes from the plant location. As for transportation purpose, the raw material used in the production in HPCL i.e. crude oil can be easily transported via the sea routes. There is a rail route specially built for transportation of coal, from vadala to refinery area. Almost all oil refineries like BPCL, IOCL are situated at the Mahul gaon location at Chembur in Mumbai. HPCL petroleum refinery is on Mumbai west coast because generally refining is carried on along the coast, where low cost water transportation can be used.
Transportation: The oil refinery must be near to rail, road or sea links and close to the site the oil has been drilled. HPCL has port near to it.
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Available workforce: It may be tempting to build an oil refinery in a remote location where no people or animals can be affected. However, a refinery needs workers living relatively nearby. Even though HPCL refinery is far from residential area transport facilities from workers quarters is available.
Available customers: Oil refineries need to be within easy reach of customers. It is essential to have good transport links. Some refineries are pipelines as a method of transportation.
Air pollution Although industries are regulated by strict controls regarding the amount of pollution they release into the atmosphere, oil refineries emit number of polluting gases. To reduce the effects of air pollution on people, refineries should be built away from the built-up areas. Care should be also taken to position the refinery so that prevailing winds do not carry pollution in the direction of towns and cities. One can see boards specifying height from sea level in entire HPCL refinery area.
Water pollution Some refineries use water from local rivers and streams for cooling purposes. This means that the water is pumped out of the river or stream, circulated around a cooling tower and returned to the river at a higher temperature. This increase in water temperature is called thermal pollution. Some species of fish are unable to survive in these conditions. Waste products from refinery may also be washed into local rivers and streams.
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Noise Pollution Machinery that operates 24 hours a day can make a lot of noise for people living nearby. Lorries and trains that come to pick up refined products also contribute to the noise.
Special sites of interest Like other buildings, oil refineries must avoid areas of special scientific interests. These can include regions where rare animals are being protected.
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Products & Services

Refineries
Without refining, the rich resources of crude petroleum of nature would remain latent. Value-added products from crude petroleum like petrol, diesel, kerosene, liquefied petroleum gas, naphtha and many more products would not be available for growth and development of a nation. HPCL refineries upgrade the crude petroleum into many value-added products and over 300 grades of lubricants, specialties and greases. The Lubricating Oils Refinery set up at Mumbai is largest lube refinery in India. It produces superior quality lube base oils.
Aviation
Hindustan Petroleum (as Esso and Caltex prior to 1974) has been providing aviation refueling (Aviation Turbine Fuel - ATF) services at various airports in India for more than half a century
Bulk Fuels & Specialties The Bulk Fuel & Specialities Business unit caters to marketing of Bulk fuels & Petroleum products directly to Industrial consumers like power plants, chemicals, fertilisers, shipping companies and airlines. This unit is also involved in exports of Bulk fuels and finished Petroleum Products.
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International trade The activities related to International trade are; o o o o Crude oil imports, Petroleum Product Imports / Exports, Shipping, Production planning for Refineries,
LPG - HP GAS HP Gas, the HPCL brand of LPG, is what keeps the fire burning in millions of Indian homes. Bottled at 43 LPG Bottling Plants throughout the country with a total capacity of over 2500 thousand metric tonnes per annum (TMTPA).
Lubes - HP LUBES HP Lubes is an integral part of Hindustan Petroleum Corporation Limited, one of India's frontline oil majors, committed to providing energy and fueling growth in every significant area of development.
Retail At HPCL retail outlets, we believe in maintenance. Maintaining not just the vehicle, but a steady relationship with our consumer. And to do so, provide better and efficient services. We take care of not only your fuelling needs, but also complete vehicle care. We stock related products like tyres, batteries and accessories, so you
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don't have to go shop-hopping. All our other value-added services ensure that your vehicle is well looked after. Exploration & Production "HP-E&P is world class and technically proficient, with global presence delivering superior returns from a sustainable balanced portfolio with highest commitment to HSSE* and Society" Oman, Egypt, India, Australia
Joint Ventures Crude Refining and Marketing of finished Petroleum products is the core area of the Corporation. Opportunities are also being explored to access new revenue streams, and augment downstream businesses. Accordingly, HPCL has ventured in Upstream activities (Exploration and Production) and piped gas distribution in major cities
Major Joint Ventures HPCL-Mittal Energy Ltd. (HMEL) Hindustan Colas (HINCOL) Prize Petroleum Company Limited South Asia LPG Co Pvt. Ltd. ( SALPG) Bhagyanagar Gas Limited (BGL) Aavantika Gas Limited Petronet India Limited (PIL) Petronet MHB Limited (PMHBL)
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Mangalore Refineries and Petrochemicals Limited (MRPL) CREDA-HPCL Biofuel Limited (CHBL)
Functional Groups HPCL refinery is spread over a very large area. It has many plants within its campus area. So management of such a big organization becomes very challenging. HPCL has managed it very well till now by organizing itself into appropriate functional departments. The various departments are as under:
Human resource:
HPCL HR department has taken number of HR initiatives to make the Corporation a great place to work. The Balanced Scorecard tool to set up performance targets and evaluation, Competency Mapping and Development Centers to enhance employee capabilities. Six Sigma for quality improvement have yielded rich dividends and are being constantly upgraded to higher levels of sophistication.
A significant HR event of the period was the conduct of an International Program on Emotional Intelligence in association with TISS wherein a large number of professionals and students participated and appreciated the program. The Corporation continues to give utmost importance to training by nominating employees both for inhouse and external programs.
HPCL has bagged DMA Erehwon Innovative HR Award because it has successfully taken an HR idea from concept to reality and has sustained results. They also got Amity HR Excellence Award for achieving enviable position of one of the best and most admired companies due to innovative strategies for Human Resource Management and Development
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Finance:
The finance function involves keeping record of financial data related to fixed assets, intangible assets, which forms most important part of a refinery operation. Additionally it also monitors the construction period expenses on projects occurring on monthly and quarterly basis and keeps record of other important financial depreciation, impairment of assets, foreign transactions, investments, inventories, duties on bonded stocks, Grants provision, exploration and production expenses, employee benefit, sales of products, research and development., Taxes on income, contingent liabilities and commitment capitals, accounting, classification of expenditure and income.etc.
Marketing:
LPG Marketing in India has traditionally been confined to domestic & non-domestic consumers in urban/semi urban markets and all efforts till date have been in meeting the demands of these markets. With the saturation of urban and semi urban markets and the adequate availability of LPG in India, there is a need to look for alternative markets. Rural India presents a big opportunity for growth of LPG in India. HPCL is a major bunker fuel supplier to the ships (vessels) at major Indian ports viz Calcutta, Haldia, Visakhapatnam, Kakinada, Chennai, Cochin, Mangalore, Goa-Vasco, Mumbai, Kandla. HPCL also supplies other petrochemicals like hydrocarbons, lube base oils, tar, petrol, and diesel, ATF etc. Hence it has very good chain of distributors.
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SAFETY & HEALTH POLICY
The safety & health policy declared by IPCL reads as follows: -
Professionally manage and comply with the statutory provisions by giving high priority to health, safety and environment control programs.
Ensure that technology absorbed, assimilated, upgraded and developed by the company lays emphasis on safety in and around the workplace.
Ensure continuous improvement in safety and health aspects by carrying out safety audit, risk analysis etc.
Constitute safety committees to promote safety awareness and ensure participation of employees in safety and health related functions.
Organize structured training programs on continuous basis to educate employees and neighboring society on safety, health and loss prevention and control aspects.
Ensure codification of safety standards and extend services to parties associated with the company on safety aspects.
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Recognize contributions made by an individual employee towards safety and health aspects. HPCL TODAY A fortune 500 Navaratna Company with an annual turnover of about Rs 1,16,428 Crores during the financial year 2008-09. [Rs 1,31,802 crores from the sales and operations income]
Ranked in the 311th position in the fortune 500 list.
Market share of about 20% with a strong infrastructure. Last years figures were Rs 1,03,837 crores and Rs. 1,12,098 Crores HPCL operates 2 major refineries producing a wide variety of petroleum fuels & specialties, one in Mumbai (West Coast) of 5.5 Million Metric Tonnes Per Annum (MMTPA) capacity and the other in Vishakhapatnam, (East Coast) with a capacity of 7.5 MMTPA. HPCL holds an equity stake of 16.95% in Mangalore Refinery & Petrochemicals Limited with a capacity of 9 MMTPA.
Another Refinery of 9 MMTPA is under construction in Bathinda, Punjab by
HMEL, a Joint Venture with Mittal Energy Investments Pte.Ltd. HPCL also owns and operates the largest Lube Refinery in India producing Lube Base Oils of international standards. With a capacity of 335 TMT. This Lube Refinery accounts for over 40% of the India's total Lube Base Oil production. Presently HPCL produces over 300+ grades of Lubes, Specialities and Greases. The marketing network of HPCL consists of 13 Zonal offices in major cities and 90 Regional offices facilitated by a Supply & Distribution infrastructure comprising Terminals, Aviation Service Facilities, LPG Bottling Plants, Lube
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filling plants, Inland Relay Depots, Retail Outlets (Petrol Pumps) and LPG & Lube Distributorships.
HPCL has, over the years, moved from strength to strength on all fronts. The refining capacity steadily increased from 5.5 million metric tonnes in 1984/85 to 13.00 million metric tonnes (MMT) now. On the financial front, the turnover grew from Rs. 2687 crores in 1984-85 to Rs 1,31,802 Crores in Financial year 200809. HPCL has, over the years, moved from strength to strength on all fronts. The refining capacity steadily increased from 5.5 million metric tonnes in 1984/85 to 13.00 million metric tonnes (MMT) now. On the financial front, the turnover grew from Rs. 2687 crores in 1984-85 to Rs 1,31,802 Crores in Financial year 200809.
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CHAPTER 3
27
DRONAGIRI T&E STATION
INTRODUCTION
Name: Dronagiri T&E station Company: Hindustan Petroleum Corporation Ltd Started: 4th Feb. 2006 Location: Dronagiri Area: 2600 sq.mtrs No. of Dispenser: 11 Products offered: MS, POWER, HSD, TURBOJET, LUBE OIL Working time: 24 hrs Work force: 1 officer Shifts: 5- supervisors 23-boys 3-watchmens 3-gunmen shift 1: 7am-3pm Shift 2: 3pm- 11pm Shift 3: 10pm-7am
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COMPETITORS INDIAN OIL CORPORATION BHARAT PETROLEUM CORPORATION RELIANCE IBP
PRODUCTS & SERVICES OFFERED

MS POWER HSD TURBOJET LUBE OIL
LUBES
- LAL GHODA-20 - LAL GHODA-7.5 - LAL GHODA-5 - L G 500 - B R OIL- 500ML - B R OIL- 250 ML - 2T 250 - R4 1 - 2T 40ML - 2T 60ML - CRUISE- 1LTR - CRUOSE OIL-1/2 - WH BEARING GR - AP GREASING-1KG - AP GREASING KG - AP GREASE-200 KG - AP GREASE 18KG - G O -1 LTR - G O 1/2 - ENKLO 60-20 LT - ENKLO 68-210 - A.T.F.-5 - A.T.F.-1 - T.RAJA-1 LTR
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- B-WATER-5 - B-WATER-1 - B.ACID-1 - CHAM-1LTR - M TURBO-5 - M TURBO-1
- A.T.F.210 - CHAM-210 LTR - GEAR DRIVE 210 - M TURBO-20 - ESMO- 1 LTR - K GUARD-1
KEY CUSTOMERS OF DRONAGIRI OUTLET
- CWC - SKY - TRANSFARE - VIRAJ - SHRI KAILASH - SAI CARGO - N.G.B - BALMAR LAWRIE - CONTINENTAL - BHAVINIDDC - SHREE GANESH - HERITAGE - AMEYA
- CHAITANYA - PORT MAERKS - ULA - LCL - HIND TERMINALS - GDL - CHAITANYA - DIWANCHAND - SHREE.V.L - GURPREET - NEETA - COSMOS - INMARTECH
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- TRANS INDIA - SEA BREEZE
- PEARL - MAERKS
What is Reconciliation? Accounts Reconciliation is a process of comparing two sets of related records (usually balances) from different sources (accounts, systems) identifying and analyzing differences and making corrections (if need)
Basic Steps in the Process

Gather documentation and supplies i.e. DSR and Duty Sheet.
Verify that the prior months ending balance agrees with the current months beginning balance on the Statement of Account.
Verify that prior month errors have been corrected.
Collections details i.e. total Cash Collections, Credit card Collections, Cheque
and DD collections etc
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Show evidence of reconciliation.
Prepare Summary of Reconciliation.
Obtain approval from department head.
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CHAPTER 4
DATA ANALYSIS AND INTERPRETATION Following is the Sales v/s Collections Reconciliation (RECO) for the month of May2010, which the Station Manager has to submit to Finance department (regional office)
SALES :LTR MS 97256.00 RATE 50.7 AMT. 4930879.2
POWER
18046.00
53.43
964197.78
HSD
648421.00
38.7
25093892.7
TURBOJET
17776.00
40.47
719394.72
TOTAL LTR. TOTAL METER SALES (A)
781499.00 31708364.4
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LUBE (B) D.T. PLUS RELOAD Total sale (A+B+C)
120169.00 350900.00 32179433.40
SALE AGAINST DEPOSITE MAERKS. CWC. ULA. PEARL LCL. HIND T. GDL. CHAITANYA. DIWANCHAND SHREE. V.L. 866880.00 123840.00 1784073.97 550939.20 0.00 4910640.94 42819.00 328950.00 841879.80 666.10 141035.10 140127.41 12356.83 49670.92 9793879.26
SEA BREEZE
AMEYA INMARTECH DDC SALE AGAINST DEPOSITE
Credit Card sale D.T.PLUS Purchase Sale Total Card
840863.00 418984.25 1259847.25
BDS deposited (E)
20600040
31653766.51
D.G.Set
15982
MAY. 2010 Open. Bal. (F) DD/ Chq. Recd. (G) CASH ADV.(I) RTGS (H) SALE AGAINST DEPOSITE OPENING BALANCE MONTH OF JUN. 2010
1654353.43 3241378.00 0.00 7125000.00 9793879.26
(F+G+H) - (I) =
2226852.17
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Above table shows how the Sales and Collections are been recorded.
Total of product wise sales, i.e. how much quantity of sales of each product took
place for month of May-2010
Collections through different instruments like cash, Cheques, Demand draft, RTGS, Credit Card etc is been recorded
Total deposits in Bank, which is known as BDS
Collection through Drive Track
Advance Cheques collected
Reload of Drive Track Different Codes used in RECO:
PRODUCTS:

DT 1682 - Petrol DT 1682P - Power DT 1683 - High speed Diesel DT 1683T - Turbojet diesel
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WHS lubes
COLLECTIONS E - Electronic (RTGS) M- Cheques N - DD S - Cash
SALES v/s COLLECTIONS

I IN VOICE MONTH QUANTITY AMOUNT COLLECTIONS
Feb-06 Mar-06 Apr-06 May-06 Jun-06 Jul-06 Aug-06
87,337 249245 261634 297981 368693 450630 583118
3705991.05 9301752.1 15178137.6 11124820.4 14780585.49 17696312.93 22794059.23
3,749,965 8,506,666.00 8,960,357.00 11,920,881.00 12,991,980 17,058,767.50 20,784,273
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Sep-06 Oct-06 Nov-06 Dec-06
661602 635054 711345 813292 5119931
25776536.89 24884923.93 27786439.4 29026977.74 202056536.8
23,917,572 23,133,979.50 27,111,646 27,039,175.84 185,175,263
Jan-07 Feb-07 Mar-07 Apr-07 May-07 Jun-07 Jul-07 Aug-07 Sep-07 Oct-07 Nov-07 Dec-07
796593 774401 948672 916494 945311 903776 962022 954975 909209 1032297 936984 1063703 11144437
28510412.42 27152125.99 32816123.11 31882526.32 32914255.22 31302667.42 33718046.95 33163175.55 31660900.72 35632554.05 32624447.87 37014718.9 388391954.5
26,756,663.74 28,106,345.25 31,061,707.80 30,268,987.24 29,322,284.84 33,618,493.57 33,706,366.47 30,279,384 27,917,851 32,470,583 32,244,296.01 34,623,040.48 370,376,003.40
Jan-08 Feb-08 Mar-08 Apr-08 May-08 Jun-08 Jul-08 Aug-08 Sep-08 Oct-08 Nov-08
1060654 1003368 1095097 707315 1238508 956282 855506 725972 729349 612053 658629
36879585.61 35743234.12 40875315.2 25963120.47 45605534.04 37309589.17 34324236.05 29077230.24 28905195.77 24459600.29 26269959.96
36,697,058 36,999,317 47,327,733 34,937,537.09 48,834,017.33 43,803,090.91 29,205,614.32 31,263,343 30,695,839 26,916,974 26,431,855
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Dec-08
618390 10261123
23501531.34 388914132.3
24,351,075 417,463,454
INVOICE MONTH Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09
QUANTITY 708635 580053 710356 761497 662388 656492 705603 665039 652178 595085 633193 700537 8031056
AMOUNT 26329755.29 20415560.53 24428198.13 26277035.32 23074808.78 22947653.79 25866535.61 24685638.14 24206866.44 22293168.42 23626184.11 26102143.83 290253548.4
COLLECTIONS 25,333,233.00 20,323,140.00 25,804,024.00 24,022,192.00 21,445,343.65 24,833,918.00 24,561,686.00 24,921,706.23 23,481,222.59 22,182,052.80 22,151,799.90 26,586,774.66 285,647,092.83
Jan-10 Feb-10 Mar-10 Apr-10 May-10
632838 819141 455148 539965 315000 2762092
23735743.29 28914105.04 18653169.36 22227361.87 13004898.08 106535277.6
23,029,145.73 28,760,125.78 31,194,335.28 31,495,106.00 16,088,435.00 130,567,147.79
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The above statement shows the Sales v/s Collection of Dronagiri Outlet since its inception from month of FEB -2006 to MAY -2010 The finance department has to maintain such reports for each and every month, has to submit to the head office. It helps to track the collections of the company on monthly basis, and to judge the performance of the Outlet on the basis of sales.
DATA ANALYSIS AND INTERPRETATION
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S ES AL
45000000 40000000 35000000 30000000 25000000 20000000 15000000 10000000 50000000 0 2006 2007 2008 2009 upto May 2010 106535277.6 202056536 388391956 388914133
290253548.4
SALES
GRAPH NO- 2.1
Above Graph no 2.1 shows the sales figure for calendar year, and up to Month of
May for calendar year 2010. The overall trend of sales was god when Dronagiri outlet was started
During the initial years there were less petrol pumps in the area, but due to rising demand by the logistics company, Competitors started setting up petrol pumps in different locations in year 2007, and which effected the sales of the HPCL s Dronagiri outlet.
Key customers started leaving Dronagiri outlet due to Credit Limit offered by other Competitors outlet was more, which acts as a vital factor.
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Sales v/s Collection Reconciliation As Dronagiri Outlet is company owned outlet it was not allowed to give credit to
customers. Hence many HSD consuming customers left, which resulted in drastically decline in sales in year 2009 PRODUCT WISE SALES (QUANTITY)
Graph no: 2.2
Graph no 2.2 gives information about the overall product wise sales for the calendar year 2006.2007,2008,2009. Wherein we can see HSD holds the maximum sales
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compare to other products. But overall trend of the sales is declining due to rising competition in the area of operations.
SALES v/s COLLECTIONS
Graph no.2.3
The above graph no 2.3 shows the difference between sales and collections of the Dronagiri outlet, in calendar year 2006, 2007. Collections were not proper due to some reason which the company did not disclose. But in 2008 some pending collections of year 2006 and 2007 were collected with immediate action, thus we can see a rise in collections in 2008.
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CHAPTER 5
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RECOMMENDATIONS
As the study indicates the overall performance of the Dronagiri outlet is declining due to rising competition in the area of operations
As per the study Credit to Customers act as the vital factor.
Other companies petrol pump are Dealer pumps, hence Credit facilities to
customers are given, if the Company what to regain their customers HPCL should also allow credit facilities to their customers.
To retain their existing customers company should come with new marketing
strategies.
Also company should do competitors analysis, due to which company will come
to know what the competitors are offering.
More promotion should be done of Drive track.
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CONCLUSION
After this project, I came to know how daily Sales is been recorded and
collections are handled on day to day basis.
How the Finance department makes the RECO.
Sales and Collections Reconciliation acts as very important work in the Finance department of the company as it provides the overall information on the performance of the outlet.
The station manager as to make Monthly report on the Sales and Collection
Reconciliation, which to be submitted to regional office
At Regional Office Finance Manager scrutinizes the report , puts the information
in his records and submits the report with his findings to the Senior regional Manager and thereby to head office of the company.
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BIBLIOGRAPHY
Mr. Mahendra Udhwani Station Manager of the Dronagiri outlet enabled me to understand the overall Sales and collections of the outlet.
The data collected from Regional office and Dronagiri Outlet.
WEBSITES
http://www.hindustanpetroleum.com, HPCL official website www.iloveindia.com/economy-of-india/oil-gas-industry.ht
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