0601063 STUDY ON FINANANCE DEPARTMENT by vrama

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									                       A
                 PROJECT REPORT
                       ON


        “STUDY ON FINANANCE DEPARTMENT”
                   ON HCL/MCP


                  SUBMITTED BY
              SOURAV VIJAY PRUSTY
                     MBA-II
                     2006-08


               UNDER GUIDANCE OF
                MR MAHESH HALALE
                  SUBMITTED TO
              “UNIVERSITY OF PUNE”


IN PARTIAL FULLFILLMENT OF THE REQUIRMENT FOR THE
             AWARD OF THE DEGREE OF
    MASTERS OF BUSINESS ADMINISTRATION (MBA)
                    THROUGH
     VISHWAKARMA INSTITUTE OF MANAGEMENT




                       -0-
ACKNOWLEDGMENT




      -1-
ACKNOWLDGEMENT



                     We are very much thankful to Mr. Bhatacharya(head of the
department, finance,(M.C.P) for providing us a golden opportunity for doing summer
training in finance department..


I express our heartily gratitude to all the officers of finance department. Who
support us and motivate us and giving us their valuable time in completing the project
with in the scheduled period




We are thankful for kind cooperation and guidance of :Shri Debasis De, Shri N.K.Singh,
Shri D.R.Chauhan, P.V.N.Rao, Shri S.D.Pashine, and P.N.Gokhale




.                              We shall be failing in our duty if we don’t acknowledge
Mr.Bhatacharya (Asst.G.M admn. of M.C.P) for giving this opportunity for training in
completing the project.




                                          -2-
                 TO WHOM SO EVER IT MAY CONCERN


This is to certify that Mr. Sourav Vijay Prusty is a bonafide student of our institute. He
has successfully carried out his summer project “study of finance departments on
MCP/HCL . This is the original study of Mr. Sourav Vijay Prusty and important sources
of data used by him have been acknowledged in his report.


The report is submitted in partial fulfillment of two years full time course of Masters in
Business Administration 2006-2008 as per rules.




___________________                           ________________________
Prof.Mr Mahesh Halale                             Dr. Sharad L. Joshi
   (Project Guide)                                  (Director)
                                     Vishwakarma Institute of Management




                                          -3-
INDEX




  -4-
Chapter        Description        Page
                                   no
  1         Executive Summary      6
  2             Introduction       12
  3          Company Profile       16
  4              Objectives        38
  5        Research Methodology    40
  6               Activities       43
  7              Analyzing         52
  8           Status of Share      75
  9              Conclusion        80
  10             Suggestion        83
  11      Advantages & Limitation 86
  12           Bibliography        89




                -5-
EXECUTIVE
SUMMERY




    -6-
EXECUTIVE SUMMARY

(1) Copper has been known to man since 4000 BC and its popular alloys i.e.Bronze and
Brass have been known since 3000 BC and 1000 BC              respectively. The usage of
copper increased substantially with the industrial revolution in 18th century. Copper
and its alloys are widely being     used     today in electrical & electronics industry,
construction, transportation etc. Its      properties of   high electrical and   thermal
conductivity,    resistance    to       corrosion, ductility and malleability, lack of
magnetism makes it a versatile metal.


(2) Copper deposit exists as sulphide, carbonates or silicates and sulphide ores account
for approx. 40-50% of the world copper reserves. Peru, Chile, Papua New Guinea,
Indonesia, Philippines have large quantities of sulphide ores which have small copper
content (0.3-2% range),Zambia and Zaire have copper deposits with higher copper
content (2- 6% range). The reserves of copper in the world are estimated at 525
million tonne in terms of metal content.




(3) The first copper smelter was set up at Ghatsila (Bihar) in 1928. An electrolytic
refinery for cathodes and wire bar plant was commissione at Ghatsila in 1965. Flash
smelter based on Outokumpu Flash smelting technology was set up in 1971. The first
continuous cast rod unit was established in the country during 1984.



                                             -7-
(4) Hindustan Copper Ltd (HCL) was set up in 1967 for production of primary
copper in the public sector. Presently HCL is the sole producer of copper in India and
has following four units : Khetri Copper Complex, Rajasthan (31,000 TPA of Blister
Copper, has the following operations such as Ore mining, Beneficiation, Smelting,
Electrolytic refining etc; Indian Copper Complex, Ghatsila, Bihar (16,500 TPA of Blister
Copper) has same operations as in Khetri and has a precious metal recovery plant
(Gold, Silver, Selenium etc); Malanjkhand Copper Project, M.P. (2 million TPA mining
and beneficiation) has operations of ore mining and beneficiation. The concentrate is
sent for further processing to KCC and ICC and excess quantity is sent abroad for
toll smelting; Taloja Copper Project, Maharastra (60,000 TPA) has C.C. rod facility.


(5) The production of copper ore in India has remained stagnant over the years i.e. 51.36
lakh tonne in 1987-88 and 51.13 lakh tonne during 1992-93. This is because of low level
of ore deposit establishment. The present ore deposits are estimated at 734 million tonne
(with 9.4 million tonne of copper metal). Nearly 90% of the copper reserves are
concentrated in the states of Bihar, Madhya Pradesh and Rajasthan.


(6) During the year 1992-93 production of copper concentrates, blister copper and refined
copper by HCL was as follow :-
   Concentrate : 52.53 lakh tonne
   Blister Copper : 48006 tonne
   Refined Copper : 45275 tonne
The capacity utilization at HCL plants was high about 98% in mining sector and 100%
in metallurgical sector during 1992-93.




                                          -8-
(7) The demand of copper in India during 1992-93 was of the order of 1.8 lakh TPA
which is expected to increase at a rate of 5-6% per annum. In order to meet the
requirement, copper was imported to the tune of 70% of the requirement. With a number
of smelters being planned & executed in the private sector as well at Malanjkhand by
HCL, it isestimated that the imports could be reduced to a level of 35-40% by the year
1999-2000.


(8) The dereservation of non-ferrous industry by the Government of India has opened
doors to the private sector. Sterlite Industries (India) Ltd is implementing a 60,000 TPA
Capacity (Cu Cathode) project with an estimated cost of Rs 700 crore. The
technology has been provided by MIM Holdings, Australia and the input material
would be copper concentrates which would be imported.


(9) The plants of HCL to produce primary copper are based on technology of
Outokumpu, Finland who are known world wide and have installed about 30 plants
world over. The process is based on semi-autogenous smelting of copper concentrates
in flash smelter followed by conversion in PS converter, Fire refining, electrorefining etc.
The initial agreement (xviii) period is over and a new agreement has been executed
effective from April, 1992 towards modernisation & expansion of KCC plant.




                                           -9-
(10)The process of manufacture of primary copper at HCL's plants is summarized
below:-
Copper ore containing about 1% copper are reduced from 150 mm size to 25 mm size in
cone crushers. The crushed ore is grinded in rod & ball mills to 74 micron size. The ore is
further refined through Froth Flotation process comprising of rougher cells and second
stage cell where xanthates and pine oil are used as reagents. Copper comes in the froth
and slurry containing about 15% copper, is thickened in rake type thickner from a level
of 30% solid content to 60% solid content. The thickened slurry is treated in vacuum disc
filters to remove water and powder concentrate so obtained has 12% moisture. The
moisture content in the concentrate is further reduced to a level of 0.2% in rotary air
dryer. Concentrate along with preheated air enriched in oxygen is fed to the Flash
Smelter where separate layers of molten material are formed i.e. Matte (rich in copper
contains 43-50% Cu) and slag (4-5% copper). Gases rich in sulphur dioxide are formed in
the smelter which are utilised to produce sulphuric acid. Matte is further refined in PS
converter to obtain blister copper (99% purity) and fire refined in Anode furnace and
casted in Anode Casting wheel to obtain 99.4% pure copper anodes. The Anodes are
electro-chemically refined to obtain copper cathodes of 99.99% purity. Precious metals




                                          - 10 -
i.e. Gold, Silver, Tellurium, Selenium etc. are recovered by refining of Anode slime
obtained from electrolytic refinery.


(11) Malanjkhand Copper project of HCL, Madhya Pradesh has the largest open cast
mine of capacity 2 million TPA with a matching concentrator capacity. The plant
incorporates State-of-the-art equipments & techniques i.e. hydraulic excavators of large
bucket capacities (10-12 cu.m) drill masters capable of larger diameter hole drilling (200
mm), computerized instream analysers and large capacity & energy efficient
rougher floatation cells (120 cu.ft) etc.




                                            - 11 -
INTRODUCTION




     12
INTRODUCTION

Hindustan copper ltd was incorporated on 9-Nov-1967. It was the only vertically
Integrated multi-unit copper producer in India , engaged in a wide spectrum Of activities


Hindustan Copper Limited the premier copper producer for he last 37 years, Has
made its landmark in the history of copper mining ,smelting and refining


In India . H.C.L operation in short include mining, crushing and grinding of Ore to
produce concentrate, which is then smelted and electro refined to Produce copper
cathodes ,wire bars and continous cast copper wire rods.


These operation involve highly Mechanized Mining Technology. In             1967    H.C.L
established itself as an “A” grade company with four producing unit ,one each in
Rajasthan, Jharkhand, Madhaya Pradesh, Maharastra and a series of commercial office
all over India .


These units are:-


Khetri copper complex [Rajasthan]

Indian copper complex [Jharkhand]

Malanjkhand Copper Project [Madhya Pradesh]

Taloja Copper Project [Maharastra]



                                           13
Opportunities and Threats

In India, there is under-capacity at the mining stage as compared to domestic copper
demand. HCL is the only fully integrated copper producing company in the country
having its own copper mines. Therefore, the Company has ample opportunity to augment
its mining capacity by inceasing production from the existing mines and by developing
new mines and thereby improving the bottomline. The present market scenario offers
ample opportunity to being in value added niche products into HCL’s portfolio, such as
‘oxygen free copper’, besides developing niche markets for existing products.The export
market in Asian region presents a strong opportunity for refined copper producer like
HCL.The threat perception for the company includes great volatility of world copper
prices and increasing cost of     inputs, particularly power and fuel due to global
inflationary trends. Further, HCL may also witness threat to its existing market share on
account of intense competition from imports and domestic manufacturers of refined
copper. The gradual but inevitable lowering of import duty on cathode / wire rod will
impact sales realization.




                                           14
Business Scenario

During the year, the demand for copper in the global market has been growing steadily.
Demand growth in Asian countries, particularly China & India is driving the LME copper
prices in the global market and the trend is expected to continue in the near future.
Growth of copper usage in the country is projected to be about 6% this year, exceeding
the world average of about 3-4%. In 2005-06, the total refined copper usage in the
country was around 420,000 MT; in the coming years, this is expected to rise to about
600,000 MT which argues well for the Company.




                                         15
COMPANY
 PROFILE




   16
ABOUT MALANJKHAND COPPER PROJECT,(H.C.L)


INTRODUCTION

Malanjkhand Copper Project (MCP) is the single largest Copper deposit of India with
nearly 50% of Country’s Copper reserves and contributes to around 70% of HCL’s total
Copper production. It is located in Central India at an altitude of 575 MRL and is
connected by roads to the nearest broad gauge Railway station at Gondia and Durg which
are located at 130 and 150 Kms away from MCP respectively. Airports located nearby
are at Jabalpur (M.P), Raipur (Chhattisgarh) and Nagpur (Maharashtra).


The Project consists of an open pit mine having initial rated production capacity of 2.0
million Tonnes copper ore per annum with matching Concentrator plant, Tailing disposal
system and other auxiliary facilities.
The minerable ore reserves with the Open Pit Mine have been estimated at 60 million
tonnes, averaging a grade of 1.2% Cu. at 0.45% cut-off.Malanjkhand copper project
which is under (H.C.L), i.e Hindustan copper limited. Malanjkhand copper project is
fall in the tahsil of Baihar ,which is 22 k.m away from the project. Government sanction
for the Project was obtained in June 1977 and stripping operation started in August
1979, after the first shovel was commissioned and haul roads and shovel faces
constructed. The mine at full production capacity will remove 11.5 million tones of
overburden and waste rock, to recover 2 million tones of chalcopyrite ore of average
grade 1.2 cu per annum. A total of 22.6 Km of diamond drilling in 91 bore holes has been
carried out till September 1978 to explore ore reserves upto a depth 376 MRL




                                          17
The detailed project report was prepared by Russian Consultants in 1976, and the
mine design work was done by M/S RTZC In 1978.
Construction of mine concentration plant and other facilities started in 1978 and
regular production started in 1982, as per schedule.

With the liberalization of Indian economy, the supportive measures like canalization of
copper import, administrative pricing policy restricting the investment in copper Mining
to public sector were disponeed with along this , the import duty was progressively
and drastically reduced and copper was placed under general license.
Copper prices in India linked with the prices of London Metal Exchange (L.M.E)
Were bulk of non furious metal is traded could not sustain the fluctions of L.M.E
Prices which in turn depend several factor like its world wide production, consumption,
its inventory and were houses.
                       H.C.L was making profit till 1996 even after the arrival       of
economic liberalization but it could not survive the sudden, crashing Of international
prices in spite of its best physical performance or the last five years a drastic drop in
the L.M.E prices of copper and custom duty had presented a firm.
In the past liberalisation era, H.C.L came free to face with some of the unforeseen
challenges which forced H.C.L to evolve a turn around strategy for surviving the
shift competition in the International market.




                                            18
19
[Malanjkhand Copper Project]


Present Operation

Open Pit Mines

Concentrator

Infrastructure Facility




                               20
PRESENT OPERATION


Hindustan Copper Limited have constructed an Open pit mine to produce 2.0 million
tones of copper ore annually.


A concentrator Plant of manufacturing capacity and other infrastructure facilities such as
power and Water supply, rearing facility, tailing disposal etc.




Open Pit Mine


             Open pit mines is designed to produce 64 million tones of ores 1.2% at an
overall strip ratio of 1:4. The ultimate pit design to provide for Deepings the pit up to
376 MRL i.e around 200m from surface.




Total length of the pit – 2200m
Total width of the pit – 600 meter




                                             21
THE CONCENTRATOR



                  The concentrator plant has been designed to treat 2 millions tones of
copper ore annually. The plant consists of the following section.




                         Crushing section

                         Grinding section

                         Flotation

                         Thickeing & filtration

                     Tailing disposal and water recirculation



The basic design of the plant was done atmeggha be institute Leningrad based on the
pilot-plant studies conducted at National Metallurgical labrotory and Jamsedpur and also
Mekhnastore institute.




                                              22
INFRASTURCTURE FACILITIES


Malanjkhand Copper Project has infrastructure facility as under:


   (1) Repairing Facility:
       Facility like Mechanical maintenance, electrical maintenance, civil maintenance
       are existing in Malanjkhand CopperProject.


   (2) Power supply System:
       There is 132kv main receiving sub-station which has two 20/26 MVA,
      132/11 kv transformers step down sub-stations have been constructed suiting to
       requirement of various equipment and utilities.


   (3) Water supply system:
       Water from concentrator plant as well as protactable for the project and
       township is drawn from Banjar River.



   (4)    Residential Township:
         With shopping complex’s to cater to almost all house hold requirement and
         clubs, play grounds parks for recreation.


    (5) Health and Medical facility.


    (6) Education facility.




                                           23
FINANCE DEPARTMENT




These are the various section under financial Department in
M.C.P. The structure of finance sections are as under.




The Structure of Finance Sectionsss


          FINANCE DEPARTMENTS


                                               ESTABLISHMENT SECTION


                                                     SALARY SECTION


                                                         MIS SECTION


                                                       STORES SECTION
                                                     STORES SECTION


                                                     SUPPLIERS SECTION
                                                  SUPPLIERS SECTION


                                              CONTRACT/WORK SECTION




                                        24
ESTABLISHMENT SECTION



  In establishment section nature of job is dealing with all types of receipts and
  payments.




 Receipts


(1) Outside agencies are depositing cash towards
    the cost of tender document
(2) House rent if allotted
(3) Electricity if allotted
(4) Excess payment if made




Employees Receipts


Deposited by cash as Travel allowance
and dearness allowance.




                                          25
     Payments


(1). Payment to irrigation department
(2). Electricity payment
(3). Commercial rate
(4). Water supply payment
(5).Royalty
(6).Office and administration
(7).Property tax to Municipal council of Mahugaon.



Employees Payments


(1) Medical advance
(2) Travel allowances
(3) L.T.C advance
(4) Advance some company work(impress advance)
   and all types of adjustments




                                          26
Payments to outside agencies(contractor)


Property tax to Municipal council of Mahangaon
Approx 5000000/month


Royalty 6000000 paid to collector of Balaghat
Electricity paid by the company 2.5corore
10 lakhs for water supply




                                            27
SALARY SECTION


Number of employees of MCP & their scale of pay



Technical :-

     Level                                  Revised scale of pay

       T-1                                        4000-80-5600
       T-2                                        4200-90-6000
       T-3                                        4400-100-6400
       T-4                                        4600-110-6800
       T-5                                        4800-125-7300
       T-6                                        5000-140-7800




       T-7                                        5300-155-8400
       T-8                                        5600-170-9000
       T-9                                        6000-185-9700
       T-10                                       6400-200-11200




                                       28
CLERICAL:-

     Level                              Revised scale of pay

      C-1                                  4000-80-5600
      C-2                                  4200-90-6000
      C-3                                  4800-110-6600
      C-4                                  5500-155-8400
      C-5                                  5600-170-9000
      C-6                                  6000-185-9700


EXECUTIVE:-

   Level                                Revised scale of pay

    E-0                                  6550-200-11350
    E-1                                  8600-250-14600
    E-2                                 10750-300-16750
    E-3                                 13000-350-18250
    E-4                                 14500-350-18700
    E-5                                 17500-400-22300
    E-6                                 18500-450-23900
    E-7                                 18500-450-23900
    E-8                                 20500-500-26500
    E-9                                 23750-600-28500




SALARY

Salary leave

Three types of leave
(1) Earn leave (18days)
(2)Seek leave 12days
(3)Casual leave 12 days


Earn leave 33 days for executive


                                   29
SUPPLIER SECTION

Nature of job:


                     Passing      the   bills    of   suppliers   of   material   by various
                      Suppliers.
                     Passing of bills of repairs and maintance against various work
                      order.


(1) Purchase order
(2) Work order


(1) User department shall give the indent requirement of material to purchase
   department.


(2) Then purchase department shall float the enquiry to the Registered supplier
   for submitting quotations after with a submitted time.


(3) Received the quotation from various parties all the quotation shall be
   open by the tender comity by the complaint authority


(4) After receiving it comparative statement prepared by purchase department
   of all the quotation and submit the files to the finance concerance.




                                                 30
                         After receiving the financial concerance for
Placement of order purchase department will issued the purchase order to
the suppliers with all term the condition.


(1) Payment term


(2) Quantity


(3) Specification


(4) Security deposited specially




Security Deposit: In the from of draft
                     In the form of bank guarantee.


10% of the w.o or p.o for performance of material


* If the particular has not achieved the penalty should be recovered from the amount
 security deposit.


* After receiving and acceptance of the purchase order


* The order will be cleared by various competitive authorities according to their
 powers.




   After receiving and acceptance of the purchase order the supplier will start the supply
   of the material either by his own transport or by authorized



                                             31
STORE SECTION

Nature of job:-


             Store section received the Receipt voucher on the issue vouche on the basis
            of these issue statements and receipts statements is prepared for maintain
            the statement following procedure must be followed.




            (1) raised the indent (concerned department)


            (2) Material department (float the enquiry tender enquiry to all department.


            (3) then make party quotation.


            (4) Material department made a (comparative statement)


            (5) The send purchase order to the supplier section.
.
            (6) Daily receipt Register maintain all records.


            (7) Receipts voucher made.


            (8) Bin card.


            (9) Store section received it then they will send it to system department.
              System department after checking it. Send again to store section (PSL)
             price Store ledger maintain.




                                             32
WORK / CONTRACTS


Nature of job:
           Pass the tender proposal and the estimate were made. i.e
           NIT – Notice inventory tender
           LIE – Limited tender enquiry
           OTE- Open tender
Comparative statement according to:-
        DSR – Delhi schedule of rates
        CPWD – Central public worries depth
        Mine development
        Press tender
       Work order passed
        Bills also passed
        E.M.D earnest money deposit
       10% security deposit of contract amount
       Secured advance – [fixed items only]
       Mobilized items [to mobilized the work]




                                           33
Management Information System


MIS [section]


According to various: receipts voucher
                       Payment voucher
                       Issue voucher


MIS Section prepared the journal voucher all the daily records
are recorded in it


Debit and credit entries passed in it and balance amount in last
Ay of the month.


According to the journal voucher
*trail balance
*and ledger prepared
*costing




                                            34
                                  Trial Balance


     The trail balance include




             .. All receipt and expenditure
             .. Debtors and Creditors
             .. Assets and liabilities are recorded




With The help of trial balance final accounts are prepared
i.e. In the shape of balance sheet and profit & loss A/C.




                                              35
COST SHEET

       in making of cost sheet the following items should
be included .



(1) Summarized production and cost data

(2) Ore

(3) Over burden removal

(4) Excavation

(5) Milling

(6) Concentrate

(7) Consumptions of major material

(8) Calculation of input cost in conc.

(9) Amortizations Calculation




                                          36
DISTRUBUTION OF COST SHEET

    The cost sheet of the organization should be distributed to the
following staffs:



(1) TA to CMD

(2) D (f), HO

(3) DGM (tec), HO

(4) Advisor Finance

(5) AGM (finance)/KCC

(6) GM/MCP

(7) Office copy


The cost sheet is prepared at the end of every month.




                                           37
OBJECTIVES




    38
OBJECTIVES

As a student of M.B.A previous it is a great honour for me to complete my summer
training on H.C.L. We are mainly considering the Department of finance in H.C.L,
under (M.C.P), Malanjkhand Copper Project.




Main Motive Of This Training

(1) To increase our knowledge in depth.


(2) To convert our bookish knowledge into practical knowledge.


(3) To increase our efficiency to deal with the people who are very
    experienced and knowledgeable.


(4) The data which we have collected from Malanjkhand Copper Project
    is for our purpose of acquiring the knowledge not for any other
    purpose.




                                          39
  RESEARCH
METHODOLOGY




     40
                   RESEARCH METHODOLOGY


The purpose of research is conducted when there are few or no earlier studies to which
references can be made for information. The aim is to look for patterns, ideas or
hypotheses rather than testing or confirming a hypotheses. In research the focus is on
gaining insights and familiarity with the subject area for more rigorous investigation
later. In an undergraduate dissertation it is likely that you will drawing on previous
studies and so pure exploratory research is not generally appropriate for studies at this
level-it is more appropriate for postgraduate research. However, it is possible that you
may carry out an initial survey to establish areas of concerns and then research these
issues in more depth .
      Research is also an academic activity and as such the term should be used in
technical sense. According to Clifford research comprises defining and redefining
problems ,formulating suggested solution; collecting, organizing and evaluating data;
making deductions and reaching conclusion; and at last carefully testing the conclusion to
determine whether they fit the formulating hypothesis.
          The research programmed is focused on the causal relationship between the
finance department & their development. It will also try to identify a core of financial
services that are necessary for poverty reducing growth and their institutional structures
that have been more successful in providing them.


In the period of my summer project I collect the information, Datas, ideas through
various sources and each of these sources are very useful & very helpful for me for
completing my summer project in HCL (Malanjkhand Copper Project).




                                           41
                        The various types of sources are as follows.


*. My discussion with senior and experienced persons working in Malanjkhand Copper
 Project.


*. Discussion with other friends and colleagues, and other workers of the organization.


*. The research on past data, information available in the organization.


*. Web-sites of HCL is very useful for collecting the information.


*. Various types of files, notes, books that were provided and referred by the manager
of Malanjkhand Copper Project.


*. By see the working pattern of the worker help me for collecting the information
regarding the work


*. The library of Malanjkhand Copper Project provide knowledge and ideas.




                                            42
VARIOUS TYPES OF
  ACTIVITIVES
DONE UNDER MCP




       43
Basis of Preparation of Accounts :


1.The accounts have been prepared to comply in all material aspects with applicable
accounting principles in India, mandatory Accounting Standards issued by the Institute of
Chartered Accountants of India consistently being followed and the relevant provisions
of the Companies Act, 1956. The Financial Statements have been prepared under the
historical cost convention on an accrual basis in a going concern concept.


2. Financial statements have been prepared based on in-house technical estimates in
respect of the following :
- Allocation of service shaft expenses, underground mining expenditure
  between revenue and capital.
- Metal content in raw materials, WIP and finished goods.
- Credit of anode scrap generation in refinery plant.
- Mineable ore reserves in underground mines.
- Stripping ratio in open cast mines.


BALANCE SHEET :
3. Fixed Assets :


3.1 Fixed assets are recorded at cost net of CENVAT and VAT credit wherever
applicable less accumulated depreciation and impairment loss,if any.


3.2 Pending reconciliation/receipt of the final bills against capital items, capitalization is
done on the basis of cost booked and depreciation is              charged accordingly. Price
differences, if any, are adjusted in the year of finalization of bills.




                                              44
3.3 In respect of expenditure during construction of a new unit in a new
location, all direct capital expenditure as well as all indirect expenditure
incidental to construction are capitalized allocating to various items of
fixed assets on an appropriate basis. Expansion programme involving


construction concurrently run with normal production activities in an existing unit, all
direct capital expenditure in relation to such expansion are capitalized but indirect
expenditure are charged to revenue.


3.4 Project expenses incurred for implementation of new projects are carried forward
against respective project till execution. Project expenses rendered infructuous or
abandoned are charged to the Profit & Loss Account.


3.5 Physical verification of fixed assets is carried out once in every five years.


4. Depreciation :
Depreciation on fixed assets is provided on straight line method at the rates prescribed in
Schedule XIV to the Companies Act, 1956. Depreciation on             assets acquired prior to
01.04.93 is charged on derived rates by allocating the unamortized value over the
remaining life arrived at on the basis of rates prescribed under the Schedule XIV to the
Companies Act,1956. Depreciation in respect of plant & machinery and building of new
project is charged from the date of commercial production.




Impairment of Assets :


An asset is treated as impaired when the carrying cost of assets exceeds its recoverable
value. An impairment loss is charged to the Profit and Loss Account in the year in which



                                             45
an asset is identified as impaired. The impairment loss recognized in prior
accounting period is reversed if there has been a change in the estimate of
recoverable amount.


7. Mine Development Expenditure :


7.1 In case of underground mines :
The expenditure on development of a new mine in all cases and on subsequent
development of a working mine in specified cases is capitalized and amortized on the
basis of ore raised during the year and the mineable ore reserves estimated from time to
time. The ore obtained during development activity is adjusted against such expenditure
at its derived realizable value.


7.2 In case of working mines, where development activities
    are going on simultaneously :
Expenses are apportioned between capital or revenue on the basis of sinhouse technical
estimates.


7.3 In respect of open cast mines :
The expenditure on removal of waste and overburden, is capitalized and the same is
amortized in relation to actual ore production during the year and the stripping ratio of
the mine as determined by the company at the weighted average rate.


7.4 Expenditure incurred on exploration of new deposits is included in mine development
expenditure. If the exploration activities are found to be not fruitful, the expenditure on
such exploratory work included in mine development expenditure is written off in the
year in which it is decided to abandon the project.


8. Major Overhauling Expenses :
The expenditure attributable to major overhaul of smelter/refinery is charged to the
Accounts in the year of incurrence.



                                            46
9. Inventories :
9.1 Stocks of raw materials, stores and spare parts, loose tools and
materials in-transit are valued at cost. Loose tools when issued are charged off to
revenue.


9.2 Finished goods and work-in-process are valued at the lower of the net realizable value
and weighted average cost to the unit. The cost is exclusive of financing cost, such as,
interest, bank charges etc. The value of slag under work in process is taken at equivalent
value to the extent credited to the process, where the said products have been generated.
The reverts under work- in-process are valued at lower of cost (equivalent value of
concentrates) and net realizable value. Subsidy on fertilizers is not considered for the
purpose of fertilizer stock valuation.


9.3 The stock of anode slime arising from treatment and refining processes are valued at
realizable value based on the year end London Metal Exchange price for gold and silver
after making due adjustments of their physical recovery and the treatment and refining
charges.


9.4. Liability for excise duty on finished goods in stock lying at works or warehouses, is
provided for in the accounts and also considered in stock valuation.


9.5 The inventories out of inter-unit transfers at the close of the year are valued on the
basis of cost or net realizable value whichever is lower to the transferor unit. No
adjustment is made in respect of difference between the cost and transfer price for such
transferred products in case of partly processed materials lying at various stages of
production and finished stocks at the end of the year, since this is not practically
ascertainable.




                                            47
9.6 Imported materials are valued at weighted average cost at a
provisional price pending finalization of invoice price and customs duty.
Variations are accounted for in the year of finalization.


9.7 Once in every three years provision is made in the accounts for non-moving stores
and spares (other than insurance spares) which have not moved for more than five years.


9.8 Scraps are accounted for on realization.




PROFIT AND LOSS ACCOUNT :


10. Sales :
Sales are net of discounts other than cash discounts.


11. 1. Other Income
11.1 1.1 Claims :


Claims on account of liquidated damages and insurance are accounted for as and when
these are deducted and/or considered recoverable by the company.


11.2 1.2 Conversion charges :
Income from conversion of job work is accounted for on the basis of dispatches made .


11.3 1.3 Interest on L/C bills :
Interest up to the date of Balance Sheet on all outstanding bills is accounted for on
accrual basis.


12. Retirement Benefit
12.1 Gratuity and Leave encashment :




                                               48
Gratuity and leave encashment liability on retirement are provided based
on actuarial valuation.


12.2 Deficit in Provident Fund :
Deficit, if any, on account of Provident Fund Trust is accounted for on the basis of
accrued liability, as ascertainable on the basis of last accounts closed by the Provident
Fund Trust.


13. Borrowing cost :
Interest/finance cost on loans specifically borrowed for new and expansion projects up to
the start of commercial production is charged to the capital cost of the projects
concerned. All other borrowing cost are charged to revenue.


14. ACCOUNTING FOR TAXES ON INCOME :
Income Tax Expense comprises current tax and deferred tax charge. Deferred Tax is
recognized on timing differences, being the difference between Taxable Income and
Accounting Income that originate in one period and are capable of reversal in one or
more subsequent periods. Deferred Tax Assets are recognized only if there is virtual
certainty that sufficient future taxable income will be available against which Deferred
Tax Assets will be realized. Such balances of Deferred Tax Assets are reviewed as at
each Balance Sheet Date to reassess the realisability thereof.


15. General :
15.1 For Foreign Currency Transactions ransactions :
Transactions in foreign currencies are recognized at the rates existing at transaction time
at which the transaction is settled. Year-end balances of receivables/payables are
translated at applicable forward contract/year-end rates and resultant translation
differences relating to fixed assets are adjusted against fixed assets and the balance is
recognized in the Profit and Loss Account.


15.2 Recognition of Contingent Liability :



                                             49
A contingent liability is recognized when as a result of past events there is
a possible obligation or a present obligation that may, but probably will
not, require an outflow of resources and are disclosed by way of Notes.


15.3 Events occurring after the Balance Sheet Date :




Assets and Liabilities are adjusted for events occurring after the Balance Sheet that
provide additional evidences to assist the estimation of accounts relating to conditions
existing at the Balance Sheet Date.




15.4 Prior Period & Extra Ordinary Items :
(i)The nature and amount of prior period items (ii) extra-ordinary items are separately
disclosed in the statement of Profit & Loss in a manner that their impact on the current
Profit & Loss can be perceived.


15.5 Research and Development Expenditure :
Expenditure on research and development is charged off to Profit & Loss account in the
year it is incurred. Expenditure on fixed assets in this regard is capitalized.


15.6 Mine Closure Expenditure :
Financial implications towards final mine closure plans under relevant Acts and Rules are
technically estimated and the involvement, not being material, are charged off on actual
incurrence.




                                              50
16. Voluntary Retirement Expenses :


16.1 Paid out of own fund :
In respect of Voluntary Retirement expenditure incurred by the company out of own
funds is charged off to revenue over a period of 60 months.


16.2 Paid out of Government Grant :
Voluntary Retirement Expenditure is charged to the Profit & Loss Account on receipt of
Grants from the Government of India with corresponding credits to the Profit & Loss
Account.




                                           51
    ANALYSIS OF
FINANCIAL REPORTS &
    COST SHEET




         52
Financial Report of H.C.L of last 10 years

                                      10 Year At A Glance(Rs. In Lakhs)

                2005-     2004-     2003-     2002-     2001-     1999-     1998-     1997-     1996-     1995-
                2006      2005      2004      2003      2002      2001      1999      1998      1997      1996
  FOR THE       (12       (12       (12       (12       (12       (18       (12       (18       (12       (12
   YEAR         months)   months)   months)   months)   months)   months)   months)   months)   months)   months)
                  1         2         3         4         5         6         7         8         9         10
Turnover        105376     55911     51887     50568     60498     94558     47949 120348        98024 111802
Profit/(Loss)    16425     11173       289     (8999) (12592) (10626) (11276)          (1725)    (7677)    13099
Depreciation
and               5837      5575      5905      5771      5812      9019      5925      8848      5384      5515
Amortisation
Net
                 10588      5598     (5616) (14770) (18404) (19644)          17201     10573     13062      7584
Profit/(Loss)
Value Added      43102     35042     22901     14737     15309     33591     16724     28946     21937     41359
Value of
                104837     63124     53443     50153     58666 100166        51347 118022 100529 118627
production

AT THE YEAR END


Share
                 94895     94895     90895     79511     71011     54361     53661     52511     33820     33820
Capital
Internal
                (11057) (29884) (35030) (31039) (16945)              (49)    19097     33896     42018     53305
Resources
Long-term
                 18750     22275     27562     29182     29182     64332     37236     11527     17456     17456
loans
Cash credit
                   481     11823      7611     13949     12204     12270      8416     11960     12322     10709
from banks
Capital
expenditure      97789     96771     99431 100559 102477 106076 106621 105082 101630                       97772
gross
Working
                  6278      3394      (102)    (2595)      751      1798       649      8635     14440     24529
Capital
Capital
                 24747     23455     21528     20389     24929     28306     29871     40368     45978     57081
employed
Manpower
                  5583      5665      5995      7865      9502     12043     15271     18234     19884     20108
(No.)




                                                    53
Quarterly Performance Report 0f Hindustan Copper Ltd.

                           First Quarter (Apr 2007 to Jun 2007)

Particulars (Lakh Rs.)      Q1 (2007-08)     Q1 (2006-07)         Change %

Gross Sales & Operating
                               43,325.27          38,035.34           13.91
Revenue

Other Income                    1,717.73            113.20          1417.43

Total Expenditure              34,649.53          32,818.30            5.58

PBDIT                          10,393.47           5,330.23           94.99

Interest                          922.36            774.58            19.08

Depreciation                      459.25            464.34             -1.1

Profit before Tax               9,011.86           4,091.31          120.27

Provision for Tax               1,467.00               7.50          19460

Net Profit                      7,544.86           4,083.81           84.75

Earning Per Share(Rs.)               0.98              0.56             75




                          Second Quarter (July 2006 to Sept 2006)

Particulars (Lakh Rs.)      Q2 (2006-07)     Q2 (2005-06)         Change %

Gross Sales & Operating
                               36,618.51          22,568.99           62.25
Revenue

Other Income                      628.64            208.04           202.17

Total Expenditure               -9,231.02         18,270.67         -150.52

PBDIT                          10,568.72           4,506.36          134.53

Interest                          883.82            919.92            -3.92

Depreciation                      317.52            478.41           -33.63

Profit before Tax               9,367.38           3,108.03          201.39

Provision for Tax                    7.50                0                -




                                             54
Net Profit                      9,359.88          3,108.03          201.15

Earning Per Share(Rs.)              1.29              0.43            200




                          Third Quarter (Oct 2006 to Dec 2006)

Particulars (Lakh Rs.)     Q3 (2006-07)     Q3 (2005-06)         Change %

Gross Sales & Operating
                              55,189.06          30,170.23           82.93
Revenue

Other Income                     332.44            116.98           184.19

Total Expenditure             41,184.28          22,392.63           83.92

PBDIT                         14,337.22           4,026.51          256.07

Interest                         706.86            840.52            -15.9

Depreciation                     462.53            486.41            -4.91

Profit before Tax             13,167.83           2,699.58          387.77

Provision for Tax                   7.50              6.70           11.94

Net Profit                    13,160.33           2,692.88          388.71

Earning Per Share(Rs.)              1.71              0.37          362.16




                          Fourth Quarter (Jan 2007 to Mar 2007)

Particulars (Lakh Rs.)     Q4 (2006-07)     Q4 (2005-06)         Change %

Gross Sales & Operating
                              50,213.21          38,413.25           30.72
Revenue

Other Income                    1,275.64           358.42           255.91

Total Expenditure             43,180.63          34,033.41           26.88

PBDIT                           8,307.22          4,738.26           75.32

Interest                         992.40            784.10            26.57

Depreciation                     466.35            484.35            -3.72

Profit before Tax               6,848.47          3,469.81           97.37

Provision for Tax               2,109.52              6.22        33815.11

Net Profit                      4,738.95          3,463.59           36.82

Earning Per Share(Rs.)              0.62              0.48           29.17




                                            55
Sales Report of H.C.L:-
Sales Revanue


                                     2007)

Item Description     Q1 (2007-08)      Q1 (2006-07)      Change %

Copper Cathode           2,975.01              804.74         269.69

Copper CC Rods          39,781.17            32,362.83         22.92

Copper Sulphate              36.85              41.20         -10.56

Copper wire-bar                  0            2,048.90

Gold                             0             646.53

Nickel                           0                  0              -

Plladium                         0                  0              -

Selenium                         0              92.41

Silver                     257.97              213.44          20.86

Sulphuric Acid                   0             187.35

                   Second Quarter (July 2006 to Sept 2006)

Item Description     Q2 (2006-07)      Q2 (2005-06)      Change %

Copper Cathode           1,234.52             1,900.75        -35.05

Copper CC Rods          34,102.28            20,777.76         64.13

Copper Sulphate              56.74              35.37          60.42

Copper wire-bar                  0             250.53

Gold                       857.14                   0              -

Nickel                           0                4.21

Plladium                         0                  0              -

Selenium                     43.57              67.18         -35.14

Silver                     216.88               17.38        1147.87




                                       56
Sulphuric Acid              82.95           171.81          -51.72

                   Third Quarter (Oct 2006 to Dec 2006)

Item Description    Q3 (2006-07)     Q3 (2005-06)         Change %

Copper Cathode           3,210.19          1,986.00          61.64

Copper CC Rods         39,959.09          26,606.80          50.18

Copper Sulphate             43.17            23.21             86

Copper wire-bar                 0           992.86

Gold                            0                0               -

Nickel                          0                0               -

Plladium                        0                0               -

Selenium                     0.60           101.46          -99.41

Silver                          0           106.61

Sulphuric Acid            175.44            361.67          -51.49

                   Fourth Quarter (Jan 2007 to Mar 2007)

Item Description    Q4 (2006-07)     Q4 (2005-06)         Change %

Copper Cathode           2,604.79          1,042.25         149.92

Copper CC Rods         44,211.05          35,645.05          24.03

Copper Sulphate             66.64            48.67           36.92

Copper wire-bar                 0          1,272.80

Gold                            0           393.56

Nickel                          0                0               -

Plladium                        0                0               -

Selenium                        0                0               -

Silver                          0           235.32

Sulphuric Acid            287.06            241.37




                                     57
COST SHEET




In making of cost sheet there are types of cost included Like variable expenses, fixed
expenses lets know about These types of expenses.


Variable cost:-


                  Variable cost is the aggregate of direct material, direct labour and direct
expenses and variable overheads (i.e prime cost + variable overheads), variable cost in
total is termed as a ‘Marginal Cost’ it is deduct from sales and contribution is ascertained.
                                    “Variable cost is in operating expenses, or a group of
operating expenses that vary directly and in proportion to the level of activity, viz. sales
or production. Examples are materials consumed, direct labour, power, sales,
commission, utilities, freight, packaging etc.
                           ICMA, India




                                              58
Fixed Cost :-


             Fixed cost means total of all fixed overheads. But it is important to note that
in India,where
 * Most of the labour force is on daily wages.
 * Most of labour costs consists of Dearness allowance(DA)
 * ‘Reternchment’ & ‘Lay-off’ is not possible in the ordinary
    course of business.
    Labors cost is also sometimes treated as fixed and included in fixed cost. Treatment
of the fixed cost in marginal costing is very peculiar ‘Fixed Cost’ are also as ‘time cost’,
‘period Cost’, ‘capacity cost’, ‘stand-by-cost’, or ‘constant cost’. Fixed Costs are not
concerned with the output level. They are rather period costs. During the given period,
they are required to be incurred irrespective of the fact, whether the output is produced
or not. Therefore fixed cost are written-off to a marginal cost profit & loss account. They
are not included in cost of good sold, neither in closing stock. At the end of the period,
contribution (i.e difference between sales & marginal cost) is credited to marginal costing
profit & loss account to which fixed cost are debited. The contribution first recopes fixed
cost and then earns profit. It fixed cost is more than contribution, then there is a loss.




                                              59
There are various types of activity will be done under costing department of HCL
(Malanjkhand Copper Project) let us see with the help of cost sheet of Malanjkhand
copper project up to the month of March 2007.


SUMMARISED PRODUCTION & COST DATA




A.PRODUCTION DATA       UNIT    for march 2007   up to march 2007
_______________________________________________________________

1. Deptt. Excavation             M3          230000.000            2510000.000
2 .Deptt. OB Removal             M3         158509.294             1820685.874
3. Deptt ore prod+Reclamed Ore   MT          192310.000            1854255.000
4. Deptt Ore Grade               %                 1.058                  1.016
5. Deptt MIO+MIO Reclamed or     MT            2035.640               18842.221
6. Cont. Excavation              M3         746000.000              1272346.000
7. Deptt OB Removval             M3          66557.993              1109396.929
8. Deptt. Ore Production         MT           21633.000              438333.000
9. Deptt Ore Grade               %                0.704                    1.081
10 Deptt. Metal in Ore           MT             152.375                4739.986
11.Ore Milling                   MT         211284.000              2154691.000
12.Grade of Ore                  %                1.096                   1.035
13.Metal in Ore Milled           MT            2257.823               22305.789
14.Concentrates (25%Gr.)         MT            8460.708               83854.036
15.Metal in Conc.                MT            2115.177               20963.509
16.Rate of Recovery              %               93.682                  93.982




                                       60
B.   COST DATA                 Unit        for march 07   upto march 07

I.DEPARTMENTAL:

01.Ore production              Rs/MT            444.19       437.59
02.Ore pro.with intt.&HO Exp   Rs/MT            471.22       471.87
03. Metal in Ore               Rs/MT         44538.94      46436.63
04.Overburden Removal          Rs/M3           297.10        279.66
05.Excavation                  Rs/M3           297.10        279.66
06.-do-with intt.& HO Exp.     Rs/M3           319.70        304.99
07.Ore Milling                 Rs/MT           279.29         271.41
08.-do-with intt.& HO Exp      Rs/MT           303.89         300.91
09.Concenrates(25% Gr.)        Rs/MT         20709.82      19374.95
10.-do-with intt,HOExp.
     & Transportation          Rs/MT         24543.13      23191.63
11.Metal in conc.              Rs/MT         73220.77      73074.69
12.-do-with intt,Ho Exp.
    & Transportation           Rs/MT          86773.67     87469.71

II.CONTRACTUAL

01. Ore Production             Rs/MT         375.24         427.03
02. Metal in ore               Rs/MT       53273.74       39489.54
03. Excavation/OB Removal      Rs/M3         185.00         185.00
04. Excavation/OB Removal
    (with blasting)            Rs/M3          203.54        204.48




                                      61
     Cost sheet
     Sub Centre :- ORE


Particulars                                                 For Mar 07                               Upto Mar 07
------------------------------------------------------------------------------------------------------------------
Ore prod.+ Reclaimed from OB(MT)                               192310.00                                1854255.00
Grade (%)                                                              1.06                                      1.02
MIO + Reclaimed from OB (MT)                                     2034.64                                   18842.22
------------------------------------------------------------------------------------------------------------
Cont.Ore Production (MT)                                        21633.00                                 438333.00
Grade(%)                                                              0.70                                      1.08
Metal in Ore                                                      152.38                                   4739.99
                                                     Value             Cost                 Value          Cost
                                                   (Rs lacs)          (Rs/T)              (Rs lacs)          (Rs/T)
---------------------------------------------------------------------------------------------------------------------
A .VARIABLE COST
   OPERATING MATARIALS
-Explosives                                        13.26               6.89               131.33             7.08
-Drills Bits                                        0.15              0.08                   1.34            0.07
-Detonators                                         0.00              0.00                   0.00            0.00
-Others-tyre & tubes                              19.56             10.17                 141.30             7.62
-Other Diesel                                      37.64             19.57                 331.00            17.85
-Other Lubricants                                  5.29              2.75                  47.12             2.54
-Others                                            0.42              0.22                   7.34             0.40

SUB TOTAL                                          76.31            39.68                  659.43            35.56


  STORES                                            3.47          1.80                    19.77               1.07
  SPARES (1/3)                                     12.90            6.71                    98.46              5.31
  POWER                                             4.15            2.16                     68.61             3.70
  INCENTIVES BONUS                                 1.07             0.56                     11.20            0.60
  COMPRESSED AIR                                   6.33             3.29                    62.34              3.36
  ROYALITY                                       185.69            96.56                  1864.97           100.58
  AMORTISATION                                   456.13           237.19                  4344.73           234.31
  OTHERS                                           2.23             1.16                    20.75             1.12

-----------------------------------------------------------------------------------------------------------------
Total variable cost                                 748.28          389.10                  7150.26           385.61


                                                         62
                                                Value              Cost                  Value                 Cost

                                               (Rs/lacs)          (RS/T)                (Rs/lacs)              (Rs/T)
----------------------------------------------------------------------------------------------------------------------
B.DIRECT FIXED COST

SALARIES & WAGES
-operations                                     7.80               4.06                  75.81                 4.09
-repairs & mantaince                           10.33               5.37                  100.30                5.41

SUB TOTAL                                        18.13               9.43                176.11                  9.50
SPARES (2/3)                                     25.80             13.42                  196.93               10.62
CONTRACTUAL REPAIRS                              20.28             10.54                 114.89                  6.20
CENTRAL SERVICES
-salary & wages                                  3.66               1.90                   35.52                1.92
-power                                            0.53               0.27                   6.10                0.33
-stores & repairs                                 2.33               1.21                 28.26                  1.52
-others                                           0.00               0.00                   0.00                 0.00
SUB TOTAL                                         6.51               3.39                  69.88                 3.77
MINES SERVICES
-salary & wages                                  5.75               2.99                   55.86                 3.01
-power                                            0.00               0.00                   0.00                  0.00
-stores                                          0.61               0.32                   53.07                 2.86
-others                                          0.00               0.00                    0.00                  0.00
SUB TOTAL                                        6.36                3.31                108.93                   5.87
GENRAL OVERHEADS
-salary & wages                                 9.12                4.74                   87.10                  4.7
-power                                           0.28                0.14                    3.63                  0.2
-stores & spares                                0.96                 0.50                  10.78                 0.58
-others                                         0.78                 0.40                    8.14                0.44
SUB TOTAL                                      11.14                 5.79                 109.66                   5.9
SOCIAL OVERHEADS
-salary                                        1.92                1.00                    20.10                 1.08
-power                                          2.71                1.41                   29.77                  1.61
-stores & spares                               0.96                 0.50                   10.78                 0.58
-others                                         0.78               0.40                     8.14                 0.44
SUB TOTAL                                       6.37               3.31                    68.80                  3.71
DEPERCATION                                   11.33                5.89                  118.66                  6.40
----------------------------------------------------------------------------------------------------------------------
Total fixed cost (B)                         105.94               55.09                  963.85                 51.98

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



                                                          63
                                                (Rs/lacs)            (Rs/T)             (Rs/lacs)            (Rs/T)-
----------------------------------------------------------------------------------------------------------------------
C.ALLOCATED FIXED COST
HO EXPENSES                                        29.93              15.56               333.88              18.01
INTREST IN C/C & OTHERS                             7.64                3.97                82.43               4.45
INTREST ON BONDS(old)                              0.00                0.00                  0.00              0.00
INTREST ON BONDS(new)                             12.12                6.30               133.83               7.22
INTREST ON ICICI DEBENTURE                         2.31                1.20                 53.58               2.89
INTREST ON GOVT LOAN                               0.00                0.00                  0.00               0.00
----------------------------------------------------------------------------------------------------------------------
Total allocated fixed cost(C)                     51.99               27.03               635.58               34.28
----------------------------------------------------------------------------------------------------------------------
Total cost (A+B+C)                               906.21              471.22              8749.69              471.87
----------------------------------------------------------------------------------------------------------------------




                                                         64
                SUB CENTRE :- OVER BURDEN




  Particulars                                            for March 07                         upto March 07

 Dept.over burden Removed(M3)                               158509.29                            1829037.92

  Cont.over burden Removed(M3)                               66557.99                            1109396.93
-----------------------------------------------------------------------------------------------------------------
                                                Value              Cost                Value               Cost
                                             (Rs/lacs)           (Rs/T)              (Rs/lacs)           (Rs/T)
-------------------------------------------------------------------------------------------------
A.VARIBLE COST
OPERATING MATARIALS
-explosives                                     29.39              18.54             352.74              19.29
-drill bits                                       0.33               0.21                3.59              0.20
-detonators                                       0.00               0.00               0.00              0.00
-others-tyre & tubes                             43.38             27.37             379.54              20.75
-other-diesel                                   83.44              52.64             889.05              48.61
-others-lubricants                               11.72               7.40            126.57                6.92
-others                                           0.94               0.59             19.71                1.08
SUB TOTAL                                      169.20              106.75           1771.20               96.84
STORES                                            7.69                4.85             53.09               2.90
SPARES (1/3)                                     28.60              18.04            264.47              14.46
POWER                                              9.20               5.80           184.29              10.08
INCENTIVES BONOUS                                 2.37                1.50            30.09               1.65
COMPRESSED AIR                                   14.03                8.85          167.44                 9.15
ROYALTY                                           0.00                0.00             0.00                0.00
AMORTISATION                                       0.00               0.00             0.00                0.00
OTHERS                                            4.95                3.13            55.73               3.05
-----------------------------------------------------------------------------------------------------------------
Total variable cost                             236.05             148.92            2526.31            138.12
-----------------------------------------------------------------------------------------------------------------

B.DIRECT FIXED COST
SALARIES & WAGES
-operations                                  17.30                10.92             203.62               11.13
-repairs & maintance                         22.91                14.45             269.40               14.73
SUB TOTAL                                    40.21                25.37             473.02                25.86
SPARES(2/3)                                  57.20                36.09             528.94               28.92
CONTRACTUAL REPAIRS                          44.96                28.37             308.59               16.87
CENTRAL SERVICES


                                                    65
-salary & wages                           8.11                 5.12                   95.40               5.22
-power                                    1.17                 0.74                   16.39                0.90
-stores & spares                         5.16                  3.26                   75.91               4.15
-others                                   0.00                 0.00                    0.00                0.00
SUB TOTAL                                14.44                 9.11                  187.70               10.26
MINES SERVICES
-salary & wages                          12.76                8.05                   150.03                8.20
-power                                    0.00                 0.00                     0.00               0.00
-stores & spares                          1.35                0.85                   142.54                7.79
-others                                   0.00                0.00                     0.00                0.00
SUB TOTAL                                14.11                8.90                   292.57               16.00
GENERAL OVERHEADS
-salary & wages                          20.22               12.76                   233.95               12.79
-power                                    0.62                0.39                     9.76                0.53
-stores & spares                          2.14                1.35                    28.96                1.58



-others                                   1.72                  1.09                    21.86               1.20
SUB TOTAL                                14.13                  8.92                   184.79              10.10
DEPRECIATION                             25.12                15.85                    318.70              17.42
-----------------------------------------------------------------------------------------------------------------
Total Fixed Cost (B)                    234.88          148.18                   2588.86            141.54
-----------------------------------------------------------------------------------------------------------------

C. Allocated Fixed Costs
HO EXPENSES                               0.00            0.00                         0.00               0.00
INTREST ON C/C &
  OTHERS                                  0.00            0.00                        0.00               0.00


-----------------------------------------------------------------------------------------------------------------
Total allocated fixed
  cost (c)                               0.00           0.00                        0.00              0.00
-----------------------------------------------------------------------------------------------------------------
Total cost (A+B+C)                     470.93          297.10                     5115.17             279.66
-----------------------------------------------------------------------------------------------------------------
Cont with blasting exp.                 135.47         203.54                    2268.47              204.48




                                                    66
SUB SECTION;- EXCAVATION



--------------------------------------------------------------------------------------------
Particulars                           for March 07                         up to March 07

Dept.Excavation (M3)                                     230000.00                            2510000.00

Cont.Excavation(M3)                                       74600.00                             1272346.00
-------------------------------------------------------------------------------------------------------------
                                               Value            Cost              Value              Cost
                                              (Rs/lacs)       (Rs/M3)            (Rs/lacs)         (Rs/M3)
--------------------------------------------------------------------------------------------
A.VARIABLE COST
OPERATING MATARIALS
-explosives                                    42.65             18.54             484.07            19.29
-drill bits                                      0.48              0.21               4.93             0.20
-detonators                                      0.00              0.00               0.00             0.00
-others ;tyres &tubes                           62.94             27.37            520.84            20.75
-other –Diesel                                121.08             52.64            1220.05             48.61
-other –lubricants                             17.01               7.40            173.69               6.92
-others                                         1.36               0.59             27.05              1.08
SUB TOTAL                                     245.52            106.75            2430.63             96.84
STORES                                         11.16                4.85            72.86               2.90
SPARES(1/3)                                    41.50              18.04            362.94             14.46
POWER                                          13.35               5.80            252.90             10.08
INCENIVES BONUS                                  3.44              1.50             41.29               1.65
CONT.DRILLING                                  20.35               8.85            229.78               9.15
ROYALTY                                          0.00              0.00               0.00              0.00
AMORTISATION                                     0.00              0.00              0.00               0.00
WATER                                            7.19             3.13              76.48               3.05
---------------------------------------------------------------------------------------------------------------
-Total variable Cost(A)                        342.51            148.92          3466.87             138..12
---------------------------------------------------------------------------------------------------------------
B.DIRECT FIXED COST.
SALARIES & WAGES
-operation                                     25.10             10.92            279.43               11.13
-Repairs & Maintenance                         33.24             14.45           369.70               14.73
SUB TOTAL                                      58.34            25.37             649.13               25.86


SPARES(2/3)                                   83.00             36.09            423.48               16.87
CONTRACTUAL REPAIRS                           65.24             28.37            423.48               16.87



                                                    67
---------------------------------------------------------------------------------------------------------------
                                      Value                 Cost                Value               Cost
                                     (Rs/lacs)            (Rs/M3)             (Rs/lacs)            (Rs/M3)
---------------------------------------------------------------------------------------------------------------
CENTRAL SERVICES
-salary & wages                         11.77               5.12               130.92                  5.22
-power                                    1.69               0.74                 22.49                 0.90
-stores & spares                         7.49                3.26              104.17                  4.15
-others                                   0.00               0.00                  0.00                 0.00
SUB TOTAL                               20.96                9.11               257.58                 10.26
MINES SERVICES
-salary & wages                        18.51                8.05                205.89                  8.20
-power                                   0.00                0.00                   0.00
-stores & spares                        1.96                 0.85               195.61                  7.79
-others                                  0.00               0. 00                  0.00                  0.00
SUB TOTAL                               20.47                8.90                401.50                 16.00
GENRAL OVERHEADS
-salary & wages                        29.35               12.76                321.05                 12.79
-power                                   0.90                0.39                 13.40                  0.53
-stores & spares                        3.10                1.35                 39.74                  1.58
-others                                  2.50               1.09                  30.00                  1.20
SUB TOTAL                              35.84               15.58                 404.19                 16.10
SOCIAL OVERHEADS
-salary & wages                         6.18                2.68                 74.10                   2.95
-power                                   8.73                3.80               109.75                    4.37
-stores & spares                        3.10                 1.35                39.74                   1.58
-others                                20.51                 8.92               253.59                   10.10
SUB TOTAL                              20.51                 8.92               253.59                   10.10
DEPRECATION                            36.45               15.85               437.36                   17.42
---------------------------------------------------------------------------------------------------------------
total fixed cost (B)                  340.82              148.18               3552.71                141.54

---------------------------------------------------------------------------------------------------------------
                                          Value               Cost             Value                Cost
                                      (Rs/lacs)            (Rs/M3)           (Rs/lacs)              (Rs/M3)
---------------------------------------------------------------------------------------------------------------
C.ALLOCATED FIXED COST
HO EXPENCES                                29.93             13.01              333.88               13.30
INTREST ON C/C & OTHERS 7.64                                   3.32              82.43                3.28
INTREST ON BONDS(old)                       0.00               0.00              31.86                3.28
INTREST ON BONDS (new)                     12.12              5.27              133.83                5.33
INTREST ON ICICI DEB.                        2.31              1.00                 53.58               2.13
INTREST N GOVT .LOAN                         0.00              0.00                  0.00               0.00


                                                    68
---------------------------------------------------------------------------------------------------------------
total allocated fixed cost (C)              51.99              22.60               635.58              25.32
---------------------------------------------------------------------------------------------------------------
total cost (A+B+C)                          51.99              22.60                635.58             25.32
---------------------------------------------------------------------------------------------------------------
cont with blasting exp.                   151.84              203.54               2601.66            204.48




]




                                                    69
SUB CENTRE :-               MILLING

MILLING



Particulars                                         For March 07                           Up to     March 07

Ore Milled                                               211284.00                               2154691.00
Metal Grade (%)                                               1.07                                     1.04
Metal in ore(MT)                                           2257.82                                 22305.79
Recovery (%)                                                 93.68                                    93.98
Metal in Concentrate                                      2115.18                                  20963.51

                                                 Value                 Cost               Value                 Cost
                                               (Rs/lacs)              (Rs/T)             (Rs/lacs)             (Rs/T)

A.INPUT MATARIAL COST
OWN ORE                                           958.66               453.73             9470.95               439.55
IUT ORE                                             0.00                0.00                  0.00                 0.00
------------------------------------------------------------------------------------------------------------------------
TOTAL INPUT MATARIAL COST (A) 958.66                                   453.73             9470.95               439.55
------------------------------------------------------------------------------------------------------------------------
OPERATING MATARIALS
-grinding media                                    129.33               61.21             1275.30                59.19
-pine oil                                             3.89               1.84                44.44                2.06
-xanthate                                             0.67               0.32                 6.62                0.31
-lime                                                 2.32               1.10                26.85                1.25
-others                                              7.00                3.31               30.62                 1.42
SUB TOTAL                                          143.21              67.78             1383.82                 64.22
STORES                                              33.42              15.82               183.00                 8.49
SPARES(1/3)                                         16.90               8.00              118.76                  5.51
POWER                                             178.80               84.63             1963.26                 91.12
INCENTIVES                                           4.89               2.32                58.70                 2.72
WATER                                               29.45             13.94                313.85                14.57
------------------------------------------------------------------------------------------------------------------------
Total Variable Cost (B)                            406.68             192.48              4021.39               186.63
------------------------------------------------------------------------------------------------------------------------
B.DIRECT FIXED COST
SALRIES & WAGES
-operation                                          25.11               11.88               279.29               12.96
-repairs & maintenance                              27.34               12.94               304.15               14.12
SUB TOTAL                                           52.45               24.82               583.44               27.08




                                                    70
SPARES (2/3)                                         33.80               16.00               237.53               11.02
CONTRACTUAL REPAIRS                                  22.76               12.90               182.52                8.47
CENTRAL SERVICES
-salary & wages                                        8.74               4.14                97.18                4.51
-power                                                 1.13               0.54                15.04                0.70
-stores & spares                                       5.01              0.00                  0. 00               0.00
------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------
-others                                                0.00              0.00                   0.00              0.00
SUB TOTAL                                             14.88              7.04                181.86               8.44
GENRAL OVERHEADS
-salary & wages                                       21.78            10.31                 238.31             11.06
-power                                                  0.60            0.28                     8.96              0.42
-stores & spares                                        2.07            0.98                  26.57               1.23
-others                                                 4.46            2.11                   51.35               2.38
SUB TOTAL                                              28.91           13.69                 325.19              15.09
SOCIAL OVERHEADS
-salary & wages                                         4.58            2.17                   55.01              2.55
-power                                                 5.84              2.76                  73.38               3.41
-stores & spares                                       2.07              0.98                  26.57             1.23
-others                                                4.46             2.11                   51.35              2.38
SUBTOTAL                                              16.95              8.02                 206.31               9.57
DEPRECTION                                             9.15             4.33                  109.84              5.10
------------------------------------------------------------------------------------------------------------------------
Total fixed cost (C)                                183.41            86.81                 1826.68              84.78
------------------------------------------------------------------------------------------------------------------------
C. ALLOCATED FIXED COST


HO EXPENSES                                           29.93           14.17                    333.88            15.50
INTREST ON C/C & OTHERS                                7.64           3.61                      82.43             3.83
INTREST ON BONDS(old)                                  0.00           0.00                      31.86             1.48
INTREST ON BONDS(new)                                 12.12            5.73                   133.83              6.21
INTREST ON ICICI DEB                                   2.31           1.09                      53.58             2.49
INTREST ON GOVT.LOAN                                   0.00           0.00                      0.00              0.00
------------------------------------------------------------------------------------------------------------------------
total allocated fixed cost (D)                      51.99           24.61                    635.58              29.50
------------------------------------------------------------------------------------------------------------------------
total cost (A+B+C+D)                               642.08          303.89                  6483.65             300.91
-------------------------------------------------------------------------------------------------------



                                                    71
COST CENTRE: CONCENTRATE




-----------------------------------------------------------------------------------------------------
Particulars                                                For March 07                          upto March 07
----------------------------------------------------------------------------------------------------------------------
ORE MILLED (MT)                                                 211284.00                              2154691.00
METAL GRADE (%)                                                         1.07                                    1.04
METAL IN ORE (MT)                                                  2257.82                                22305.79
RECOVERY(%)                                                           93.68                                    93.98
METAL IN CONCENTRATE(MT)                                          2115.18                                20963.51
CONCENTRATE(25%GRADE)                                             7478.33                                79066.10
----------------------------------------------------------------------------------------------------------------------
                                                   Value                Cost               Value               Cost
                                                 (Rs/lacs)             (Rs/T)            (RS/lacs)            (Rs/T)
----------------------------------------------------------------------------------------------------------------------
A.INPUT MATARIAL COST
OWN ORE                                            958.66             45323.03             9470.95        45178.25
IUT ORE                                               0.00                  0.00                0.00             0.00
----------------------------------------------------------------------------------------------------------------------
Total input material cost                          958.66             45323.03             9470.95        45178.25
----------------------------------------------------------------------------------------------------------------------
OPERATING MATARIALS
-grinding media                                     129.33              6144.15            1275.30          6083.41
-pine oil                                              3.89               184.05              44.44          211.99
-xanthate                                             0.67                 31.77                6.62           31.59
-lime                                                  2.32               109.76               26.85          128.06
-others                                               7.00                330.94              30.62           146.06
SUB TOTAL                                           143.21               6770.67            1383.82         6601.11
STORES                                               33.42               1580.01             183.00           872.95
SPARES(1/3)                                          16.90                798.99             118.76          566.52
POWER                                              178.80                 231.26               58.70         280.00
INCENTIVE BONUS                                        4.89               231.26               58.70         280.00
OTHER                                                 29.45              1392.50              313.85        1497.11
-----------------------------------------------------------------------------------------------------------------
Total variable cost (B)                             406.68              19226.75             4021.39       19182.81




                                                    72
B.DIRECT FIXED COST
SALARIES & WAGES
-operations                                     25.11              1187.13            279.29            1332.25
-repairs & maintenance                          27.34              1292.34            304.15            1450.87



SUB TOTAL                                        52.45              2479.47             583.44            2783.12
SPARES (2/3)                                    33.80              1597.98              237.53            1133.05
CONTRACTUAL REPAIRS                             22.76              1288.70              182.52              870.64
CENTRAL SERVICES
-salary & wages                                   8.74                413.17              97.18            463.54
-power                                            1.13                  53.57             15.04              71.74
----------------------------------------------------------------------------------------------------------------------
                                               Value                 Cost               Value                 Cost
                                             (Rs/lacs)             (RS/T)              (Rs/lacs)             (Rs/T)
----------------------------------------------------------------------------------------------------------------------
stores & spares                                 5.01                236.80              69.65             332.24
-others                                         0.00                   0.00              0.00                 0.00
SUB TOTAL                                      14.88                 703.54            181.86              867.52
GENERAL OVERHEADS
-salary & wages                                21.78               1029.80             238.31            1136.77
-power                                          0.60                   28.33             8.96                42.73
-stores & spares                                2.07                  98.04             26.57             126.76
-others                                         4.46                  210.82            51.35              244.96
SUB TOTAL                                      28.91                1366.99            325.19             1551.22
SOCIAL OVERHEADS
-salary & wages                                 4.58                 216.71             55.01             262.39
-power                                          5.84                  276.00            73.38              350.02
-stores & spares                                2.07                   98.04            26.57              126.76
others                                          4.46                 210.82             51.35              244.96
SUB TOTAL                                      16.95                  801.57          206.31                984.13
DEPRECIATION                                    9.15                  432.75           109.84               523.96
----------------------------------------------------------------------------------------------------------------------
Total fixed cost (C)                          183.41                8670.99           1826.68              8713.63


C.ALLOCATED FIXED COST
HO EXPENSES                                      59.86               2830.02            667.76             3185.34
INTREST ON C/C & OTHERS                          15.27                721.93            164.86              786.41
INTREST ON BONDS(old)                              0.00                 0.00             0.00                 0.00
INTREST ON BONDS(new)                            24.23               1145.53            267.66             1276.79
INTREST ON ICICI DEB.                             4.62                218.42            107.16              511.17


                                                    73
INTREST ON GOVT. LOAN                             0.00                    0.00              0.00               0.00
----------------------------------------------------------------------------------------------------------------------
Total allocated fixed cost (D)                   103.98                4915.90            1271.16           6063.68
----------------------------------------------------------------------------------------------------------------------
TANSPORTATION (E)                               182.69               8637.00             1746.54           8331.34


----------------------------------------------------------------------------------------------------------------------
TOTAL COST (A+B+C+D+E)                           1835.42             86773.67           18336.72          87469.71
-----------------------------------------------------------------------------------------------------




                                                    74
STATUS OF SHARE




       75
Share Holding pattern of H.C.L




                           76
Share Transfer System :

Share transfer requests received by the Company are processed and certificates
dispatched to the buyers within 30 days from the date of receipt as stipulated in Listing
norms of Stock Exchanges.




Distrubtion of Share Holding




                                           77
Stock Market Price Data :

Monthly high and low quotations of shares traded on The Bombay Stock Exchange
Limited (BSE) during the financial year was as follows :




                                          78
                               FINDINGS



All the section of finance department

(1) Follow same procedure [according to the rules of govt].and all their section are
linked with each other

(2) In each department centralized authority may finally pass for all the orders and
payments.


(3) In all the finance department Paper work is more so it is better to say that paper work
involve must.

(4) In finance departments authority may not be delegated to each and every person the
work is delegated to only efficient and experienced person .

(5) All the work is done as per rules and regulation and every step follow procedures.

(6) For every movement of activities they maintain the record so lots of paper work
followed here, so proof or evidence of any loop holes in activity easily recognized.

(7) Efficiency in work, accuracy in all work done, maintain discipline.

(8) On comparing the turn over, profit & loss of the company it is found that the company
turn over is good on the year 95-96,04-05,05-06 otherwise the company is in loss.

(9)The company internal resources is decrease year after year.

(10) The percentage of net profit of first, second, third fourth quarter is by 84.75%,
201.15%, 388.71%,36.82%.
(11) The company makes sales of various items namely Copper cathode, Copper CC rod,
Copper Sulphate, Copper Wire bar, gold, nickel, palladium, selenium, sulphur and
sulphuric acid.
(12) Under costing department cost sheet is prepared for Ore, Overburden, Excavation,
Milling, Concentrate and cost sheet is distributed to mainly director finance, DGM,
Advisor Finance, AGM(finance), GM.




                                             79
CONCLUSION




    80
                                CONCLUSION

Hindustan copper project [M.C.P] is a big organization. All the work is done very
efficiently and effectively. But some where its inefficiency was observed, Technology
which are used here is not efficient


(1) All the department in finance adopt same type of procedure so it is important that
Some research and development section is to be made by which work is to be done in
fast and effective manner.


(2) Authority for some important work also delegated to inefficient employee and by
which the employees are motivated and emphasized by the superior for best performance
and are rewarded for incentives and promotions.


(3) There are lots of old techniques       used in finance department of MCP       which
is time consuming and people working by those techniques take more time to do their
work so It is time consuming as well as there maintenance is more and there is also
wastage of money e.g., typewriter is used instead of computer.


(4) The organization has lots of paper work which take lots of extra time and there is
chance of misuse of important papers, documents etc, so there should be reduction in
paper work.


(5) Because it is a govt organization so discipline is not maintained in a proper way. The
organization should be more disciplined.


                                           81
(6) On the survey it is clear that the various internal resources and human resources of the
company decrease year after year and the main important resources which is man power
resources also decreases.
(7) On seeing the Profit & loss statement it is found that the loss is more as compare to
profit.
(8) By comparing the monthly high and low quotations of share traded on Bombay stock
exchange limited the price go high on the year August 2005 and low in October 2005.




                                            82
SUGGESTION




    83
                                      SUGGESTION



(1) Time consuming : every activity follow long procedure, and it take more time so
it is important to avoid such types of long procedure and adopt the short cut method.


(2) Money wastage : office and administration require lots of paper and administrative
things, by which the money were waste so it is necessary to adopt new types of methods
and technologies.


(3) Technology : It is important that out dated technology are not used for administrative
purpose.


(4) Jobs have limitation some times employees take more time to do small and same
type of work therefore the employees are also bored to do the same activities all the
time and their also efficiency decreases, and the   worker who is efficient in their work
do not work up to the mark. So in this types of situation such types of conditions are
made by which employee enjoy their work and not to be bore.


(5) Because it is a Government organization so employee can not fell any pressure in
regarding with their work, so as result they do not do their work properly, so this types of
situation also avoid.


(6) I the organization such types of environment is made which is not fill with politics
and diplomacy, and it is found that there are lot of unnecessary types of work is done in
the organization so this is also avoid.



                                            84
(7) On comparing the last ten year financial reports the loss is more as compare to profit,
so organization take some action on this.
(8) The success of organization depend upon their internal and man power resourses and
these resourses decrease year after year so the organization take some action on this also.


(9) Before delegated the authority to the worker it is important to give some training and
instruction to the worker by which he complete the work in effective manner. And in case
of accounts & cost sheet their should be a advisor or a guide who guide the new or
ineffective worker to whom work is delegated.




                                            85
ADVANTAGES & LIMITATION
      OF PROJECT




           86
     ADVANTAGES & LIMITATION OF
               PROJECT



ADVANTAGES


*. It helped me to increase my knowledge in management field while working within the
 organisation.


*. I got the practical knowledge by doing project in the company.


*. The working pattern of the organization is understood.


*. The behavior of colleagues , workers and managers is understood.


*. It helped me to analysis the different departments of the organisation.




                                            87
 LIMITATION OF THE PROJECT




*. Some times workers refused to corporate properly.


*. The environment of Malanjkhand Copper Project is full with diplomacy & politics.


*. Exact and update information can not be obtained or provided by the employee.


*. Response was not good by the people.


*. Lack of co-operative people in the organization.


*. Some times discussion take extra time, because the discussion was done with the
 permission of manager and for this appointment is required which is time consuming.




                                            88
BIBLOGROPHY




     89
                BIBLOGRAPHY



 Analysing of MCP department

 HCL monthly magazines

 Tamra Patari Magazines

 MCP notes (collection of different data of department)

 Websites of MCP

 Websites of HCL




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92
93
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