SDM COLLEGE OF ENGINEERING AND TECHNOLOGY,

DHARWAD

DEPARTMENT OF MANAGEMENT STUDIES

A REPORT ON
“ON THE JOB TRAINING”
Degree of
MASTER OF BUSINESS ADMINISTRATION

SUBMITTED BY
DEEKSHA V B
USN:2SD18MBA08

UNDER THE GUIDANCE OF

Prashant Gujnal

Academic Year
2019-2020

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 ACKNOWLEDGEMENT
The internship opportunity I had with The Sandur Manganese & Iron ores Limited. was a great
chance for learning and professional development. Therefore, I consider myself as a very
lucky individual as I was provided with an opportunity to be a part of it. I am also grateful for
having a chance to meet so many wonderful people and professionals who led me though this
internship period.

I would like to thank to the entire management of SMIORE Ltd for giving me a wonderful
opportunity to work on Finance of one-month project in their reputed Company. I am
obligated to Mr. Vasu Dev Rao (HR SMIORE Ltd) and Mr. Mohan Rao Poal (Finance Manager)
Sir for giving this project and guiding me throughout my internship project. Their
encouragement, guidelines, time and efforts motivated me to work sincerely in this project.

No task can be complete without proper guidance and support. Here I would like to thank all
those who have been helped and successful completion of the training. First, I would like to
thank my college SDM College of Engineering and Technology, Dharwad and my faculty
guide Prof. Prashanth Gujnal and Director Dr. Prakash H S for their valuable guidance and support
at the college.
And also, I would like to take this opportunity to thank all my family members and my best
friends who stood with me in my odd times by motivating in successful completion of the
training.

I will try my best to use these skills in future working days which I’ve learnt here. I perceive
as this opportunity as a big milestone in my career development. I will strive to use gained
skills and knowledge in the best possible way, and I will continue to work on their
improvement, in order to attain desired career objectives.

Deeksha V B

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 TABLE OF CONTENT

SL. NO CONTENTS PAGE NO

Part -1:
1. Introduction to the Company 5 – 16

Part- 2:
2. About the reporting authority 17

Part -3:
3. Nature of the work assigned 18

Part- 4:
4. Relevance/ importance of the job 19

Part- 5:
5. Job responsibility 20

Part- 6:
6. Strategy/ methods adopted in the job 21

Part-8:
8. Learning experience 22

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 EXECUTIVE SUMMARY

This job Internship training at “The Sandur Manganese & Iron Ores Limited, Sandur” is an
opportunity to know how the theory of study can be applied into practical situation. Job Internship
Project is a part of study for everyone to work in a good organisation or company as to work as an
employee. So, for this purpose, I got the opportunity of Job Internship training at The Sandur
Manganese & Iron Ores Ltd, Sandur.

This training report provides a view of work in The Sandur Manganese Iron Ores Ltd. Works like
to have an in depth examination of annual report, day book entry, writing a cheque and making
the entry in the software, entering the details of newly recruited employees, filling the details of
new applicants for the various posts in the company, recording of petty payments, ledger posting.

Each organization needs funds to run its day to day activities. Finance is the back bone of every
organization. “The Sandur Manganese Iron Ores ltd.” has been taken up to study the overall
finance related work of the firm.

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About the organization:
NATURE OF BUSINESS:
Manganese mining became synonymous to Sandur Hills as early as in 1838. The ore was mined
by a foreign company from 1907 till 1953. In fact, the old workings and pits, though long
abandoned, are still visible in parts of our leasehold area. Even though Sandur had always been an
important metallurgical location - with manganese harnessing seen as early as the 18th century -
the industry got a fresh lease of life when General Sandur Mining Company, Belgium acquired
mining rights from M/s Joban (Jamboon) and Co. Ltd. at the break of the 20th century. Y.R.
Ghorpade, the former Maharaja of Sandur, after he merged the Sandur State with Union of India,
was awarded a mining lease over an area of 7500 ha. It was he, who founded the Sandur Manganese
& Iron Ores Limited (SMIORE) and the lease was transferred to the company. Out of this, 2800
ha of area, which was largely iron ore bearing, was deleted when our lease was renewed in 1974
and retained by the Government. During the second renewal, the company voluntarily surrendered
another 1500 ha of forest area for land preservation. Finally the lease was renewed over an area of
3200 ha with effect from 1st January 1994.
With a view to ensure better protection and development of the forested land, Founder Y.R.
Ghorpade, magnanimously gifted about 1600 ha of his personal property in 1980. Out of the 3200
ha, we work on 2005 ha, keeping the balance 1200 ha reserved for future use.
Reserves in our lease area are estimated at about 40 million tonnes (Mt) of low grade iron ore,
about 8 Mt of low grade manganese ore and nearly 100 Mt of BHQ, keeping the scope of expansion
alive.
With a strong foundation, we are one of India’s most integral diversified and integrated commodity
producers. The cornerstone of our business still lies in systematic, safe and scientific mining. Our
businesses have since expanded to cover mining, downstream facilities of ferroalloy & power,
solar power and hospitality.
The future operations, SMIORE NEXT, will be focusing on expanding and upgrading the
operations for manganese and iron ore, along with establishing further downstream facilities to
produce steel in phases. This expansion will enable us to add value to both manganese and iron
ores produced at its mines.

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INDUSTRIAL OVERVIEW, MARKET SCENARIO, OPPORTUNITIES AND THREATS

Production of iron ore in Indian during 2017-18 went up by 9% to 210 million tonnes (Mt) from
192 Mt during 2016-17. In Karnataka production was around 27-28 Mt. Sales by e-auction went
up by 3% to 28.1 Mt in 2017-18 from 27.4 Mt during 2016-17.
Company received clearance to raise production up to 1.6 Mt of iron ore in Dec ’17 and managed
to produce 1.58 Mt, representing 96% of permissible limit. Despite marginal fall in % Fe, higher
average price was realized during FY18.

NMDC, whose price is considered as bench mark price, has also seen increase in average
realization by nearly 33%. This pushed price upward.

However, towards end of the financial year, the industry witnessed a downward trend in the price.
Supply situation in Karnataka is improving and prices are therefore expected to moderate further
in the coming months. Due to higher production levels in Odisha there has been a fall in prices.
Users in Karnataka are also finding it cheaper a haul ore from Odisha, despite higher freight. Price
in the international market are also witnessing downward trend and Indian users are resorting to
imports, which will adversely impact prices of Indian low-grade iron ore. Consequently, import of
low grade iron ore at lower price will render beneficiation of very low-grade ore becoming
economically unviable. Apart from this, recently auctioned ‘C’-category mines to users in
Karnataka, are also expected to commence production from its newly acquired mines, and when
fully operational, an additional 4-5 Mt will become available resulting in improving the supply
situation, which is expected to further moderate price of iron ore.

Manganese ore:
Production of manganese (Mn) ore in Indian has remained at same level and supply continues to
be lower than the demand. Consequently, import of Mn ore continues.

The company’s production increased to 260 Kt in 2017-18 compared to 222 Kt during 2016-17.
International prices rose during FY 18 to a level of 7.5 to 8.5 $/% Mn but dipped in the fourth

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quarter. Grade of the Mn ore produced by the company during 2017-18 improved by 1.95 units of
Mn, and consequently realization on sale of Mn ore in E-auction rose by 26%.

Grade of manganese ore to be produced by the company during 2018-19 is expected to improve
further and after meeting captive requirement for alloy production, the grade of ore to be sold is
also expected to be higher. Though, price is expected to remain at the same level as that achieved
during last quarter of FY 18.

Ferro alloys:
Ferro alloys capacity in Indian is about 5.5 Mt and production during the year was about 3.5 Mt,
representing about 65% capacity utilization. Manganese alloy production in Indian is about 2.5
Mt, which is higher than domestic requirement, leaving the surplus for export or stockpile. The
company improved its Silicomanganese (SiMn) sales by nearly 39% to 30,987 tonnes against
22,362 tonnes in 2016-17. Market conditions during the year were favourable and saw an increase
in prices. Higher price imported manganese ore during most part of the year led to increased alloy
prices. The company was able to improve the average realization by 20%. Higher price of Mn ore
results in offsetting, to some extent the disadvantage of power and reluctant cost, and also higher
logistic costs for the company.

Energy:
Price obtainable in the open market sale of energy continues to be less than the variable cost of
generation. Company’s power plant being dependent on coal prices, saw considerable increase in
cost of generation. As a result, sale of energy was not viable. Therefore, Mn alloys production was
carried out in two furnaces while generation of power was restricted to meet captive demand only.

SEGMENT-WISE PERFORMANCE
a. Mining:
As of 31 March 2018, the performance of the company’s mines is given below:
(i) Produce 260 Kt of manganese ore and sold 224 Kt.
(ii) Produce 1580 Kt of iron ore and sold 1332 Kt.
b. Conversion of manganese ore to Silicomanganese:

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 During the year under review, Mn ore produced at company’s mines was used to produce
29,317 tonnes of Silicomanganese. 30,987 tonnes SiMn was sold mostly to domestic
industries.

PRODUCTS/SERVICES:

 MINING:
Manganese was discovered in the Sandur hills as early as in 1838. The reins of the mining business
lay in the hands of a foreign company from 1907 till 1953. It was Y.R. Ghorpade, the former
Maharaja of Sandur, who was awarded a mining lease over an area of 7500 ha, who founded the
Sandur Manganese & Iron Ores Limited (SMIORE). Rooted in the mining business, we own the
largest manganese ore mines in India, in the private sector. Our operations are anchored in iron
and manganese ores, but expansion plans include rapid downstream facilities to produce steel in
phases. This will enable us to add value to the current business.

 Ferro Alloy:
The first Ferro Alloy plant was set up in 1968. We made a foray into production of foundry grade
pig iron production. Later in 1977, we diversified into production of Ferromanganese, Ferrosilicon,
Silicomanganese, and ferrochrome. In 1980, our metal and ferroalloy plant was recognized as one
of the finest metallurgical plants of the country additionally, smelting facilities have always been
the natural by-product of the mining establishment. Italian and Norwegian superior equipment has
been utilized for a long time to harvest Silicomanganese, Ferromanganese and Ferrosilicon. Apart
from the ability to produce ferroalloy, the equipment and resources base ties in naturally with
production of steel and stainless steel- something that we are journeying towards.

 Power:
Along with the existing facilities of manganese and iron ore mining and production of ferroalloy,
we also have a 32MW captive thermal coal-based power plant. This gives us an edge to produce
220 mu of energy per year. This is channelized into two outlets; 160 mu for furnaces and 60 mu
for sale besides generating income for the company, the internal usage is taken care of, offering
continues electricity and subsequently, on downtime at work.

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  Beneficiation of Manganese and Iron Ore:
In order to enrich its low-grade manganese ore, we have decided to direct efforts towards
commissioning a pilot plant for upgrading to high-grade ore for ferroalloy smelting. Since the low-
grade manganese ore is in abundance and incidental to mining higher grades, it has the potential
to become an attractive commercial proposition. The beneficiation procedure would help in
producing sintered Mn and Fe, and the magnetic fraction could be alternatively marketed for
application such as heavy media separation and anodized protection of marine pipelines. In the
same way, the reserves of iron ore too, can go through a beneficiation process to upgrade its
quality. The enrich output would suitable for both sinter and pellet production. Using the current
infrastructural facilities, with suitable adaptation and superior equipment, we could make a foray
into new avenues of beneficiation.

 Solar Power:
We have two active Solar Power projects in the state; 4 kW Power System at Girls Hostel Sandur
Polytechnic, Yeshwantnagar and 7.5 kW Power System for steel lighting of colony at Mining
Camp, Deogiri. In order to extract maximum from this technical ability, we are trying towards
production of solar photos voltaic modules and assembly of power systems. This will enable us to
use the power systems for steel lighting, homes, community centres’, Schools and hostels, drinking
water pump station and agriculture irrigation pump sets. As part of our Corporate Social
Responsibility programme, we will also employ this in powering up villages with sustained
electricity in remote areas of mining buffer zones.

 Hospitality:
Reminiscent of Hampi’s exalted ruins, the adjoining town of Sandur transports you to an era of
kings and grand palaces. Erstwhile Skandapuri, this was known as the city of Skanda or
Kumaraswamy, whose temple still looks down at the ‘town from top of a hill close by. The edge
of the town melts with vast tracts of cornfields and a million shades of green, skirted by stacks of
mountains in the distance, for travellers, this is the perfect retreat from the urban world. The sheer
quality of air and the easy vibe of the place help you slip into relaxation almost immediately. In
fact, Mahatma Gandhi himself, called Sandur ‘an oasis’ when he visited in the 1930s. Here
the Shivavilas Palace, the former home of shrimant Maharaja Shri Yeshwantrao Hinduaro
Ghorpade, has been restored and refurbished as a luxury heritage hotel.

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Board of Directors:
As on 31 March 2018 the board consists of eleven members, including a managing director, two
whole time directors, five independent directors and three non-executive directors including a
women director. The chairman is one of the promoters of the company. All the directors are
adequately qualified, professional and have vast experience in the industry.
Founders: -
 Y.R. Ghorpade
 M.Y. Ghorpade
Advisors: -
 U.R. Acharya
 K. Raman

Board of directors: -
Name of Directors Category / Designation

S.Y. Ghorpade Chairman

Nazim Sheikh Managing Director

V. Balasubramanian Non-Executive & Independent

U.R. Acharya Director (commercial)

B. Ananda Kumar Non-Executive & Independent

S.S. Rao Non-Executive & Independent

Vatsala watsa Non-Executive Director

K.V. Ramarathnam Non-Executive & Independent

T.R. Raghunandan Non-Executive Director

G.P. Kundargi Non-Executive & Independent

Rajnish Kumar Singh Director (corporate)

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PRINCIPAL BUSINESS ACTIVITIES OF THE COMPANY: -

Sl. No. Name & Description of Main NIC code of the %to total turnover
Products / Services Product / service of the company

1 Mining of Manganese Ore 07293 19%

2 Mining of Iron Ore 07100 50%

3 Manufacture of Ferro-alloys 24104 30%

FINANCIAL INFORMATION:
THE SANDUR MANGANESE AND IRON ORES LIMITED
Balance Sheet as at 31st March 2018
In lakh
Particulars Note As at As at

No. 31st March 2018 31st March 2017

I. ASSETS

1. NON- CURRENT ASSETS

a) Property, plant and equipment
2 7,107.87 6,548.62
b) Capital work-in-progress
c) Investment property 2.1 1,185.62 283.31
d) Other intangible assets
3 4,947.15 1,490.26
e) Financial assets

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 (i) Investment 4 222.08 235.09
(ii) Other financial assets
f) Deferred tax assets (net)
g) Other non-current assets 5 12,795.53 12,784.07

6 442.83 256.82

7 2,050.00 2,430.00

8 5,840.32 8,212.12

SUB-TOTAL 34,591.40 32,240.29

2. CURRENT ASSETS
a) Inventories
9 8,705.78 8,886.47
b) Financial assets
(i) Investments
(ii) Trade receivable
5 17,462.17 11,889.38
(iii)Cash and cash equivalents
(iv) Other bank balances 10 426.40 630.54
(v) Other financial assets
11 1,878.56 1,584.56
c) Other current assets
11 389.98 470.47

6 79.44 39.69

8 2,161.99 1,036.87

SUB-TOTAL 31,104.32 24,517.98

TOTAL ASSETS 65,695.72 56,758.27

II. EQUITY AND LIABILITIES

1. EQUTY
a) Equity share capital

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 b) Other equity 13 875.00 875.00

13 52,095.90 42,304.91

SUB-TOTAL 52,970.90 43,179.91

LIABILITIES

2. NON-CURRENT LIABILITIES
a) Financial liabilities
(i) Other financial liabilities
b) Provisions 14 4.50 ----------

15 451.77 1,685.21

SUB-TOTAL 456.27 1,685.21

3. CURRENT LIABILITIES
a) Financial liabilities
(i) Trade payables
(ii) Other financial liabilities 16 5,189.83 3,238.20
b) Provisions
14 20.50 57.90
c) Current tax liabilities (net)
d) Other current liabilities 15 86.07 479.37

12 839.51 986.22

17 6,132.64 7,131.46

SUB-TOTAL 12,268.55 11,893.15

TOTAL EQUITY AND LIABILITIES 65.695.72 56,758.27

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COMPETITORS:

 NMDC
 Nagpur Power
 Orissa Minerals

AREA OF OPERATION:
The SANDUR MANGANESE AND IRON ORE COMPANY is at deogiri, 28 Kms from Sandur,
Bellari district, Karnataka. This company is one the branches of corporate offices (Bangalore). It
is one of the good reputational and it has branches in
 S.B. Halli
 Ramgada

Vyasankere plant. (Ferro-alloy & Power plant) VARIOUS DEPARTMENTS IN SMIORE

COMPANY SANDUR LTD...
For administrative and functional convenience, the following departments are working on the
company. Each of the departments is having their own duties and responsibilities.
 Personal and welfare
 Finance department
 Mining department
 Civil department
 Mechanical and electrical department
 Quality control department
 EPS (Environment Planning Survey)
 Purchase department
 Marketing and Sale department
 Store department

INFRASTRUCTURE FACILITIES:
1. Construction of Schools and Colleges.
2. Construction of Adarsha Community hall.
3. Construction of Arogya Hospital in Sandur.
4. Providing bus facilities for Students.

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 5. Doctors and Health camps near village.

AWARDS & RECOGNITIONS: -

We, at SMIORE, have been conferred with the following awards by various esteemed government
and private bodies for our dedicated effort.

 Five Star Awards, for Implementing SDF (Sustainable Development Framework):

The star-rating scheme is an initiative of the Government of India, Ministry of Mines, which builds
a framework of compliance mechanism for environment and forest safeguards and recognizes
good performance in the sector to encourage all mining leaseholders to strive for excellence.
Sharing best practise, incentives and obtaining faster clearance from regulatory bodies is by-
product of the awards. We are in receipt of this award for the third consecutive year.

 Recognized by Vasudeva Committee (Constituted by Government of India) for

Systematic Mining:
The Report of the committee, published in 1965, significantly noted: “Although in the case of a
large number of mines, the mining operation do not follow any concerted or well thought out plan
of development, there are a few bright exceptions such as mines controlled by Manganese Ore
Limited, M/s. Sandur Manganese and Iron Ore Limited and a few other companies who have
planned the lay-out of their mines in a systematic manner.”

 Recognized as a leading mining company in Karnataka:

The finding of the Supreme Court appointed Central Empowered Committee (CEC) and the Joint
Team, for investigation of illegal mining, mentioned that, as long as SMIORE is concerned, is a
matter of great satisfaction and re-assurance of its policy of “business with ethics and values.”

 Excellence Award, Productivity, Quality, Innovation and Management, 2009

The award was given by institute of Economic Studies (IES) and was presented by Mr. Korn
Dabbaransi Hon’ble Former Deputy Prime Minister of hailand

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The Government of India has successively conferred SMIORE with the highest safety award for
many years. These awards are focused on the safety norms in the working conditions for the
mineworkers, so that the environment is accident free and has a low injury rate.
 National Safety Award (Mines) Reduction in injury rate 1983.
 National safety Award (Mines) Largest accident free period 1983.
 National National Safety Award (Mines) Lowest injury rate 1983.
 National Safety Award (Mines) Lowest injury rate 1991.

Future plans:

The future operations, SMIORE NEXT, will be focusing on expanding and upgrading the
operations for manganese and iron ore, along with establishing further downstream facilities to
produce steel in phases. This expansion will enable us to add value to both manganese and iron
ores produced at its mines. Looking into a more diversified future, we aim to expand and
upgrade the current facilities to align downstream procedures of the mining industry to amplify
our current business. In order to do this, we aim to create a 1Mtpa Iron & steel facility, a power
plant of 80MW and a 1.7Mtpa Iron ore beneficiation plant at Vyasankere, Karnataka. With the
current technical and infrastructural ability, we will be able to hit new, futuristic milestones
sooner and offer an expanded efficient workflow with new products, leading to greater value for
shareholders and the team. This, in turn, will lead to more employment and larger spread of our
longstanding welfare and CSR schemes.

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 Part – 2

DETAILS OF REPORTING AUTHORITY:

About the reporting authority

G Vasu dev Rao

Senior manager – Corporate Manager

Mohan Rao Poal

Accounts Head

Jeelan M Basha

Accountant

My work is to being assigned by him. He gave knowledge about the work and guided me how to
work.

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 Part – 3

Nature of work assigned

 Examining Annual Reports

An annual report of the company was given to me to know the overview of the company. An
annual report is an official document which included information about management and
directors, financial data, projections on future growth, and market analysis. As it is a holding
company it contained information about its subsidiaries and addresses where the company
has offices and plants are located.

 Data Entry

To enter all the day to day transactions. I made the entries in software and updated it. I also
entered the details of employees like job position, completion of training programs, notes on
attendance.

 Cheque

I wrote salary cheques and pension cheques for ground level employees and to a retired
employee and I also entered the contra entries in the system software.

 Petty payments

I made voucher entries for petty payments which included wages, newspapers expenses,
transportation expenses and other miscellaneous expenses.

 Ledger posting

The ledgers were created before I was instructed to post the entries from journal entries. I
was supposed to post the minor transactions such as payment of wages, transportation
charges.

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 Part – 4

Importance of the job

There are no mistakes allowed because all are being of financial transactions. Even a single digit
can make much difference in the amount. So, I had to be very careful while working.

Work assigned and their importances are as below:

Entry of day book is related to balance sheet. It records the day to day transactions. Each minor
transaction is made here. So, it must be correct at the end of each day. Because of linking to
balance sheet, it gets the importance in balancing of balance sheet.

Writing cheque is important because, if any correction on cheque happens then the cheque will
not be accepted by the bank. Here also we need to be very careful to a certain extent while
writing the amount. Not much mistake happens in writing amount but there are most chances of
mistakes like name, a/c no such fields.

Filling up of employees details in to system is important and it should be written and updated
properly.

Recording petty payments becomes necessary when it is paid in cash to keep track of those
transactions and tracking those small purchases mean lots of business expenses left unclaimed.

Ledger posting is an important part of accounting since it helps to keep an updated record of all
ledger balances. By posting entries to ledgers it helps to prepare trial balance and balance sheet.

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 Part – 5

Job Responsibility

 Entry of day book

This work has its own responsibility. All the figures should be entered in proper manner. If
the amount is missed out or entered in mistake then the whole day entries will be wrong and
at the end day it won’t match.

 Cheque

If the cheques are not written properly, it will be loss to the company. Any corrections won’t
be allowed by the banks and every cheque has 3 months validity.

 Filling up of employee’s details include their name, job description, completion of their
training periods and records on their attendance.

 Petty payments

Recording of petty payments becomes responsible to keep a track on business expenses.

 Ledger posting

The entries should be posted to proper accounts and under proper headings in the software as
it is linked to balance sheet.

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 Part – 6

Methods adopted to the job

1. Day book:

Collected information from the departments regarding day to day transactions. And
update them into the software.

2. Filling up of employee’s details

Name of the employee, completion of training period, attendance records and signature.

3. Petty payments

Date of the transaction, amount of the transaction and description of the transaction.

4. Ledger posting

Transactions from journal entries.

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 Part – 7

Learning experience

 I understood overview of the company through annual reports.

 Learnt how to interact with the senior employees and other workers.
 I learnt the value of timing in organization.
 I got to know how employee’s work and their job commitment.
 Finance manager gave me some knowledge about the work and the rules and
regulations followed by the firm.

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