Project Report Ravindra Nath Rajput (Repaired)

A comparison of Procurement and Management of Indented Materials
for Captive Power Plant for smooth Operations between Adhunik Alloys
& Power Limited & Nalwa Steel & Power (Sponge iron and Power Plant)
Page
1
A
PROJECT REPORT
On

Submitted in the partial fulfilment for the award of Degree of Master of
Business Administration
(Operations Management)
SIKKIM MANIPAL UNIVERSITY, INDIA
Submitted by:
Ravindra Nath Rajput
EDUCATION CARE
(LC Code: 10601)
Bangalore(Karnataka)
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2
A
PROJECT REPORT
On

Submitted in the partial fulfilment for the award of Degree of Master of
Business Administration
(Operations Management)
SIKKIM MANIPAL UNIVERSITY, INDIA
Session 2014-2015
Guided by:
Shilpa Chourawar
& Sandeep Mishra
Submitted by:
Enrolment number: 1305001295
ITCG0502
MBACG0526
(SMUDE Registered Guide code as above)
Submitted to:
Senior Faculty (Operation Management)
EDUCATION CARE SMUDE
(LC Code: 10601)
Bangalore (Karnataka)
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3
DECLARATION
I Ravindra Nath Rajput, student of MBA IVth Semester in the year -2014-2015
hereby declare that, I have undergone the project work on

This project report is an original work carried out by me and the report
has not been submitted to any other University for the award of any
degree or diploma.

Enrolment no: 1305001295
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4
To whom it may concern
This is to certify that Ravindra Nath Rajput student of MBA IVth Semester
in the year 2014-2015 has undergone the project work on
Procurement and Management of Indented Materials for Captive Power

Plant for smooth Operations in Adhunik Alloys & Power Limited (Sponge
iron and Power Plant)
The subject matter of this thesis is a record of original investigations carried

out by the candidate .To the best of my knowledge; the contents of thesis did
not form a basis for the award of any previous degree to her or to any other
person.
The effort put by Ravindra Nath Rajput in the project is outstanding .The
findings of the project have been the greatest interest and use to us.
I wish to Ravindra Nath Rajput all success in his professional career.
Date: -28.03.15
(PGDBMR,Jodhpur)
Guide Name: Sandeep Mishra

SMUDE Registered Guide Code:MBACG0526
(Senior Faculty)
Akash Institute Of Management,Bilaspur (C.G)
SMUDE CODE:03250
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5
Place-Bilaspur
Examiners Certification
The project report of
Mr. Ravindra Nath Rajput
On
Procurement and Management of Indented Materials for Captive Power

Plant for smooth Operations in Adhunik Alloys & Power Limited (Sponge
iron and Power Plant)
Is approved and is acceptable in quality and form.
Internal Examiner:
External Examiner:
----------------------------
---------------------------
-------------------------------------------------------------------------
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ACKNOWLEDGEMENT
First and foremost, I thank almighty for keeping me hale and healthy for successful
completion of the project.
I express my respectful and sincere thanks to my guide Miss Shilpa Chourawar for
her kind words and continuous encouragement which has inspired me in completion of
the synopsis.
Her support provided a wonderful atmosphere which had enabled me to do not only this
project work but also the academic activities.After her marriage and moving to
Vadodara,Gujarat Sri. Sandeep Mishra guided with same zeal.
I express my deepest gratitude to HOD (Akash Institute of Management) to do this
project. I profoundly thank Mr. Sandeep Mishra (HOD, Operation Management) for
providing a great opportunity to do this project.
I am also taking the pleasure to express my sincere thanks to all other staff members of
Education Care for their kind co-operation.
Last but not least, I would like to convey my sincere gratitude to my parents and
friends, who have always been a source of inspiration towards the completion of this
project.
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7

Enrolment No - 1305001295
INDEX
S.No.
Contents
Page No.
1.
Introduction
10
1.1 About the company

1.2 .AN OP JINDAL GROUP COMPANY: STEEL
11
MANUFACTURER, WIRE ROD, BILLET,

SPONGE IRON, ISO 9001-2000, 14001
CERTIFIED COMPANIES
2.
Procurement of
Indented materials
17
18
2.1 Introduction to coal

2.2 PRODUCTION & CAPACITY
3.
Process Flow Chart

&
Organizational Flow Chart
3.1 EXCUTIVE SUMMARY
46
3.2 Process Chart
4.
49
61
Quality Analysis
4.1 QUALITY ASSURANCE
62
63
4.2 AWARDS & RECOGNITIONS
5.
45
Mode of Payment & Financial Results

& Data analysis
65
5.1 MODE OF PAYMENT OF STEEL
66
5.2 FINANCIAL RESULTS
67
5.3 ANALYSIS FINANCIAL POSITION OF THE
70
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8
COMPANY
6.
LOGISTICS
76
6.1 HUMAN RESOURCE
78
6.2 CSR
6.3 SUSTAINABILITY
7.
RESEARCH METHODOLOGY
7.1 RESEARCH DESIGN
79
81
82
7.2 DATA COLLECTION

7.3 RESEARCH INSTRUMENT
7.4 SAMPLING PLAN
7.5 SAMPLING UNIT
7.6 SAMPLE SIZE
7.7 FINDINGS
8.
CONCLUSION
87
9.
BIBLIOGRAPHY
88
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9
1.
INTRODUCTION
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10
1.1 About the company

Adhunik Group
Adhunik Group, the Rs.3,500 crore conglomerate, is one of the fastest growing groups in
India. It is engaged in mining, steel, power, and value added steel products, catering to a vast
and quality-focused customer base.
With a dependable and committed employees and a strong customer support, the Group has
emerged as a steady performer, undeterred even during cyclical fluctuations and
unsteadiness of the market. It has grown continuously, backed with strong financial
performance.
The Group has steel manufacturing facilities in Orissa and Jharkhand. Besides, it has a chain
of value-added products including carbon and alloy steel billets, auto-grade steel rolled
products, rounds and flats (4,50,000 TPA), TMT bars and wire rods (1,50,000 TPA), sponge
iron (5,10,000 TPA), pig iron (2,31,000 TPA), Ferro alloys products including Ferro
manganese, Silico manganese, Ferro silicon (50,000 TPA) and stainless steel products
(1,20,000 TPA).
The Group has embarked upon an ambitious expansion plan in the power sector. It is
implementing a 540 MW power plant in Jharkhand which is on the verge of completion. The
Group has also secured captive coal block for this 540 MW power It has an existing power
generation capacity of 64 MW which is being captively consumed.
In the mining sector, it has iron ore and manganese ore mines in Jharkhand and Odisha,
respectively. The Group has mining resources including iron ore, coal, manganese ore and
lime stone which are the key inputs of production. The Group has also set up 1.2 Million ton
Pellet and Beneficiation plant in Jharkhand to utilize the low grade iron ore fines and convert
them into value added product Pellet.
Over the years the Group has shown robust operational results and has an excellent track
record of growth and profitability.
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1.1.1 Adhunik Alloys & Power Limited

Adhunik Alloys & Power Limited (AAPL), a part of the Adhunik Group, located at
Kandra in Jharkhand, is an integrated steel plant based on Sponge Iron Technology.
AAPL has 2 x 350 TPD DRI Plant with an installed capacity of 220,000 M.T.P.A, a
Coal Washery of 1,000 TPD, a 30 MW Captive Power Plant, 2 x 30 ton Induction
Furnaces and a 2-strand Continuous Caster and Rolling Mill of 147,700 TPA.
The steel plant is based on green technology, where waste heat recovery of DRI and
washery rejects are used to generate green power. The plant has its own Railway
siding. The Company has also been allotted the North Dhandu Coal block in Latehar
district, Jharkhand. Allotment of iron ore mines is in an advanced stage of necessary
approvals and development. These resources are to be used on a captive basis for the
production of steel.
AAPL has adequate land for setting up full-fledged steel manufacturing facilities. It is
an ISO certified company and is concerned about the environment in and around the
plant area. AAPL has also been granted license by the Central Electricity Regulatory
Commission, New Delhi, for inter-state trading of electricity for selling the surplus
power.
After successful implementation of the initial phase, the group has taken up second
phase of expansion plan viz. setting up of Integrated Steel Plant for production of
high value added steel products, like Angles, Beams and Flats, to be utilized by the
Power & Telecommunication industries and their ancillaries. The company has
recently completed its second phase expansion as well by setting up 0.15 MT
integrated steel plant supported by Direct Reduced Iron (DRI) plant with an installed
capacity of 220,000 M.T.P.A., 30 MW captive power, private railway siding and a
coal feed washery.
The Company has also been allotted North Dhandu Coal block at Dist Latehar,
Jharkhand. Allotment of iron ore mines is also at various stages of necessary
approvals and development. With captive co-generation of power, private railway
siding and captive iron ore and coal mining rights, the current expansion project shall
assist in achieving low production cost, thereby allowing to withstand fluctuation in
sales prices in future due to cyclic nature of steel industry.
1.1.2 Vision of the company
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12
Our Vision
To attain leadership in all our businesses through a relentless pursuit of excellence,
while delivering superior value to our stakeholders.
Teamwork
Encourage a culture that promotes cohesive working and respect for each individual's
ability
Integrity
Demonstrate high standard of ethics, transparency and reliability in our conduct.
Courage
Encourage calculated risk taking and a quest for challenging goals.
Commitment to stakeholders
Continuously deliver superior value to all our stakeholders (employees, customers,
community and shareholders).
Customer Focus
Delight customers by consistently exceeding their expectations.
Trust
Build long lasting relationships with employees, customers, community and
shareholders based on trust.
Goal of the Company:
1. To be one of India's fastest growing conglomerates
2. To be among the top 5 in India across all our businesses
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3. To continuously identify and seize global opportunities for growth

4. To be one of the best places to work for
5. To contribute to society by delivering superior value to all our stakeholders
1.1.3 Captive Power Plant (CPP)
34 MW CPP has been set up for power generation from waste heat coming out from the
DRI plants and solid waste coming from coal washery and DRI plants.
The 34 MW captive power plant is generating 12 MW electricity using waste heat from
Adhunik's DRI plant and balance 22 MW solid waste from the DRI plant and coal
washery. The capacity calculation is as under:
Particulars
Existing 34 MW
Plant Installed Capacity (MW
34
No. of Working Hours per day
24
No. of Working Day per day
330
Annual Generation of Power (Mu)
269.28
Captive Power Plant will be to ensure availability of adequate electrical energy in a cost
effective manner utilizing primarily off gases and waste by-products of various modules.
Adhunik further plans to expand its captive power plant capacity to 79 MW by setting up
an additional 45 MW captive power plant.
1.2 .AN OP JINDAL GROUP COMPANY: STEEL MANUFACTURER, WIRE

ROD, BILLET, SPONGE IRON, ISO 9001-2000, 14001 CERTIFIED COMPANIES
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14
1.2.1 PREAMBLE
NALWA Steel And Power Limited is a part of the O.P. Jindal Group founded by the great
visionary Late Shri O.P. Jindal in 1952. The Group has emerged as one of the Largest
Steel Producer in the country and has been a symbol of Innovativeness and Excellence
right from its inception. It has taken over the Pole Position in the modern day steel
manufacturing sector. It is a Multi-Location, Multi-Product Group with diverse interest in
Mining, Steel, Coal, Diamond, Oil and Power. The Group has established its plants under
the name of Jindal Steel and Power Limited at Raigarh, Barbil, Patratu, Angul; Jindal
Power Limited at Raigarh; Jindal Steel Bolivia at, EI Mutun Bolivia in South America;
Jindal Petroleium Limited at India, Georgia and Bolivia; Jindal Stainless Ltd at Hissar
and Jajpur; JSW Steel Ltd at Bellary and Mumbai. Jindal Saw Ltd at Kosi and Mundra in
Gujarat.
The Group also acquired the development rights for 20 million tonnes of EI Mutun Iron
Ore Reserves in Bolivia (South America). This is the largest investment by an Indian
company in Latin America and also the largest foreign investment in a single project in
Bolivia. The company will invest US $2.1 billion over the next 8 years for mining and
setting up of an integrated steel plant with the capacity of 1.7 million tonnes per annum.
Our primary motto is Customer Satisfaction, Quality, Health, Safety and Environment.
The Group has also received the prestigious ISO 9001-2000, ISO 14001 standards of
accredition.
1.2.2 MISSION-N-VISION:NALWA Steel & Power Limited is committed to becoming a globally recognized name
as a quality, integrated steel manufacturer. Within the domain of its objectives, it is
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15
committed to maintaining world-class quality standards, efficient delivery schedules, and

competitive price and excellent after sales services.
2.
Procurement of
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16
Indented
materials
The main raw material for generation of power is coal.The prompt supply and
quality of coal is necessary for regular and required power for the plant.I, therefore,
decided to discuss the availability and quality of the coal required for captive power
plant.
2.1 Introduction to coal
Why is coal so important to everyday life in India? Coal is the Indias most abundant,
safe and secures fossil fuel -it is also clean and cost-effective
Abundant -extensive reserves of coal are present in many states.
Safe -coal is stable and hence the safest fossil fuel to transport, store and use.
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Secure -abundant reserves mean that coal users are guaranteed security of supply at
competitive prices; hence electricity supplies for industrial and domestic use are assured.
Clean -using current and new technologies, coal can be cleaned and burnt cleanly
throughout India.
Cost-effective -globally, coal is a competitive fuel for the generation of electricity,
without which modern life would be virtually impossible. It is the major energy source
for power generation worldwide.
Currently, some 63% of the electricity generated in India is produced from coal. Indias
iron and steel industry also depends on the use of coal -it is the principal form of reluctant
in the metallurgical industries.
The importance of other fossil fuels (oil and gas) and alternative energy sources (such as
nuclear and renewable) cannot be ignored. Today, none of these alternatives offers a
trouble-free, long-term economical source of energy. At current production levels, known
coal reserves are forecast to last over 200 years -significantly longer than known reserves
of oil or gas. However, all fossil fuel reserves are finite -they need to be used as
efficiently as commercially possible in order to conserve valuable resources.
Renewable energy sources, such as hydro, wind, solar, biomass, wave and tidal do
provide alternative sources for power generation. However, all face problems including
economic viability and environmental acceptability -with the exception of hydro, none
will offer meaningful energy supplies for several decades.
As the global population grows and as living standards improve in the developing world,
international demand for energy increases, often at a dramatic rate. Coal is the most
abundant, widely distributed, safe and economical fossil fuel available to meet this
escalating energy demand.
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18
Coal is a non-renewable fossil solid fuel formed by a series of natural geo-chemical

processes for the plant remains accumulated together with other sediments. It is a
combustible brown to black sedimentary rock, composed of heterogeneous components.
Coal characteristics
Coal is a combustible black or brownish-black sedimentary rock usually occurring in
rock strata in layers or veins called coal beds or coal seams. . Coal is composed primarily
of carbon along with variable quantities of other elements, chiefly hydrogen, sulfur,
oxygen, and nitrogen.
Throughout history, coal has been a useful resource for human consumption. It is
primarily burned as a fossil fuel for the production of electricity and/or heat, and is also
used for industrial purposes such as refining metals. Coal forms when dead plant matter
is converted into peat, which in turn is converted into lignite, then anthracite. This
involves biological and geological processes that take place over a long period of time. 2
C + O2 ---> 2 CO + heat ; 2 CO + O2 ---> 2 CO2 + heat.
Coal, a fossil fuel, is the largest source of energy for the generation of electricity
worldwide, as well as one of the largest worldwide anthropogenic sources of carbon
dioxide releases.
Destructive distillation of coal gives gaseous fuels, Pyroligneous acid having methanol
and acetic acid and aromatic hydrocarbons.
Coal Demand & Supply
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20
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21
Future Outlook of coal

The U.S., Russia, Australia, China, India and South Africa have the largest coal reserves
in the world. Coal is produced in 25 states in the U.S. though the bulk of current
production takes place in just five states: Wyoming, West Virginia, Kentucky,
Pennsylvania and Montana.
According to estimates by the Energy Information Administration (EIA), the countrys
current coal reserves will last for 168 years at current production rate. They will most
likely last even longer with environmental issues coming in the way. However, if the
fuels environmental standing can be improved, there could potentially be new sources of
end-market demand in the future, in the communications and transportation systems,
computer networks and even space expeditions.
As per the World Coal Association, proven global coal reserves will last nearly 112 years
at current production rates. On the other hand, proven oil and gas reserves are projected
to last around 46 years and 54 years respectively at current production levels. Asia is the
biggest coal market and presently accounts for 67% of the global coal consumption.
Coal Dominates U.S. Power Generation: Coal as a major source of fuel for power
generation dominates the Utility industry. Coal is used to generate about half of the
electricity consumed in the U.S. and is also the largest domestically-produced source of
energy. Electricity generation absorbs about 93% of total U.S. coal consumption. The
reason is simple: coal is by far the least expensive and most abundant fossil fuel in the
country, though the emergence of large shale natural gas reserves is expected to pose
tough competition going forward.
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The EIA report also suggests U.S. coal production will increase by 1% in 2013 and 1.3%
in 2014, primarily due to an expected rise in natural gas prices from 2012 levels. The
relative increase in US natural gas price, compared to coal, will also increase the share of
coal in electricity generation. The EIA report suggests coals share in electricity
generation in 2013 will reach 39.5%, up from 37.4% in 2012.
Admittedly, the dominance of coal as a source of electricity generation has diminished
with the availability of other fuel sources. However, as per an EIA report, coal will
continue to be the major source of electricity generation in the U.S. until 2035.
In contrast, petroleum and nuclear power as sources of power generation have been
losing market share, displaced by the strong growth of renewable sources of generation
and natural gas-fired generation. Petroleum is losing out to coal because it is becoming
increasingly expensive. After the Japan earthquake/tsunami in 2011, nuclear powers
contribution to total energy generation has declined from the prior year.
Not Just Electric Generation: Electricity generation is just one use of coal in the U.S.
Manufacturing plants and industries use coal to make chemicals, cement, paper, ceramics
and metal products, to name a few. Methanol and ethylene, which can be made from coal
gas, are used to make products such as plastics, medicines, fertilizers and tar.
Certain industries consume large amounts of coal. For example, concrete and paper
companies burn coal, and the steel industry uses coke and coal by-products to make steel
for bridges, buildings and automobiles.
Coal as an Input for Steel Industry: Due to its heat-producing feature, hard coal
(metallurgical or coking coal) forms a key ingredient in the production of steel. Nearly
70% of global steel production depends on coal. Any improvement in the production of
steel will also bring in fresh demand for coking coal. In Feb 2013 global steel production
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increased 1.2% year over year. ??Global steel demand in 2013 is expected to improve
marginally from 2012 levels, which will benefit the coal industry.
Coal Analysis
AProximate Analysis
Design
Coal
Worst
Coal
Best Coal
Fixed Carbon
31.00% 27.00% 42.00%
Volatile matter
22.00% 18.00% 27.90%
Ash
36.00% 40.00% 21.00%
Moisture
11.00% 15.00% 9.10%
GCV (kCal/kg)
4200
3800
4900
Carbon
43.10
%
38.00
%
53.90 %
Hydrogen
2.85 %
2.50 %
3.00 %
Nitrogen
0.9 %
0.50 %
1.20 %
Sulphur
0.4 %
0.60 %
0.30 %
Moisture
11.0 %
15.00
%
9.10 %
Oxygen
5.75 %
3.40 %
11.50 %
BUltimate Analysis
)
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Ash
36.00
%
40.00
%
21.00 %
GCV (kCal/kg)
4200
3800
4900
CHandgrove Index
50
45
55
DInitial Deformation
1170
PoPC
1170P
oP
C
1170P oPC
Hemispheric temp.
1300
PoPC
1300P
oP
C
1300P oPC
Flow
1400
PoPC
1400P
oP
C
1400P oPC
)
)
temp.
ANNEXURE 2
Input Data from other interfacing systems
Coal consumption
Item
1600MW
3600MW
6600MW
345.7
1037.1
2074.2
Hourly worst coal consumption(t)
386.7
1160.1
2320.2
Daily design coal consumption (t)
8296.8
24890.4
49780.8
Daily worst coal consumption(t)
9280.8
27842.4
55684.8
Annual design coal consumption(t) 3028332
9084996
18169992
Annual design coal consumption(t) 3387492
10162476
20324952
Hourly design coal consumption

(t)
In which daily operation time of unit will be 24 hours, the annual operation time of
unit will be 8760 hours.
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ANNEXURE - 3
DESIGN METHODOLOGY & SAMPLE CALCULATIONS
1. CAPACITY OF BELT CONVEYOR:

QBMAXB=KBP2Pv (t/h)
QBMAXB-------Maxmium capacity of belt conveyor
K-----------Factor for cross section of belt conveyor
v----------- Speed of belt conveyor
------------Coal density
1.1 All belt conveyors in CHP system (except C-2ABCD belt conveyors)
B=1400mm
K=415
v=3.0m/s =0.8t/mP3P
QBMAXB=4151.4P2P3.00.8
=1952.16 t/h
QBratedB=1800 t/h
1.2 C-2ABCD belt conveyors
B=1800mm
K=425
v=2.0m/s =0.8t/mP3P
QBMAXB=4251.8P2P2.00.8
=2203.2 t/h
QBratedB=1800 t/h
2. CAPACITY OF TRACK HOPPER:
Q=SL
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26
Q---------Capacity of track hopper

S----------Area of track hopper for coal storage
L----------The effective length of track hopper
----------Coal density (0.8t/mP3P)
The cross section of track hopper:
The hatched area in right drawing is the area
for coal storage.
The hatched area is about 34.52mP2P
Q=SL
=34.522400.8
=6628 t
CAPACITY OF COAL STORAGE YARD:
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27
3.1 Layout of coal storage yard
3.2 Capacity of coal storage yard in contact

Hourly coal consumption for six units at BMCR state: 2074.2 t/h
Daily coal consumption for six units at BMCR state: 2074.224=49780.8 t/d
15 days coal consumption for six units at BMCR state:49780.815=746712 t
3.3 Calculation for coal storage yard
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28
Volume of coal pile: V=[ab+aB1BbB1+abB1aB1b0.5B]h/3

=[37250+34119+(3725034119)0.5] 133
=156246mP3
Capacity of coal pile: QB1B=V
(-----Coal density, 0.8t/mP3P)
=1562460.8
=124996.8 t
Capacity of six coal pile: Q=6 QB1B
=6124996.8
= 749980.8 t
ANNEXURE 4
EQUIPMENT DATA SHEETS, AS REQUIRED
LIST OF MAIN EQUIPMENT AND MATERIAL
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29
No.
1
1.
1
1.
2
2
DESIGNATION
TYPE AND
UN QT
REMAR
SPECIFICATION
IT
Y.
KS
Coal unloading equipment

Paddle feeder
Q=1080t/h
set
Compressed air system
Pressure 7kg/cmP2P , capacity

set
5NmP3P/min
Coal storage equipment

Bucket wheel
stacker/reclaimer
2.
Stacking capacity 1800t/h,

reclaiming capacity 1800t/h
slewing radius 40m
2. Bulldozer
220hp
2
3
set
set
11
The
reclaimin
g bucket
wheel
will be of
hydraulic
drive
Conveyor system
C-1ABCD belt conveyor B=1400mm,V=3m/s
Q=1800t/h, LBhB=303.500m
3.
set
3. C-2ABCD belt conveyor B=1800mm,V=2m/s

set
2
Q=1800t/h, LBhAB=188.000m,
LBhBB=202.000m,
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30
The head
of C-1
belt
conveyor
will be
fourposition
telescopic
device.
TYPE AND
UN QT
REMAR
SPECIFICATION
IT
Y.
KS

3
Q=1800t/h, LBhB=93.950m,
set

4
Q=1800t/h, LBhB=122.750m,
set

5
Q=1800t/h, LBhB=122.750m,
set

Q=1800t/h, LBhAB=76.250m,
3.
LBhBB=76.250m,
6
LBhCB=69.250m,
LBhDB=69.250m
set

Q=1800t/h, LBhAB=622.441m,
3.
set
LBhBB=624.254m,
7
LBhCB=626.741m,
LBhDB=625.629m
No.
DESIGNATION
LBhCB=202.000m,
LBhDB=188.000m
3. C-8AB belt conveyor
3. C-8CD belt conveyor

9
3.1 C-9CD belt conveyor
B=1400mm,V=3m/s
Q=1800t/h, LBhAB=281.320m, set
LBhBB=284.820m,
B=1400mm,V=3m/s
Q=1800t/h, LBh=B152.450m
set
B=1400mm,V=3m/s
set
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31
No.
DESIGNATION
TYPE AND
UN QT
REMAR
SPECIFICATION
IT
Y.
KS
B=1400mm,V=3m/s
Q=1800t/h, LBh=B161.350m
set
B=1400mm,V=3m/s
Q=1800t/h, LBh=B278.200m
set
Q=1800t/h, LBh=B278.900m
3.1 C-10AB belt conveyor
1
12

12
C-12 belt conveyor
B=1400mm,V=3m/s
Q=1800t/h, LBh=B278.200m
The head of
C-12 belt
conveyor
will be
fiveposition
telescopic
device.
set
The head of
C-13 belt
conveyor
will be
fiveposition
telescopic
device.
set
set
13
C-13 belt conveyor
B=1400mm,V=3m/s
Q=1800t/h, LBh=B482.000m
3.
14
3. C-14 belt conveyor
B=1400mm,V=3m/s
Q=1800t/h, LBh=B482.000m
3.
15
set
B=1400mm,V=3m/s
Q=1800t/h, LBh=B482.000m
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32
The head of
C-14 belt
conveyor
will be
fiveposition
telescopic
device.
4
Coal processing equipment

Crusher and isolation
4.
set
set
set
Disc magnetic separator Fit for B=1800mm belt

conveyor, magnetic strength
120mT
set

120mT
set

120mT
set
Inlet size300mm, outlet

size30mm
4.
Screen
4. Buffering drum
5
5.
5.
2
5.
2
Roller type, capacity 1800t/h,

Inlet size300mm, outlet
size30mm
Ring hammer type, capacity

1800t/h,
Capacity 1800t/h
Iron removing, weighing and sampling equipment
Page
33
5.
3
Belt magnetic separator Fit for B=1400mm belt

120mT
set
5. Metal detector
Fit for B=1800mm belt

conveyor
set
5. Metal detector
5

conveyor
set
5. As-received sampling
6
device

conveyor
set
5. As-fired sampling
7
device

conveyor
set
5. Belt scale

conveyor
set
5. Test-chain calibrator

conveyor
set
set
80
set
20

conveyor
set
6. Buffering and dust4

locked device

conveyor
set
12
9
6
Other equipment in coal handling system
6. Plough discharger
1

conveyor Q=1800t/h
6. Motor driven three way Fit for B=1400mm belt

2
diverter
conveyor, 10001000mm
6. Water scrapper
Material
Page
34
Used for
making coal
to ~18 hoppers,
0
coal chutes
n
and support
or brackets
Steel
7.
1
7.
LIner
10mm thickness stainless steel
Lined in
m ~75 coal hoppers
and coal
P2P 0
chutes
2.2 PRODUCTION & CAPACITY

We have 6 Coal-based Kilns wherein Sponge Iron is being produced with Fe-Metallic of
more than 80% since it uses its own iron ore and coal. The Steel Making division consists
of 4 medium frequency Induction Furnaces of 12MT each. It has LRF facility to refine
the metal. We have a 3 strands continuous casting machine with the capacity to produce
Billets of 100 mm to 130 mm. The unit is relentless effort in technological up gradation,
seamless integration in facilities and processes has enabled it to produce a wide range of
grades in diverse shapes like TMT Bars from 8.0 mm to 32.0 mm in Fe 415, Fe 500, Fe
550 and Fe 415D, Fe 500D, Fe 550D grades. Wire Rod coils of multiple grades conform
to national and international standards, meeting the stringent demands of the discerning
customers.
2.2PRODUCTS:2.2.1 SPONGE IRON
Page
35
At NALWA Steel And Power Limited, Coal-based sponge iron is manufactured using 6
indigenously developed rotary kiln, with a capacity of 1,98,000 MT Per annum. Growth
and Expansion plans include an additional 1,98,000 TPA capacity of Sponge Iron with the
commissioning of 6 rotary kilns.
2.2.2BILLET/INGOT
We have Medium Frequency Induction Furnaces. The metal is cleaned by ladle refining
furnace of 7.2 MVA power. With the help of 3 strands continuous casting machine, we are
capable of producing the highest quality Billets from 100 mm* 100 mm to 130 mm.
2.2.3WIRE ROD:-
Page
36
Size : 5.5, 6.0, 6.5, 7.0, 8.0, 10.0, 11.0, 12.0mm

Tolerance : As per Indian Standards IS: 1832
Controlled Cooling through STELMOR Process.
2.2.4 THERMOS MECHANICAL TREATMENT (TMT):-
THERMOS MECHANICAL TREATMENT (TMT)is a combination of Plastic

deformation of steel in austenitic stage followed by quenching and further
tempering. In this process, the structure of hardened and tempered steel is formed
under conditions of high dislocation density due to strain hardening. The Thermo
Mechanical Treatment provides a large margin of ductility and better structural
strength. It raises the impact strength at room and low temperature and lowers the
cold shortness threshold, susceptibility to temper brittleness. The dislocation formed
in austenite during mechanical working in its austenitic state is inherited after
Page
37
hardening in martensite.
Process :TEMPCORE (CRM-Belgium)
Size : Round 8.0mm, 10.0mm, 12.0mm, 16.0mm, 20.0mm, 25.0mm, 28.0mm,
32.0mm
Grade : 1786-2008
2.2.5 POWER:-
Power is a fundamental component with ubiquitous presence and high significance.

Every Nation, whether developed or developing, strives to expand its power
resources. It plays a pivotal role in keeping the economy moving, from
infrastructural development to various industrial, commercial and domestic
applications.
Contributing immensely to the growing power needs, we have taken a quantum leap
in this core sector. We harbor a vision to provide adequate energy and hence make
significant contribution in setting a right pace of the country's economy. With high
spirits and great performing capabilities, we have already embarked on a journey
towards 'Power Sufficient India'. Owing to our innovative and pro-active approach
towards power generation, our engineers have installed a 24MW power plant. This
power plant will meet our captive requirements by using waste heat from the rotary
kiln boilers and the coal rejects of the washery.
Page
38
2.2.6 Rolling Mill
With a capacity of 220,000 TPA, the Rolling Mill has been set up for the
manufacturing of rolled products for automobile and engineering sector.
Considering the fact that Alloy & Stainless Steel blooms require quick heating (to
avoid decarburisation) and thorough soaking to achieve trouble free rolling, a Top &
Bottom Fired Walking Beam Type Reheating Furnace has been set up in the Rolling
Mill. The installed capacity of the rolling mill (with 45 TPH re-heating furnace) is
220,000 TPA.
Annexure-II
The estimated cost of the project based on October 2013 price level is as follows
Considering 50% funding from World Bank and 50% funding as Grant from DONER/GOI
(Rupees in crores)
TRANSMISSION
SYSTEM
(Part-A)
DISTRIBUTION
SYSTEM
(Part-B)
TOTAL
NER POWER SYSTEM IMPROVEMENT PROJECT TRANCHE-I : MANIPUR

TRANSMISSION /
DISTRIBUTION
SYSTEM COST
175.79
150.88
326.67
CONTINGENCIES
5.28
4.53
9.81
Page
39
IDC
12.01
10.31
22.32
CONSULTANCY FEES
24.41
20.96
45.37
217.49
186.68
404.17
TOTAL:
ANNEXURE-1.0
ABSTRACT COST ESTIMATE

(BASE COST)
NER POWER SYSTEM IMPROVEMENT PROJECT TRANCHE-I

MANIPUR PART A TRANSMISSION / SUB TRANSMISSION SYSTEM
(DEPOSIT WORK FOR DONER)
(Cost updated to OCTOBER 2013 Price level)
Sr.
NO.
A
B
C
D
DESCRIPTION
Preliminary Survey & Investigation (Annex 1.1)
Land Acquisition for substation and R&R Compensation (Annex 1.1)
Cost of Compensation for Transmission Lines (Annex 1.1)
i) Compensation towards crops, tree & PTCC
ii) Compensation towards Forest
Civil Works (Annex 1.1)
i) Infrastructure for substation
ii) Non Residential building
iii) Colony for trans. Lines & substations
Equipment (Supply & Erection) Cost
a) Trans lines
b) Sub-stations
c) Voice & Data connectivity
Sub-total (A to E)
Contingencies (@ 3% of F)
TOTAL COST EXCL. CONSULTANCY FEES
POWERGRID CONSULTANCY FEES @12% & SERVICE TAX

THEREON
TOTAL PROJECT COST INCL CONSULTANCY FEES
Interest During Construction (IDC) on loan portion
AMOUNT
(Rs. in crs)
0.89
3.50
14.50
5.36
6.96
3.10
18.44
59.93
52.85
10.25
175.79
5.28
GRAND TOTAL
181.07
24.41
205.48
12.01
217.49
Page
40
Note:
1. The Project is proposed to be partly funded by the World Bank (50%) and the balance
through Grant from GOI (50%). Hence IDC has been calculated for loan portion (50% of
project cost incl consultancy fees) only
2. The above cost is inclusive of voice & data connectivity amounting to Rs. Rs. 10.25 cr
3. The above cost includes
i) Land Acquisition for SS and R&R compensation
Rs. 3.50 cr
Rs. 5.36 cr
ANNEXURE-1.0 B
ABSTRACT COST ESTIMATE

(BASE COST)
NER POWER SYSTEM IMPROVEMENT PROJECT TRANCHE-I

MANIPUR PART B DISTRIBUTION SYSTEM
(DEPOSIT WORK FOR DONER)
(Cost updated to OCTOBER 2013 Price level)
Sr.
NO.
A
B
C
D
DESCRIPTION
Preliminary Survey & Investigation
Land Acquisition for substation and R&R Compensation
Cost of Compensation for Transmission Lines
i) Compensation towards crops, tree & PTCC
Civil Works
i) Infrastructure for substation
ii) Non Residential building
iii) Colony for trans. Lines & substations
AMOUNT
(Rs. in crs)
0.06
6.50
0.56
2.20
6.03
Equipment (Supply & Erection) Cost

a) Trans lines (Annex-1.2B)
b) Sub-stations (Annex- 1.3B)
c) Voice & Data connectivity (Annex- 1.4B)
15.67
109.34
10.53
Sub-total (A to E)
150.88
Contingencies (@ 3% of F)
TOTAL COST EXCL. CONSULTANCY FEES
POWERGRID CONSULTANCY FEES @12% & SERVICE TAX

THEREON
TOTAL PROJECT COST INCL CONSULTANCY FEES
4.53
Page
41
155.41
20.96
176.37
Interest During Construction (IDC)*
10.31
GRAND TOTAL
Note:
186.68
1. The Project is proposed to be partly funded by the World Bank (50%) and the balance
through Grant from GOI (50%). Hence IDC has been calculated for loan portion (50% of
project cost incl consultancy fees) only
2. The above cost is inclusive of voice & data connectivity amounting to Rs. Rs. 10.53 cr
3. The above cost includes
i) Land Acquisition for SS and R&R compensation
Rs. 6.50 cr
Rs. 2.20 cr
SALIENT FEATURES OF THE ELECTRICITY ACT, 2003

Objective: An Act to consolidate the laws relating to generation, transmission, distribution, trading
and use of electricity and generally for taking measures conducive to development of electricity
industry, promoting competition therein, protecting interest of consumers and supply of electricity to
all areas, rationalization of electricity tariff, ensuring transparent policies regarding subsidies,
promotion of efficient and environmentally benign policies, constitution of Central Electricity
Authority, Regulatory Commissions and establishment of Appellate Tribunal and for matters
connected therewith or incidental thereto
PART-I: This part deals with the jurisdiction of the law and important definitions
PART-II: This part deals about National Policy and Plan to be prepared by Central Govt. in
consultation with state Govt. National Policy and National Electricity plan needs to be published in
Gazette / News paper once in 5 years.
PART-III: This part deals about generation of electricity
Generating company and requirement for setting up of generating station
Hydro-electric generation
Captive generation
Duties of generating companies
Directions to generating companies
PART-IV: This part deals licensing for transmission of electricity, distribution and undertaking trading
in electricity.
1. Authorised persons to transmit, supply, etc. electricity
2. Power to exempt
3. Grant of license
4. Procedure for grant of license
5. Conditions of license
6. Licensee not to do certain things
7. Amendment lf license
8. Revocation of license
9. Sale of utilities of licensees
10. Vesting of utility in purchaser
11. Provisions where no purchase takes place
12. Directions to licensees
Page
42
13. Suspension of distribution license and sale of utility

PART V: This part deals transmission of electricity including inter-state, regional and inter-regional
transmission system.
14. Inter-State, regional and inter-regional transmission
15. National Load Despatch Centre
16. Constitution of Regional Load Despatch Centre
17. Functions of Regional Load Despatch Centre
18. Compliance of directions
19. Intra-State transmission
20. Transmission within a State
21. Constitution of State Load Despatch Centres
22. Functions of State Load Despatch Centres
23. Compliance of directions
24. Grid Standards
25. Intervening transmission facilities
26. Charges for intervening transmission facilities
27. Directions by Appropriate Government
28. Central Transmission Utility and functions
29. State Transmission Utility and functions
30. Duties of transmission licensees
31. Other business of transmission licensee
PART-VI: This deals with provisions of distribution of electricity with respect to distribution licensee
32. Duties of distribution licensee and open access
33. Duty to supply on request
34. Exceptions from duty to supply electricity
35. Power to recover charges
36. Power to recover expenditure
37. Power to require security
38. Additional terms of supply
39. Agreements with respect to supply or purchase of electricity
40. The Electricity Supply Code
41. Other businesses of distribution licensees
42. Provisions with respect to electricity trader
43. Control of transmission and use of electricity
44. Use, etc. of meters
45. Disconnection of supply in default of payment
46. Standards of performance of licensee
47. Different standards of performance by licensee
48. Information with respect to levels of performance
49. Market domination
PART-VII: This chapter deals about terms and conditions for the determination of tariff.
50. Tariff regulations
51. Determination of tariff
52. Determination of tariff by bidding process
53. Procedure for tariff order
Page
43
54. Provision of subsidy by State Government

55. Development of market
PART-VIII: This part deals work of licensees includes provision as to opening up of streets, railways
etc., overhead lines, notice to telegraph authority.
56. Provision as to opening up of streets, railways, etc
57. Overhead lines
58. Notice to telegraph authority
PART-IX: This part deals about constitution and functions of Central Electricity Authority
PART-X: This part deals about Regulatory Commissions and its constitution, power and functions of
central commission
PART-XI: This part deals about appellate tribunal for electricity
PART XII: This part deals about investigation, enforcement of assessment for electricity consumed
by consumer by State Govt. or board or licensee.
PART XIII: This part deals about reorganization of Electricity Board
PART XIV: This part deals mainly about offences and penalties for misusing/theft of electricity.
PART XV: This part deals constitution of special courts for the purpose of providing speedy trial of
offences referred to in sections 135 to 139
PART XVI: This part deals mainly resolution of dispute by arbitration under this Act.
PART XVII: This part deals mainly protection of railways, highways, airports and canals, docks,
wharfs and piers, protection of telegraphic, telephonic and electric signalling lines, amendment of
sections 40 and 41 of Act 1 of 1894
PART XVIII: This part mainly deals miscellaneous matter includes following:
59. Coordination Forum
60. Exemption of electric lines or electrical plants from attachment in certain cases
61. Protection of action taken in good faith
62. Members, officers, etc., of Appellate Tribunal, Appropriate Commission to be public servants
63. Recovery of penalty payable under this Act
64. Services of notices, orders or documents
65. Transitional provisions
66. Inconsistency in laws
67. Act to have overriding effect
68. Provisions of this Act to be in addition to and not in derogation of other laws
69. Power of Central Government to make rules
70. Powers of Authority to make regulations
71. Powers of Central Commission to make regulations
72. Rules and regulations to be laid before Parliament
73. Powers of State Governments to make rules
74. Powers of State Commissions to make regulations
75. Rules and regulations to be laid before State Legislature
76. Power to remove difficulties
77. Provisions of Act not to apply in certain cases
Page
44
78. Repeal and saving

The Electricity Act, 2003 does not explicitly deal with environmental/social implications of activities
related to power transmission/distribution project other than, section 68 (5 & 6) and or Section 67 of
the Electricity Act 2003 which provides the basis for compensation to be paid for any damages.
However, the applicable legal provisions under Section 68 of EA, 2003
Prior approval of the Govt. of Manipur (GoMan) u/s 68(1) of EA, 2003 is a mandatory
requirement to undertake any new transmission/Sub-transmission project (33kV& above)
MSPCL is a deemed licensee after corporatization & takes authorization U/Section 164 of EA, 2003
from GoMan.
Page
45
3.
Process Flow Chart
&
Organisational Flow
Chart
Page
46
3.1 EXCUTIVE SUMMARY :My Project work is study offinancial performance of the company and all working
procedure on day to day basis. Therefore I came in Account &Finance Department and
study following things.
Firstly I learn here overall knowledge about how any steel industry works and how all
the plants are managed.
2) For acquiring over all knowledge of production process we visited all plants.
1)
3) After that we visited all commercial department like Purchase ,Store ,Marketing
,Personnel, all thedepartment is related to each other and A/C&Finance department is
like the blood of the body means all department financial activities are accounted
for,controlled and feedback is given to concerned department and to the higher
management by this department.
4) I have conducted my project work in the following sequences:I. Review of organization chart
II. Visits of the plant and acquire knowledge of production procedure.
III. Visit of all commercial departments we have knowledge of working
Procedurechecking ofdocuments in respective departments.
IV. Study of Balance Sheet and Profit&Loss a/c and financial analysis.
V. Discussion of projectreport.
1. ORGANIZATION CHARTThe organization chart provided by the
companyExpress the organizational structure- departments and authorityLevels in the
company.I have reviewed the organization chart and actualWorking system during the
course of checking of documents, transactionIn the commercial departments I found
that authority levels as depicted in The organization chart is all most in practice The
organization chart of the Company refer annexure 1
Page
47
2. VISIT IN ALL THE PLANTS-In factory to have brief knowledge of mechanical

and production process and consumption of major row materials .the major row
material consumptions and finished goods produce:Raw material
1. Iron Ore
2. Coal
3. Dolomite,
4. Sponge Iron
5. Pig Iron
6. End, Cuts,
7. Skull,
8. M.S. Scrap
9. Billets
10. Oxygen
11. Coal
Finished Goods
Sponge Iron
Billets
Wire rod .TMT

Power for captive consumption
Process chart is executed in annexure 2

3. VISIT IN ALL COMMERCIAL DEPARTMENT: -commercial activities are
carried out mainly by accounts, purchase, Sales, personnel and store departments in
brief their working procedure are stated below
a) PURCHASE DEPARTMENT:The department is headed by G.M. assisted by AGM , Manager and executive.
Maximum, minimum level items indents are received from store department. On
the basis of indents received from user department materials are procured from
approved supplier on lowest quotation accept( for proprietary items) basis where
orders are noted on lowest quotation basis, proper reason are stated on
comparative chart and sanction is obtained from competent authority before
placing the orders .Activity chart of the department is stated in annexure 3.
Page
48
a) STORE DEPARTMENT:The department is headed by senior manager assisted by AGM and Executive.The
materials are received by road transportation. At the time of entry in factory gates it
is verified by security department that dispatches are against a valid purchase order
otherwise entry of materials are not allowed .On party challan/bill accompanying
the materials gate entry no. is marked on the back side of the documents. There
after the materials are send for weighment. A weighment ticket is issued by
weighment dept. The ticket contains details of truck no, gross weight supplier
name. The ticket is handed over to the truck driver. The driver hands over the
documents to receipts section of store department.Receipts section examines the
validity of documents.
After examining the validity of documents, Laboratory dept isinformed for taking
samples of material -raw material, chemicals etc. where quality Quantity can be
ascertained by lab test and bulk/ heavy material are unloaded at consumption site.
Other materials are unloaded in store and units of material as per challan are
verified in store dept. There after authorized person inspects the material- matches
Page
49
with drawings, prescribed norms by govt. agencies if any eg. IBR certificates
etc .Discrepancies is stated on challan /bill and supplier is informed in writing.
GRN (goods receipt note) is prepared of accepted quantities and material are
storedin store dept. at there decided place. Materials are issued to user dept. on the
basis written requisition. The activity chart stated in annexure 4.
Specific Function of Stores Department
Receiving ,inspecting and recording of raw material

Arranging for QC of raw material
Positioning and Storage
Issuing and recording
Receiving and dispatching of finished goods
b) PERSONNEL DEPARTMENT:-The Major function of the department

recruitment of employees ,employees dailyattendance recording ,preparation of
monthly pay rolls and arrangement of training for employees to update
knowledge and liasioning with Govt. labour department. On the basis of HODs
recommendation and after consultation with and approval of the president
employees increment, promotions are finalized medical benefit, fringe benefit
also the control of this department. .
There is strict control over strength of the employee .Authority for any permanent
recruitment is with unit head.
c) MARKETING & SALES DEPARTMENT:-Marketing and sales are combine
function in the company. The main function of the marketing department is to
develop customer sales, dispatchesthe finished products andit is very important
function of any organization because it is source of income.
In case of this company, products of the company have well reputation in respect of
quality and the company easily procures the orders. Prices are negotiated by the
dept. but finally approved by the unit head.
MODE OF SALES :(1) Direct to agents
(2) Parties through agent
(3) Other customer
Page
50
Other parties order is procured by agents for which they are paid commission and the
agents are responsible for recovery of amount of sales to third parties.
THERE ARE TWO TYPES OF AGENT

(1) Secured agent-means they deposit the money as security money.
(2)Unsecured agent- this type of agent make payment when orders are placed.
PRICE- There are no fix prices for the day or any period .Prices are negotiated by
marketing dept. as and when offers are received from customer prices is finally
approved by the he president .
PAYMENT TERMS:
1) Secured Agent - Credit sales up to security deposit amount and there after advance
payment or special sanction of the president for credit sale.
2) None secured agent and their customer advance payment
3) Secured agent party -7 days credit
4) Other direct customer-advance payment/irrevocable later of credit
Annexure-5
SPECIFIED PROJECT CATEGORIES AS LISTED IN SCHEDULE OF ENVIRONMENT IMPACT
ASSESSMENT NOTIFICATION, 2006 (MOEF) REQUIRE PRIOR ENVIRONMENTAL
CLEARANCE
Category with threshold limit
Conditions
Project or Activity
if any
A
B
1
(1)
(2)
Mining, extraction of natural resources and power generation (for a

specified production capacity)
(3)
(4)
(5)
Page
51
Mining
minerals
of
1(a)
50 ha. of mining lease area

Asbestos mining irrespective
of mining area
1(b)
Offshore
and
onshore oil and
gas exploration,
development
&
production
All projects
1(c)
River
projects
Valley
(i) 50 MW hydroelectric
power generation;
(ii) 10,000 ha. of culturable
command area
1(d)
Thermal
Plants
Power
500 MW (coal/lignite/naphta
& gas based);
50 MW (Pet coke diesel and
all other fuels )
1(e)
2
2(a)
Nuclear
power
projects
and
processing
of
nuclear fuel
Coal washeries
All projects
<50 ha
5 ha .of mining
lease area.
(i) < 50 MW 25
MW hydroelectric
power generation;
(ii) < 10,000 ha. of
culturable
command area
<
500
MW
(coal/lignite/napth
a & gas based);
<50 MW
5MW
(Pet
coke ,diesel and all
other fuels )
General
Condition
shall
apply
Note
Mineral
prospecting (not
involving drilling)
are
exempted
provided
the
concession areas
have got previous
clearance
for
physical survey
Note
Exploration
Surveys
(not
involving drilling)
are
exempted
provided
the
concession areas
have got previous
clearance
for
physical survey
General
Condition
shall
apply
General
Condition
apply
shall
General
Condition
apply
shall
Primary Processing
1 million ton/annum
throughput of coal
<1million
ton/annum
throughput of coal
(If located within

mining area the
proposal shall be
appraised
together with the
Page
52
mining proposal)
2 (b)
Mineral
beneficiation
0.1million ton/annum
mineral throughput
< 0.1million ton/annum

mineral throughput
General Condition
shall apply
(Mining proposal
with
Mineral
beneficiation shall
be
appraised
together for grant
of clearance)
3
3(a)
Metallurgical
industries (ferrous
& non ferrous)
Materials Production
a)Primary metallurgical
industry
All projects
b)
Sponge
manufacturing
200TPD
iron
c)Secondary
metallurgical
processing industry
3( b)
4
(1)
4(a)
Cement plants
4(b)
(2)
Petroleum refining
industry
Coke oven plants
4(c )
Asbestos
milling
Sponge
manufacturing
<200TPD
iron
General Condition
shall apply for
Sponge
iron
manufacturing
Secondary metallurgical
processing industry
All toxic and heavy

metal producing units
20,000
tonnes
/annum
i.)All toxic
andheavymetal producing
units
<20,000 tonnes
/annum
ii.)All other
non toxic
secondary
metallurgical
processing industries
1.0
million
tonnes/annum
production capacity
>5000 tonnes/annum
<1.0 million tonnes/annum
production capacity. All
Stand alone grinding units
General Condition
shall apply
Materials Processing
(3)
All projects
(4)
-
(5)
-
2,50,000
tonnes/annum
All projects
<2,50,000 &
25,000 tonnes/annum
-
Page
53
4(d)
and asbestos based

products
Chlor-alkali
industry
300 TPD production

capacityor
a
unit
located out side the
notified industrial area/
estate
Page
54
<300 TPD production

capacity
and located within a
estate
Specific Condition
shall apply
No new Mercury
Cell based plants
will be permitted
and existing units
converting
to
membrane
cell
technology
are
exempted from this
Notification
After Loading Of Material All Subsequent Activities Weighment preparation of

sales bill and outgoing gate pass are online computerized. Hence activities from
procuring order to dispatch of finished goods have been shown in flow chart in
annexure 5 after loading of finished goods in truck intimation along with packing list
is given by dispatch section to marketing dept.
Dept. instructs to truck driver to get the weight done at company weight bridge tare
weight (taken before loading).All documents packing list weigh ticket are cross
verified with dispatch advice and sales order. There after print of sales bill and
outgoing gate pass is taken. Cenvat copy of sales bill and gate pass duly sign by
authorized signatory is handed over the driver. At the outgoing gate of factory the
sales bill copy and gate pass copy check by security dept. The gate pass copy is
retained by the security dept. and truck is allowed to move outside the factory
d) FINANCE & ACCOUNT:-Finance &Accounting cycle is a step-by-step process
of recording, classification and summarization of economic transactions of a
business. It generates useful financial information in the form of financial
statementsincluding income statement, balance sheet, cash flow statement and
statement of changes in equity.
The time period principle requires that a business should prepare its financial
statements on periodic basis. Therefore accounting cycle is followed once during
each accounting period. Accounting Cycle starts from the recording of individual
transactions and ends on the preparation of financial statements and closing entries.
Major Steps in Accounting Cycle
Page
55
I) ANNUAL BUDGET: annualbudget of the company is prepared before start the

new financial year . Budget of production, sales, raw material procurement and
consumption, stores consumption and other budget of expenditure capital and
revenue nature are prepaid by respective dept. The budgets are re- adjusted /revised
after discussion with unit head. On the basis of approved departmental budgets, a
consolidated budget is prepared by Account & Finance department. Thereafter cash
flow statement is prepared by finance department and to ascertain timings
financial surplus /deficitarrivefrom cash flow statement future surplus fund
investment decision or in case of deficit when and what amount and where from
funds are to be borrowed is decided
II) CREDIT SALES-Credit limits have been decidedby the president for agents valid
supporting and documents.
III) OTHER CONTROL IN ACCOUNTS
(a)Recording of transaction as per Order, sanction, policy, commitment
(purchase/sales order (b) Approval of payments by senior authority other than the
staff checking / prepare the voucher.
(c) Payment is made on signing by two authorities
(i) Bank payment authority is delegated by Board
(ii) Cash payment authority is delegated by president
IV) DAILY MIS REPORTIt containsdetails of production,sales,closing stock raw
material consumption and other utility service department (power plant, others)
information analysis of daily outstanding debtors, payment of government dues.
Monthly preparation of balance sheet & profit and loss account.
Preparation of final accounts and gets the a/c audited from statutory auditors.
V) FEEDBACKIt is given to the management for the purpose of taking corrective
action, guidance and control.The feedback is given at regular intervals as under
(a)daily feedback through MIS system.
VI) Monthly feedback by preparing monthly profit &loss A /C and balance sheet
andprofit&loss a/c is prepared for the month & compared with Budget and
variance analysis reasons are stated
Major Financial Decision, Control& Feed Back There Of
Page
56
1) Procurement of Materials
(a) Purchases are against proper indents
(b) Approval of purchase order
(c) Ascertainment of quantity and quality of materials
(i)Weighment by independent department
(ii) Lab test were price various with chemical composition/ metal
composition
(iii) Authority for inspection senior DGM and above level.
2) Consumption of raw materials-Issue of raw materials against issue requisition
orders physical verification at regular interval.
4(e)
Soda ash Industry
All projects
4(f)
Leather/skin/hide
processing industry
New projects outside the

industrial area or expansion
of existing units out side the
industrial area
All new or expansion of

projects located within a
estate
Sp
eci
fic
co
nd
iti
on
sh
all
ap
pl
y
Manufacturing/Fabrication
5(a)
Chemical fertilizers
All projects
5(b)
Pesticides industry and

pesticide
specific
intermediates
(excluding
formulations)
All units producing technical

grade pesticides
5(c)
Petro-chemical
complexes (industries
based on processing of
petroleum fractions &
natural gas and/or
reforming
to
aromatics)
All projects
-
5(d)
Manmade
manufacturing
Rayon
Others
General
Conditio
n shall
apply
fibres
Page
57
5(e)
5(f)
Synthetic
organic
chemicals
industry
(dyes & dye
intermediat
es;
bulk
drugs and
intermediat
es
excluding
drug
formulation
s; synthetic
rubbers;
basic
organic
chemicals,
other
synthetic
organic
chemicals
and
chemical
intermediat
es)
Petrochemical based
Located out side the notified
processing (processes
industrial area/ estate
other than cracking &
reformation and not
covered under the
complexes)
Synthetic
organic
chemicals
industry
(dyes
&
dye
intermediates;
bulk
drugs
and
intermediates
excluding
drug
formulations; synthetic
rubbers; basic organic
chemicals,
other
synthetic
organic
chemicals
and
chemical
intermediates)
Located in a notified
area/ estate
Page
58
Specific
Conditio
n shall
apply
Specific
Conditio
n shall
apply
industrial
Specific
Condition
shall apply
Distilleries
(i)All
Molasses
distilleries
based
All Cane juice/non-molasses

based distilleries
<30 KLD
General
Condition
shall apply
General
Condition
shall apply
General
Condition
shall apply
(ii) All Cane juice/ nonmolasses based distilleries

30 KLD
Integrated
paint
industry
Pulp
&
paper
industry
excluding
manufacturi
ng of paper
from waste
paper and
manufactur
e of paper
from ready
pulp with
out
bleaching
All projects
Pulp manufacturing and
Paper manufacturing industry

without pulp manufacturing
Sugar
Industry
5000 tcd cane crushing

capacity
Induction/ar
c
furnaces/cu
pola
furnaces
5TPH
or
more
All projects
Pulp& Paper manufacturing

industry
-
General
Condition
shall apply
General
Condition
shall apply
Service Sectors
Oil & gas

transportat
ion
pipe
line (crude
and
refinery/
petrochemi
cal
products),
passing
through
national
parks
/sanctuarie
All projects
Page
59
s/coral
reefs
/ecological
ly sensitive
areas
including
LNG
Terminal
Isolated
storage &
handling of
hazardous
chemicals
(As
per
threshold
planning
quantity
indicated in
column 3 of
schedule 2
& 3 of
MSIHC
Rules 1989
amended
2000)
7
7(a)
7(b)
7(c)
7(d)
All projects
Air ports
All ship breaking
yards
including
ship breaking units
Industrial estates/
parks/ complexes/
areas,
export
processing Zones
(EPZs),
Special
Economic Zones
(SEZs), Biotech
Parks,
Leather
Complexes.
Common
hazardous
waste
General
Condition
shall apply
Physical Infrastructure including Environmental Services

All projects
All projects
If at least one industry
in
the
proposed
industrial estate falls
under the Category A,
entire industrial area
shall be treated as
Category
A,
irrespective of the area.
Industrial estates housing

at least one Category B
industry and area <500 ha.
Industrial estates with

area greater than 500
ha. and housing at least
one
Category
B
industry.
Industrial estates of area>

500 ha. and not housing
any industry belonging to
Category A or B.
All integrated facilities

having
incineration
All facilities having land

fill only
Page
60
Special
condition
shall apply
Note:
Industrial Estate of
area below 500 ha.
and not housing any
industry of category
A or B does not
require clearance.
General Condition
shall apply
7(e)
7(f)
treatment, storage
and
disposal
facilities (TSDFs)
Ports, Harbours
Highways
&landfill
incineration alone
or
5 million TPA of
cargo
handling
capacity
(excluding
fishing harbours)
< 5 million TPA of cargo

handling capacity and/or
ports/ harbours 10,000
TPA of fish handling
capacity
General Condition
shall apply
i) New National High

ways; and
i) New State High ways;

and
General Condition
shall apply
ii)
Expansion
of
National High ways
greater than 30 KM,
involving
additional
right of way greater
than 20m involving
land acquisition and
passing through more
than one State.
ii) Expansion of National /

State Highways greater
than 30 km involving
additional right of way
greater
than
20m
involving
land
acquisition.
7(g)
Aerial ropeways
All projects
7(h)
Common Effluent
Treatment Plants
(CETPs)
Common
Municipal Solid
Waste
Management
Facility
(CMSWMF)
All projects
7(i)
8
8(a)
8(b)
All projects
Building /Construction
Townships
Building
Construction
projects
General Condition
shall apply
General Condition
shall apply
and
projects/Area
General Condition
shall apply
Development
20000 sq.mtrs and

<1,50,000 sq.mtrs.
built-up area#
Townships
and
Area Development
projects.
of
Covering an area 50 ha
and or built up area
1,50,000 sq .mtrs ++
Page
61
projects
and
#(built up area for

covered
construction; in the
case of facilities
open to the sky, it
will be the activity
area )
++
All projects under
Item 8(b) shall be
appraised
as
Category B1
4.
Quality Analysis
Page
62
NALWA Steel & Power Limited is dedicated to achieving total quality standards. Extra
efforts are put to enhance customer satisfaction on a continuous basis. We realize that our
objectives can be achieved through implementation of an effective quality management
system. The Laboratory is equipped with Modern Equipments as enlisted below for
quick and correct analysis.
Metallurgical Microscope
Fully Computerized Universal indexing Machine with capacity of 20 ton and 100 ton
Digitalized Hardness Tester
Satmagan Analyzer
Magnifier
Computerized Spectrometer
Drop Weight Tear Test Machine
Fully Equipped Sample Preparation Workshop
It has been entrusted with a Mission of developing:
New Products
Estabilisation of the process to ensure quality through statistical process control
Consistent development of TEMPCORE the best process for the production of high
quality Re bars conforming to DIN 3488IVS, BS 4449-97, BIS 1786-2008
Development and diversification of grades in Wire Rods: Low Carbon, Wire Drawing,
Electrode Quality, Cold Heading, Tyre- Bead and Hi Carbon grades
Page
63
4.1 Quality Assurance (QA) is a way of preventing mistakes or defects in manufactured

products and avoiding problems when delivering solutions or services to customers. ISO
9000 defines quality assurance as "A part of quality management focused on providing
confidence that quality requirements will be fulfilled". It thus differs subtly from quality
control.
QA is applied to physical products in pre-production to verify what will be made meets
specifications and requirements, and during manufacturing production runs by validating
lot samples meet specified quality controls. QA is also applied to software to verify that
features and functionality meet business objectives, and that code is relatively bug free
prior to shipping or releasing new software products and versions.
Quality Assurance refers to administrative and procedural activities implemented in a
quality system so that requirements and goals for a product, service or activity will be
fulfilled. It is the systematic measurement, comparison with a standard, monitoring of
processes and an associated feedback loop that confers error prevention. This can be
contrasted with quality control, which is focused on process output.
Two principles included in Quality Assurance are: "Fit for purpose" (the product should
be suitable for the intended purpose); and "Right first time" (mistakes should be
eliminated). QA includes management of the quality of raw materials, assemblies,
products and components, services related to production, and management, production
and inspection processes.
Suitable quality is determined by product users, clients or customers, not by society in
general. It is not related to cost, and adjectives or descriptors such as "high" and "poor"
are not applicable. For example, a low priced product may be viewed as having high
quality because it is disposable, where another may be viewed as having poor quality
because it is not disposable.
Page
64
4.2 AWARDS & RECOGNITIONS:-
Page
65
Page
66
5.
Mode of Payment &
Financial Results
& Data analysis
Page
67
5.1 Although my study is based at Adhunik Group in Odisha, Jharsuguda, I have

collected the secondary data for comparison with Nalwa Steel & Power.
THE MODE OF PAYMENT OF STEEL
Letter of Credit
10%
RTGS/NEFT 90%
CAPACITY PER ANNUM:S
NO.
1
2
3
4
5
6
CURRENT
YEAR
PREVIOUS
YEAR
PARTICULARS
UNIT
Sponge Iron
MS Billet
Wire Rod and
TMT
Power
M.T.
M.T.
198,000
172,800
198,000
172,800
M.T.
MW
Cu.M
.
Cu.M
.
250,000
24
250,000
24
799,680
799,680
95,040,000
95,040,000
Oxygen
Producer Gas
Plant
PRODUCTION:S.
NO.
PARTICULARS
UNIT
1
2
3
4
Sponge Iron
Ash Char
MS Billet
By Product WRM (including Mill
M.T.
M.T.
M.T.
M.T.
Page
68
CURRENT
YEAR
QUANTITY
172,104.480
72,686.092
82,404.716
6,805.885
PREVIOUS
YEAR
QUANTITY
168,521.000
67,302.000
68,660.679
523.899
Scale)
Skull/End End Cut (Billet)
6
7
8
9
Power
Oxygen
Wire Rod & Rib Bar
Fly Ash Bricks
M.T.
KWH
Cu.M.
M.T.
Nos
1,453.050
183,816,655.
000
673,880.000
142,629.050
996,690.000
609.870
164,730,571.
000
528,037.000
132,939.153
54,643.000
Note:- Includes 1737648 MT on job work basis (previous Year NIL MT)
Includes 80749.42 MT on job work basis (previous Year 125528.03 MT)
SALES:(Rs.in
Lacs)
S.
No.
Particulars
Unit
Current
Year
Quantity
Amount
Previous
Year
Quantity
Sponge Iron
M.T
88,048.80
15,080.1
1
96,034.86
Billet
M.T
15,441.58
3,859.84
68,739.55
Wire Rod & Rib
M.T
51,463.42
Oxygen
Miss coil
Miss Roll
Rechargeable
End Cut of TMT Bar
Billet Scrap
Miss Rolled/Cobble
M.T
M.T
M.T
475.36
-
10
Miss Scale
M.T
11
Coal Tar
12
Job Charges
6
7
8
9
Amount
12,917.2
2
14,712.9
5
4,844.00
16,537.9
3
0.49
M.T
68.98
15.66
M.T
246.30
48.98
109.71
-
31.64
254.06
168.12
7.59
54.99
43.68
1,431.43
21.38
2,177.49
14.54
M.T
803.00
142.05
591.30
76.86
M.T
81,471.97
3,620.48
39387.6
50
12,554.64
5,076.60
35341.0
20
Cu.M.
Total
8,324.82
2,386.89
6,258.00
0.72
5.2 FINANCIAL RESULTS
YEAR
ENDED
31.03.20
11
PARTICULARS
Page
69
(Rs. In
Lacs)
YEAR
ENDED
31.03.20
10
Gross Sales & operational Income

Profit before interest, Depreciation and
tax
Profit after tax
45435.63
37910.02
6642.87
3944.97
8046.33
3463.35
DIVIDEND:With a view to plough back the internally generated funds for future requirement,
your Directors have not recommended any divided for the financial year under report.
OPERATIONAL REVIEW:During the year under review the company has earned gross sales and operational
income of Rs.45435.63 Lacs which has increased by 19.85% in comparison to
previous year. Profit before interest, Depreciation and tax has declined to
Rs.6642.87lacs (previous year Rs. 8046.33) reflecting decrease of 17.44% profit after
tax has increased to Rs.3944.97lacs (previous year Rs. 3463.35) reflecting increase of
13.91% The company has achieved increase in production of all its products as
compared to previous year This has enabled the company to attain increase in gross
sales and operational income and net profits.
Sponge Iron :The Company has produced 172104MT (previous year 168521 MT) of Sponge Iron
during the year under review registering an increase of 2.13% over previous year
which includes the production of 17376 MT (previous year nil) on job work basis.
Billet:-The company has produced 82404 Mt (Previous year 68660 MT) of Billet
during the year under review registering an increase of 20.02%
Wire Rod and TMT:- Production of wire Rod and TMT during the year was 142629
MT (previous year 132939 MT) registering an increase of 7.29% which includes the
production of 80749 MT (previous year 125528) on job work basis.
Power: -Captive Generation of power of the company has increased to 1838.17 Lacs
KWH (Previous year 1647.31 Lacs KWH) registering an increase of 11.59%
Page
70
5.3 ANALYSIS FINANCIAL POSITION OF THE COMPANY

Company financial position is very sound .In a very short period the company has
captured the market and its product is well accepted in the market there is very
negligible quantity of sales return and no quality claim has been is last 3 year
Profitability of the company is very high compare to same size of other firm and it
matches with the large size firm which is supported by intra-firm comparisons and
other ratio analysis of the company is stated here under.
Being sound internal accrual (profit) company has been very less dependent on
external borrowings and even cash credit limits generally remains and utilized
COMPANY STATEMENTS (Balance sheet and profit &loss A/C)

On review Balance sheet and profit and loss a/c and other statement analysis it can be
concluded that financial health of company is very sound and it is good middle size
company Insteel sector. There is rising trend of profitability and company will not
face marketing problem as it catters to infrastructure project as regard raw material
and other inputs company have not any procurement problem. The company has
captive power plant and major raw materials (Iron ore and coal) can be procured from
a company of Jindal group which has own mines for both the items the location and
distance of the mines is nearest to this company compared to any other mines in India
. At present coal is procured from central govt. under taking also SECL MCL
BALANCE SHEET AS AT 31ST MARCH 2011
SCHED
ULE
PARTICULARS
SOURCES OF FUND
ShareholdersFund
Share Capital
Reserves & Surplus
Secured Loan
Deferred Tax Liability (Net)
1
2
3
APPLICATION OF FUNDS
Fixed Assets
4
Page
71
As at 31st
March 2011
(Rs. In
Lacs)
As at 31st
March
2010 (Rs.
In Lacs)
500.00
39225.94
557.04
2786.12
500.00
35280.97
1153.71
2907.42
43069.10
39842.10
Gross Block
Less: Depreciation
30462.22
9144.29
30065.08
7410.81
Net Black
21317.93
22654.27
225.96
388.93
10.00
510.00
6
7
8
9
15501.69
4793.64
151.95
10087.72
9335.60
2357.59
653.71
8167.58
30535.00
20514.48
8591.00
428.79
4011.00
214.58
9019.79
4225.58
21515.21
16288.90
Capital Work in Progress

Investments
Current Assets, Loans & Advances
Inventories
Sundry Debtors
Cash & Bank Balance
Loans & Advances
Less: Current Liabilities & Provisions
Current Liabilities
Provisions
10
11
NET CURRENT ASSETS
PROFIT & LOSS ACCOUNT FOR THE YEAR ENDED 31ST MARCH 2011
SCHEDU
LE
PARTICULARS
INCOME
Sales & operational Income
Export Sales
Gross Sales & operational Income
Less : Excise duty recovered
Net Sales & operational Income
Other Income
12
EXPENDITURE
Material, Manufacturing & other
Personnel Expenses
Administrative & Selling Expenses
Interest Expenses
Depreciation
13
14
15
16
Page
72
As at
31st
March
2011
(Rs. In
Lacs)
As at
31st
March
2010 (Rs.
In Lacs)
44116.15
1319.48
45435.63
6047.98
39387.65
1546.19
40933.84
37910.02
0.00
37910.02
2568.98
35341.04
1373.55
36714.59
31831.15
1740.01
719.81
101.11
1759.71
36151.79
26516.40
1368.91
782.95
305.08
1701.85
30675.19
Profit before Taxation

Less: Provision for Taxation
a. Income Tax
b. Deferred Tax
c. Deferred Tax/Income Tax for earlier years
d. Wealth Tax
e. Provision for tax for earlier years no longer required,
written back
Profit after tax
Add: Amount brought forward from earlier year
Balance carried to the Balance Sheet
Basic & Diluted Earnings per share (in Rs.) (Excluding
extra-ordinary item)
4782.05
6039.40
953.09
(121.30)
3.11
2.18
1026.39
131.05
1424.30
0.70
0.00
(6.39)
3944.97
35280.97
39225.94
3463.35
31817.62
35280.97
78.96
97.75
CASH FLOW STATEMENT FOR THE YEAR ENDED 31ST MARCH 2011
PARTICULARS
CASH INFLOW/(OUTFLOW) FROM OPERATING

ACTIVITIES
NET PROFIT BEFORE TAX AND EXTRAORDINARY
ITEMS
Adjustment for :Depreciation
Interest Paid
Bad Debt
Provision for Doubtful Debts
Loss/(Profit) on sale of Investment
As at 31st
March
2011
(Rs. In
Lacs)
As at 31st
March
2010 (Rs.
In Lacs)
4,782.05
6,039.40
1,759.71
1,701.85
101.11
150.71
2.67
1.21
-
(38.79)
Loss/(Profit) on sale of Fixed assets

Loss/(Profit) on foreign currency fluctuation
Dividend income
operating Profit before Working Capital Changes
14.32
132.62
29.25
(0.14)
(0.93)
6,647.65
8,027.39
(6,166.09)
828.56
Adjustment for :Inventories

Page
73
Sundry Debtors
Other Current Assets
Other Current Liabilities
Cash Generated form Operations
Income Tax Paid
Net Cash From Operating Activities
B
3,548.89
(1,920.13)
(4,409.38)
4,632.51
(1,701.26)
757.91
6,294.20
(792.32)
(995.67)
(34.41)
5,298.53
(299.83)
(1,380.44)
25.10
72.60
(4,650.00)
(500.00)
CASH INFLOW/(OUTFLOW) FROM INVESTMENT

ACTIVITIES
Purchase of Fixed Assets
Sale of Fixed Assets
Purchase of Investment
Sale of Investment
5,188.79
Dividend Received
Net Cash from Investing Activities
C
(2,436.03)
0.93
264.06
(1,806.91)
(600.00)
(2,330.71)
3.33
(392.90)
(105.49)
(140.00)
(29.25)
0.14
(731.41)
(2,863.47)
(501.76)
628.15
653.71
25.56
151.95
653.71
CASH INFLOW/(OUTFLOW) FROM FINANCING

ACTVITIES
Proceeds from Borrowings
Working Capital Loan from Banks
Interest Paid
Profit on foreign exchange fluctuation
Net cash from Financing Activities
NET CHANGES IN CASH & CASH EQUIVALENTS
(A+B+C)
Cash & Cash equivalents (opening Balance)
Cash & Cash equivalents (Closing Balance)
(Rs. In
Lacs)
KEY PERFORMANCE INDICATOR
Page
74
20102011
(12
Month)
20092010
(12
Month)
20082009 (12
Month)
20072008
(12
Month)
45435.63
37910.02
71331.13
1546.19
1219.18
414.13
46981.82
39129.2
71745.26
40933.84
36560.22
63758.82
Operating Profit (PBDIT)

Profit after tax (PAT)
6642.87
3944.97
7891.96
3463.35
12086.89
9898.69
60957.9
8
382.66
61340.6
4
52857.2
7
9419.46
5626.37
Cash Profit
5586.49
6720.55
10473.22
7557.35
Gross Block
30688.18
30454.01
29347.41
Net Block
21543.89
23043.2
23569.84
500
500
500
39725.94
35780.97
32317.62
557.04
1153.71
3877.31
27762.9
8
23581.9
1
500
22418.9
3
5619.51
16%
22%
19%
10%
0.03
9%
0.05
14%
20062007
(12
Month)
20052006 (12
month)
INCOME STATEMENT
Sales
25788.05
19985.8
165.74
358.98
25953.79
20344.78
22505.13
17511.06
3921.29
1552.85
4081.05
2451.81
3307.93
3475.45
25185.38
21238.72
22443.65
19738.17
500
500
16792.56
15239.71
11614.62
7828.72
18%
17%
23%
16%
0.16
11%
0.24
7%
0.52
14%
0.40
19%
32%
34%
20%
23%
10%
10%
31%
25%
9%
16%
78.90
69.27
197.97
112.53
31.06
49.04
Book Value Per Share

794.52
715.62
646.35
448.38
335.85
GRAPHICAL REPRESENTATION OF TURNOVER & PROFIT OF THE COMPANY
304.79
Other Income
Gross Sales & Other
Income
Net Sales
Balance Sheet
Share Capital
Net Worth
Bowings
Significant Ratios
Operating Profit to Net
Sales
Net Profit to Net Sales
Debt Equity Ratio
Return on Capital
Employed
Return on Net Worth
Per Equity Share
EPS
(Rs. In Lacs)
Turnover
Operating Profit (PBDIT)
Profit after tax (PAT)
Cash Profit
20102011
(12Month
)
45435.63
6642.87
3944.97
5586.49
20092010
(12Month
)
37910.02
7891.96
3463.35
6720.55
Page
75
20082009
(12Month
)
71331.13
12086.89
9898.69
10473.22
20072008
(12Month
)
60957.98
9419.46
5626.37
7557.35
2006-2007
(12 Month)
25788.05
3921.29
1552.85
3307.93
20052006
(12Month
)
19985.8
4081.05
2451.81
3475.45
WORLD CRUDE STEEL OUTPUT INCREASES BY 6.8% IN 2011

World crude steel production reached 1,527 megatonnes (Mt) for the year of 2011. This is
an increase of 6.8% compared to 2010 and is a record for global crude steel production.
All the major steel-producing countries apart from Japan and Spain showed growth in
2011. Growth was particularly robust in Turkey, South Korea and Italy.
ANNUAL CRUDE STEEL PRODUCTION (MT)
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76
Annual production for Asia was 988.2 Mt of crude steel in 2011, an increase of 7.9%
compared to 2010. The regions share of world steel production increased slightly from
64.0% in 2010 to 64.7% in 2011. Chinas crude steel production in 2011 reached 695.5 Mt,
an increase of 8.9% on 2010. Chinas share of world crude steel production increased from
44.7% in 2010 to 45.5% in 2011. Japan produced 107.6 Mt in 2011, a -1.8% decrease from
2010. In 2011, South Koreas crude steel production was 68.5 Mt, a 16.2% increase
compared to 2010.
The EU recorded an increase of 2.8% compared to 2010, producing 177.4 Mt of crude steel
in 2011. Spain produced 15.6 Mt of crude steel in 2011, a -4.6% decrease on 2010 while
Italy produced 28.7 Mt in 2011, an 11.3% increase over 2010.
In 2011, crude steel production in North America was 118.9 Mt, an increase of 6.8% on
2010. The US produced 86.2 Mt of crude steel, 7.1% higher than 2010.
The CIS showed an increase of 4.0% in 2011, producing 112.6 Mt of crude steel. Russia
produced 68.7 Mt of crude steel, a 2.7% increase on 2010 and Ukraine recorded an
increase of 5.7% with a year-end figure of 35.3 Mt.
Annual crude steel production for South America was 48.4 Mt in 2011, an increase of
10.2% on 2010. Brazil produced 35.2 Mt in 2011, 6.8% higher than 2010.
CRUDE STEEL PRODUCTION ANNUAL GROWTH TREND (%)
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77
FIGURE 3: SHARE OF WORLD CRUDE STEEL PRODUCTION 2011, 2010
TOP 10 STEEL-PRODUCING COUNTRIES

Rank
1
2
3
Countr
y
China
Japan
United
States
2011
695.5
107.6
86.2
Chang
e%
638.7
8.9
109.6
-1.8
2010
80.5
7.1
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78
4
5
6
7
8
9
10
India
Russia
South
Korea
German
y
Ukraine
Brazil
Turkey
72.2
68.7
68.3
66.9
5.7
2.7
68.5
58.9
16.2
44.3
43.8
35.3
35.2
34.1
33.4
32.9
29.1
5.7
6.8
17
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79
6.
Logistics
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80
In today's competitive world it is very important for every organization to have a proper
channel of distribution and logging of the goods to the party within the time period
committed. Besides easy accessibility of tailors/truck NALWA has its exclusive railway
siding to meet day to day challenges thus helping us to create a niche in the market. The
rake handling facility puts us in an advantageous position as we able to handle bulk
cargos in a very short span.
HUMAN RESOURCE:-
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81
To revitalize human activities and to

monitor
the
productivity
and
discipline, the Human Resource
department at NALWA has initiated a
performance-based,
employee
friendly work culture. Training needs
are identified through a training need
assessment system. Trainings are
organized in a structured way by
internal and external faculties
documented by an Annual Training
Calendar and Budget TNA based
Training activities.
SOCIAL INITIATIVE (CSR):Realizing its social commitments, the company has started a number of programmes for
community development in and around the area it operates in. Community building
measures include infrastructural development, educational programs, health-care
facilities and employee welfare programs. The company does not only make promises, it
also keeps them. In Raigarh, the company is nurturing the rural masses with a structured
activities plan with an estimated target of Rs. 20 lakh per annum besides adopting 15
villages, providing them with the basic amenities like infrastructure, including roads,
drinking water and sewerage.
Corporate Social Responsibility is an integral part of the business approach of Adhunik
Group of Companies. We, at Adhunik Group, are committed for social well-being of the
people of the periphery area of our business operations following the principals of
sustainable development and structured process of stakeholder engagement for
incorporation of their views and valuable inputs to ensure inclusive growth. Our group
companies, in pursuit of the corporate social responsibility(CSR) philosophy, are driving
development projects addressing the needs related to health, education, livelihood,
institution and capacity building, in 106 villages in five different states of India.
All CSR projects are executed in partnership with Nav Nirman Sanstha, an NGO
incorporated under Societies Registration Act, 1860, Gram Panchayats and various
Government agencies. Nav Nirman Sanstha has been instrumental in providing
healthcare, education, empowering women, developing infrastructure & utility and
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82
promoting sports & culture aiming at improving social and economic conditions of
communities we are working with.
Owing a great deal to society, Adhunik Group firmly believes that human beings are at
centre of all the developmental activities and hence it discharges its social responsibility
for welfare and well-being of the employees and society at large and at the same time
encourages Employee Volunteering leading to employees satisfaction and corporate
sustainability.
Women Empowerment
Women empowerment is one of the important factors contributing to nation building
and hence Adhunik Group has started specific drives for empowerment of women
living in surrounding geographic area of its business facilities. Recognizing the power
of women in todays society, the Group gives special attention to empowering local
girls and women. In order to improve their social condition and make them
economically independent, several vocational training programmes have been
executed and the women Self Help Groups (SHG) have been strengthened by
enhancing their competencies through training on soap making, envelope making,
phenyl making, domestic food products, candle, paper envelopes, stitching, tailoring
and embroidery, mushroom cultivation, pattals (plates made of leaves), incense sticks
preparation, papad preparation, fishery and vermi-compost making and facilitating
them to start their own enterprises for income generation.
Mushroom cultivation, pattal and vermi-compost making provide regular income to
the SHG members of Jamshedpur & Ghatkuri respectively. Phenyl preparation has
become a regular source of income for some women in Rourkela while making paper
envelopes has provided women in Jamshedpur with some additional monetary help.
Training in tailoring is provided to village girls at Don Bosco Vocational Training
Institute, Rourkela, Odisha in different batches. After completing the training, the
trainees are certified by the institution and awarded with sewing machines sponsored
by Adhunik. After successful completion of the six-month training in tailoring, Rina
Kisan of Hariharpur village in Rourkela was given a sewing machine and she set up
her own tailoring unit at home. Currently, she is earning around Rs. 3000-4000 per
month through her entrepreneurial venture. Her tailoring unit has been a motivation
for other girls to join the tailoring course. Another story is of Rashmi Mintz of
Khukundbahal village, who is running a stitching shop from her home. She was the
student of the first batch at Don Bosco Vocational Training Institute and she is now
financially supporting her family. The soap factory at Ghatkuri in Jharkhand has been
opened to local girls and women for training and manufacturing purposes. The
company has also provided a market by consuming the products in its mines & plants
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83
while the remaining products are sold in the local market. The employment facility has
supported the local women and girls in running their home.
The Groups contribution towards this field was recognized by Interface Asia CSR2010 when Managing Director of Adhunik Metaliks Limited received the Think
Odisha Leadership Awards-2010 by Honble Chief Minister, Mr Naveen Patnaik in a
function at Bhubaneswar organized by Tefla a noted event management company
in collaboration with the Times of India.
Environment
When it comes to the environment, the Adhunik Group has always been an epitome of
values. It has been setting high standards through responsible environment
management that make life safer and easier for both its workers and the community as
a whole. For Adhunik Group, the meaning of good corporate citizenship always stands
for the active contribution of a company towards preserving the environment.
There are certain very important safety measures that the company has undertaken
towards the safety management of its working environment to facilitate a better
working atmosphere for its workers. The company has made substantial capital
investments to ensure proper treatment of generated effluents to meet all the relevant
regulatory requirements. It has also reduced pollution through the installation of
control equipment on processing equipment.
The Company has invested in a full-fledged dust extraction mechanism (ESP) in
its DRI kilns that separate dust electrostatically from flue gases resulting in
harmless emission. There are Electrostatic precipitators in DRI kilns, CPP, FAD
and sinter plants.
The Company also uses waste heat coming out of the blast furnace and DRI
kilns in its captive power unit (first unit).
Coke oven gases are used in rolling mills for reheating billets.
The Company has invested in a coal washery from which the solid waste is
reused in the captive power plant (second unit).
The Company has also set itself a target of zero discharge by using dust particles
from the electrostatic precipitator in the blast furnace at the sinter plant. The
Company intends to achieve zero discharge through the following initiatives:
Waste management by adopting the 3 Rs reduce, recover, recycle/reuse.
Power generation through captive power plant through utilisation of rejects from
coal washeries, char from DRI kilns and waste heat from DRI plants.
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84
Waste heat/BF gas and coke oven gas utilisation in hot rolling mill and SMS.
Sprinklers and dust suppression systems are present in the material-handling site
to reduce fugitive emission
As a result, the Company's emissions are now well below the norms as specified by
the local, regional and national regulatory bodies.
There are also well-designed bag houses at raw material conveying systems in DRI
plants and furnaces in steel melting shops.
Greenbelt development and tree plantation have been resorted to by the company in
order to fulfill its duty towards the natural environment.
Clearly Adhunik is pulling all the measures it can to take care of its responsibilities
pertaining to its environment.
SUSTAINABILITY:Rated
as
one
of
the
best
environmentally a managed company in
the area, NALWA Steel has planted
more than 1 lakh trees. The entire
operation of NALWA Steel & Power
Limited is environmental friendly and
fully controlled by ESPs and bag filter
systems. A daily stacks and fugitive
emission monitoring system is in place
as per the requirement laid down by the
state government. In fact, NALWA
Steel & Power Limited is probably the
greenest steel plant in the vicinity with
wide-spread green grass, carpeted
lawns, flowered bushes and seasoned
flower beds beautifying the scenic view
of the plant. About 1,25,000 small and
grown-up sizes of the plant are located
Page
85
in the NALWA Plant Premises. Over

1,75,000 saplings in the nearby villages
have been distributed and planted to
ensure greenery.
OBJECTIVE OF THE PROJECT:1) To know how to work any steel industry, work process and getting knowledge
about Industrial Market. Steel is backbone of any industry and country also,so
know what is the growth of steel industry and potential of steel industry.
2) To know what is the working capital of any steel industry,and daily activity and
requirement of the company ,all department of the company perform specific task
3) To learn about the work of each department.
4) Company Production & Sales data two year wise
5) Accounting Finance department is blood of the any company and all departments
depend upon this department so learn overall knowledge of this department.
6) To learn financial status of the company all assets and liabilities of the company.
All financial sources of the company. And learn how to prepare Balance Sheet of
the company and what are the huge expenses of the company and which product
main source of the profit.
Page
86
7.
RESEARCH
Page
87
METHODOLOGY
7.1 RESEARCH DESIGN

The research design is a framework that provides guidelines for rest of the research
process. It includes the following: 7.2 DATA COLLECTION
Survey method is used to collect data. Since the research design is exploratory in nature
an attempt has been made to gather as much information is used to recognize the
problem. Also, information gathered at different levels is used to decide the next step to
be taken. Another reason to gather maximum possible information is to take care of every
aspect of market.
Data related to actual figures have been taken from concerned department.
7.3 RESEARCH INSTRUMENT
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88
Unstructured personal interviews are used to gather data. Questions were designed as per
the objectives of study to the objectives of study to the concerned departments.
Expert opinions those persons who have been in this field from a long time, are also
taken. Information gathered in this way used to develop an insight into the trends and
proved to be helpful while analyzing the data.
7.4 SAMPLING PLAN
The universe has been divided into various departments of an or organizations. i.e.
production, sales & marketing, purchasing, finance & accounts, quality control, packing,
storage, excise, information, and HRD& personnel departments.
7.5 SAMPING UNIT
The departmental heads, executive & other concerned Persons are surveyed taking the
sampling unit.
7.6 SAMPLE SIZE
Sample size is limited to the organizations
7.7 Findings
50% of the employees in Adunik Group are working from past 5-10 years and 5%
are working from last 5yrs that is they have good experience whereas the
experience is better in Nalwa Steel & Power.
It is being observed that 80% of procurement in Adhunik Group are successful
whereas in Nalwa Steel & Power this percent is more.
The company almost provides all safety measures as it is opinion of 94% of
employees. Remaining 6% employees are dissatisfied.
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89
Nalwas coal quality is 96% good whereas it is 82.5 % in AAPL.The power and
electricity produced in both the plants are sufficiently satisfiable for the production.
100% employees have agreed that they are trained in using fire extinguishers and
are provided with friendly environment.
40% employees find that ventilation and lighting facility is very good. Remaining
28% workers are told well.
Only 26% employees are highly satisfied and rest of 74% employees are moderate
about safety norms.
The company provides only the 60% compensation and 40% insurance to the
employees.
The company provides 98% children education loan which is not enough for the
employees existence.2% others.
CONCLUSION
After the study and comparison of Adhunik Group and Nalwa Steel & Power it
can be concluded that the procurement process of indented materials (Sponge iron &
Coal) performed in both the power plants is in balance with the demand of the plant.
At Adhunik Alloys & Pvt.Ltd the study of procurement of materials is 80%
successful. Driven by the growing demand for steel products for power &
telecommunication sector, construction sector and heavy industry sectors in the country,
the promoters signed a Memorandum of Understanding with the Government of
Page
90
Jharkhand to set up integrated steel plant in the state in phases. As per the initial plan the
promoters have set up two DRI Kilns each of 350 tonne/day capacity which are in
operation. The first kiln started production from 20th July 2005 and second kiln started
production from 27th March 2006. After successful implementation of the initial phase,
the group has taken up second phase of expansion plan viz. setting up of Integrated Steel
Plant for production of high value added steel products, like Angles, Beams and Flats, to
be utilized by the Power & Telecommunication industries and their ancillaries. The
company has recently completed its second phase expansion as well by setting up 0.15
MT integrated steel plant supported by Direct Reduced Iron (DRI) plant with an installed
capacity of 220,000 M.T.P.A., 30 MW captive power, private railway siding and a coal
feed washery.All CSR projects are executed in partnership with Nav Nirman Sanstha, an
NGO incorporated under Societies Registration Act, 1860, Gram Panchayats and various
Government agencies. Nav Nirman Sanstha has been instrumental in providing
healthcare, education, empowering women, developing infrastructure & utility and
promoting sports & culture aiming at improving social and economic conditions of
communities we are working with. Owing a great deal to society, Adhunik Group firmly
believes that human beings are at centre of all the developmental activities and hence it
discharges its social responsibility for welfare and well-being of the employees and
society at large and at the same time encourages Employee Volunteering leading to
employees satisfaction and corporate sustainability.
BIBLIOGRAPHY
1. Company Manuals:
a) Work instruction
b) Procedure
2. http://www.inspection.com.tr/procurement.html
Page
91
3. https://www.ieindia.org/PDF_IMAGES/CouncilData/
4. Websites:
a) http://www.adhunikgroup.com
b) WWW.nalwa.com
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92

Project Report Ravindra Nath Rajput (Repaired)

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A comparison of Procurement and Management of Indented Materials

A comparison of Procurement and Management of Indented Materials

SIKKIM MANIPAL UNIVERSITY, INDIA

A comparison of Procurement and Management of Indented Materials

& Sandeep Mishra

A comparison of Procurement and Management of Indented Materials

Ravindra Nath Rajput

To whom it may concern

Procurement and Management of Indented Materials for Captive Power

The subject matter of this thesis is a record of original investigations carried

Guide Name: Sandeep Mishra

Procurement and Management of Indented Materials for Captive Power

Is approved and is acceptable in quality and form.

Ravindra Nath Rajput

1.1 About the company

MANUFACTURER, WIRE ROD, BILLET,

2.1 Introduction to coal

Process Flow Chart

3.2 Process Chart

4.2 AWARDS & RECOGNITIONS

Mode of Payment & Financial Results

5.1 MODE OF PAYMENT OF STEEL

5.2 FINANCIAL RESULTS

5.3 ANALYSIS FINANCIAL POSITION OF THE

6.1 HUMAN RESOURCE

7.2 DATA COLLECTION

1.1 About the company

1.1.1 Adhunik Alloys & Power Limited

3. To continuously identify and seize global opportunities for growth

1.2 .AN OP JINDAL GROUP COMPANY: STEEL MANUFACTURER, WIRE

committed to maintaining world-class quality standards, efficient delivery schedules, and

Abundant -extensive reserves of coal are present in many states.

Cost-effective -globally, coal is a competitive fuel for the generation of electricity,

Coal is a non-renewable fossil solid fuel formed by a series of natural geo-chemical

Coal Demand & Supply

Future Outlook of coal

31.00% 27.00% 42.00%

22.00% 18.00% 27.90%

36.00% 40.00% 21.00%

11.00% 15.00% 9.10%

Hourly worst coal consumption(t)

Daily design coal consumption (t)

Daily worst coal consumption(t)

Annual design coal consumption(t) 3028332

Annual design coal consumption(t) 3387492

Hourly design coal consumption

1. CAPACITY OF BELT CONVEYOR:

Q---------Capacity of track hopper

3.1 Layout of coal storage yard

3.2 Capacity of coal storage yard in contact

Volume of coal pile: V=[ab+aB1BbB1+abB1aB1b0.5B]h/3

(-----Coal density, 0.8t/mP3P)

Coal unloading equipment

Compressed air system

Pressure 7kg/cmP2P , capacity

Coal storage equipment

Stacking capacity 1800t/h,

3. C-2ABCD belt conveyor B=1800mm,V=2m/s

3. C-3ABCD belt conveyor B=1400mm,V=3m/s

3. C-4ABCD belt conveyor B=1400mm,V=3m/s

3. C-5ABCD belt conveyor B=1400mm,V=3m/s

C-6ABCD belt conveyor B=1400mm,V=3m/s