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Internship Report on

COST ANALYSIS - AT MANGALORE CHEMICALS AND


FERTILIZERS LTD
BY
JASON MELWYN DSOUZA
USN: 4SH12MBA25
Submitted to
VISVESVARAYA TECHNOLOGICAL UNIVERSITY, BELGAUM

I n partial fulfillment of the requirements for the award of the degree of
MASTER OF BUSINESS ADMINISTRATION

Under the guidance of
INTERNAL GUIDE EXTERNAL GUIDE
MRS. SOUMYA SHETTY MR. M. SURESH RAO
Assistant Professor Deputy General Manager - Finance
MBA Department MCF Ltd
SDIT, Mangalore Panambur, Mangalore




SHREE DEVI INSTITUTE OF TECHNOLOGY
KENJAR, MANGALORE.
2012-2014


DECLARATION
I, JASON MELWYN DSOUZA, hereby declare that the Internship report entitled COST
ANALYSIS AT MANGALORE CHEMICALS AND FERTILIZERS LTD with reference
to MANGALORE CHEMICALS AND FERTILIZERS LTD, PANAMBUR,
MANGALORE prepared by me under the guidance of MRS. SOUMYA SHETTY, faculty
of M.B.A Department, SHREE DEVI INSTITUTE OF TECHNOLOGY and external
assistance by MR. M. SURESH RAO, DEPUTY GENERAL MANAGER- FINANCE,
MANGALORE CHEMICALS AND FERTILIZERS LTD.
I also declare that this Internship work is towards the partial fulfillment of the
university regulations for the award of degree of Master of Business Administration by
Visvesvaraya Technological University, Belgaum.
I have undergone a summer project for a period of Twelve weeks. I further declare
that this project is based on the original study undertaken by me and has not been submitted
for the award of any degree/diploma from any other University/Institution.


Place: Mangalore JASON MELWYN DSOUZA
Date: (4SH12MBA25)











ACKNOWLEDGEMENT


Behind every successful effort, there lies a contribution from numerous sources
irrespective of their magnitude. My project is no exception and I take this opportunity to
express my sincere thanks to those helping hands whole heartily.
The satisfaction that accompanying the successful completion of task that would be
incomplete without mentioning the people who made it possible with the constant guidance
and encouragement all throughout the period of study.
First and fore most I would like to express my thanks to The God Almighty the guiding light
of my life for granting me the potency and courage to complete this project work
successfully.
I profoundly thank Dr. Dilip Kumar K Principal, and Prof. (Lt. Cdr) P. K Suresh
Kumar H.O.D Department of Business Administration, of Shree Devi Institute of
Technology, Mangalore for all their support for the completion of this project.
I would like to express my deepest sense of gratitude to my internal guide Mrs.
Soumya Shetty (Assistant Professor, Shree Devi Institute of Technology) for her
encouragement for this desertion work.
I Express my sincere gratitude to Mr. M Suresh Rao for his guidance and advice
during all time of my project work.
I also express my gratitude to other staffs and workers of Mangalore Chemicals and
Fertilizers Ltd, Panambur, Mangalore for providing me all the information to complete the
project work and I gratefully acknowledge the whole hearted cooperation and boosting
motivation of my parents and my friends.




JASON MELWYN DSOUZA
(4SH12MBA25)




TABLE OF CONTENT

SL NO CONTENTS PAGE Number
CHAPTER
1
Introduction:
a) Introduction about the Internship 1
b) Introduction about the topic 1-2
c) Need for the study 2
d) Objectives of the study 2-3
e) Scope of the study 3
f) Methodology 3-4
g) Literature review 4-5
h) Limitations of the study 5
2
Industry And Company Profile:

a) Industry profile 6-7
b) Company profile 8-9
c) Promoters 9
d) Vision, Mission and Quality Policy 9-10
e) Product profile 10-13
f) Areas of operation 13-14
g) Infrastructure facilities 14-15
h) Competitors Information 15-16
i) SWOT analysis 16-17
j) Future growth and prospects 18
k) Financial statements 19-24
3
Theoretical Background of The Study:
25-33
4
Analysis and Interpretation of Data:
34-61
5
Findings, Conclusion and Suggestions:

Findings
62-64
Conclusion
65
Suggestions
66
Annexure

Bibliography







LIST OF TABLES
TABLE NO. PARTICULARS PAGE NO.
2.1 Inception of the company 9
2.2 Comparative Balance sheet 19
2.3 Net Profit Ratio 21
2.4 Fixed Asset to Turnover 22
2.5 Current Ratio 23
2.6 Total Assets to Turnover 24
3.1 Statement of cost sheet 31
4.1 Fixed expenses of Urea 34
4.2 Fixed expenses of DAP 36
4.3 Fixed expenses of 20:20:0:13 38
4.4 Fixed expenses of ABC 40
4.5 Variable expenses of Urea 42
4.6 Variable expenses of DAP 44
4.7 Variable expenses of 20:20:0:13 46
4.8 Variable expenses of ABC 48
4.9 Break-Even Analysis of Urea 50
4.10 Break-Even Analysis of DAP 51
4.11 Break-Even Analysis of 20:20:0:13 52
4.12 Break-Even Analysis of ABC 53
4.13 Overhead expenses of Urea 54
4.14 Overhead expenses of DAP 55
4.15 Overhead expenses of 20:20:0:13 56
4.16 Overhead expenses of ABC 57
4.17 Profit performance of various products of MCF 58
4.18 Growth rate of total cost and Sales of Urea 59
4.19 Growth rate of total cost and Sales of DAP 60
4.20 Growth rate of total cost and Sales of 20:20:0:13 60
4.21 Growth rate of total cost and Sales of ABC 61





















LIST OF CHARTS
CHART NO. NAME OF CHARTS

PAGE NO.
2.1 Net Profit Ratio

21
2.2 Fixed Asset to Turnover

22
2.3 Current Ratio

23
2.4 Total Assets to Turnover

24
3.1 Break-Even Chart

32
4.1 Fixed expenses of Urea

35
4.2

Fixed expenses of DAP 37
4.3 Fixed expenses of 20:20:0:13

39
4.4 Fixed expenses of ABC

41
4.5 Variable expenses of Urea

43
4.6 Variable expenses of DAP

45
4.7 Variable expenses of 20:20:0:13

49
4.8 Variable expenses of ABC

49
4.9 Break-Even Analysis of Urea

50
4.10 Break-Even Analysis of DAP

51
4.11 Break-Even Analysis of 20:20:0:13

52
4.12 Break-Even Analysis of ABC

53
4.13 Overhead expenses of Urea

54
4.14 Overhead expenses of DAP

55
4.15 Overhead expenses of 20:20:0:13

56
4.16 Overhead expenses of ABC

57


EXECUTIVE SUMMARY


The project on Cost Analysis At Mangalore Chemicals and Fertilizers Ltd
started with MCF Panambur Mangalore, on April 16
th
2014. The project duration was 12
weeks and the project dealt with analyzing the cost of 4 products of the MCF Ltd. They are
Urea, Mangala DAP (Di Ammonia Phosphate, Mangala 20:20:00:13, and ABC (Ammonium
Bi Carbonate). The Project started with the induction program along with the safety measures
which should be taken within the premises of the Company, which acquainted me with the
concept of Finance Functions and gave me the overview regarding the various aspects of the
company. After having an overview as to how the company works, I started with the research
on various dimensions of the organization. Documents were provided to know about the
company business divisions, location of offices, hierarchies, reporting relationship, welfare
activities, safety measures followed, journey of the company etc. After acquiring an insight
about the organization, I prepared analysis and interpretation of the 4 products.
The project on Cost Analysis in MCF Ltd. has been a very good experience. Every
manufacturing company faces the problem of increasing cost of production due to external
factors that are uncontrollable cost or internal factors which are controllable and could be
controlled by following certain cost control techniques, which directly has an impact on the
profitability of the organization.
This is a sincere effort to do a study on Cost analysis in MCF Ltd and also emphasize
on Break-Even Analysis.
On the basis of the findings from the analysis, various suggestions were given which
will help Personnel and Finance Department to formulate the strategies in near future. The
findings and analysis were filed and recorded so that it could be used for future reference.