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Submitted by:-
Guided by:-
PRIYANKA SINGH
BRIJESH KUMAR
ROLL NO. 138, 2ND SEM
DGM (FINANCE & ACCOUNTS)
INSTITUTE OF MANAGEMENT STUDIES, RANCHI ADITYA BIRLA
CHEMICALS INDIA LTD.
STUDENT CERTIFICATE
Signature
Signature
PRIYANKA SINGH
BRIJESH KUMAR
ROLL NO. 138, 2ND SEM DGM
(FINANCE & ACCOUNTS)
INSTITUTE OF MANAGEMENT STUDIES ADITYA BIRLA
CHEMICALS (INDIA) LTD.
ACKNOWLEDGEMENT
Priyanka Singh
CONTENTS
1) ADITYA BIRLA GROUP
OVERVIEW
MILESTONES
OUR LOGO
LEADERSHIP TEAM
4) FINDING
5) RECOMMENDATIONS
6) CONCLUSION
OVERVIEW :-
A us $ 40 billion (RS 25000 crore ) corporation ,the Aditya birla
is in the league of fortune 500. it is in the anchored by an
extraodinary force of over 120000 employes belonging to the
42 nationalities.The group has been ranked number 1 in asia
pacific for 2011.`Top companies for leaders’ conducted by Aon
Hewitt ,fortune magzine and RBL (a strategic HR and leadership
advisory form).the group has topped the Nielsen’s corporate
image monitor (2014-15)and emerged as the number one
corporate . The “Best in class forth consecutive year.
MILESTONES
The Aditya Birla Group, India’s first multinational
corporation.Traces its origins back to the ting village of pilani in
the Rajasthan desert. Where Seth Shiv Narayan Birla started
cotton trading operations in 1957.Today, the group’s footprint
extends to 20 countries and its revenues are US $ 24 billion. We
retrace the highlights of this remarkable journey, starting from
begining.
1857
1947
1958
Hindalco is incorporated.
1965
1966
1969
1986
1990
1998
The group form 50:50 joint venture company with Tembec
INC of Canada, called A.V Cell INC, to supply pulp for the
Group’s VSF operation.
Grasim acquries Dharani Cement and Shree Digvijay
Cement to consolidate the group’s leadership position in
cement.
The cement business of Indian Rayon and Grasim are
consolidated into a single division of Grasim. The biggest
restructuring even by any corporate entity in India.
The Group Forays into copper with commissioning of Indo
Gulf’s Copper Smelter –the largest of its kind in india.
The origic chemicals begins commercial opertions of
chloro alkali and epichlorohydrin.
1991
2001
2002
2003
2006
2007
2010
2011
2012
2013
2015
Our Mission
To deliver superior value to
our coustomers, shareholders
employees and society at
large.
Our Values
Integrity :
Honesty in every
action.
Commitment :
Deliver on the
promise
Passion:
Energized action
Seamlessness:
Boundary less in letter and spirit
Speed:
One step ahead aways
OUR LOGO
ORGANISATIONAL INFRASTRUCTURE
However there is a fully fledged well developed and
plannned township within the premises well equipped with
playground,staff club with sporting facilities etc.
The company provides furnished accommodation to its
employees and there is naonstop power supply from its
captive power plant.
The company provides drinking water and various other
facilities to nearby areas.
ABCIL premises are fully of gardens & greeneries.
There are many club like Rotary,Rotaract,and Mahila
Mandal which gives ample opportunity to satisfy the
creative I social side of employees.
Regular culture events and fairs mark the vibrant
atmosphere of ABICL.
The company has a CBSE affiliated Aditya Birla Public
School with independent school building equipped with
modern facilities like computers,laboratories and rich
library etc.
The company has a 10 bedded own hospital including an
ICU & is well equipped with all ultra modern equipment.
The beautiful temples stand inside the premises which are
quite a good attraction with the devotees of the area.
PRESENT CAPACITIES OF PLANT
PRODUCT ANNULPRODUCTI
ON CAPACITY
(REHLA)
1)CAUSTIC SODA 105000000.0000 KG
2)LIQUID CHLORINE 77000000.0000 KG
3)HYDROCHLORIC 43750000.0000 KG
ACID
4)SODIUM 18000000.0000 KG
HYPOCHLORITE
COMPANY PROTFOLIO
DIRECTORS
Shri A.K.Agarwal
Shri Biswajit Choudhari
Shri J.C.Chopra
Shri P.P.Sharma
Shri G.M.Dave
Shri Lalitkumar S.Naik
MANAGING DIRECTOR
Shri K C Jhawar
UNIT HEAD
Shri B.B Dixit, Rehla
Shri V.R. Agarwal, karwar
Shri Suresh Sodani, Renukoot
COMPANY SECRETARY
Shri Akash Mishra
BANKERS
HDFC Bank Limited
Bank of India
State Bank of India
Axis Bank Limited
Punjab National Bank
Indian Bank
STATUTORY AUDITORS
M/s.Khimji Kunverji & co,
COST AUDITORS
M/s R.Nanabhoy & Co.
Cost Accountants,Mumbai
REGISTERED OFFICE
“Ghanshyam Kunj’’
MANUFACTURING UNITS
1. Garwa Road,P.O.Rehla-822 124
District-Palamau (Jharkhand)
2. Renukoot Chemical Division,
P.O, Renukoot-231 217
3. District-Sonbhadra(Uttar Pradesh)
Karwar Chemical Division,
P.O. Binaga – 581 307
Dist. Uttar Knnada
COMPANY PRODUCTS
1. CASTIC SODA (NAOH): USES
It is used in Almunium based company.
It is used in pulp and paper ,textile,drinking
water,soap,and detergent and drain cleaner.
2. LIQUID CLORIN : USES
Chlorine is used in the purification of drinking water,as
bleaching agent in pulp paper and textile industries.
It is also used in raw material/intermediate chemical in the
manufacture of PVC plastic,paraffin waxes,synthetic
rubbers ,persecides / insecticides, inorganic / organic
chemicals,pharmaceuticals etc.
3. HYDROCHLORIC ACID:
Hydrochloric acid is a solution of hydrogen chloride (HCL) in
water that is highly corrosive,strong mineral acid with many
industrial uses.it is found naturlly in gastric acid.
Uses:
scale production of vinyl chlorine for PVC plastic, and
MDI/TDI for polyurethane.
it is also used in numerous smaller scale
application,including household cleaning ,production of
gelatin and other food additives,decaling,leather
processing,and swimming
4. SODIUMHYPOCHLORITE :
Sodium hypochlorite is a chemical compond with the formula
NaClO. Sodium hypochlorite solution commonly known as
bleach.
Uses:
It is used as disinfectant or a bleaching agent.
5. ALUMINIUM CHLORIDE:
Aluminium chloride (Alcl3) is the main compound of Aluminum
and chlorine .it is white ,but samples are offen contaminated
with iron trichloride,giving it a yellow colour.
6. COMPRESSED HYDROGENPOWER
Power is generated only for the company needs and not for the
commercial purpose.the power generated is sometimes not
sufficient for the company itself when the company runs on its
fully capacity, at that time some power is brought from market
such as the Jharkhand Electricity Board.power in Aditya Birala
Chemicals(India) Ltd is generated bt thermal process i.e bt coal.
PROCUREMENT OF RAW MATERIAL
Water, Nitrogen
The two ion exchanger columns are used for the secondary
purification in series of lead arrangement. The alkaline wastes
produced during the regeneration process are collected in the
alkaline waste brine tank which can also be backwash from
anthracite filters.
DE-CHLORINATION
The depleted brine from the electrolysers contains about 800-
1000 mg/1 dissolved chlorine. The dissolved chlorine is a
poison for the ion – exchange resin and therefore, must be
removed before the brine is recycled.
Vacuum de-chlorination
Chemical de-chlorination
VACCUM DE-CHLORINATION:
After vacuum de -chlorination, the brine contains ~ 10mg/l
chlorine which is chemically de-chlorinated with Sodium
bisulphate to make it free from chlorine. After de-chlorination
the pH is adjusted by Caustic Soda and then sent to salt
saturator for resaturation.
CHLORINE TREATMENT:
The chlorine system serves for the treatment of Cl 2 produced in
the electrolysis cells. The Cl2 treatment and handling consists of
the following steps:
Cooling,
Drying,
Compression,
Liquefaction,
Storage and Cl2 bottling.
CHLORINE COOLING:
Chlorine gas generated from the cells at a temperature of
about 85-86º C is
CHLORINE DRYING:
The drying agent used in the Cl 2 drying tower is 96% H 2SO4.
Each tower has acid circulation pump which circulates acid in
the tower through a cooler. Fresh H 2SO4 is dosed in each tower.
Concentration of acid is monitored on hourly basis when
concentration of H2SO4 comes down to 78%, it is collected in
spent acid tank.
CHLORINE COMPRESSION:
The dried Cl2 is compressed to about 2.5-3.Kg/cm² by sulphuric
acid ring compressor. The heat of compression absorbed by
H2SO4 in the compressor is dissipated in a heat exchanger.
Entrained sulphuric acid from the compressor & removed in a
separator and sent to a heat exchanger where chilled water is
used as cooling medium.
BRAND OVERVIEW
Aditya Birla Chemicals product brands are well recognized in
the business segments they cater to the various brands
produced by the company under each product categories:
Chlorine Deviation
ARYFIN (CHLORINATED PARAFFIN)
VIKRAM(STABLE BLEACHING POWDER)
SHAKTIMAN (STABLE BLEACHING)
LION(STABLE BLEACHING POWDER)
KANPAC SERIES(POLYALUMINIUM )
KANOFIN SERIES(CHLORINATED PARAFFIN)
VIKRAM PAC (POLYALUMINIUM CHLORIDE)
Epoxy Resins
EPOTEC
Peroxides
COMBIMATE 35
OXYWHITE
OXYWHITE REMELT
MULTI-5 FOR FRUITS
MULTI 100 FOR SEAFOOD
MULTI 100 FOR POULTRY
RGS
TETRA MATE 35
ACHIVEMENT (AWARDS AND
HONOUR)
2004:
Chairman’s World Class Manufacturing Silver Award.
2005:
ICMA Responsible Care Committed Company Award.
2007:
Green Tech Environment Gold award.
IMC Ram Krishna Bajaj National Quality Award.
ICC Award for Corporate Responsibility.
2008:
Green Tech safety Gold Award.
Best supplier trophy award for Tata Tin Plate Company.
2004-06-08
Planet Award for excellence in community development.
2010:
Best PRAV Bench Marking Compass trophy.
Green Teach Environment Excellence Award
FICCI Award for Rural & community Development.
2011:
Chairman world class Manufacturing Gold Award.
2012:
Agro Tech Award by Birsa Agriculture University, Jharkhand
for water shade development.
WORKING CAPITAL
INTRODUCTION:
Working capital management is the lifeline of every business.
Working capital is required for the smooth running of the
business ie, no business can be successful without an adequate
amount of working capital.
MEANING
Working capital is the funds available and which are required
for the day to day transactions of the company. Funds are
required for the purchase of the current assets such as cash,
marketable securities, account receivables and inventories and
the payment of current liabilities such as accounts payable,
bank overdraft and other outstanding expenses.
OPERATING CYCLE
It is clear that working capital is required because of the time
gap between the sales and their actual realization in cash. This
time gap is technically termed as operating cycle of the
business. In case of a manufacturing company, the operating
cycle is the length of time necessary to complete the following
cycle of events:
• Nature of business
• Seasonality of operations
• Production cycle
• Production policy
• Credit Policy
• Market conditions
• Conditions of supply
Nature of Business:
The working capital requirement of a firm depends on the
nature of the business. For example, a firm involved in sale of
services rather than manufacturing or a firm is allowing only
cash sales. In the first instance, no investment is required in
either raw materials or WIP or finished goods, while in the
second instance there exist no receivables as there is
immediate realization of cash. Hence the requirement of
working capital will be lower.
Seasonality of Operations:
If the product of the firm has a seasonal demand like
refrigerators, the firms need high working capital in the periods
of summer, as the demand for the refrigerators is more and the
firm needs low working capital in the periods of winter, as the
demand for the product is low.
Production Cycle:
The term production cycle refers to the time involved in the
manufacture of goods. It covers the time span between the
procurement of the raw materials and the completion of the
manufacturing process leading to the production of goods. As
funds are necessarily tied up during the production cycle, the
production cycle has a bearing on the quantum of working
capital. The longer the time span of production cycle, the larger
will be the funds tied up and therefore the larger the working
capital needed and vice versa.
Production Policy:
The quantum of working capital is also determined by
production policy. In case of the firms having seasonal demand
of the products like refrigerators, air coolers etc .The production
policy of the firm determines the amount of working capital
requirement. If the firm has production policy to carry
production at a steady level to meet the peak demand, this will
result in a large accumulation of finished goods (inventories)
during the off-seasons and the abrupt sale during the peak
season. The progressive accumulation of finished goods will
naturally require an increasing amount of working capital. If the
firm has production policy to produce only when there is a
demand then the firm needs low working capital during the
slack season and high working capital during season.
Credit Policy:
The level of the working capital is also determined by the credit
policy, as the firm’s credit policy determines the amount of
receivables. If the firm has a liberal credit policy, then the firm
needs high working capital and the firm needs low working
capital if the company’s credit policy does not allow it to extend
credit to the buyers.
Market Conditions:
The working capital requirements are also determined by the
market conditions. In case of the high degree of competition
prevailing in the market the firm has to maintain larger
inventories as customers are not inclined to wait for the
product. This needs higher working capital requirements. If
there is good demand for the product and the competition is
weak, a firm can manage with smaller inventory of finished
goods, as customers can wait for the product if it is not
available in the market. Thus, a firm can manage with low
inventory and will need low working capital requirements.
Conditions of Supply:
The availability of raw materials and spares also determine the
level of working capital. If there is ready availability of raw
materials and spares, a firm can maintain minimum inventory
and need less working capital. If the supply of raw materials is
unpredictable, then the firm has to acquire stocks as and when
they are available for ensuring continuous production. Thus, the
firm needs to maintain larger inventory average and needs
larger requirement of Working capital.
Inventory
Fuel cost for one month and reasonable fuel stocks as
actually maintained but limited to fifteen days for pit head
stations and thirty days for non pit-head stations,
corresponding to the "Target Availability";
Sixty days stock of secondary fuel oil, corresponding to the
"Target Availability";
Half month stock of liquid fuel, corresponding to the
“Target Availability”
Maintenance spares at actual subject to a maximum of
one percent of the capital cost but not exceeding one
year's requirements less value of one fifth of initial spares
already capitalized for first five years; and
Receivables management
Receivables equivalent to two months' average billing for
month;
Statement of working
capital:
Inventories:
2228.33
34,454.03
Total (A) 36,244.78
Current Liabilities & Provisions: (B)
INTRODUCTION
1.11
1.11
1.1
1.1
1.09
1.09 Current Ratio
1.08
1.08
1.07
1.07
1.06
2012-13 2013-14 2014-15
Interpretation:-
Current ratio indicates that how fast company is able to meet
its current requirement or current liabilities with the help of its
current assets. As we know an ideal current ratio for the
company is 2:1, which means company is able to pay its debt
twice the times of its liabilities.
1) Marketable Securities
3) Debtors.
A high ratio is an indication that the firm is liquid and has the
ability to meet its current liabilities in time and on the other
hand a low quick ratio represents that the firms’ liquidity
position is not good.
Quick ratio
0.8
0.7
0.6
Quick ratio
0.5
0.4
0.3
0.2
0.1
0
2012-13 2013-14 2014-15
0.01
0
2012-13 2013-14 2014-15
ACTIVITY RATIO
1. STOCK TURNOVER RATIO
38.5
Inventory Turnover
38 Ratio
37.5
37
36.5
2012-13 2013-14 2014-15
8.8
8.75
2012-13 2013-14 2014-15
2.1
Debt Equity Ratio
2
1.9
1.8
1.7
2012-13 2013-14 2014-15
Interpretation
ROCE provides a measure of efficiency of capital. This indicates
that how much company get in return from the capital
employed by it in the financial year. In the year 2014-15it has
increased 14.70 from previous year of 13.52. it means that
company has self-sufficient, to get ROCE .
RETURN ON EQUITY
=Profit After Tax X
100/ Net Worth
Return on Equity
12
10
8 Return on Equity
6
4
2
0
2012-13 2013-14 2014-15
Interpretation:-
ROE measures the efficiency of the company in managing its
shareholders’ funds. ROE is not only important for the owners
of the company but also to the managers as they were
responsible for the shareholders on whose behalf they manage
the firm. Factors that affect ROE are capital structure, tax rates,
cost of debts, and efficiency of assets etc. in 2013-14 it has
increased to 11.84 from previous year of 5.6. Company is able
to manage its shareholders fund efficiently. Factors that affect
ROE are capital structure, tax rates, cost of debts, efficiency of
assets etc. But in year 2014-15 it has decreased from 8.38.
Company has needed to improve its ROE.
FINDINGS
RECOMMENDATIONS
In view of the analysis and with the change in industrial
scenario, it is felt that a company must reorient its policies for
betterment. Now a day there is tough competition in the
market of CHEMICAL products. Hence the company needs
certain best policies for competition with its competitors in
domestic as well as global market.
In order to
Books Referred
Everest Publishing H
Websites References:
www.adityabirla.com
www.abcil.com
www.bscindia.com