Академический Документы
Профессиональный Документы
Культура Документы
1
Hindustan Copper Limited (HCL), a public sector undertaking under the administrative
control of the Ministry of Mines, was incorporated on 9th November 1967. It has the
distinction of being the nation’s only vertically integrated copper producing company as it
manufactures copper right from the stage of mining to beneficiation, smelting, Refining
and casting of refined copper metal into downstream saleable products.Major activities
of HCL are mining, ore beneficiation, smelting, refining and casting of refined metal into
downstream products. Precious metals present in the ore are also recovered. The
company markets copper cathodes, copper wire bar, continuous cast copper rods and
byproducts such as anode slime (containing gold, silver etc), copper Sulphate and
Sulphuric Acid. More than 90% of the sales revenue is from cathode and Continuous cast
copper rods The Company markets copper cathodes, copper wire bar, continuous cast
copper rod and by-products, such as anode slime (containing gold, silver, etc.), copper
sulphate and Sulphuric acid. More than 90% of the sales revenue is from cathode and
continuous cast Copper rods. In concluded financial year 2006-07, as per provisional
estimates, the Company has earned a all time highest net profit of Rs 331 crore
2
(~USD 75 million ) against a sales turnover of Rs 1800 crore (~ USD 420 million).HCL’s
mines and plants are spread across four operating Units, one each in the States of
Rajasthan, Madhya Pradesh, Jharkhand and Maharashtra as named below:
3
4
November 1967 Incorporated to take over from National Mineral Development
Corporation Ltd.
March’ 1972 M/S Indian Copper Corporation Limited, Private Sector
Company, located at Ghatshila, Jharkhand with Smelter and Refinery
was Nationalized and made part of HCL
February 1975 Fully integrated Copper Complex from mining to refining came on
stream at Khetri ( capacity 31,000 tones of refined copper)
November 1982 The largest hard rock open pit mine in the country came into stream at
Malanjkhand in Madhya Pradesh of capacity 2 million tones ore.
December 1989 Continuous Cast Wire Rod plant of South Wire Technology of capacity
60,000 MT was commissioned at Taloja in Maharashtra.
5
UNITS OF HINDUSTAN COPPER LIMITED
Indian Copper Complex P.O. Ghatsila
Dist. – Singhbhum(E) Jharkhand
6
OPERATING UNITS
Comprising two underground mines and one open pit mines which is situated at Chandmari
which is known as Chandmari Copper Project, one concentrator plants, a smelter and
refining complex of 45000 tpa capacity along with acid and fertilizer plant. In which
fertilizer plant is not running due to high cost of fertilizer which is produces by the
company. KCC has three mines these are:-
d)
7
3. Chandmari Open Pit Mine
Two underground mines are in operation at Khetri Copper Complex. Khetri mine was
designed to produce 5000 tones per day considering four levels under production.
Maximum production done from the mine was over 1 million tones in the years 1990 to
1993 (1.00 million t in 1990-91, 1.06 million t in 1991-92 and 1.05 million t in 1992-93) when
four levels were active. Until 1.4.2006 cumulative extraction from Khetri Mine is over 20.9
million tones of ore containing more than 1,69,022 t copper.
Kolihan Mine was designed to produce 2500 tones per day considering three levels under
production. Maximum production done from the mine was 0.63 million tones in the years
1987-88 when three levels were active. Until 1.4.2006, cumulative extraction from Kolihan
Mine is over 15.5 million tones of ore containing more than 2,32,543 t copper.
SERVICE OPENING
Two major openings are constructed from surface in the central part of mine. These are
service shaft and production shaft. The shafts are sunk to a depth of 392 meters and 475
meters respectively from surface. The production shaft is designed to hoist ore from 0 ML.
Similarly, service shaft also serves to the levels up to 0 ML. A third shaft is sunk in the north
close to Banwas deposit for ventilation purpose. This shaft is 300 m deep from surface. The
levels connected to service shaft are 300 ML, 240 ML, 180 ML, 120 ML, 60 ML and 0 ML.
Besides, there are three inclines in hanging wall, which were actively used at the upper
levels, when the levels were in operation. Service Shaft is used
for men and material winding & ventilation application; it works as intake of fresh air. A
1600 KW double drum winder is installed for the winding purpose. Production shaft is used
for ore hoisting. It also acts as a return airway for ventilation. A 2870 KW tower mounted
friction Koepe Winder is used for ore hoisting. An axial flow fan of 175 KW, capable of
delivering 8400 cum per minute of air, is installed at the top of the shaft. For northern side
of Khetri Mine a ventilation shaft is in used having an axial flow fan of 125 KW, capable of
delivering 5000 cum per minute of air.
8
high which ultimately increase the cost of the production, Compared to international
copper grade which is around and the depth of MOSABANI underground has gone 1.5 km
so it was uneconomical to use that mine. Malanjkhand Copper Project (TCP) at Taloja:-
for the conversion of Cathodes into continuous cast copper roads in the past the plant
were importing CME graded copper cathode and blending with KCC cathode for
making ETP grade CC rods.
Characteristic of HCL
9
State bank
State Bank of Bikaner
of india &jaipur
Indian
United overseas
Bank of Bankers
of Bank
india
HCL
Punjab
Syndicate
State national
Bank
Bank of Bank
hyderaba
d
MANAGEMENT PHILOSOPHY
Subject to the provisions of the Companies Act, 1956 & the directives/Instructions
issued by the Government from time to time and the provisions contained in the
Memorandum & Articles of Association of the Company, the business of the Company is
being managed by the Board of Directors of the Company, who issues guide lines &
formulate policies for smooth functioning of the business. All the powers are vested with
and exercised by the Board excepting those which are specifically to be exercised by the
10
share holders of the Company in General Body Meetings. However, for day-to-day
operations, the C M D / Functional Directors are delegated with adequate powers. The
functional Directors are, in-turn, supported by professional executives and Chiefs of
Operating Units in discharging responsibilities of their respective functional Area.
ACHIVEMENT
TECHNOLOGICAL INNOVATION
Hindustan Copper Limited has to its credit some major contributions towards
technological improvements in mining, beneficiation, smelting, and hydrometallurgy and by-
product recovery. Some of the areas where Hindustan Copper Limited has introduced
new technology are -
MINING
TRACLESS MINING
Trackless mining has helped in rapid development of mines enabling higher levels of
production and productivity comparable to international standards.
11
DROP RAISING
Raising is one of the most difficult of mining operation, HCL has developed and
perfected the concept of drop raising over 60m intervals. This has resulted in increased-
safety and higher progress. A pattern of five 6” diameter holes has been standardized for
the crater method of blasting the raises sequentially.
HCL has developed single sub-level method of stoping using large diameter (162 mm) blast
holes over level intervals of 50 to 60 meters. Need to have intermediate sub-level for drilling
has been eliminated in this method. Excellent fragmentation has been achieved. Benefits of
new stoping method compared with the conventional sub-level stoping methods are:
1) Reduction in quantum of developments, drilling cost and explosives
2) Overall reduction in the cost of mining
ROCK BOLTING
For mining flat dipping ore bodies, timber support was common in early days. With the need
to mine over a large width. HCL developed very simple but effective methods of rock bolting
using cement grouted steel rods. This has resulted in the improvement of ground conditions
ensuring higher safety standards.
HCL has developed the post-pillar method of mining for adoption in flatly dipping wide ore
bodies in ICC group of mines. This mining method has enabled the production rates to go
up as compared to room and pillar stopes. Electrically operated LHD 's have been
introduced at ICC for operating in these stopes. The output per man shift has increased and
the stoping cost has come down substantially. Hydraulic filling of stopes with classified mill
tailings has been established as a standard practice at the ICC resulting in regional
improvement in ground conditions.
12
SMELTING
OXYGEN ENRICHMENT
HCL has also taken the lead in introducing oxygen enrichment in the converters at KCC
HCL has also introduced oxygen enrichment in process air in flash furnace to effectively
increase the capacity of the existing smelters for meeting increased production
commitments.
HYDROMETALLURGY
Occurrences of large quantities of oxidized ore and lean grade sulphide ore at Malajkhand
has impelled the company to extract copper values in the ore by dump leaching otherwise
uneconomical by conventional methods. The dump is sprayed with dilute acidified solutions
to dissolve copper minerals. The end products of this leaching operation are a pregnant
liquor of copper sulphate. The leached liquor is then treated to recover copper metal.
BY-PRODUCT RECOVERY
HCL has established well equipped R&D facility at KCC and ICC. The R&D section is fully
responsible for improvement in quality of the products, control of quality of raw materials;
improvement of recoveries and for maximizing the recovery of by-products, HCL has
developed its own Precious Metal Recovery plant which is now operating at ICC
successfully. A Tellurium Recovery Plant has also been developed by R&D Wing.
Extensively trails are going on for recovering cobalt, nickel and copper powder from
converter slag. Attempts are also being made for reducing the losses from slag.
13
HCL PRODUCTS COPPER CATHODE
HCL PRODUCTS
PHYSICAL DIMENSIONS
Parameter
SIZES ---> 8 MM. 11 MM. 12.5 MM. 16 MM.
8mm + 11mm + 12.5mm + 12.5mm +
Diameter
0.38mm 0.38mm 0.38mm 0.38mm
Ovality + 0.38mm + 0.38mm + 0.38mm + 0.38mm
Elec. > 100%
> 100% IACS > 100% IACS > 100% IACS
Conductivity IACS
Elongation > 30% > 30% > 30% > 30%
Residual Oxide
< 1000 A o < 1000 A o < 1000 A o < 1000 A o
Film
Oxygen, ppm 200-550 < 400 < 350 < 350
COIL ID/OD 928/1432 928/1432 9287/1432 928/1432
Coil Weight 2.25T/1T 2.25T/1T 2.25T/1T 2.25T/1T
14
(An ISO 9002 Product)
OPERATING UNITS
Khetri Copper Complex (KCC) at Rajasthan:- Comprising two underground mines and
one open pot mines which s situated at Chandmari which is known as Chandmari copper
Project, one concentrator plants, a smelter and refining complex of 45000 tpa capacity
along with acid and fertilizer plant. In which fertilizer plant is not running due to high cost of
fertilizer, which is produces by the company. KCC has three mines these are.-
15
1. Kolihanine
16
2. Khetri Nagar mines
17
3. Chandmari Open Pit Mine
Two underground mines are in operation at Khetri Copper Complex. Khetri mine was
designed to produce 5000 tones per day considering four levels under production.
Maximum production done from the mine was over 1 million tones in the years 1990 to
1993 (1.00 million t in 1990-91, 1.06 million t in 1991-92 and 1.05 million t in 1992-93) when
four levels were active. Until 1.4.2006 cumulative extraction from Khetri mine is over 20.9
Kolihan mine was designed to produce 2500 tones per day considering three levels under
production. Maximum production done from the mine was 0.63 million tones in the years
1987-88 when three levels were active. Until 1.4.2006, cumulative extraction from Kolihan
mine is over 15.5 million tones of ore containing more than 2,32,543 t copper.
MINE LAYOUT
KHETRI MINE
Mine workings extend over a strike length of about 3.6 km. It is the largest underground
metal mine in the country. The mine is divided into main levels at 60m interval. The top
level is 421meter level (ML) and the lowest level is 0 ML coinciding with mean sea level.
The other levels are 350 ML, 300 ML, 240 ML, 180 ML, 120 ML and 60 ML. Ore from upper
four levels viz. 421 ML, 350ML, 300ML and 240 ML is completely mined out and present
production is contributed by 180 ML, and 120 ML levels. The mine is developed on track
system of transportation except 421 ML and 300 ML, which were developed on trackless
system.
SERVICE OPENINGS
18
Two major openings are constructed from surface in the central part of mine. These are
service shaft and production shaft. The shafts are sunk to a depth of 392 meters and 475
meters respectively from surface. The production shaft is designed to hoist ore from 0 ML.
Similarly, service shaft also serves to the levels up to 0 ML. A third shaft is sunk in the north
close to Banwas deposit for ventilation purpose. This shaft is 300 m deep from surface. The
levels connected to service shaft are 300 ML, 240 ML, 180 ML, 120 ML, 60 ML and 0 ML.
Besides, there are three inclines in hanging wall, which were actively used at the upper
Service shaft is used for man and material winding & ventilation application; it works as
intake of fresh air. A 1600 KW double drum winder is installed for the winding purpose.
Production shaft is used for ore hoisting. It also acts as a return airway for ventilation. A
2870 KW tower mounted friction Koepe winder is used for ore hoisting. An axial flow fan of
175 KW, capable of delivering 8400 cum per minute of air, is installed at the top of the
shaft. For northern side of Khetri Mine a ventilation shaft is in use having an axial flow fan of
Sublevel means a level intermediate between the two main adjacent levels driven during
the development stage. It is confined to the block or ore and does not extend to the shaft.
to massive and wide ore deposits. However, the drill holes used in the stopes may be
downward or in a ring or fan pattern and the stopping method is better treated as a
19
The method involves the driving of sublevels within the ore body to vertically divide a block
to be stopped. Miners working within the sublevel opening drill a pattern of holes, long holes
of re. Ore is produced by drilling and blasting long holes which may range n diameter from
50-200 mm with length up to 90 m. The ore falls into he large open stops created by
previous blasts. For deposits of thickness less than 20m, sub-level for deposits width
greater than 20m, the sub-level for deposits of width greater than 20m, the stops may be
formed in transverse direction. I.e. From handing wall (H/W) to foot wall (F/W) (transverse
Vertical pillars are left between stops on the same level. These are called rib pillars.
Horizontal pillars are left to support the main haulage levels. The horizontal pillar for support
of the upper level is called crown pillar; the one support of the lower level is called the sill
pillar.
Application:
Sublevel stopping is normally adopted in ore bodies, with the following characteristics.
Steeply dipping ore – the angle of the foot wall should exceed the angle of repose of the
broken ore.
Strong ore, which separates readily from the walls Regular ore boundaries.
capacities along with acid plants. Precious metal and other by product recovery plant
out of the five mines three have been closed down because they were unproductive
20
and mining cost was high which ultimately increase the cost of the production.
mine.
3. Malanjkhand Copper Project (TCP) at Taloja:- for the conversion of Cathodes into
continuous cast copper roads in the past the plant were importing CME graded
copper cathode and blending with KCC cathode for making ETP grade CC rods.
Registered office
a) HCL
Tamra Bhawan
b) HCL
c) HCL
d) HCL
e) HCL
21
22
23
24
COMPANY PROFILE
KHETRI COPPER COMPLEX
INTRODUCTION
Khetri Copper Complex is mining cum metallurgical unit and a major constituent of HCL a
Govet. Of India enterprise with installed capacity of 47500 tones electrolytic grade copper
Khetri Copper Complex (KCC) includes Khetri underground mines, Kolihan Mines,
Chandmari Copper Project comprising one open pit mine, a concentrator plant, smelter and
KCC is in the cradle of aravelly hills in district Jhunjhunu Rajasthan some 190 km south
west of Delhi and 180 km north of Jaipur. It is at the northern end of a great coper belt from
Singhana town to Raghunathgarh. KCC has two well developed townships at Khetri Nagar
and Kolihan.
Fertilizer plant in not in running condition in these days, due to the inadequate raw material
and high cost of raw martial for the production and chandmari mines are also not running
because it has been come to the dangerous poit and to maintain this mine dangerous for
the Khetri.
25
LOCATION MAP OF KHETRI COPPER COMPLEX
HISTORICAL BACKGROUND
The metal copper is a primitive metal and as also mined Khetri in ancient times during the
period of Mauraya.
The first record mention of copper mining in this belt is found in “Aina a akbari”. Written by
AbulFazal in the year 1590 during the period of Emperor Akbar the great.
26
The project was handled over to the National Miner Development corporation in 1961 for
investigation. The decision proceed to development of KCC was taken in 1962. Shaft
sinking and mine development production odd ore took place in 1970. The project was
DEPARTMENT
To maintain an efficient performance and better output the organization is broken down into
departments catering to the need of that particular section of organization ensuring smooth
functioning.
Mining
Concentrator
Fertilizer Plant
Administrative department(Finance)
Training Department
Instrumentation
Purchases
Mechanical
Civil
Services
Fire Station
Central Stores
27
Mining concentrator, smelter and refinery are the reduction departments where as
sulphuric acid and fertilizers plants are by production departments, which take active
training hhhelps indirectly the production process. Other department caters to the need
of welfare sale, storage to help the overall process. Fertilizer plant is not in the running
xondition due to the unavailability of raw material and high price of raw material, which
PRODUCTION PROCESS
The production process of the organization in spread over mining, concentration, smelter
MINING
The mining in the KCC is spread over the Khetri and Kolihan consisting or two
underground mines. Mines start at the zero on sea level that is about 300 meter deep and
them they precede upwards with mines at every intervals of 60 meter. Blasting is done at
the ore site, and the heavy boulders are shifted to the zero level are crushed to the size of
about of 165 mm with the help of a jaw help of skip and brought to earth level at the
stocking site. Where they are piled and them used further more new developed technique
are used in the mining process and more exploration is going on in search of new ore
resource recently ore has been struck in Banwas and planning in been done to develop the
Banwas mines. From mining ore enter into the concentration department for further
processing.
28
CRUSHNG AND CONCENTRATION
Run of mine ore at 150 mm, skip hoisted from Khetri mine is conveyed to an open conical
stockpile. Similar size material from the Kolihan, Chandmari mines is brought to the work
site aerial ropeway and delivered to a second stockpile which recycled crushed slag from
the smelter is conveyed to a third stockpiles. Each of these materials can be handled
separately in the crushing plant thought the ore types may be blended together; the slag s
always processed on its own. The croc piles have live capacity to hold 30000 tones of ore
Four ellipses vibrator feeders unit each stockpiles draw off ore at a variable rate between
100-300/hr. Per machine and deliver it by a conveyor to a double scalping screen the deck
of which have aperture 50mm and 20mm respectively. The over size from both deck is fed
From the crushing department ore is feed to grinding section which utilizes rod mill, and
where the ore is finally grounded into powder and mixed with water to from ore slurry. The
slurry now passes on to the floatation cell. Flotation takes at a neutral ph of around 7.5 the
pulp density being 35% soild . The process of forth flotation now sets in and the slurry is
mixed with pine oil and Kant hade which is sodium isotropy.
Xanthenes Forth formation takes place where metal particles pass on in to the forth which
is collected and tailing remain at the bottom which are waste and skipped away at the
tailings remain at the bottom which are a waste and skipped away at the tailing dam the
forth with metal is dried in open dam them in a drier. The concentrate one obtained is
29
SMALTER
Khetri smelter has a capacity design to produce 31000 hr/year of copper wire bar. Smelting
takes place is an outokumpu flash furnace. Dried concentrate is fed in to the vertical
reaction shaft section of furnance a 400c. The concentrate melts and slag and matte ore
collected separately where as gases pass through a waste heat recovery boiler electrostatic
precipitator and them either to and acid plant on to the main stock. The slag is cooed and
passed to the crusher again and recycled. The matte obtained contains 45% copper and
gain treated in price smith converter. The air for the converter blowing is supplied by stream
driven turbo blower ad is oxygen enriched. The blister copper fro the converter is refined in
two drum type anode furnace. The anode has an average weight of 220 kg and grade about
99.4% copper. The exhaust gas is cleaned and sent to the acid plant.
REFINERY
The tank house came on stem in 1975, the technical know how and equipment specification
having been provided by boar of Yugoslavia. In refinery the 99% copper is made pure up
99.99% pure as to meet intermatopmal standard. For this electrolyte used in CuSO4, for lift
trucks bring in H2SO4 Cu Anode from the smelter. These are arranged in the cell at a
distance of 115 mm each. The temperature is maintained at 60 c copper from anode get
deposited on the cathode, which are stream washed in stainless steel tanks with hot water
30
SULLPHRIC ACID PLANT
The organisation run side a sulphric acid plant utilizing the SO2 gas from smelter plant
PROCESS
Gas from smelter plant is coiled down and them scrubbed. Scrubbing helps to remove dust
particle and other unwanted material from the gas. The pure gas SO2 is then converted
into SO3 through oxidation and then used to prepare H2SO4 acid.
1. Gas purification: After cooling the gas it is allowed to settle down and then filtration is
2. Scrubbing: The filtered gas with the help of the pump is raised to the scrubbing
tower. The scrubbing tower free the gas from dust particles as it moves through it
and is they pumped through the liquid cooler. The cooled gas is then dried for further
processing and for this purpose is made to pass through a drier chamber.
3. Conversion: The dried SO2 gas through oxidation is changed into SO3 at high temp.
And the SO3 vapors are absorbed to convert it into sulphric acid.
INDESTRIAL RELATION
Industrial relation at KCC is harmonious having not witnessed any major strike, shutdown or
any confrontation, since last 20 years. But it always remained a challenging task for the
productivity, working condition, technological up gradation, welfare measures are the result
31
2. Khetri Copper Mazdoor Sangh (KCMS) affiliated to BMS.
Khetri Tamba Shramik Sangh (KTSS) is the reorganization union at present and
therefore represent the workers in all kinds on manor discussion held with the
management.
To develop Indian copper industry on sound lines by exploring deposits and develop new
copper deposits of adopting appropriate cost effective measures and introducing modern
The Company’s reputation depends on the conduct of its Directors, Senior Executives and
its employees. Every employee who is associated with the Company must play a part in
The purpose of this Code of Conduct is apart from meeting the requirements of Listing
(a) articulate the high standards of honesty, integrity, ethical and law abiding behavior
32
(b) encourage the observance of those standards to protect and promote the interests of
(c) guide Directors and Senior Executives as to the practices thought necessary to
(d) set out the responsibility and accountability of Directors and Senior Executives to
report and investigate any reported violations of this code or unethical or unlawful behavior.
It is impossible to spell out every possible ethical scenario. The Directors and Senior
Executives should rely on their discretion, judgment and skill expected from a reasonably
This Code of Conduct will provide Directors and Senior Management of HCL only general
interests.
FUTURE PLAN
The organization at present is paring a future plan to increase production and decrease its
1. Expansion of smelter plant to increase production of blister copper fro 31000 metric
tones.
33
QUALITY ASSURANCE
Khetri copper complex for its final products copper cathode has obtained a certificate for
quality management system ISO 9002 for its refinery plant where copper cathode quality
QUALITY POLICY
We are committed to serve our customers with consistent quality of LML grade. A cathode
This achieved by :-
Continuous upgraded
QUALITY OBJECTIVE
Target towards 100% LME grade, LME a cathode copper consequently minimizing.
34
QUALITY ASSURANCE SYSTEM FOR ACID & FERTILIZER
Khetri copper complex a unit of Hindustan copper ltd has not obtained any quality certificate
for its acid and fertilizer products. But company follows the ISO 9000 quality system.
Company is maintaining the quality management system very well. According to company
We are committed our customers with consistent quality of acid and fertilizer to their entire
satisfaction.
economic activities.
35
QUALITY OBJECTIVES
Targeting towards 98% con. Sulphric acid and 65% of dil. Sulphric acid consequently
Providing better quality at low cost to meet the dynamically changing need of
36
37
MAJOR CUSTOMERS
Hindustan copper limited is being sold its main products as well as most of by products in
domestic market.
• Defense
• Railway electrification
• Sales manufacturer
• Other trades
38
Major customer of fertilizer
ORE ORE
CONCENTRATOR
CONCENTRATOR
SMELTER PLANT
ANODE
SLAG
REVERT
SLAGE
TRETMENT
PLANT
SLAG
TANK HOUSE
`
CATHODE
39
PRODUCT PROFILE
The company produces primary copper, in the form of cathode/ wire bar / wire road. It also
produces single super phosphate, sulphuric acid gold, silver, selenium, and tellurium, and
MAIN PRODUCTS
BY PRODUCTS
Gold silver, sulphric acid, copper sulphate, Nickel sulphate, Selenium, Tellurium and
phosphate fertilizers.
PRICE
All the producers in India mutually decide price of copper products rod. After that price of
the product, like copper rods and cathodes is decided by the company itself. Price circular
STORAGE
The company Goodwin’s in all regions of India where copper products are stored. From
these Goodwin’s, the products are transferred to the different customers. Customers have
to make their own transport arrangements for lifting the copper products.
SUPPLY
Road transportation.
40
SPECIFICATION OF COPPER PRODUCTS
1. COPPER CATHODES
A. SHAPE: Electro refined copper, rectangular plate with two loops attached on
one side.
B. Dimension & weight: Thickness may vary from 10-15mm and weight
65.99kg.
A. Shape: Electrolyte tough pitch copper, ingot cast vertically and horizontally.
41
HORIZONTAL CAST
Length 1372mm
Height 102mm
Weight 98.113kgs
VERTICAL CAST
Length 1230-1375mm
Weight 91+102
C. Chemical specification
Copper 94.44-99.77%
Oxygen 200-500ppm
D. Physical Properties
Pt IV 1980
42
USE OF COPPER
• Defense: Ordnance factories for the manufacture of quns shells and cartridges.
• Copper chemicals.
• Decoration Items.
43
7.) Pay bill section
AGM FINANCE
44
BANK SECTION
CASH SECTION
1> Based on the requirement of user department in the company. An indent raised
2> Purchase department will foal enquires to the sources known by the i.e. Limited
3> Based on the offers received against enquires, 2) above a comparative statement
from the user department the same is forward to finance for approval and
concurrence.
WORK SECTION
It is second section in the finance department in KCC. It is concerned with the works
accounts of the civil town ship of the company. Every work which is the down by contract
All the work down by contract basis, their payment is made by works section. In the contract
every worker and concerned workers and paid by works section under the company.
45
And every payment which is made by the company is paid under cheque by band. At the
time of payment contractor may be give money by the company time to time is called
Contractor may get his money at the end of work completed or he can get money time to
Contractor has done all the works in the period of his schedule; it recorded in the
measurement book , how many workers are working in this contract, whatever work done in
the mean workers are working in this contract whatever work done in the mean time or
whole gone time. Date of staining. Date of closing, how many work has been done in the
INTERNAL AUDIT
Internal audit a valuation of internal transaction of the company. It is part finance in every
company.
In this company called Hindustan Copper Limited and in Khetri Copper Complex is third
In the internal audit section they have to maintain all the inventory of products like work in
They are verifying all the transaction of cash counters in the KCC hospital including all the
words in the hospital. Auditing of material gate passes to check in the inventory passes.
Auditing of canteen, cash counters and stores.Auditing of library, sports councils, guest
STORES ACCOUNTING
This section belongs to the finance department and it is the forth section of the department.
As soon as the receipt voucher prepared by material receipts section/ stores department
copies of which are being sent to finance department for pricing and accounting.
46
Material receipts section for only receipts and issue composition of the materials and
goods.
department.
Stores accounting section also deals with the issue price and maintain a set of
method.
COSTING SECTION
Costing section is the main section in the finance department. It is the over all
1) Every month cost is determined by preparing cost sheet for each activity
2) At the end of the year a comprehensive cost sheet 3 cost sheet based on
3) All the input data’s are collected form various production, unities such
smelter plant, Refinery or Tent House and wire bar plant and lastly from
Planning Control (PPC) or other cost wiz Salary and material data’s are
taken from computer directly based on salary bill or relevant one and
47
5) A separate monthly cost sheet is also prepared for power cost. Power
6) Every month the cost section in the finance department in KCC also
7) Certain norms have been fixed for major operating item based on the
8) While preparing materials cost sheet cost is drawn as fixed and variable
power and full and direct cost is known as fixed cost like salary and wages
9) There is some other fixed cost which is treated as indirect cost which
BANK SECTION
The Bank section is related only bank transaction that is accrued in KCC. There are mainly
two banks related to the company such as SBBJ(State Bank of Bikaner and Jaipur) and
1) All the payment of other section of finance (other then cash) is paid by
bank.
48
statements to the company and bank section. It is made a
3) If the party sales some good to the company by bank, then the
company give the money to bank and take goods receipts by the Bank
and collect the goods from the godown of that party belongs.
4) Voucher by the bank section through bank pay all the payment of any
6) This section prepares a daily bank book of SBBJ & IOB Kolihan nagar
MISCELLANEOUS SECTION
This section relates to the misc. Transaction in the finance department like advance to
employees and officers.This section keeps the full record of advances and payment like
private water supply, electricity, house from out side parties like ship etc.All the services
given by the company to these parties and payments received by the misc. Section in the
This sections related to the employees regarding to their salary, advances etc. They
49
Those employees who have completed their five year service in his company, he will
entitle for gratuity. If an employee had been died before five years there are some
condition:-
allowance.
2) If an employee completed only one year service in the company he will entitled for
two months salary. After compilation of thirty years of service he will entitled tor ten
service in a company.
This section is derectlyrelated to the employees. This section deposits some amount from
the salary of the employees for his emergency, which is called the provident fund of every
3) This section provide employee provident fund loan in the company annual report.
Jaipur.
COMPILATION
Compilations means the revaluation of all the vouchers, receipts etc. And all the payment of
cash and bank valuated by the compiler. He must check all the entry of every voucher and
receipts. By the help of computer in the company. This section are functioned to analyses
50
sale of product including which product, quantity, value, excise, sales tax of octroy than
Even money received from purchaser on account of sales tax, he should pay the sales tax
to govt. Till the 7th of the next month. Showing all sales and sales tax with receipt of money
deposited into govt. account. In compilation of financial year annual return will be filled to
the state govt. The Tate of raw is 8% and finished goods 16% in the form of excise duty,
this section than give the report to the excise paid, opening balance, closing balance in the
form of RT -12 . Every transaction related excise duty should be coquet between 9 am to 5
pm, which is called the transaction hour by the excise department. In the compilation
process preparing cash voucher, then bank voucher. If there is a wrong code it will be
deleted and prepare journal voucher. There are two main function of compilation in the
ASSETS
Regarding purchase of assets allotted and account code including name of particulars
material and original cost cumulative depreciation and return down value.
Unused material sells after a committee of approval than after the above assets sells. After
opening the tender the party will be deposited advance amount 60% or 70% the total cost
of sell stores will prepare a bill against lot number and inquiry number a list sent to concern
1) When the receipt the material from inter bead unit than we will take a new
2) When material transfer from inter unit to another inter unit, we will sent invoice
and original volume of the material cumulative and written sown value sent
through transfer certificate. Then the above unit informs that we will take the
with material to project and also mention the above practice of original cost
cumulative cost and written down value of the material also sent through
transfer certificate.
52
53
Title
A study of “Cost Analysis” at Khetri Copper Complex, Khetri Nagar a unit of
M/s Hindustan Copper Ltd. A Government of India Enterprise.
Objective
Research Methodology
I used all primary & secondary data for analysis. To know the various aspects of Cost-
Accounting being done at KCC, the data has been collected from the internal as well as
external sources.
The focus of the study is on Cost-Analysis. The secondary data are the published data. The
data has been collected for pervious 3 years.
Limitation
54
COSTING: -
A THEORITICAL ASPECT
CAS – 1
“Cost is a measurement in monetary terms of the amount of resources used for the
purpose.”
Thus the cost be regarded as the price paid for attaining the object.
Thus object may be a product, a service or any activity.
COSTING:-
“Is a process of ascertaining cost while cost is the final result of costing”
C. I. M. A. LONDON: -
COST ACCOUNTING:-
55
LONDON METAL EXCHANGE-:
“Cost accounting is the process of accounting for cost from the point at which expenditure is
inward or committed to the establishment of its ultimate relationship with cost centers and
cost units. In its widest usage, it embraces the preparation of statistical data, the application
of cost control methods and ascertainment of the profitability of activities carried out or
planned.”
NEED OF COSTING-:
The main object of costing is to record and analyse the expenses with a view to know the
cost of a unit of out put of a job of a process or of an operation. Therefore it involves
allocation of expenditure.
56
COSTING NEGOTIATION-:
The basic industries may have to face problems of price negotiation with the government
authorities. Costing system lays the foundation for such negotiation.
FORECASTING -:
Long term forecast repairs the consideration of factors like sales, cash position, and capital
expenditure. Mar lest variation, profit expected etc. the overall guiding factor is the art urn
on capital. Costing helps for costing in appropriate manner.
Cost is a measured in monitory terms of the amount of resources used for the purpose of
production or services. The basic objective of determining the cost of production is:
OBJECTIVE
FIXATION OF STATUTORY
PRICES REQUIRMENT
57
Nature of expense
CLASIFICATIO
Production process N OF COST
Functional/activities
BEHAVIOUR OF COST: -
FIXED COST
It is the cost which does not vary with the change in the volume of activity in the short run.
They are also known as period cost e. g. Salary, rent, deprecation, audit fees.
VARIABLE COST
Variable Cost is the cost element which trend to directly vary with the volume of activity.
Variable cost has two parts (A) Variable direct cost (B) Variable indirect cost. Variable
58
indirect cost costs are termed as variable overheads e.g. materiel consumed, direct labour,
sales commission, utilization, fright packing etc.
SEMI-VARIABLE COST
Semi variable cost contains both fixed and variable elements. They are party affected by
fluctuation in the level of activity e.g. Factory supervision, maintenance etc.
Production Process: Batch cost, Process cost, Operation cost, Contractor cost, Joint cost
.
TC
COS
T TVC
TFC
YEAR
Costing department supplies valuable statistics to help planning for capital expenditure and
capital structure. The statistics relate to operating cost, behaviors at different levels of
activities, rapidity of tenour, working capital requirements and many other matters.
Cost statistics relate to past performances, whereas all decision is to be taken about the
future.
The cost ascertained on the basis of full utilization of capacity may not be true when
utilization is only partial for any reason.
59
Non- inclusions of some costs, different methods used, imprison the materials and in
absorption of overheads may results in different costs.
Management may believe that, detached records may give benefit, but they are costly too.
To maintain all records for control, under a costing system, it is also very expensive. Delay
in receiving costing information does not help the mgt to take decision at the right mordant.
Rigid costing does not serve all purposes.
Different industrial undertakings have different problems. To suit the specific needs of an
industrial undertaking, the system of costing should be developed and applied. Thus, a
system applicable in one undertaking may not be suitable in another undertaking. While
designing a costing system in any undertaking the following board principles should be
borne in mind.
ii. CREATION OF FAITH: - The executives and the workers should have
faith in the system in order to create benefits out of that. Faith can be
created by making the expected benefits known to them and allowing
them to believe that prospects of the organization lead to the prospects
of all connected with it.
60
iv. GRADUAL APPLICATION: - The system should be applied step by
step i.e. in phases. Hasty application causes disruption in work and
ultimately ends in failure.
vi. ECONOMY: - The personnel pattern, records and forms etc. should be
so designed as to involve minimum cost. It does not mean that
efficiency should be surrendered to economy. So essential forms and
records as well as personnel must be maintained and unnecessary
details should be eliminated.
The points that are to be carefully considered before installing a costing system may be
described as the prerequisites and these prerequisites must be fulfilled in order to derive
the best benefit out of the system. The points are as below:
Consideration of the size, layout and nature of the undertaking: The size, layout and nature
of the undertaking shall decide the requirements and the proposed costing system should
suit such requirements. The cost of the costing system must not outweigh the expected
benefits. On the other hand, the benefits should be much more than the cost involved.
Industries which manufacture goods and services require cost accounting. Trading
concerns which purchase and sell finished goods require little cost accounting service. A
big manufacturing concern, with complicated manufacturing activities, cannot do well with a
costing system designed for a simple small manufacturing concern.
Study of the production nature, methods and stages: The nature of production, the methods
of production and the stages of production shall determine the method of costing to be
61
applied. The system of costing is to be developed in such a way that cost at every stage of
production can be built up.
Study of the organizational activities: The present activities relating to the control of
materials and wages and also to the control of expenditure should be carefully studied. If
there is any defect or loophole they should be modified so as to suit the costing system.
Study of the present departments and their work: Normally, every manufacturing
organization has manufacturing department, administrative department, selling department
and distribution department. The present working efficiency of all these departments, their
co-ordination etc. is to be studied. Inefficiency at any stage should be pointed out and
improvement there of should be suggested.
3. Resistance from the existing staff: It is normal that existing staff shall always
revolt against introduced to keep watch on their activities and they are going
to be under another new management, in addition to the existing one. This
idea comes out of ignorance and suspicion. If they can be taught properly, the
resistance can be easily overcome.
62
4. Resistance from Management staff: Managers often do not like the
introduction of a costing system. They think that costing system shall curb
their rights and they may be subject to ‘efficiency accounting’ under a costing
system. Under a costing system, location of responsibility is definite and in
case of a failure, the fault can be detected and person responsible can be
identified. Managers should accept the challenge and work perfectly for the
improvement of the organization.
5. Resistance from the point of view of the dearth of trained staff: Sometimes a
costing system cannot be introduced be to non-availability of sufficient
number of trained staff. For cost recording, cost analysis, cost control, cost
reconciliation, cost statistics etc. expert hands are required. In our country
there is a shortage of such hands. However, the number of such hands is
increasing steadily. This will not stand in the way in near future.
There are various methods or types of costing, but the basic principles underlying all
these methods or types are the same. The basic principles are to collect and
analyses the expenditure according to the elements of costs and to determine the
cost for each cost centre and cost unit. The nature of the manufacturing operation
carried out or the nature of the services rendered by a concern decides the method
applicable to it. Broadly speaking, there are three main methods of costing – job
costing, Process costing and Farm costing, the others are either variants of these
three methods or are techniques used for a particular purpose under particular
conditions. The methods which combine the features of basic costing systems are,
according to J.Batty, hybrid costing systems.
63
1. Job Costing: under this method, the cost unit is taken to be a job, small or big,
comprising of a definite quantity of a product manufactured. So the approach is
product approach. Job costing system is used where it is desired to ascertain the
cost of a job or a specific order or of a batch of finished goods and also profit or loss
on each job. Thus, printers, publishers, machine tool manufacturers, caterers, job
foundries, painters, builders etc. use job Costing system.
N.B. the approach of job costing system is product approach i.e. emphasis is given
on the job and costs of products in a job are ascertained. The approach of process
costing and farm costing is period approach i.e. emphasis is given on the period or
time and costs incurred during a period are ascertained and are divided by the
number of units produced to obtain unit cost.
64
II. Terminal or contract costing: Here the cost unit is a contract. The cost of the
contract and profit or loss thereon is ascertained. The execution period of the
contract may extend over a number of years. Building and construction engineering
concerns and ship – builders use contract or terminal costing. The approach is
product approach
I. Single or Output Costing: Industries which produce only a single uniform product
or a very small number of similar products or a single product of different grades
use Single or Output Costing. Here the approach is period approach. The period
cost being divided by the number of nits produced, gives the nit cost. Iron & Steel
Industries, breweries, collieries, mines and quarries etc. use single or Output
costing.
65
II. Operation Costing: Here, instead of the process, each operation is taken as the
cost center. In industries where the production is carried out by a number of distinct
operations, Costing is suit ably used. If in the manufacture of a particular product
there are four distinct operations and the operation unit costs are a, b, c, and d, the
cost of the finished unit is determined by a a+b+c+d.
1) Since cost is ascertained only at the end of a cost period. Effective control on
activities cannot be exercised unless standard process costs are used.
2) In case of joint products (i.e., more than one product coming from the same
process), the total cost are apportioned to the various products thus, the cost of
each product cannot be very much reliable.
3) The unit cost, under process costing, represents average costing, represented
average cost over a period. So day –to- day individual efficiency of performance
cannot be judged.
4) In process costing work –in-progress has to be valued at the end of each cost
period. The process cost after adjustment for work- in- progress being divided by
the number of units cost. Value of work-in-progress, being only an outcome of
estimation, renders process costs inaccurate.
67
4. Cost of the production units normally lost or spoiled, are ascertained and included in
the costs of good units produced.
5. Finished product from one process passes as raw materials to the next process and
charges are made accordingly, in order to arrive at the cost of finished product at
the of a cost period.
6. Work- in- progress and each process cost period is valued and considered for
arriving at end of a cost period.
7. Unit cost of each process during a period is obtained by averaging the total cost of
the period.
8. When more than one product is obtained from a process (i.e., in case of joint
products) the total cost of the process during the cost period are apportioned to the
products, suitably.
PROCESS COSTING
Konter As :
“A meted of costing accounting where by costs are charged to process or operation and
averagely over units produced.”
68
COPPER
Gas
Electricity
Ice
Steel
Paper
Cement
Process Plant
Rubber
Bakeries
Flour Mills
Canners
Manufactures of medicine
Fertilizer Industries
69
Job Costing Process Costing
No transfer of product usually takes place Products normally pass from one process to
Form one job to another, except In case of another before they reach the final shape.
Over – production. Usually finished products of one process
Becomes the raw materials for the next process.
Costs are ascertained for each job separately. Costs are ascertained process wise or
Department wise
After each job is completed costs are ascertained Costs are ascertained for each process or
For the job. Department at the end of a cost period.
There may or may not be any work in progress at the end of cost period there is every
In respect of a job on any closing date. Possibility of having work in progress which
is regarded s the opening work in progress in
the next cost period.
70
3. Farm Costing: The agricultural farms are quite different from the manufacturing
industries in many respects. Manufacturing industries use standards plants which
give standard output. Plant of a farm is the land which varies widely from place to
place and in soil structure. Produce of a farm is highly influenced by climate, rainfall,
irritation, nature of manufacturing, nature of seeds used etc. Manufacturing products
are not influenced by these factors. Another peculiarity of a farm is that, output of a
period, in part at least, is used as the input of the period following. Paddy, potato,
onions, etc. produced in one year are preserved for using them as seeds in the next
year. Thus, owing to the peculiar nature of farms, as distinct from that of
manufacturing concerns, a new costing method has been applied to farms so as to
suit their purpose and it is known as Farm Costing. The countries which depend on
agriculture mainly, and are developing agriculture through organized farms, suitably
use farm costing. The approach of farm costing is period approach. When only one
crop is produced the period cost being divided by the number of units produced
gives the unit cost. When more than one crop is produced or where there is rotation
of crops, units cost is ascertained after proper allocation of expenses to different
crops.
TECHNIQUES OF COSTING
1. Historical or
4. Uniform Costing
5. Opportunity Cost
6. Incremental or
differential cost
7. Out- of pocket cost
71
8. Imputed or Notional
Cost
TECHNIQUES OF
COSTING
1) Historical or absorption costing: Costs which are ascertained after they have
been incurred are historical costs. Historical Costing may be found to be similar
to diagnosing a disease by postmortem analysis. This is the Traditional Costing.
So far as cost control is concerned, Historical Costing does not bear much value.
2) Predetermined Cost: cost which are ascertained before they have been actually
incurred, are Predetermined Costs. This is like writing Ramayana much before
the birth of Rama.
On the basis of specification of all the factors affecting costs, cost of each
element is ascertained, in advance, before the actual production. This is, in other
words, the cost that should be. The actual cost, after it is incurred, is compared
with the corresponding predetermined cost and the difference is analyzed with
reasons, so that management may take remedial measures in time.
Predetermined Cost may be ascertained under (I) Estimated Costing or under (ii)
Standard Costing. Under the former, cost of each element is determined, in
advance, on the basis of estimates; while in the case of Standard Costing,
standards are set for each element and for each product, process or service, and
actual cost is compared with predetermined standard and the variances (i.e.,
differences) with reasons are worked out so as to enable the management to
take timely action. Estimated cost is less accurate than standard cost.
3) Marginal Costing: under this costing technique, costs are classified into two
types (I) fixed costs and (ii) variable costs. Total of variable costs of a unit is
72
called marginal cost. Fixed costs are recovered from contribution which is the
excess of selling price over marginal cost. Marginal Costing is very useful for
managerial decision, particularly in times of acute competition, while taking ‘make
or buy ‘decision, selecting appropriate product - mix, taking ‘shut down’ decision
etc.
5) Opportunity Cost: Men, material, finance etc. may be used in different ways.
When used in a particular way they give a particular return. If the some are used
in different ways they may give the same or different return. The original return
which is no longer obtainable is the opportunity cost. For example, Rs. 10, 000
invested in some investment gives an annual income of Rs. 1,000. The
investment is realized at par and put into a business. The opportunity cost is Rs.
1,000 i.e. the interest lost. Opportunity cost never fined place in the books of
accounts, but it is taken into consideration for the purpose of comparison.
73
7) Out- of pocket cost : when the payment for an element is not required to
demanded to a third party(as for example, depreciation )and is excluded from the
total cost, the cost is called’ out-of-pocket cost ‘. This is important for the purpose
of price fixation during trade depression, for taking ‘make or buy’ decision etc.
8) Imputed or Notional Cost: Imputed costs are hypothetical notional costs not
involving payment in cash or kind. For example, interest on own capital, rent of
own building, salary to the proprietor manager etc. are not required to be paid.
But these costs are taken into consideration for the purpose of comparison.
Imputed Cost does not find place in accounts, but is considered for the purpose
of comparison, as in case of Opportunity Cost.
1. Routine report: - These reports are submitted to different used of management as per a
fixed definite time schedule.
Title of report
The recipients of reports and is copies
The periodicity of repertory
Routine report are usually printed or cyclostyled, droving blank spaces to be filled in list of
some of the important routine report.
2. Special reports: - special reports are required for special purposes .The purpose of
obtaining. Such repot and the time limit with in which such repost has to submitted have to
be specifically and clearly laid down. Some times special staff may have to be employed for
his purpose .Special reports may requite co -ordination of various functions such as
industrial, engineering. Marketing etc.
74
Examples of some of the specific reports are given below:-
Reports are information about competitive products.
Reports by purchase department on problems involved in puncher of material.
Report by the cost accountant on the implications of price movements on the cost of the
products
Report readily market research about a specific product.
Reports regarding choice of products are available etc.
The Production process is a must for every co. HCL Follows Process Costing system since
output of one process is input of the next process.
Element of Cost:
I. Variable Cost:
1. Material:
a. Feed Material
b. Raw Material
c. Operating Materials
d. Others Stores
e. Liquidé Exigen
f. Fuel
2. Power
3. Spares (1/3rd)
4. Incentive Bonus
5. Royalty & Cess
6. Amortization (Mine Development Expenditure)
7. Utilities:
a) Steam
75
b) Compressed Air
c) Water
1. Others
76
5. Long Hole Drilling -do- -do-
A. Mines Services
2. Drying
3. Flash smelting
77
4. Air pre- heater
5. converting
6. Slag disposal and transportation
7. Sulphuric Di- oxide Recovery
1. Cathode production
2. Staring sheet production
3. Electrolytic circulating system
4. Slime Recovery
5. Crude nickel Sulphate cake
6. Tank House General
Like above, there are sub –cost centers for SAP, Fertilizer plant, PMR and other by-
product Recovery Plants.
In case of open cast mine, the sub- cost centers are.
1. Mining (Ore-Production –Revenue)
2. Drilling
3. Blasting
4. Shoveling
5. Haulage excavation
6. Mine development
78
Particular Amount
Direct Material
Direct Lab our
Direct Overheads
Prime Cost
Factory Overheads
Indirect Material
Indirect Lab our
Indirect Overheads
(+) Opening Stock of W.I.P.
(-) Closing Stock of W.I.P
Factory Cost
Office & Administration Overheads
Office Cost/Cost of Production
(+ )Opening Balance of Stock
(-)Closing Balance of Stock
Cost of goods Sold
(+) Selling & Distribution Exp
Total Cost
Cost accounting and budgetary control with the financial accounts and provides the
periodic outputs of cost accounting and budgeting which are principally based on the
financial inputs. Instructions on the principles and policies to be followed for cost
accounting and budgetary control procedures have been issued separately from time to
time and are not dealt with here. This chapter also does not deal with the detailed
compilation procedures and steps for cost accounting and statutory provision for
maintaining cost accounting records.
Responsibilities
The officer-in-charge of costing section will have the overall responsibility for producing the
periodic reports on cost accounting and budgeting. The departmental heads will be
accountable to the general manager for effective implementation of the cost and budgetary
control objectives.
The cost accounting records will be complied by the data centre, the major inputs of which
will be the same source documents as for financial accounts. Additional memorandum
information will be furnished to the data centre by cost accounting section. The details of
computer outputs and the respective inputs have been given in Appendix 20.
Input Controls
No documents having a provision for DAC will be accepted by the by the data centre unless
it is filed up and verified. Any input document which has bearing on cost accounts only will
not be accepted by the data centre unless it is authorized properly. No input document will
be withdrawn from the data centre unless specially permitted by its officer-in-charge.
Output Controls
80
The costing section will check the output printouts with reference to all non-financial input
documents passed on to data centre for incorporation in cost accounting records. In so far
as memorandum charges are concerned, the costing sections will every month review the
cumulative charge made to the cost accounts and verify that the charge bears reasonable
proportion either with reference to the period or to the cost actually incurred, as applicable.
The principal forms which will be used for periodic reports and the various forms,
documents and statements which will be used as source information are illustrated in
Appendices 1 to 19.
Description
Production Centre wise Cost Sheet
Service Centre wise cost sheet
Material Efficiency Report’
Material Price Variation Report
DAC wise Detailed Tabulation
Distributed Account Statement
Work-in-process Statement
DAC wise Gross Pay & Employer’s share of P.F. etc.
Memorandum Depreciation Statement
Memorandum Deferred Revenue Statement
Department standing information
Process Stock Quantity
Output Quantity Statement
Budget Information
By-Products Credit Statement
Finished/Intermediate Stock Adjustment Statement
Standing Information for Standard Quantity and Standard Price
Standing Information for Standard Price
DAC wise Consumption Statement-Raw Materials & Stores/Spares/Tools
81
BUDGETRY CONTROL
1. Budget Centers:-
Its is a section of the organization of an undertaking defined for the purpose of budgetary
control. The budget centers should be established and separated budget should be
prepared for respective budget centers
2.Organization:-.
There should be a well defined organization chart for budgetary control, this will show the
lines of responsibility of each executive and his position in relation to others.
3. Budget committee:-
The committee is composed of executives in charge of major functions e.g. Sales Manager,
Production Manager, Purchasing Manager, Development Manager, Accounts Manager, etc.
The committee will make necessary adjustments, co-ordinate all the budgets and prepare a
master budget. The main functions of the committee are as under:
82
1) Submission of past information to prepare budget.
2) Review of the budgeters and fixation of targets on the basis of time and
motion study and value engineering.
3) To decide general policies of management in relation to budget.
4) To approve functional budgets.
5) To prepare Master Budget on the basis of functional budget.
6) To prepared recommend action to be taken on the basis of variance
analysis.
4. Budget Manual:
5. Budget period
6. Level of Activity
It is essential to establish a normal level of activity since it forms the basis of the budget.
There are three levels of activity:
83
7. Principal Budget Factor:
1. Key factor
2. Limiting factor
3. Governing factor
When a factor is of such importance that it influences all other functional budget so that the
co-ordination must be centered round it, it is known as principal budget factor, for example
Sales Activity:
Low demand for product.
Shortage of efficient salesmen.
Inadequate warehousing facilities.
Plant Capacity :
Shortage due to dearth of capital.
Shortage due to import restriction.
Shortage due to lack of space
Bottlenecks in key process.
Raw Materials :
Shortage due to non- availability of supply.
Shortage due to restrictions imposed by licenses, quotas etc.
Management:
Shortage of efficient executives
Restricted policy due to lack of capital etc
Working capital:
Shortage due to lack of funds.
Inefficient use of working capital.
84
The key factors will generally be of temporary nature and in the long run, it may be
overcome by suitable management actions.
TYPE OF RESEARCH
Descriptive research includes survey and fact finding enquiries of different Kinds. The
major Purpose of descriptive research is description of State affairs as it exists in
present. In social and business research we quite often use. We have done Survey
found fact by personal interview so it is descriptive.
SAMPLE DESIGN
Sample design refers to the technique or the procedure the researcher would adopt in
selecting item for the Sample. Sample design may be well lay down the number of items to
be included in the sample that is the size of the sample design is determined before data
are collected. There are many Sample designs from which a researcher can choose some
designs are relatively more precise and easier to apply than other researcher must select a
sample design which should be reliable and appropriate for his research study.
85
Here we have used random sampling and the sample size was 300. We have
made a questionnaire through personal interview filled the questionnaire.
DATA COLLECTION
Basically there are two main method of data Collection primary data and Secondary data.
Primary data are those which are Colleted freshly and the first time and thus happen to be
original in character. Other hand Secondary data are those which have already been
collected by someone else and which have already been passed through the Statistical
granting.
PRIMARY DATA
QUESTIONNAIRE METHOD: -
This method of data collection is quite popular, particularly in case of big enquiries. It is
being adopted by private individuals, research workers private and public organization and
even by governments in this method a questionnaire Consists of a number of question
printed or typed in definite order on a form or set of form I have made a Questionnaire for
Survey.
PERSONAL INTERVIEWS
The interview method of collecting data involves presentation of oral verbal stimuli and reply
in term of oral verbal responses. We have used this method through personal interview.
SECONDARY DATA
Secondary data means data that are already available they refer to the data which have
already been collected and analyzed by someone else. We have used for it following
method Internet and journals of company
86
OPPORTUNITIES AND CHALLENGES
OPPORTUNITIES:-
CHALLENGES:-
88
89
SUGGESTION TO REDUCE COST
.
2. Sound organization
A sound organization for implementing the project is critical to its success. The
characteristics of an organization are:-
a. It is led by all competent leaders who are accountable for the project
performance.
b. The authority of the project leader and his team is commensurate with their
responsibility.
c. Adequate attention is paid to the human side of the project.
d. Systems and methods are clearly defined.
e. Reward and penalties to individuals are related to performance
90
3.Timely Availability of Fund:-
It is a common observation that firms which have a comfortable liquidity position are in
general able to implement projects expeditiously and economically.
1. The competence and capability of all the contractors must be ensured and weak link
can jeopardize the timely performance of the contract.
2. Help should be extended to contractors and suppliers when they have genuine
problems they should be regarded as partness in a common pursuit.
3. Project authorities must retain latitude to off load contracts (partially or wholly) to
other parties well in time where delays are anticipated.
5. Other:-
91
BIBLIOGRAPHY
i) www.google/HCL/financial’s
ii) www.yahoo/hcl/copper
M. R. Agarwal
92