CHAPTER-1 INTRODUCTION TO THE STUDY

Each and every organization has its own importance in the economic wealth of the nation. Different organizations meet different needs of the people by offering different products and services. Due to globalization, the world has changed into a global village. In this fast changing business scenario, it is imperative for every entrepreneur to have a vivid understanding of the functional application of the new age business. As a part of the academic curriculum each student has to undertake an organizational study to get a practical exposure. The study is conducted at INDIAN RARE EARTHS LIMITED, CHAVARA.

1.1 OBJECTIVES OF THE STUDY

The primary objective of the study is:To acquire knowledge about the organizational setup of an organization (IREL CHAVARA)

The secondary objectives of the study is:1) To analyze the various procedures and formalities involved in the functioning of the various departments in the organization 2) To understand the decision making process involved in various levels of the organization 3) To study the history ,significance and objectives of the organization 4 ) To identify the strength and weakness of the organization 5) The know about the overall structure in the deparments from top to bottom 6) To understand the different products of the organization 7) To understand about the integration of the organization and its environment.

1.2 SCOPE OF THE STUDY

To make an organizational study about the IREL at chavara one of the leading suppliers of beach sand minerals to the nation and the abroad would make sufficient to understand the real practices of management. The study helps the management students in getting a practical exposure about the nature of the business organization and its various departmental functions to achieve the organizational goals.

1.3 RESERCH METHODOLOGY The study is depended on both primary and secondary data. It is descriptive and analytical in nature. The study was undertaken by personally visiting the various departments of IREL chavara. PRIMARY DATA Primary data can be collected either trough observation or through direct communication with respondents in one form or another or through personal interviews. The primary data for this study is collected by direct interview with the officials of different deprtments of the company.

SECONDARY DATA Secondary data means data that are already available .These data refers to those that have been collected and analyzed by someone else.Here secondary data are collected from: I. II. III. IV. V. Company Brochures Magazines Annual reports Journals Web sites

LIMITATIONS OF THE STUDY

1) Since the officials were engaged in their routine work ,it was rather difficult to spare their time for detailed discussion. 2) There may be errors due to the bias of the respondents 3) Time is the major limitation in the course of study. 4) Because of the strategic importance of the company,management kept certain matters regarding latest facts and figures strictly confidential. 5) Lack of availability of relevant secondary data make it impossible for comparison of the study results.

CHAPTER-2

PROFILE

2.1 INDUSTRY PROFILE Rare earths elements include a series of chemical elements of the periodic table. The elements include the elements with atomic numbers 57 to 71.In the early years these elements were considered as rare elements and so they are called as rare earth metals. Latter many elements in this group were found splendid but their name remained unchanged .The primary source of rare earth elements is greenish yellow coloured mineral sand, which is monazite .Its availability in nature is confined to certain beaches and rocks found in certain countries. The beaches containing the monazite are found mixed with other minerals too .Most of these are ores of valuable metals .An ore is a mineral from which metals can be separated economically .These ores are Illmenite Rutile and Zircon .Illmenite and Rutile forms the ore for Titanium ,Zircon for Zirconium ;even though Aluminium bearing metal Garnet and Sillimanate are also fond along with these beach sand minerals.But they are not commercially exploited for Aluminuium production due to economic reasons. However Garnet and Sillimanite , in the natural form ,are commercially significant.Illmenite which is black in colour constitutes a major chunk of these minerals(60%)presence of these minerals makes the beaches appear black. These minerals are commercially known as beach sand minerals or heavy minerals. Technology developed over the years has made the beach sand productive.Minerals are utilized in a variety of industrial and domestic applications.Monazite was mainly used in the gas mantle industry.After the advent of electricity its demand decreased in the gas mantle industry,Pigment industry, Welding electrode industry,Sillimanite is used in high temperature refectory industry, ceramic industry etc.Zircon is used in refoundries,ceramics and refactories and in the manufacture of Zirconium chemicals, metals and alloys.Zirflour used in foundries for high temperature castings. Garnet is used in the manufacture of abrasive polishing glass, TV tubes for sand lasting and for water filtration.The beach sand washing and mining industry has vast future because of their demand in nuclear industry

too.In the present scenario of booming economy in India and China there is a huge demand for beach sand minerals,Illmenite in particular.

2.2 COMPANY PROFILE INDIAN RARE EARTHS LIMITED On August 18 1950,Indian Rare Earths Limited(IREL) was incorporated as a private limited company jointly owned by the government of india and government of travancore,Cochin with the primary intention of taking up commercial scale processing of monazite sand and its first unit namely Rare Earths Division(RED),Aluva,and Kerala for the recovery of thorium. After becoming a full fledged Central Government Undertaking in 1963 under the administrative control of department of atomic energy(DAE),IREL took over a number of private companies engaged in mining and separation of beach sand minerals in southern part of the country and eastablished two more Divisions one at Chavara,Kerala and the other at Manavalakurichi Tamil Nadu. After a gap of about 20 years.IREL commissioned its largest Division called Orissa Sand Complex (OSCOM) at Chatrapur, Orissa. Today IREL operates these four units mith Corporate Office in Mumbai and produces/sella six heavy minerals namely Illmenite, Rutile.Zircon, monazite,Sillimanite and garnet as well as various value added products.IREL is making profit for the last six years with its sales turnover reaching a peak exceeding Rs 3000 million in 2000-01, with its export component of above Rs 1000 million. Chavara plant is engageg in the processing of beach sand deposits available on the coastal belt of Neendakara to Kayamkulam.

PRODUCTS

IREL Chavara plant produces the major heavy beach sand minerals like Rutile, Zircon, Sillimanite, and Ilmentie. The product range includes value added products like Zirflorand Microzir. Annual Production Capacity in Chavara Plant PRODUCT Illmenite Rutile Zircon Sillmanite Zirflour Microzir PRODUCTION CAPACITY 200000t 1145000t 1175t 10000t 6000t 500t

PRODUCT RANGE Illmenite Rutile

PRODUCT SPECIFIC SPECIFICATION GRAVITY Q Grade Tio2-58% Q Grade Tio2-95%

BULK DENSITY 4.45-4.54 4.18-4.24

Kg/M3 2600-2630 2630-2650

Sillimanite

Q Grade

Ai2O3-58%

3.20-3.25

1950-2050

Zirflour

(300/200 mes)

H ASTM)

ZrO2-64%

1800-1850

MAJOR APPLICATION Tio2pigment industry, Titanium Metal Used as flux in the welding electrode industry In the manufacturing of refractory bricks castables, cordierites In refractory and foundry coatings. Also as opacifierin ceramic industry

UNIT PROFILE IREL, CHAVARA IS LOCATED 10KM NORTH OF Kollam, 85 kms from Thiruvananthapuram, capital of Kerala and 135 kms by road from Kochi is perhaps blessed with the best mineral sand deposit of the country. The plant operates on a mining area containing as high as 40% heavy minerals and extending over alengt of 22 kms in the belt of Neendakara and Kayamkulam. The deposit is quite rich withrespect to Ilmenite, Rutile and Zircon. And the mineral Ilmenite happens to be of weathered variety analyzing 60% Titanium Dioxide (TiO2). The present annual production capacity of Chavara Unit engaged in dry as well as wet (dredging/up gradation) mining and mineral separation stands at 2,00,000 tone of Ilmenite, 1,14,500 tones of Rutile, 11,750 tones of Zircon and 10,000 tones of Sillimanite. In addition to that, the plant has facilities for annual production of ground Zircon called Zirflour and Micozir of the order of 6000 tones and 300 tons respectively. IREL Chavara is one of the oldest and leading public sector undertakings under the Department of Atomic Energy (DAE). It is an ISO 9001:2000, ISO 14001:2000; OHSAS 18000 certified company supplies beach sand minerals to the foreign and domestic market. It caters the requirements of developed countries like U.S.A, U.K, Germany, Australia, Japan etc. The major mineral products of IREL are Ilmenite, Rutile, Sillimanite (TiO2 bearing mineral) to the TiO2 industry. IREL Chavara is located 10 km north of Kollam, 85 km from Thiruvananthapuram and 135 km by road Kochi is perhaps blessed with the mineral sand deposit of the country. The plant operates on a mining area containing as high as 40% heavy minerals and extending over a length of 22km in the belt of Neendakara and Kayamkulam. The deposit is quite rich with Ilmenite, Rutile and Zircon and mineral Ilmenite happens to be weathered variety analyzing 60% TiO2. The present annual production capacity of Chavara unit engaged in dry as well as wet (dredging/up gradation) mining and mineral separation stands at 200000t of Ilmenite, 114500t of Rutile, 1175t of Zircon, and 10000t of Sillimanite. In addition the plant has facilities for annual production of ground Zircon called Zirflour (-45 micron) and Microzir (1-3 micron) of the order of 6000t and 500t respectively. IREL Chavara is one of the oldest and leading public sector undertakings under the control of Department of Atomic Energy. It is an ISO 9001:2000, ISO 14001:2004, and OHSAS 18001:1999 certified company supplies beach sand minerals to the foeign and domestic customers. The major minerals products of IREL are Ilmenite, Ruile, Sillimanite, Zircon and Zirflour.

BOARD OF MANAGEMENT The board consist of 9 Directors of which 3 are Executive Directors and 6 Non-Executive Directors. Out of the 6 Non-Executive Directors, 2 Directors are independent. None of the Directors as per section 6 read with schedule 1A of the Companies Act 1956. MEETINGS The board of Directors met 4 times during the year 2009-10 on 30th July 2009, 27th October 2009 and 17th February 2010. Approximately 2750 people are employed by IREL in all units and they constitute ones of its greatest resource. VISION To be a leading supplier of beach sand minerals from Asia by supplying 10% of the world demand for beach sand minerals over the next 7-10 years. It would be achieved by maximum utilization of existing capacities, new capacity addition, and capturing major portion of the incremental growth in the global TiO2 feedstock demand and by developing competitive value added Rutile, Zircon, Sillimanite and granite products that make handsome contribution to revenue and profits. To become the preferred rate earths products supplier (producer and /or marketer) for domestic customers to ensure long-term sustenance and profitability of race earths business and to achieve adequate efficiency in monazite processing as long as it is necessary/worthwhile. MISSION To harness beach sand in an environmentally an socially responsible manner for efficiently producing minerals and their traditional and innovate value-added products of world-class quality, that are used to make increasingly superior/novel products required by customers. To play a dominant role in developing domestic rare earths market by producing and /or marketing the quality value-added products to realize maximum potential of rare earths in a range of applications. To build a professional, creative and committed workforce And nurture an environment that fosters learning, sharing and development

Awards and Achievements IREL has fairly good record in its performance during the past decade., From 1997-1998 onwards all out team effort was taken to achieve name plate capacity for the mining and mineral separation plants in all the thre locations, Total sales turnover, share of export and profit after tax started improved by leaps and bounds and the company recorded increasing profit since then. In addition to production and financial performance, IREL has excelled in the areas of marketing, safety and human resource management. In recognizing of the companys efforts, SCOPE awarded prestigious Silver Trophy of SCOPE award for excellence and outstanding contribution to the public Sector Management-Special turnaround Category for the year 19992000. During the year 2006-07, IREL posted all time high sales turn over exceeding 3600 million with export component over Rs.1000 million& all time high Profit Before tax of Rs.1000 million.

Following is the list of awards and recognition won by IREL during the recent years Silver Trophy of Scope (Standing Conference of Public Enterprises) award for Excellence and Outstanding Contribution to the Public Sector Management Special Turnaround Category for the year 1999-2000. Certificate of Merit from CHEMEXCIL under the category of Basic Inorganic and Organic chemical for outstanding performance for the year 2000-2001 including agrochemical panel. OSCOM has been selected by Directorate of Export promotion and Marketing. Orissa to get the STATE EXPORT AWARD in shape of certificate of Excellence for the year 2000-2001 under the minerals including granite product group for export of synthetic rutile, garnet and ilmanite. Chemicals and Allied Products Export Promotion Councils (CAPEXIL) Special Export Award from the processes Minerals Group for the year 2000-2001. Chemicals and Allied Products Export Promotion Councils (CAPEXIL) Special Export Award from the processes Minerals Group for the year 2001-2002. Chemicals and Allied Products Export Promotion Councils (CAPEXIL) Special Export Award from the processes Minerals Group for the year 2002-2003.

ICRA rating of A1+ awarded for proposed Commercial Paper in 2004 NIL Future Outlook comments from Comptroller and Auditor General for the third consecutive year now Excellent MOU rating for second consecutive year now.

CUSTOMER PROFILE The prime customers of the major products of the company are the following. A. ILMENITE 1. COCHIN MINERAL AND RUTILE LTD, KOCHI 2. DCW LTD, TUTICORIN 3. TRAVANCORE TITANIUM PRODUCTS, THIRUVANANTHAPURAM 4. KILBURN CHEMICALS LTD, TITICORIN 5. KOLMAK CHEMICALS LTD, KOLKATA B. RUTILE 1. ESAB INDIA LTD, CHENNAI, KHARDAH 2. ADOR WELDING LTD, MUMBAI/CHENNAI 3. D&H SECTRON ELECTRODES (I) LTD, INDORE 4. MARUTI WELD LTD, GURGAON 5. ROYAL ARC ELECTRODES PVT LTD, VASAL C. ZIRCON 1. TIRUPATHI MICROTECH (P) LTD, UDAPUR 2. RUBI CERAMICS PVT LTD, PUNE 3. ASTRON CERA, SALAL, SABARKANTHA 4. JOHNSON MATTHEY CERAMICS INDIA LTD, HOSUR, THAMILNADU 5. FOUR FIELD, PUNE D. ZIRFLOR 1. FOSECO INDIA LTD, PUNE 2. VIDECON NARMADA GLASS, BHARUCH 3. H&R JOHNSON (INDIA) LTD, MUMBAI 4. NAHAR COLOUR & COATINGS P. LTD, UDAIPUR 5. BHANU CERGLAZE P.LTD

E. SILLIMANITE 1. MAITHAN CERAMICS P. LTD, CHIRKUNDA, JHARKAND 2. MANISHRI REFACTORIES CUTTACK 3. ASSOCIATED CERAMICS, CHIRUKUNDA, JHARKHAND 4. TATA REFACTORIES, BELPAHAR, ORISSA 5. ASSOCIATED CEMENT COMPANIES LTD., NAGPUR F. RARE EARTHS CHLORIDE 1. CIBA SPECIALITY CHEMICALS, V.UDYOGANAGAR, GUJARAT 2. DHIRAJ INTERMEDIATES P. LTD, VAPI, GUJARAT 3. RAVESHIA PIGMENTS LTD, VAPI, GUJARAT 4. ANUPAM COLOURS, VAPI GUJARAT 5. BERGER PAINTS INDIA LTD, VAPI, GUJARAT G. THORIUM NITRATE 1. FARGO MANTILE PRODUCTIONS LTD, MUMBAI 2. B.K. SHAW INDUSTRIES P. LTD, KOLKATA 3. A.D.C MANTLE MANUFACTURING COMPANY, MUMBAI 4. ELLITE INDUSTRIES, MUMBAI

2.5 PRODUCT PROFILE PRODUCT ILMENITE RUTILE ZIRCON SAND ZIRCON FLOR (-325 TYLER MESH) MICROZIR (1.2 micron) SILLIMANITE GRANET MONAZITE COMPOSITE RE CHLORIDE COMPOSITE RE FLOUORIDE LANTHANUM OXIDE LANTHANUM METAL CERIUM OXIDE Pr. OXIDE Nd OXIDE Nd METAL Sm METAL Eu OXIDE Gd OXIDE Tb METAL Dy METAL YTTRIUM OXIDE THRIUM NITRIDE THORIUM OXIDE TRI-SODIUM PHOSPHATE USES Manufacturing of TiO2 pigment, synthentic rutile and titanium slag Fluxes for welding electrode Ceramics refractories and foundries Ceramics and foundries Opacifier in ceramics Refractories Abrasive for sand blasting, water jet cutting and glass polishing Raw material for production of Rare Earth compounds Catalyst, Paint Driers, Basic raw material for Misch metal which used as lighter frint and additives to iron steel Cinema are carbon Flux for welding rods Speciality lens in camera, Heating element (as La CrO3), Semi conductors, Phosphors NiMh batteries Auto exhaust catalyst, optical glasses, TV polishing powder, Glass decolouriser, Paint driers, High temperature paints/insulations Cerium pigment, Glass colouring Special glass making, Laser Nd-Fe-B Permanent magnet Sm-Co Permanent magnet Phosphors, Medical diagnostics system Thermal Stabilizer of glass, Burnable poison in nuclear reactor Magntostrictive material, Photomagnetic disc Permanent magnet, Magnetic refrigeration Basic material for phosphors, Stabilizer for artificial diamond, High temperature nozzles, oxygen sensor Gas mantles Starters of fluorescent tubes Detergent and as general purpose cleaning agent

ORGANIZATION CHART

MANAGING DIRECTOR

MKTG MANAGER

FINANCE MANGER

MANAGER (CDS)

ADMINISTRATIVE OFFICER

PLA

ASSISTANT MGR & REGIONAL MGR

ASST MGR FINACE& ASST MGR ACCTNG ACCOUNTANT CONFIDENTIAL ASST/TYPIST CASHIER

ASST MGR (MECHANICAL &PDN

CONFIDENTIAL ASST

ASSISTANT MGR & REGIONAL MGR GRDOWN/PAC KAGING LAND MATERIAL ASSTS

SHIFT IN-CHARGE MILL SUPERVISOR MILL

SHIFT INCHARGE

SUPERVISOR MAINTAINNING OPERATORS

SUP MA

SUPERVISOR FILLING

WORKERS

CHAPTER III DEPARTMENTAL SUMMARY

Modern business is based on departmentalization. It means grouping of various activities under different departments. It is bases on the management principle of specialization. Various departments enable the organization to segregate different activities on the basis of functions performed as well as specialization required. It enables the organization to make best utilization of the available resources by saving time, reducing wastage, improving the overall quality of its products, operations, etc. The Chief General Manager is the top official in the management of IREL, Chavara , there is a deputy general manger to assist him. IREL has separate department head for each department. Various functional departments of IREL ae :1. Production Department 2. Human Recourse Department 3. Finance Department 4. Marketing & Sales Department 5. 5. Purchase Department 6. Medical Department 7. Time office Department 8. Quality control Department 9. Security Department 10. Stores & Despatch Department 11. Maintenance Department 12. Safety & Environment Department 13. Mining Department 14. Internal Audit Department 15. Civil Department 16. Research & Development Department 17. Project Department

UNIT HEAD (CHIEF GENERAL MANAGER) AUTHORITIES, RESPONSIBILITIES & ROLES

AUTHORITIES Approval of policy, objectives & targets Approval of Apex maual Defining responsibilities and authority of a Heads of Department, Management Representative and Deputy Management Representative Authorizing various committees Approval training programmes of financial commitment ( including sponsoring candidates for external programmes) Authorization of decision taken at review meeting such as safety and Environmental Protection Committee , Environment Management Cell Customer service and compliant redressal protection meeting

RESPONSIBILITIES Overall responsibility for health and safety of IREL Chavara unit Chairing the review meetings Responsibility assigned by Head Office from time to time Ensuring that unit has organized celebrations including those related to health, safety and environment through concerned departments Providing resource for the implementation maintenance and continuous improvement of management systems( in consultation with Head Office required) Implementation of directives received from Head Office /Statutory Agencies Ensuring smooth progress of project ( including feedback to Head Office on the progress)

ROLES

Ensuring smooth day to day functioning of organization through concerned HODs/Section Heads Role as head of the unit in the health, safety and environment related celebrations Participate n emergency evacuation (both mock/actual) Compliances to safety related requirements including use of personal protection equipments as a role model for others

3.1 PRODUCTION DEPARTMENT

Production is any process or procedure developed to transform a set of elements like men, material, capital, information into a set of output element like finished products and n their proper quantity and quality thus achieving the objectives of the enterprise. The essence of production is the creation of goods and transformation of the raw materials by assembling so many small particles. Production department performs the function of converting the raw sand collected from beach and upgrade the raw sand into finished products. So the first stage of production process of IREL Chavara starts from the collection of raw sand by the mining department and second stage ilementite, Rutile, Silimanite, Zircon and Zirflor by production department.

HIERARCHY

CHIEF GENERAL MANAGER (HOD)

MANAGER (SH) PRODUCTION

MANAGER (SH) MIS

SHIFT IN-CHARGE

SECTION HEAD (PROCESS CONTROL)

SHIFT IN-CHARGE

OPERATING STAFF/ WORKERS/FTTERS/ELECTRICIANS

FUNCTIONS 1. 2. 3. 4. 5. To produce the product according to the needs of the organization To keep the equipment in reliable condition. To organize overall manufacturing system to produce the product. To ensure that production process is performed at high quality. Prepare detailed raw material raw material plants and ensure incoming quality standard and their proper usage. 6. Constantly evaluate alternate source of raw material, direct rates of the same and help the management to firm up such source.

AUTHORITY RESPONSIBILITY AND ROLES Chief General Manager (HOD) Production

AUTHORITY Review and approval of daily production reports. Disposal of non confirming raw sand, in-process and final products (as per proposed by quality department). Approval of department procedure, work instruction s and formats related to production department . Verification of effectiveness of corrective and preventive process and environmental deviations/ non-conformance and accidents/incidents if any related to production personnel.

RESPONSIBILITY Roles Member of management review meeting and other meeting as member of the committee. Participating in emerging evaluation. Participate in safety and environmental related celebrations and awareness programs. Overall responsibility of production process. Ensure that production is carried out as per plan. Preparation of annual production plan. Identification of training needs of employees reporting to him.

PRODUCTION PLANNING Based on the grade of deposits available contents, recoveries, achieved during the previous years and number of shifts available during the year, annual production plan with monthly schedule is prepared. Shift wise production details are recorded by section engineers at the end of each shift and based on this consolidated daily production report for MSP, HUP, and ZOP. Daily production report for MSP is forwarded to HOD (quality control) and section head (quality control). Weekly performance report is prepared by QC department and is forwarded to the head office with unit heads remarks, if any, Production and recoveries achieved during the month/year. A weekly/ monthly report giving the details of production achieved for HUP and MSP is also forwarded to head office through unit head

3.2 HUMAN RESOURCE DEPARTMENT

People are the most important resources of an organization. For an organization to survive and prosper it must be able to identify, select develop and retain qualified personnel. Hence in every company HRM occupies a place of prime importance. The main functions of HR Department at IREL can be broadly classified into: Administration Industrial relation Training and welfare Time management Highly trained and motivated human resources has maximized the performance of IREL Chavara. They are the reason behind the organizations maximum growth and prosperity. Morale of employees of different disciplines is identified and training programs and workshops are conducted to improve overall efficiency of the human resource of the organization. FUNCTIONS

1. To recruit personnel up to the rank of tradesman./ fitter. Clerical grades and apprentice trainees. 2. To identify training needs and provide training. s 3. Ensuring hygience in canteen/ guest house. 4. Considering security services HR Department led by General led by General Manager (HOD) and there is a Deputy Manager to assist him. Medical Department, Time Office and Security Department are working under the General Manager of HR Department. Five deputy officers and 14 clerical staffs are working under .the General Manger of HR Department. Five deputy officers and 14 clerical staffs are working under the Deputy Manager.

UNIT HEAD

GENERAL MANAGER (HOD)

DY MANAGER (SECTION HEAD) HRM

SENIOR MANAGER (HOD) MEDICAL

DEPUTY ADMINISTRA TIVE OFFICER (TIME OFFICE)

MANAGER (SECURITY)

DY MANGER (SH) MEDICAL

SENIOR ASST (TIME OFFICE)

HEAD SECURITY OFFICER

MEDICAL PERSONNEL

SECURITY GUARDS

SH (TRAINING)

SH (LEGALSERVICE)

IN CHARGE (WELFARE)

SUBORDINATE STAFF/CLERICAL STAFF

AUTHORITIES RESPONSIBILITIES AND ROLES

General Manager (HOD) HRM:

Authority

Approval of annual training plan. Approval of department procedure and formats related of HRM Department. Verification of effectiveness and corrective and preventive action related to HRM process and environmental deviations. Nonconformance and accidents/ incidents, if any related to HRM personnel.

Responsibility

Role

Responsible for all administrative, personnel, public relations and welfare and medical activities. Recruitment of employees in coordination with head office/unit head.

Member of management review meeting and other meetings as member of the committee. Participate in safety and environmental related celebrations and awareness programs.

PROCESS/FUNCTIONS OF JUMAN RESOURCE DEPARTMENT

1. Manpower Planning It is the process which determines how an organization should move from its current manpower position to its desired manpower position. For this purpose, the HR Department collects feed basic from the entire department in order to identify their manpower requirements of various departments and checks whether there is overstaffing in any of the departments. If there

happens to be excess staff in any of the department, they are transferred to those departments, where there is shortage. Manpower planning is important for any organization. The company consider the number of employees presently works and future functioning of the company. There is problem that sometimes the VRS can led to scarcity of workers for a particular job. AT IREL using the process of multitasking the employees are made to fit to work in other functions also. By the VRS more than 100 employees have sent out within a span of three years.

II. Recruitment Recruitment involves informing the employees about the availability of the jobs and filling vacancies. Recruitment is therefore for both skilled labors and officers. Local Employment Exchange service as the source of workers . The registered office at Mumbai Recruits officers . For recruitment selection and training the guidelines of Central Government are to be followed.

Sources of recruitment

Promotion Transfer Job enrichment Newspaper advertisement Employment exchange Employment agencies Recruitment in Chavara Plants done through Local Employment Exchange for finding out prospective workers. The office staff and managers are recruitment by the head office through lists and interviews.

III. Selection.

The steps followed in selection process are: Inviting and receiving application. Screening the application Selection test

1. 2. 3. 4.

The Selection tests employed are: Aptitude test Personality test Achievement test Trade test

IV. Training and Development

Training is the act of increasing the knowledge and skill of an employee during a particular job. At IREL, training is provided both to employees and mangers. The aim of these training and development programs is to increase the efficiency and morale and to decrease the absenteeism. IREL provides training to its employees both internally and externally. Training programs for both existing and newly joined recruited employees. There are separate officers looking after the training and development program, annually the human resource department conducts a number of training programs. IREL having vey good training facilities for executives as well as workers also providing training for the external executives and workers.

V. Performance Appraisal

Appraisal is the evaluation of work quality or merit. In the case of IREL, performance appraisal is a systematic evaluation of personnel by superiors or others familiar with their performance. The company is following mainly tow types of method:

1. Straight ranking method Under this method men as a whole are compared from other men and ranked on the basis of their average performance. 2. Grading method Under this method certain categories of workers such as excellent, very good , average, poor, very poor etc are established and defines. Actual performance of each employ is then compared with the grade definitions and ranked.

 Promotion Policies Promotion is an up gradation of an employee to a job in which he will be paid more money or which carries some preferred status. Workmen are promoted based on the seniority. Officers are promoted based on merits , seniority, additional qualification etc.

Wages and salary administration Wages in the widest sense means any economic compensation paid by the empoyer under some contract to his workers for the service rendered by them. Act followed: 1. Workmen Compensation Act, 1923 section 2 (m) 2. Payment of Wages Act, 1936 section 2 (VI) 3. Payment of Wages Act, 1948 The salaries for specific post are fixed by the Central Government. Now the present salary is based on the fifth pay commission. Pay seals are revised once in 10 yeaars for the officers raging from Deputy Officer to Chief General Manage. Other Salary Benefits:

House Rent Allowance which is 10% of basic salary Variable Dearness Allowance Cit Compensatory Allowance Conveyance Allowance Shift Allowance Shift Allowance Washing Allowance Hardship Allowance Heat Allowance for those workers other than in Finance field Field Allowance for those who are working in mining section Children Education Allowance Bonus General Provident Fund Lunch Allowance Special Allowance to raw and workers Cash Handling Allowance Milk Allowance

Pay Scale

Grade W-1 W-2 W-3 W-4 W-5 W-6 W-7 W-8 W-9

Existing Scales Rs. 5750 -90 -10250 Rs. 5790 -100 -10790 Rs. 5800 -120-11800 Rs. 5860 -130 -12360 Rs. 5900 -140 -12900 Rs. 6020-155 -13770 Rs. 6100 -175 -14850 Rs. 6230 -200 -15230 Rs. 6300 -200 -15300

Revised Scales 8340 -3% 23470 8440 - 3% 23750 85500 -3% 24060 8670 - 3% 24400 88000 - 3% 24770 8940 - 3% 25160 9090 - 3% 25580 9250 - 3% 26030 9420 - 3% 28968

Grievance Redressal

a) b) c) d)

The aggrieved employee verbally explains grievances to his immediate supervisor. If it is not settled, the aggrieved employee is sent to higher level manger. If it is still not settled , then the grievance is sent to the Grievance Committee. If is still not solved, the employee can address the issue the management or cooperative executive. e) The final step is taken when the grievance is referred to an arbitrator. Industrial Discipline Disciplinary action is taken in the HR Department. Procedure for the disciplinary action starts as and when a complaint about a particular employed is receives. At first, an explanation is sought from the concerned employee. An employee has to give explanation before 15 days . If the explanation is not found satisfactory, he will be given a charge sheet and a domestic enquiry will also be conducted. For this purpose an enquiry officer is appointed. After conducting the enquiry, the report shall be sent to disciplinary committed and if necessary certain

The Role of Trade Unions

Trade Union is a voluntary origination of workers formed to protect and promote their interest through collective action. Here there are three registered trade unions. They are: 1. United Trade Union Congress(UTUC). 2. Indian National Trade Union Congress (NTUC). 3. All India Trade Union in the IREL is the UTUC Objectives and Targets HRM (Training)

SL No A B C

Objective Providing training Providing VT training Improving the environmental awareness

Target Supporting the system Min 15 number of QMS programs. Min 20% QHSMS Min 2 numbers EMS

Manpower Statistics

There are a total number of 465 permanent members. About 1000 workers are employed on contract basis

Time Schedule

There are three rotational shift systems and on general group. Their working hours are as follows: Shifts 1 2 3 6:00 AM 2:00 PM 2:00 PM 10:00 PM 10:00 PM 6:00 AM Time

Leave Facility

a. Casual leave - 15 days b. Sick leave - 10 days /20 days (half day leave) c. Earned leave - 33 days d. Holidays - 12 days/annual e. Benefits Provided to employees

Attendance bonus Hire purchase loan Maternity benefits Fringe benefits Medical attendance scheme Canteen Uniform and safety shoes Stitching charges Umbrella Leave travel concession Spectacles Protection footwear for administrative Sweet packet

MAJOR DEVELOPMENTS IN THE FIELD OF HR AT IREL

Category

Officers Workmen Total

Current strength as on 30/06.2010 611 1811 2422

Newly Transfers Death Resignation Remova Retirement joined/ &Postings from I from employd service service 34 5 39 15 Nil 15 1 12 13 9 Nil 15 1 2 3 32 56 88

3.3 FINANCE DEPARTMENT

Finance department performs a vital role in every organization. The story of IREL is one of the continuous growth expansions. The efficiency of the finance department in the IREL is responsible for their handsome contributions to revenue and profits. The fact and figures of IREL always remained black, mainly due to excellent management and strict monitory discipline. The department is headed by a senior manager at unit level. He is reporting to general manger at Mumbai through chief general manager Chavara . finance accounting package is in oracle language, it has been implemented ate finance and accounts division. The finance departments of IREL are responsible for accounts, according to the prescribed international standards. This department is responsible for maintaining proper books and accounts and is also responsible for preparing financial statement such as profit and loss account and balance and is also responsible for preparing financial statement such as profit and loss account and balance sheer. This department takes various decisions regarding money matters like estimates for expenditure allocation of funds etc.

HIERARCHY

CHIEF GENERAL MANAGER(FINANCE) (FINANCE) DEPUTY GENERAL MANGER

SENOIR FINANCE OFFICERS

DEPUTY FINANCE OFFICERS

ASSISTANTS

ATTENDERS

The finance department is headed by the chief Manager (finance). A deputy general manger (finance) is there to assist the chief general manager in the operation of the department. In addition to them the department consists of three senior finance officers, eight deputy officers, eight deputy officers, assistants and attenders. FUNCTIONS

1. To collect all the receipt and make all the payments. 2. To record all the transactions and prepare the final accounts. 3. Maintain the accounts as per the provisions of the section 20 G of the companies Act 1956. 4. Provide depreciation at the rate prescribed in schedule 14 of the companies Act 1956, on a straight line method. 5. To account excise duty on goods manufactured when it is dispatched. 6. To ascertain the accrued gratuity liability on the date of balance sheet. 7. To value finished goods at coast or market price whichever is lower. 8. Treat the claims against the company which are not admitted as contingent liability. 9. To value the fixed assets on cost price. 10. Preparation of pay rolls. 11. Calculation of labor and overhead coast operation and products. 12. Monitoring the attendance of the employees for calculating bonus and allowance. 13. Preparation of the cash flow statement to show the actual cash receipts and payment of the company.

AUTHORITY, RESPONSIBILITY AND ROLES

Chief General Manager (finance)

Authority Release of payments approved by competent authority. Approval of register impacts, hazards and risk register of legislation and management programs. Verification of corrective and preventive action related to finance process and environmental deviations/incidents if any, related to finance personnel.

Responsibility Roles Member of management review meeting and other meeting as member of the committee. Participate in safety and environmental related celebrations and awareness programs. Participate in emergency evacuation. Responsibility for financial transactions. Invitation of actions based on financial audits. Identification of training needs of employees reporting to him. Ensuring compliance with directives from head office with regard to finance in consultation with unit head. Finance process monitoring and initiation of corrective actions against deviations.

1.1

Brief About Ratios

Financial statements are the main documents stating -financial performance of the

company for the past year. Further the financial statements serves as the instruments for analyzing and interpreting the financial aspects of the company. One weather outsider or the insider of the company can judge the performance of the company through financial statements Ratio analysis is one of the popular tools of financial statement analysis. In simple words, a ratio is defined as "the indicated quotient of two mathematical expressions." and as "the relationship between two or more things." A financial ratio is defined as a relationship between two variables taken from financial statements of a concern. Ratios helps to understand about each and every aspects of the company indicated in this very easily. So ratio analysis are treated as one of the very important type of financial instrument. Ratios are widely used in stock exchanges like BSE, NSE etc .popularly. Classification of Ratios. 1. On the basis of Financial Statements.

Profit and loss ratios.

Balance sheet ratios. Inter-statement ratios/mixed ratios. 2. On the basis of time to which the ratios computed belong: *Structural ratios * Trend ratios. Primary Ratios Every commercial concern consider profit as its prime objective and therefore, any ratio that relates to such objective is treated as primary ratio. This ratio includes; * Return on capital and * Gross margin to sales. Secondary Ratios. The ratios other than primary ratios are known as secondary ratios. Such ratios are treated as supporting ratios to the primary ratios. The ratios covered by this category are; * Turnover ratios. *Expenses ratios. *Earnings per share, *Liquidity ratios. * Leverage ratios. * Profitability ratios * Activity ratios.

Liquidity Ratios (Tested of Short-Term Solvency). The liquidity ratios indicate the liquidity position of a company. They, in fact, measure the ability of a company to meet its current liabilities as they fall due. If the company does not have sufficient current assets in relation to its current liabilities it might be unable to meet its commitments, and be forced into liquidation. Thus, ratios that compare the relationship between various groups of current assets and current liabilities are computed to measure the liquidity position of the company. Such ratios help in ascertaining the effectiveness of the working capital management.. The following are the important liquidity ratios: 1.2 Current Ratio Current ratio is one of the often prepared and used types of ratio. This ratio indicates the company's ability to meet its current obligations with the current resources. Current Ratio = Current Assets / Current Liabilities Current assets include cash, bank balance, stock, -work-in-progress, trade debtors, short term loans and advances and accounts receivable. On the other hand current liabilities include accounts payable, sundry creditors, accrued income taxes, proposed dividend, borrowings from financial institutions and outstanding expenses etc. The higher the ratio, the better it can meet current obligations. But at the same time a higher current ratio would mean that the company might have an excessive investment in current assets that do not produce a significant return. On the other hand, a low current ratio would indicate that sufficient cash is not available to pay current liabilities. A frequently used guideline to evaluate the adequacy of the current ratio is 2:1

Table-1 Current Ratio Year Current Assets Current Liabilities 13,26,51,420.56 Ratio

2005-2006

90,63,0100.84

0.68

2006-2007

22,58,35,723.90

12,23,08,757.19

1.84

2007-2008

35,70,69,835.95

28,50,14,248.91

1.25

2008-2009

26,00,45,438.66

19,52,17,469.52

1.33

2009-2010

30,09,17,247.70

18,73,69,908.15

1.60

Chart-1 Current Ratio

300 250 200 150 100 50 0 2005-2006 2006-2007 2007-2008 2008-2009 2009-2010

Ratio

Interpretation of current ratio The increase in the current ratio shows that there has been improvement in the liquidity position of the firm. The current ratio measures only the quantity of the current asset and not the quality of current assets. Seeing the current ratio for the last 3 years we can say that the companys ability to meet current obligation is satisfactory. 1.3Acid-Test Ratio (Liquid Ratio) Acid -test ratio provides an even more critical look at the ability of the company to meet its day-to-day obligations. It signifies a very short-term liquidity of a business concern, and it is therefore, also called liquid ratio. Liquid Assets includes cash and Bank Balances, Marketable securities, Temporary Investments and A/Cs receivable. Liquid Liabilities excludes the borrowings from financial institutions and outstanding expenses from current liabilities. Acid-Test Ratio = Liquid Assets Liquid Liabilities An acid-test ratio of 1:1 sis considered ideal and satisfactory. Too low a ratio suggests not only inability to take advantage of cash discounts and other rewards for prompt payment (such as lower interest rates on borrowings). Further, a company with a low ratio may be forced to obtain a short-term loan plus interest charges, or implement some other measures to obtain the required cash. On the other hand, an excessive amount of quick assets could indicate that these assets should be put more productive or profitable use elsewhere in the enterprise.

Table-2 Acid Test Ratio (Quick Ratio) Year Current Assets Current Liabilities 132,651,420.56 Ratio

2005-2006

1,44,76,766.10

0.109

2006-2007

64,58,431.21

1,22,308,757.19

0.052

2007-2008

70,90,698.83

285,014,248.91

0.024

2008-2009

1,22,43,893.49

195,217,469.52

0.062

2009-2010

141,299,915.14

187,369,908.15

0.754

Chart-2 Acid Test Ratio

300 250 200 150 100 50 0 2005-2006 2006-2007 2007-2008 2008-2009 2009-2010

Ratio

Interpretation of Acid Test Ratio. As the Acid Test ratio shows the company's ability to meet the liquid liabilities like short term borrowings, outstanding expenses etc, the company is having a good commendable level in terms of liquid ratio. There has been a rise in the in the quick assets shows the financial strength of the company but it can be used for more productive areas other than keeping it idle. 1.4 Activity Ratios Activity ratios measure the efficiency is a firm in employing the available resources. Such ratios reflect the degree of effectiveness of fund utilization in the business activities. Activity ratios are popularly known as 'Turnover Ratios' because they highlight the ability of management to convert or turn over the assets of the firm into sales. These ratios make a comparative study of the level of sales and the investment in various assets accounts. A sharp rise in this ratio may indicate that the company is expanding too quickly, and is allowing sales to increase more rapidly, than the underlying asset base, a situation often referred to as "over

trading". Conversely, a reduction in the ratio can indicate a decline in efficiency or a fall in demand for the firm's products. The important activity ratios are below: Fixed Assets Turnover Ratio. Total Assets Turnover Ratio. Inventory Turnover Ratio. Average Collection Ratio. 1.4.1 Fixed Assets Turnover Ratio The ratio measures the efficiency in the utilization of fixed assets. The sale is calculated by gross sales minus excise duty. The ratio of sales to fixed assets measures the turnover of the plant and is expressed as under Fixed Assets Turnover = Turn over/ Net Fixed Assets

Table-3 Fixed Assets Turnover Ratio Year Turnover Net Fixed Assets Ratio

2005-2006

75,30,62,225.59

62,32,43,991.04

1.20

2006-2007

78,11,18,492.33

85,36,59,978.33

0.91

2007-2008

83,27,99,464.02

1,144,641,532.46

0.72

2008-2009

109,96,24,491.29

1,089,657,211.41

1.00

2009-2010

92,67,14,035.50

1,058,694,370.97

0.87

Chart-3 Fixed Assets Turnover Ratio

300 250 200 150 100 50 0 2005-2006 2006-2007 2007-2008 2008-2009 2009-2010

Ratio

Interpretation of Acid Test Ratio. The fixed asset turnover ratio shows a good level of utilization of companys fixed assets for the past few years. This is an indication of high volume of output and more increasing demand for the companys product. Altogether it shows that the company is in a position to utilize its fixed assets like plant, machinery, buildings etc effectively. However in the last year it shows a decline. 1.4.2 Total Assets Turnover Ratio This ratio measures the overall performance and activity of the business organization. Shows the firms ability to generate sales from all financial resources committed to total assets Total Assets Turnover = Turn over/ Total Assets Table-4 Fixed Assets Turnover Ratio Year Turnover Total Assets Ratio

2005-2006

75,30,62,225.59

713,874,091.80

1.05

2006-2007

78,11,18,492.33

1,079,495,702.00

0.72

2007-2008

83,27,99,464.02

1,501,711,368.00

0.55

2008-2009

109,96,24,491.29

1,349,702,650.00

0.81

2009-2010

92,67,14,035.50

1,359,611,618.00

0.68

Table-4 Total Assets Turnover Ratio

300 250 200 150 100 50 0 2005-2006 2006-2007 2007-2008 2008-2009 2009-2010

Ratio

Interpretation of Total Asset Turnover Ratio The Total assets turnover ratio is not showing a satisfactory performance in the 2006 to 2008. But if we look at the initial last 2 years it shows a good performance by the fixed assets. As this ratio covers the entire assets of the company, some improvement in some particular asset will enhance the value of the other and vice versa.

1.4.3 Inventory Turnover Ratio This ratio indicates the efficiency of the firm in producing and selling its products. Inventory turnover = Cost of goods sold Average inventory The average inventory is the opening and closing balances of stock divided by 2 (opening stock + closing stock /2). The cost of goods sold is gross sales minus profit before tax.

Table-5 Inventory Turnover Ratio Year Cost of goods sold Average Inventory Ratio

2005-2006

675,910,118.60

72,497,354.39

9.32

2006-2007

741,911,553.50

75,089,726.91

9.88

2007-2008

609,343,680.50

72,907,194.96

8.35

2008-2009

869,444,401.40

62,104,400.71

13.99

2009-2010

818,734,650.60

48,601,557.19

16.84

Chart -5 Inventory Turnover Ratio

300 250 200 150 100 50 0 2005-2006 2006-2007 2007-2008 2008-2009 2009-2010

Ratio

Interpretation of Total Asset Turnover Ratio The inventory turnover ratio shows different results for every years. Even if it shows an increasing trend the decline in 2007 08 years can not be hidden. Generally high turnover ratio shows a good inventory turn over. But in over all the ratio shows a resulting performance. 1.4.4 Debtors Turnover Ratio Debtors turnover indicate the number of times debtors turnover each year. Generally, the higher the value of debtors turnover, the more efficient is the management of credit. Debtors turnover = Credit sales / Average Debtors

To outside analyst, information about credit sales and opening and closing balance of debtors may not be available. Therefore, debtors turnover can be calculated by taking year end balance of debtors.

Table-6 Debtors Turnover Ratio Year Credit sales Average debtors Ratio

2005-2006

75,30,62,225.59

6,854,731,99

109.86

2006-2007

78,11,18,492.33

6,959,311.78

112.24

2007-2008

83,27,99,464.02

40,617,191.24

20.50

2008-2009

109,96,24,491.69

2,581,122.15

426.0

2009-2010

92,67,14,035.50

31,721,892.20

29.21

Chart -6 Debtors Turnover Ratio

300 250 200 150 100 50 0 2005-2006 2006-2007 2007-2008 2008-2009 2009-2010

Ratio

Interpretation Debtors Turnover Ratio The debtors turnover ratio indicates the number of times the debtors turnover ratio during a year. But a precaution is needed while interpreting a very high debtors ratio because a very high ratio may imply a firms inability due to lack of resources to sell on credit thereby losing sales and profits. 1.4.5 Average Collection period The average number of days for which debtors remain outstanding is called the Average Collection Period (ACP). Here the ratio is calculated by multiplying the debtors with 365 (no of days in an year) and then dividing it by the total turnover.

ACP

365 Debotrs turnover

Debtors *365 Turnover

Table-7 Average Collection Period (in days) Year Debtors Net Sales Ratio

2005-2006

6,854,731.99

75,30,62,225.59

3.32

2006-2007

6,959,311.78

78,11,18,492.33

3.25

2007-2008

40,617,191.24

83,27,99,464.02

17.80

2008-2009

2,581,122.15

109,96,24,491.69

0.85

2009-2010

31,721,892.20

92,67,14,035.50

1.19

Chart -7 Average Collection Period (in days)

300 250 200 150 100 50 0 2005-2006 2006-2007 2007-2008 2008-2009 2009-2010

Ratio

Interpretation of Average Collection Period This shows the period for which the debtors of the firm remain outstanding after the firm has made sales to its customers. The ration in the year 2005-06 shows a fair transaction with the debtors. But it is getting increased for the coming years and suddenly decreased. This shows that the liberal credit policy of the company is being misused by the debtors. However ACP calculated at different points of times will vary on account of varying sales rate although there may not be any change in the collection rate.

1.4.6 Working Capital Turnover Ratio A firm may like to relate net current assets (or net working capital) to sales. This ratio shows the relationship between sales and current assets for a particular period of time. Thus it may be computed as Working capital turnover = Turn over/ Net current assets

Table-8 Working capital turnover ratio Year Debtors Net Sales Ratio

2005-2006

75,30,62,225.59

42,021,319.66

17.9

2006-2007

78,11,18,492.33

103,526,966.80

7.54

2007-2008

83,27,99,464.02

72,055,587.00

11.56

2008-2009

109,96,24,491.69

64,827,969.00

16.96

2009-2010

92,67,14,035.50

113,547,339.60

8.16

Chart - 8: Working Capital Turnover Ratio

300 250 200 150 100 50 0 2005-2006 2006-2007 2007-2008 2008-2009 2009-2010

Ratio

Interpretation of Working Capital Turnover Ratio: The trend showing fluctuations, it happened out of sales fluctuations the years. Particularly in the last two years the ratio shows insufficient sources of working capital for the company. The reciprocal of this ratio would the amount of net current asset needed for generating one rupee of sales. And the gap will be met from bank borrowings and other sources of funds. 1.5:Leverage Ratios (Tests of Long Term Solvency) Leverage is an indication of the use a company makes of the borrowed funds to increase the return on owner's equity. Leverage ratios measure the contribution of finance by owners compared with finance provided by the firm's creditors. As the liquidity test measures the ability of a firm to meet its current financial obligations, the leverage ratios, a test of solvency, attempts to monitor the ability of a firm to pay alt of its debts-current as weff as non-current, as they become due. The capital structure of almost every company consists of two major components; Equity Capital-capital that belong to owners - investors. Debt capital-amount that belongs to creditors. The proportion of debt capital to me total capital of the firm is usually referred to as leverage or trading on the equity. The fundamental economic principle underlying leverage is that whenever funds are borrowed at a lower rate of interest than the borrower can earn on those funds, the rate of return of owner's equity is increased over what it otherwise would have been had the borrowed funds been provided by the owners. Borrowing too heavily, however, can invite financial difficulty primarily because interest payments and principal repayments are contractual obligations that must be honored. The ability to obtain arid to repay ^ long-term debt often depends of the firm's ability to obtain capital from shareholders. Therefore the relationship between shareholder equity and creditor's equity is evaluated. The leverage ratios commonly used are:

1.6;Profitabilitv Ratios. Profit is the difference between revenues and expenses over a period of time usually one year. Profit is the ultimate 'output' of a company, and the company will be in trouble in future if it fails to make sufficient profits. Therefore, the financial manager should continuously evaluate the efficiency of the company in term of profits. The profitability ratios are calculated to measure the operating efficiency of the company. Besides management of the company, creditors and owners are also interested in the profitability of the firm. Creditors want to get a required rate of return on their investment. This is possible only when the company earns enough profits. Generally, two major types of profitability ratios are calculated: Profitability in relation to investment Profitability in relation to sales. Generally calculated ratios are;

1.6.1Gross Profit Margin Ratio. This ratio indicates the relationship between gross profit and sales. It reflects how well cost of goods sold, a major expense item, is being controlled. It shows the profit made on sales before taking account of overheads. Thus, the gross profit margin highlights the production efficiency of a concern. It is always preferred to express this ratio in terms of percentage.

Gross Profit Margin Ratio

Sales - Cost of Goods Sold * 100 Turnover Gross Operating Profit *100 Turnover

A high gross profit margin ratio is a sign of god management. A gross margin ratio may increase due to any of the following factors; Higher sales prices, cost of goods sold remaining constant Lower cost of goods sold, sales prices remaining constant A combination of variations in sales prices and costs, the margin widening, and An increase in the proportionate volume of higher margin items. The analysis of these factors will reveal) to the management, how a depressed gross profit margin can be improved. Table-11 Gross profit margin ratio Year Profit after tax Turnover Ratio

2005-2006

7,60,93,420.88

75,30,62,225.59

1.01

2006-2007

3,96,00,893.77

78,11,18,492.33

0.05

2007-2008

11,60, 77,899.35

83,27,99,464.02

0.13

2008-2009

22,78,12,277.05

109,96,24,491.69

0.20

2009-2010

11,21,44,940.91

92,67,14,035.50

0.12

Chart -11 Gross profit margin ratio

300 250 200 150 100 50 0 2005-2006 2006-2007 2007-2008 2008-2009 2009-2010

Ratio

Interpretation of Net Profit Margin Ratio The trend reveals the firm's capacity to withstand adverse economic conditions. The firm can survive in the face of falling selling prices and even in delaying demand. The firm is able to achieve satisfactory return on shareholder's funds in the initial years. But when it comes to the last year it is seen a declining trend1 in the profitability. It may be due to high cost of production and the management's responsibility towards different other expenses also. 1.7 Return on Equity Ratio. (ROE] Common or ordinary shareholders are entitled to the residual profits. The rate of dividend is not fixed; the earnings may be distributed to shareholders or retained in the business. Nevertheless, the net profits after ' tax represent their return. A return on shareholder's equity is calculated to see the profitability of owner's investment. The shareholder's equity or net worth includes paid-up share capital, share premium and reserves and surplus less accumulate losses. Net worth can also be found by subtracting total liabilities from total assets.

ROE

Profit after Taxes Equity

Table -13:Return on Equity Ratio Year 2005-2006 Profit After Tax 7,60,93,420.88 Equity 93,97,43,420.90 Ratio 0.08

2006-2007

3.96,00,893.77

90,32,50,893.80

0.04

2007-2008

11,60,77,899.35

20,24,42,899.00

0.57

2008-2009

22,78,12,277.05

109,14,62,277.00

0.20

2009-2010

11,21,44,940.91

97,57,94,940.00

0.11

Chart -13 Return on Equity Ratio

300 250 200 150 100 50 0 2005-2006 2006-2007 2007-2008 2008-2009 2009-2010

Ratio

Interpretation of Return on Equity (ROE) This ratio is mainly used by the investors before making investment in the particular company. This ratio shows the dividend policies of the company. Here from the above table and chart it is clear that even if the return on equity has been reduced to an extent for the past two years, the company is generally providing good return to the share holders from the past figures

1.8.

Earning Per Share Ratio (EPS) This is a well known and widely used indicator of profitability because it can -easily

compare to the previous EPS figure and to the EPS figure of other companies. The earnings per share represent average amount of net income earned by single equity share. This is calculated as,

Earning per share (EPS)

Profit after Tax -Preference Dividend No of equity share Table - l4 Earning Per Share Ratio

Year 2005-2006 2006-2007 2007-2008 2008-2009 2009-2010

Profit After Tax 7,60,93,420.88 3,96,00893.77 1 1,60,77,899.35 22,78,12,277.05 11,21,44,940.91

No of Shares 863650 863650 863650 863650 863650

Ratio 88.0 45.85 134.40 263.77 129.84

Chart - l4 Earning Per Share Ratio

300 250 200 150 100 50 0 2005-2006 2006-2007 2007-2008 2008-2009 2009-2010

Ratio

Interpretation of Earning Per Share Ratio (EPS) The earning per ratio shows that the earnings of the share holders are getting decreased for the last financial year i.e. after 2008-2009. But the other previous years ratio gives a green signal to the share holders to retain their share holdings and an attraction for others to invest in the company in future.

3 Years BALANCE SHEET from 31st MARCH 2005 to 2010 Particulars Scheduled 1:share capital /Authorized 10,00,000 BIS of Rs. 1000 each 2009-2010 2008-2009 2007-2008

Issued, subscribed& paid 8,63,650 of Rs.1000 each and fully paid

Scheduled2:Reserve& Surplus

112,144,940.91

227,812,277.05

1,160,770,899.35

a. Capital Reserve b. General Reserve c. Profit & Loss a/c

Balance c/d

Total Reserve &Surplus

112,144,940.91

227,812,277.05

1,160,770,899.35

Scheduled3:Secured Loan

Scheduled-!: Unsecured

Loan Scheduled5:Fi'xed Assets a. Gross Block Less. Depreciation TOTAL F.A 2,015,135,680.05 (956,441,309.08) 1,058,694,370.9 Scrreduled6:Capital Work in Progress a. Capital work in progress b. Assets pending disposal Scheduled7:investmenta. Investment 39,339,684.91 16,321.39 39,376,369.69 37,651.39 44,929,687.77 46,305.39 1,977,859,644.44 (888,202,433.03) 1,089,657,211.41 1,957,845,738.5 (813,204,206.05) 1,144,641,532.46

45,500.00 Scrreduled8:current Assets Loans & Advance a. Store & spire sparts b. Raw material c. Furnished goods d. Work in progress 1. Total Inventories ,2. Sundry debtors 3.Cash,cheque,stamps on handTotal 47,673,630.42 10,954,374.47 88,385,177.00 4,486,925.00 161,500,106.88 31,721,992.20 155,129.00

45,500.00

45,500.00

61,598,167.77 61,23,881.96 52,984,207.66 1,286,337.15 121,992,594.54 2,581,122,15 110,809.00

52,873,656.33 1,937,420.68 129,131,400.80 746,388.24 184,688,866.55 40,91M91,24

174,799.35

4.Balance with scheduled bank

141,144,786.40

12,133,084.49

6,915,899.48

5. Secured Loan 6.Un secured Loan Less: provision for doubtful Net un secured Loan -Totat

7,1,076,877.04 52,729,625.51 (1,867,901.54)

61,982,333.78 63,071,461.24 (1,825,966.54)

49,963,938.14 76,467,594.73 (1,825,966.54)

50,861,723.97 TOTAL C.A 300,917,247.70

61,245,494,70 260,045,438.66

74,709141,19 357,069,835.95

Scheduled9:Current

129,475,484.20 37,919,118.96 8,260,7888.99 11,714,516.99

139,767,764.80 27,373,566.91 11,176,658.00 16,899,479.81

.-230,497,696.39 31,830,439.40 8,192,367.00 14,493,746.12

Liabilities& Provision A. Current Liabilities 1. Sundry creditors 2. Advance from customers 3. Deposit & retention money 4. Other Liabilities TOTAL C.L B. Provision TOTAL CL & PROV Inter Unit Adjustment a. Mumbai A/C b. Alwaye A/C c. Chavara A/C d. M. K A/C e. OSCOM A/C Total Inter Unit Adjustment Control Total TOTAL ASSETS TOTAL LIABILITIES TOTAL SOURCE TOTAL APPLICATION 187,369,908.15 135,304,269.44 322,674,177,59 195,217,469.52 112,284,223.92 307,501,693,44 285,014,248.91 839,208,870.00 3,935,118,91

955,277, 341.89 8,513,467.82 (27,936,515.87) 27,533,319,11 964,194,006.47 434,819,118.50 434,819,118.50 112,144,940.91 112,144,940.91

(838,380,632.84) (11,111,696.53)

13,526,439.58 11.342,267.61

(32,282,692.45) 27,926,821.16 853,848,200.66 535,313,970.49 535,313,970.49 227,812,277.05 227,812,277.05

41,498,202.68 22,286,687.40 17,027,343.31 1,529,706,018.26 1,529,706,018.26 1,160,770,399.35 1,160,770,899.35

Particulars Scheduled 1 '.share capital Authorized 10,00,000 E/S of Rs. 1000 each

2006-2007

2005-2006

Issued. subscribed& paid 8,63,650 of Rs.1000 each and fuffy paid

Scheduled2:Reserve&SurDl

39,600,893.77

i 76,093,420.88

Us a. Capita/ Reserve b. General Reserve c. Profit&Loss a/c Balance c/d Total Reserve &Surplus 39,600,893.77 76,093,420.88

ScheduledS: Secured Loan

Scheduled4: Unsecured Loan

Scheduled5: Fixed Assets a. Gross Block Less. Depreciation * TOTAL F.A

1,555,602,002.07 (701,942,023.74)

i 1,243,359,577.67 (620,115,586.04)

853,659,978.33

623,243,991.04

Scheduled6:Capital Work in Progress a. Capital work tn progress b. Assets pending disposal

317,450,940.74 38,805,39

204,225,969.45 326,641,98

Scheduled? '.investment a. Investment Scheduled8:Current Assets. Loans & advance a. Store& spire sprats b. Raw material c. Furnished goods d. Work in progress 1 .Total inventories

45,500.00

45,500.00

48,044,905.37 5,023,314.25 20,140,144.39 39,530,49$,36

39,462,569.63 11,107,481.70 137,614,749.54 2Q,28,2bl,4

112,738,862.97 2. Sundry debtors 3.Cash,cheque,stamps on hand-Total 6,959,311.78 78,236.95

190,213,002.8* 6,854,731.99 195,922.95

4.Bafance with schedufed bank

6,380,104,32

14,280,843.15 I t 49,256,716.08 43, f 64, f 10.99 (1,770,726.23)

5. Secured Loan

50,315,559.19

6.Un secured Loan 5f,122,0f2.23 Less: provision for doubtful (1,758,453.54) Net un secured Loan -Total 49,363,558.69

41,393,384.76

TOTAL C.A

225,835,723.90

90,630,100.84

ScheduIed9:Current

99,920,751.49 13,962,339.67 5,557,939.00 2,867,727.03

77,891,359,92 35,413,556.58 5,285,057.00 14,061,447.06 ,

Liabilities& Provision a. Current Liabilities 1. Sundry creditors 2. Advance from customers 3. Deposit & retention money 4. Other Liabilities

TOTAL C.L

1,22,308,757.19

132,651,420.56

5. Provision TOTAL CL& PROV

997,815,122.76

847,973,267,76

1,120,123,879.95 1,017,997,457.32

3.4 MARKETING AND SALES DEPARTMENT

Marketing is a social process by which individual and groups obtain what they need and want through crating, offering and freely exchanging products and services of value with others . It is art of selling products. Marketing functions are not limited to the function of buying and selling, but they include all function necessary to satisfy the customer such as financing, storage , risk, and bearing and after such sales service etc .. Marketing is a direct link between the producers and the consumer. The marketing section in IREL is under the direct control of Chief General Manager and this section is headed by the Deputy General Manger in his job. Off late, ore stress was given to the marketing activities of IREL, by the company, because of competition, which is growing in the international market and also in Indian market. A new era has been put in the company for this purpose.

HIERARCHY

GENERAL MANGER (HOD) MARKETING /SALES DEPUTY GENERAL MANGER (SECTION HEAD)

MANGER ) MARKETING

MANAGER (SALES)

MARKETING/SALESPERSONNEL/CLERICAL STAFF

FUNCTIONS

1. To ensure that customer requirements are understood before accepting order or submitting quotations in compliance to applicable rules and regulations. 2. Execute customer purchase orders. 3. To collect customer feedback and to initiate action to improve the customer satisfaction . 4. To define the responsibilities and authorities of marketing personnel 5. To initiate based on corrective and preventive action and based on customer complaints. 6. To maximize the turn over. 7. To maximize customer relationship. 8. To maximize profit. IREL is engaged in the production of minerals such as Ilemenite , Rutile , Zircon, and Silimanite, from naturally available beach sand deposits. On specific requirements of customer, the company also suppliers Silimanite powder by sub contracting Among them Ilemenite, Rutile, Zircon, are categorized as scheduled minerals for which the customer is required to obtain license from the department of Atomic Energy (DAE), Mumbai for their purchase. AUTHORITIES, RESPNSIBILITIES, ROLES General Manager (HOD) marketing

Authority Approval of marketing procedures and formats related to marketing department, Approval of aspects/impacts, hazards and risk register, register of legislation and management programs. Verification of effective of corrective and preventive action related to marketing process and environmental deviation. Non conformance of accidents/incidents if any, related to marketing personnel.

Responsibilities Handling of customer complaints and conducting of monthly meetings of CS and CRC. Identification of training needs of employees reporting to him. Monitor and co-ordinate all activities in connection with the shipment f minerals to overseas customer to ensure that contractual requirements in terms of quality, schedule and documentation are met. Marketing process monitoring and initiation of corrective action against deviations.

Roles. Member of management review meeting and other meetings as the member of the committee. Participate in emergency evacuation. Participate in safety an environmental related celebrations and awareness programs. Participate in cross functional team for significant analysis and overheads analysis Provide necessary feedback to S&E department on actions taken based on directives received from HO/statutory agencies related to health, safety and environment.

PROCESS INVOLVED IN MARKETING DEPARTMENT Customer requirements (both internal and external). Quantity , quality, mode of dispatch and other requirements specified by the customer through enquiries and orders. Customer feedback through questioners. PRODUCTION SPECIFICATION AND QUALITY CERTIFICAE The detailed specification on quality, size and packaging of all products are maintained at the marketing department, department. Specification sheet is implied to the customers on request under otherwise specified by the customer and agreed by IREL Chavara. The standard specification as given in the specification sheet is invariably applicable to all sales contracts. Product quality certificate is provided to each consignment.

MATERIALS SAFETY DATA SHEET Copy of the material Safety Data Sheet (MSDS) is available with the Marketing Department and is given to the customers on request. MARKETING DOMESTIC a) Marketing activities are carried out in accordance with the instructions and guidelines laid out by Head Office from time to time. b) Approved prices of various products are received from Head Office form time to time and maintained at marketing department. Marketing department also maintains an up to date price list of all products . c) At times of inadequate demand of products, apart from other promotional activities, Head Office may introduce different price schemes for specific periods. This includes rebate schemes, discounts, and credit. The above schemes received from Head Office are maintained at Marketing Department. The Head Office also provides credit facilities to specific customers.

d) At times of scarcity of products, in order to supply the material proportionately to all customers, Head Office allocates customer wise quota for the particular product based on their requirement. The quota allotment list each product received from Head Office is maintained at marketing department. Head office also intimates individual quota allotment to each customer. e) Transportation is through the authorized transporter of the customer on fright- to pay basis. Other than this, marketing department also maintains a list of approved transporters in order to assist the customers who do not have their authorize transporter. MARKET SHARE The company has 90% market share in domestic market and 2% in foreign market. Till 1998 company enjoyed monopoly in rare earths products. But now some competitors are present in other states. In Kerala still the company enjoys monopoly.

SALES AND DISTRIBUTION SYSTEM

Here the company is enjoying monopoly. That is the reason why they dont want to make distribution network. Direct selling is the main system of the organization. The customer primarily pays the full amount as Demand Draft in advance and then the company gives the product. All expect Zirflor and Microzir and silimantie powder are dispatched against permits obtained after payment of prescribed loyalty by IREL in advance to Department of Mining and Geology, Government of Kerala.

Sales Procedure On receiving inquiry from party and submitting their quotation, stating with general condition for sales, the company initiates its sales activities. Majority of the customer places order directly with Chavara. In certain cases orders are fixed by HO which is diverted to Chavara department to stores department for delivery of materials to customers. The sales department maintains the following records; 1. Contract review check list for domestic sales. 2. Government of Kerala, Department of Mining and advance remittance and corresponding permit register.

3. Quotations. 4. Payment registers. 5. Priority registers. 6. Sales register. 7. Shipping register. 8. Daily statement for production, sales and dispatch. 9. Delivery registers. 10. Quarterly statement regarding export. 11. COB license 12. Geology permits register. 13. Pricelist of minerals. 14. Cash receipts. 15. Bank receipt voucher . 16. DD. Registers. Gate pass. 17. Customer feedback questionnaires. 18. Customer files. Exporting

IREL has been exporting mineral, ILemenite , lilimanite, Zircon, etc. to different contrat; the main customers of IREL are USA, Candad, UK, France, West Germany, Japan, Autstralia, and many other countries . Export contract will be made by the Head office at Mumbai. These items do not have any tax or duty. Pricing Pricing is a very crucial decision in marketing management . The objective of the firm is to get maximum profit; it is very much depends upon the correct decision. Pricing will have to accommodate with additional cost involved in respect of packaging, labeling etc a product is acceptable to the customers when it is reasonably priced. Determination of prices is influenced by large number of factors such as cost of production, nature of the product, pricing objectives & policies of the firms etc Samples to the customers Samples are sending to the customers to their request as per the instruction from the head office for their evaluation of suitability for the requirements. Free samples are also sending to the customers.

Customer visit Every quarter, 5 customers are selected.

Major customers KMML, CMRL, steel companies, ceramic companies, Reo India, Kerr-MGGEE Corporation, Dugan. The last 3 companies are regular customers who are producing Titanium Dioxide (T1o2)

Customer complaints a) Complaints are received verbally or in writing or during customers visit to the plant. Complaints are received either from customer directly or through HO. b) A customer service and complaints residual cell has been constituted in IREL. The committee head constitutes the committee with HODs from Marketing, Production. S&D, Finance, HRM departments and secretary from Marketing department. CS&CRC meeting is conducted for each quarter or as and when required. c) Complaints are received by HOD (marketing) and forwarded to the secretary along with the copy of complaint if received in writing. d) An acknowledgement letter is sent to the customer by the secretary informing them the disposal action and that the complaint is being taken up for necessary actions. Customer feed back Every year customer feedback questionnaires are circulated to the customer & feedback is complied for chalking out strategy for the future market. Competitors Until the company enjoys monopoly, now it has some competitors in domestic and foreign countries. Companies like Vizag (Andhra Pradesh,)., VV Minerb (Tutucorin), in the domestic market and RGG Ltd (Australia), Western sands (Australia), Jintania (Norway), Richards Bymenerals Ltd (South Africa).

3.5 PURCHASE DEPARTMENT

In the narrow sense the term purchase means, the act of buying an item at a price. All production firms have the need of supply of materials & services from external sources. This makes purchasing one of the most significant functions of any firm. Moreover the quality and materials purchased. To assist and facilitate the production process in the plant, IREL have a well organized Purchase department which purchases the requisite raw materials, i,e the raw sand and all other items for the functioning of every department. So IREL purchases department has a prime importance.

HIERARCHY

DEPUTY GENERAL MANGER (PURCCHASED DEPARTMENT) SENIOR MANAGER (PURCHASES)

DEPUTY PURCHASE OFFICER

CLERICAL STAFF

WORK FORCE

FUNCTIONS 1. 2. 3. 4. 5. 6. 7. To scrutinize department requisitions To issue enquiries and tender. To receive quotations. To tabulate quotations and forward it to intenders and receive back recommendation Issue purchase order to work order. To assist vendor evaluation To keep informed the department concerned about the lead time on all usual supply situation. 8. To ensure that purchased product conforms to specified requirements 9. To ensure that purchases are made at the lowest possible rates. 10. To ensure quality of the products purchased.

AUTHORITIES, RESPONSIBILITIES, ROLES Deputy General Manger

Authorities Approval of purchase order ( Within the finance limit ). Approval of departmental procedure.

Responsibility Overall responsibility of purchase process. Arrange stores purchase committee meeting. Receipt and clearance of imported items. Identification of training needs of employees.

Roles Member of management review meeting and other meeting as the member of the committee. Participate in the emergency evaluation. Participated in the safety and environmental related celebration and awareness programs.

PROCESS IN VOLVED IN PUCHASE DEPARTMENT

Customer requirements (internal/external) Purchase requirements specified by other department. Conformation of purchasing process according to HOs directives

A. INPUT Products and services from suppliers. B. OUTPUT Timely supply of acceptable products to stores/ compliance with HOs guidelines. concerned departments, in

RESOURCES Team of purchase personnel headed by HOD (purchase) Purchase office equipped with system and common facility.

FORMALITIES OF PURCHASE 1. 2. 3. 4. 5. 6. 7. Float enquiry to the right source. Scrutinize the Quotations. Obtaining financial approval. Release an order. Flow up for times requirement. Follow up receipt at the store. Assistance to give payment in time.

FORMALITIES OF PLACING AN ORDER. 1. Organization of an indent. 2. Tender enquiry] 3. Opening of tender of the date mentioned. 4. Analysis of all tenders. 5. Technical evaluation of the tender. 6. Selection of the best one. 7. If any negotiation needed it is done with the party. 8. Obtaining approval for the selected tender. 9. Order placing. 10. Follow up

3.6 MEDICAL DEPARTMENT

An effective and efficient Medical department is functioning in IREL Chavara. Every family member of the employees is eligible for free attendance and treatment in the dispensary. Cases beyond the scope of the dispensary will be transferred to major hospitals which are centered in Kollam and Karunagappally. The whole payments in such cases are done by the company itself. The dispensary is working around the clock.

HIERARCHY

GENERAL MANAGER

SENIOR MANAGER MEDICAL (HOD)

SECTION HEAD (MEDICAL) LADY DOCTOR

NURSES/ COMPOUNDER

PHARMESIST

AMBULANCE DRIVER

LABORATORY TECHNICITION

FUNCTIONS

1. To carry out medical examination of employees and their family members. 2. Examining compliance to environmental requirements. PROCEDUERS

A. Outpatient service Employees and their dependents are provided free medical services. For this each employee has been allotted a personal dispensary file in which name of the dependents are included as per the family card issued by the welfare department. Proper recordings of the ailment, investigation and treatment of the employees and the dependents are entered in the personal dispensary file. Unfit and fit certificate are issued by medical officers in the prescribed form for availing sick leave and for re-joining the duty after sick leave. Patients who require specialists opinion or detailed investigation are sent to recognize hospitals, Government hospitals, approved laboratories as approved by HO is maintaines by HOK (medical),. Patients are taken to recognize hospitals only with reference form issued by medical officer. In the absence of company Medical Officer, patients are issued a temporary reference card valid for 1 day by the futy pharmacist or nurse for immedicate admission in cases of emergency, and within 24 hours the reference card issued by the medical officer to be collected by the employee. A. Occupational health services. Pre employment medical examination.

Normally recruited employees before joining are directed to undergo a medical examination by the Medical Officer. Medical examination is carried out as per the pre employment medical report.

Periodical medical examination. In accordance with Atomic Regulatory Board (AERB) rules, periodical medical examination for all canteen workers and classified radiation workers, it is carried out once in a year and for other general workers, it is carried out once ion 5 years.

Pre retirement medical examination.

Concerned employee is given intimation from administration section at least 2 months before the date of the retirement, to carry out pre-retirement medical examination with a copy to HOD.

3.7 TIME OFFICE DEPARTMENT

Work will be round the clock in 3 shifts of 8 hours a day. Every employee has to work 8 hours day. IREL has adopted a punch card system to register attendance and prompt working hours . All grades of employees are to punch their card with time of arrival and departure. Undr HRM department, attendance of the employees. Different allowances for employees age given on the basis of their attendance and these ar provided according to the report from Time office department. There is an e-form called MUSTER WHICH IS RLATED WITH THE Time office department.

HIERARCY

GENERAL MANAGER (HR)

DEPUTIVE ADMINISTRATIVE OFFICER (TIME OFFICE)

SENIOR ASSISTANT ( TIME OFFICE)

ASSISTNAT CLERK ATTENDER

FUNCTIONS

1. To maintain attendance record. 2. To record and maintain various allowances to the employees. Like shift allowance, overtime allowance, attendance bonus etc 3. To arrive at yearly attendance , bonus is given to the employees. The department is headed by a deputy Administrative Officer. In order to assist Deputy Administrative Officer, thee is Senior Assistant. Other office staffs like Assistants clerks and Attender follows the Senior Assistant.

For recording Attender, punching system is followed here. The attendance register usually kept in time office. The time office collects attendance from concerned authorities also. Then they will match them with the punching system to avoid swapping

Time office has three centers for punching, for the convenience of employees. In mining area and degrading plant, punching machines are also kept for the payment of salaries. The Time office sends the records to the Finance department. If the Finance department asks for any clarification the Time office department will do the same.

3.8 QUALITY CONTROL DEPARTMENT

Quality control relates to the activities that ensure that the final product is of satisfactory standards . It helps in reducing deficiencies and damage in the future product quality. Section head is the to mot authority of the Quality control department of IREL Chavara. At present there are 14 employees in the department including 1 female staff.

IREL have the ISO 9002 certificate for the quality it maintains.. Now IREL adopts the use of modern equipments with foreign collaboration for ensuring the quality of products. Quality management is directed at preventing mistakes rather than finding them after they occur. This department deals the quality of product manufactured by the company. Quality control is the has implemented the Quality Management System (QMS) for ensuring the quality of products and to crate customer satisfaction . QMS is an effective system for directing and controlling an organization with regard to quality. In IREL the products are expected to have 9899% purity and it is the duty of the quality department to ensure their quality. Moreover it is an ISO 9002 certified company . Therefore they are giving more importance for quality and its continuous improvement. HIERARCHY

SECTION HEAD (QUALITY CONTROL)

DEPUTY MANAGER (CHEMICAL LABORATORY

SENIOR SCIENTIFIC OFFICER

SCIENTIFIC OFFICER

ATTENDERS

FUNCTIONS

1. To ensure that raw materials in process, and finished products conforms to specified requirements holding compliances with environmental requirements. 2. Ensuring compliance to health, safety and environmental requirements. The quality control department of IREL Chavara is responsible for proving good quality of beach sand having mines according to the requirements of the customers. They are conducting inspection on batch wise in every shift and clears quality in case if the standard quality is not matching. Thed conducts its quality analysis in 3 stages. They are:-

Incoming raw sand analysis. In process analysis Final product analysis.

INSPECTION AND TESTING PROCESS DETAILS

Inspection

It means examining the output of a process to determine whether it is acceptable At each level of activity, the quality is checked in the quality management system. If quality is not maintained at the desired level after any process, it is again processed. Usually the quality checks of mineral are done in batch quality control R&D is another function of quality control department. Raw sand

The DWUP (Degrade & Wet Up gradation Plant) and HUP (High UP gradation Plant ) and tailing are tested for total heavy mineral content as detailed in quality plan. The raw sand feed to the QIL plant i.e. the dried HUP output is analyzed as per the quality plan. The raw sand being naturally occurring , the specifications are only desirable values. The variations in the quality of the raw sand do not affect the quality of final products. So no reduction of raw sand is resorted to, even if the analysis results are not as for he quality plan.

 These tests are carried out only to make proper adjustments of the process parameters to set the final products of specified quality.

In process inspection

In-process inspection of certain intermediate fraction as detailed in the equality plan. These process fractions are not rejected even if the analysis results do not confirm the desirable specifications. The inspection is only for subsequent adjustments in the process parameters. Finished products

The products under tests are identified by a yellow board indicating the date, shift and number of bags. Those products passed the tests are identified by a green board indicting date, shift and number of bags and the rejected are identified as red board indicating FOR RE- WORK. Inspection and testing of finished products are carried out and recorded in the respective record as per quality plan. Only products conforming to the quality as detailed in the as respective quality plan are taken into stock. Rejected products are disposed off and corrective actions are taken. Inspection and test records are maintained with the authorization of HOD (QC). Inspection and test records clearly indicate whether the product is accepted /rejected. TOOLS FOR INSPECTION

Chemical examination . Chemical analysis. Petrologic microscope. Analytical instruments. Instrumentation.

CERTIFICATION PROCESS IN QUALITY CONTROL DEPARTMENT

1. Based on customer, selected a certifying body. 2. Send the audit on the quality manual procedure. 3. Appoint a team of auditors with a leader. 4. Adequacy audit on the quality manual procedure. 5. Manual correction on auditors observation. 6. Pre visit by the lead auditors to the plant. 7. Examination by a specialist. 8. Conduct a pre audit. 9. Finalizing the audit schedule. 10. Preparation of audit report. 11. Re audit , if required. 12. Recommendation of the certificate. 13. Surveillance audit once in 6 months 14. Certificate is valid only for three years and therefore re auditing and re certification is required after 3 years.

3.9 SECUTITY DEPARTMENT

Industrial security in the public and private sector can be defined as protection of men materials, machines, buildings, classified information and co-operations and to provide services against, fire, theft, damage to the company assets and the installation. Security of the company assets and premises is vested in the hand of the staffs of the security department

IREL has a well defined security department. The inflow and outflow of inventory, finished products and personnel are regulated and monitored by the security department.

HIERARCHY

GENERAL MANGER (HR)

. MANAGER (SECURITY)

HEAD SECURITY OFFICERS

SAFETY GUARDS

FUNCTIONS

1. To give security to the company and its assets. 2. To monitor the entry of employees and visitors. 3. According to ISO procedure they maintain the discipline of the employees, their uniform etc. There are 32 security personnel in total. The security department also gives protection to company equipments in the mining area. 7 security persons are employed at puthenthura, 7 at vellanathurathu and 16 at the plant itself.

The important documents to be maintained by the security department are:1. 2. 3. 4. 5. 6. 7. Standing Order or Security Manual. Duty Rosters ( staff and watch man) General Diary. Key Register. Material Movement Register. Vehicle Register. Telephone Message Book.

Two major threats present in the IREL are sabotage and theft. To prevent sabotage there is a control room and it is accessible at every time. In case of emergency, the systems will automatically shuts down and emergency alarm will blow. At that time all employees are required to assemble in the assembly points.

Another security problem faced IREL is theft. There is no clear boundary wall for the company. This may encourage persons to take away company assets without permission

3.10 STORES AND DESPATCH DEPARTMENT

The stores department helps in supply chain, keeping inventory of the product produced on one hand and supply requisite raw materials to the manifold department on the other hand. All machine parts, office equipments and stationary etc.

HIERARCHY

HOD (STORES AND DESPATCH

SECTION HEAD (STORE AND DESPATCH)

FORKLIFT DRIVERS

STORES PERSONNEL

PRODUCT STTICHING & HANDILIG PERSONNEL

TALLY SECTION PERSONNEL

WEIGH BRIDGE SECTION PERSONNEL

FUNCTIONS

1. To receive all the incoming products and arrange joint inspection by the intending section and stores, thereafter issuing materials as per the requirement from different section based on vouchers. 2. To locate the products in the specified location and preserve it. 3. To give feedback about the stock level s of critical items as per the list, to the departments. 4. Accepting materials from other departments through credit slips (C.S). Taking into stock and storing in the respective location. 5. Purchase requisition raised by the other department is routed through stores to the competent authority for approval after entering in the material code and monitoring the stock position. 6. Responsible for storage of packed product. 7. Maintenance up-to date register for finished products and other items necessary for the smooth function of the company. 8. Items ordered are handed over to the client by department after getting verification and authorization from the marketing and finance department. 9. To arrange export of product as and when there is an export commitment. 10. Stocking of scrap material returns various department and disposed of the same scrap material as and when generated in coordination with the purchase department and salvage committee 11. Inventory control, usually ABC control is adopted here. 12. Issue of purchase requirement.

Stores fall under two categories: Capital items. Consumable items.

Capital items, which give return for long term. Revenue items or a consumable item means that which are consumable only for a short period. Procurement of items of capital nature is to be made only after the approval by the competent authority duly verified by internal auditors with prior conclusion in the capital budget.

Stores action is responsible for arranging procurement for all items or purchase requisitions shall from the basis for arranging procurement or other departments, complete in all respects and duly approved by the controlling authority. Stores are purchased indigenously and from foreign suppliers through the adoption of competitive tendering. Tendering system is adopted to secure the most competitive tendering rates and eliminate chance of favor. The worth of production in the plant is currently between 6-7 crores. Once in every three months inventory statistics is prepared and send to the head office in Mumbai. Stores follow Bin card and Cardex system. This department has three major functions as follows:

Receipt: The consignment items are properly verified with the receipts and requested the particular departments to make inspection on each items. Storage; the received items are stored in proper locations and preserve them until the issue. Each item has its own Bin card. The quantity receives, materials issued, total remaining are noted in the Bin cards. Issue: The issue is made in the first In First Out method. After the receipt of the material internal note from the department, the issue is made and same is recorded in the Bin card.

Inventory Control

Under the stores department the inventory control functions is done. If excess stock is obtained, it is properly informed to the marketing department to promote sales and if any shortage obtained, it is properly informed to production department to increase the production. Usually ABC inventory control method is adopted un IREL Chavara for the control of inventories. The principal types of inventories are:-

Raw material supply Goods in progress that is work in progress Finished good

3.11 MAINTENANCE DEPARTMENT

This department stand for the maintenance of machines in the plant and its effective installation. The department is engaged in daily inspection of equipments and its inspection. By doing this they are able to understand the efficiency of machines. During certain times some machines of the plant requires maintenance activities to mechanisms related to Electrical maintenance, Mechanical maintenance, Machinery maintenance, preventive maintenance, Break Down maintenance, Routine maintenance, Block maintenance. HERARCHY UNIT HEAD

HOD (MAINTENANCE)

SH HUP SH (AUTO)

SH EL

SH ELEC MSP SH (MEETS) SH ELEC SH DWUP1 SH MSP -2

SH DWUP2

SH MSP -1

SH DWUP3 MAINTANENCE PERSONNEL

FUNCTIONS

To carry out preventive maintenance to ensure continuous capability and to attend break down maintenance if any.

PROCESS

A. REQUIREMENTS 1. 2. B. 1. 2. C. 1. 2. 3. Maintenance requirements identified. Break down/ repair/ modification/ intimation received from other department. INPUT Maintenance service from outside agencies. Spare parts procured through purchase and stores OUTPUT Ensuring the availability of plant and equipment through preventive maintenance Rectification of break down on receipt of intimation from other departments. Improvements through modification.

D. RESOURCES 1. Central maintenance team 2. D shift maintenance team 3. Office equipped with systems and communication facilities. 4. Tools and equipments for maintenance.

3.12

SAFETY AND ENVIRONMENT DEPARTMENT

In the present industrial scenario, all the industries a have accepted the fact that safety improves productivity . IREL Chavara has always been in the forefront in ensuring safety, welfare, better working environment to all its employees. Their safety slogan is LET EVERY DAY BE A SAFE DAY. The management of IREL is highly conscious of its responsibility towards the safety and healthy working conditions of its employees, and protection of the environment around its plants. Accidents which cause danger to the life and limbs of employees and population around the plant can be prevented by proper planning a co-ordinate efforts by people at all level.

To ensure safety and healthy working environment in the plant IREL established a department called Safety and Environment Department.

HIERARCHY MANAGER (SAFETY AND ENVIRONMENT)

DEPUTY MANAGER (SAFETY)

ENVIRONMENT ENGINEER

FUNCTIONS The primary function of the safety of the department is to advise and assist the management in fulfilling its obligations, statutory or otherwise concerning prevention of personal injuries and maintaining as safe working environment. The following are some of the activities involved in the fulfillment of the above duties. They are:1. Safety personnel shall assist the management in planning, coordinating and administrating safety programs and other safety related activities to promote safety consciousness among the employees. 2. Safety personnel shall advice the concerned departments in planning and organizing preventive measures for the effective control of personal injuries and also inform them any unsafe condition or act prevailing in their department. 3. Safety personnel shall conduct regular inspections all the work areas and ascertain whether all the safety instructions and guidelines are followed, and the statutory provisions are enforced. Non compliance, if any, shall be brought to the notice of the concerned department heads for remedial action. 4. Safety personnel shall advise the section heads on the right kind of safety equipment applicable for each job and ensure that the quality of these equipment conform to the relevant Indian Standards. 5. Safety personnel shall conduct investigation of all accidents, property damages, dangerous, and unusual occurrences and make recommendations for taking preventive measures. 6. Safety personnel shall conduct periodical safety audit with help of the plant personnel and workmen inspectors and give a report to the Unit Head for necessary corrective actions needed. 7. Safety personnel shall be present at the time of commencement of all major jobs carried out under the authority of a work permit. MISSION AND POLICY Mission :- the mission of IREL is to be the major supplier of beach sand minerals and rare earths compounds in the domestic and international market to develop and produce chemicals of strategy importance, value addition with due regard to resources utilization and safety protection.

Consistent with their mission, IREL envisages a safety working environment to prevent injury and ill health to its employees. It also ensures environmental protection by minimizing environmental input that may arise from its operations and provide appropriate environment plans to maintain ecological balance and above all recognizes the use for safety culture in an organization to enhance the awareness and commitment of all employees to safety .

Policy:- IREL updates and review the safety policy periodically taking into consideration in industrial experiences advance in the technology and regulatory requirements.

Environmental Policy:IREL Chavara is committed to protect, conserve and improve the environment in which it operates for the continual existence in the BSS throughout.

Conservation of natural resources. Minimizing pollution. Compliance to applicable environmental rules ad corporate guidelines, periodical health monitoring of employees, customers and suppliers. Safety guide IREL Chavara follows strict safety guidelines which are given in the companies safety guide, Safety team will update the safety guide as per the requirement to throw more clear light on the processes as well as equipments engaged in the plant, including procedures to ensure the safety of both men and machinery, there are dos and donts enlisted in this guide and this will be quite helpful in averting in the slight test possibility of acid.

SAFETY GUIDELINES In order to achieve the policy objectives certain guidelines are used. 1. Corporate level safety. a) An officer t rank of General Manager to co-ordinate at the corporate office all safety environment and training activities of various units and takes necessary step for effective implementation of this policy. b) General Manager (S&E), assisted by three senior officer at the headquarters on each of the safety, environment and training c) The corporate safety setup has been provided with the adequate administrative or financial support for co-coordinating safety policy. d) His liaisons with various outside agencies like Atomic Energy Regulatory Board, SARCOP health ,physics division of BARC,DGM of mines safety,ministry of environment and forest etcfor fulfilling in the statutory requirement. e) He assesses the training needs for various areas and arranges for different categories of employees.

f) He interacts with a safety team of experts for carrying out safety audit or environmental audit and assessments of safety performance for award of shield etc.. 2. Unit level safety setup a) The head of each unit will be executive director chief or General Manger. b) He will be ex officio chairman of the plant level S&E protection committee which will review monthly safety status of the plant.] c) He will implement all the applicable statutory provision at safety and environmental control in the unit. d) He will nominate senior level office as S&E control officer who took after the S&E control aspects of the unit. e) He will ensure that operating procedures are followed strictly and technical specifications are not worked. 3. Safety and environmental protection committee a) The term of members of the committee will be two years and the committee members will be meeting once in a month. b) The committee will review and commends related accidents. c) The committee will organize safety day or environmental day or fire day and mines safety week annually and hold competition among the employees relating to safety and environment during the celebration. d) The committee will discuss the measures against the unsafe condition and practice in the mine or plant as pointed out in the reports of workmens inspection. e) The committee will consider safety and health measure to be taken before commencement of operations of any new electrical oir mechanical equipment proposed. f) Summary of minutes of the meeting will be send to the General manager (S&E)

3.13 MINING DEPARTMENT

IREL Chavara is engaged in the production of minerals such as ilmenite , Rutile, Zircon,Silimanite, Monozite, etc. from naturally available beach sand minerals, IREL is basically a mineral separation plant. The raw material for production that is beach sand is available in the coastal area.

HIERARCHY

It is the responsibility of the mining department to collect or mine the beach sand from the sources. The raw material or beach sand is brought to the plant from the mining area. The mining department of IREL depends on the following sources or resources. They are: a. Vellanathuruthu Mining Area b. 132 Mining area c. Mineral Recover Plant (MRP) 1 and 2 The beach sand is also purchased from the contractors. But it is outside control of mining department, It is the duty of the Purchase department. The land for mining is purchased by IREL Chavara. The mining process is mainly divided into two types, they are: a manual Mines b. Mechanized mines

Manual Mines are those mines were mining is carried out manually. Vellanathuruthu Mining Area and 132 Mining areas are examples of manual mines. These are undertaken mainly in coastal areas. As the availability of raw sand from beaches, both in terms of quality and quantity diminished, the augmented its requirement by dredging in the inland deposits. For this purpose 2 mineral recovery Plant (MRP) is established for dredging from inland deposits. This is mechanized mining.

METHODS OF MINING a. Manual and bulldozers, loaders and tippers combination. b. Dredgers c. Concentrate UP grading Plant

3.14 INTERNAL AUDIT REPORT

Chief General Manger is directly looking after the functioning of internal audit department Manager is the head of the department . They are internal audit officers and administrative officers others than accountants and clerks working in this departments. Internal Audit department is not regular department in many of the companies. But in IREL, this department is holding special privilege of auditing into every accounting matter of IREL . It is functioning in accordance with Finance department. It functions to get approval from internal audit department for the finalization of anything concerned to accounts. The company management is approving financial statements and all other accounts with the recommendation of this department

HIERARCHY

MANAGER (ID)

INTERNAL AUDIT OFFICER

CLERKS

ACCOUNTANTS

3.15 CIVIL DEPARTMENT

Maintenance Department has a direct impact on every things that effects the overall health and welfare of the organization. A sound maintenances strategy should therefore be considered a valuable tool used to assess equipment capability and the continuous improvement efforts of asset performance. Civil department consists of Deputy Manger (civil), two Deputy Officer and the workforce. They frequently monitor company structures and maintain them properly. In case of new projects, In case of new projects, the basic infrastructure has to be erected by this department.

HIERARCHY DEPUTY MANAGER (CIVIL)

DEPUTY GENERAL MANAGER (CIVIL)

SUPERVISORS

WORKERS

FUNCTIONS

1. 2. 3. 4. 5.

To create infrastructure to facilitate smooth operation of the organization. To carry out construction as per plans and maintaining related records. To monitor and maintain co structure . To estimate the cost involved in erecting new structures. To report to finance department about the plans and cost involved in the construction and maintenance of new as well as the existing ones.

3.16 RESEARCH AND DEVELOPMENT DEPARMTMENT

Research is process of systematic and in depth study or search of any particular topic, subject or area of investigation backed by collection, computation, presentation and interpretation of relevant data. R&D activities are new product development, new compound development, selection and evaluation of alternative materials, finished products, testing & analysis, assisting plants in problem solving. The company has well occupied R&D facilities to support flow sheet development with lab models of Magnetic Separators, High Tension Separators, wet Shaking tables and Froth Flotation equipment etc.

HIERARCHY

HOK (R&D)

SECTION HEAD (R&D)

DEPARTMENT PERSONNEL (R&D)

FUNCTIONS 1. 2. 3. 4. 5. 6. 7. 8. New product development New compound development Selection & evaluation of alternative materials. Testing of new products. To analyze and assit plants in problem solving. Ensure quality of raw materials and finished products. Maintain quality. R&D attempts.

3.16 PROJECT DEPARTMENT

Normally projects are carried out for the requirements for the production department.

The primary function of project department is the planning and implementation of new project of the Indian Rare Earths Ltd. HIERARCHY

PROJECT MANAGER

PROJECT ENGINEERS

DESIGN ENGIEERS

SUPERVISORS, FOREMAN

DRAFTSMAN

TECNICIANS

UNSKILLED WORKERS

INTERNAL PROJECT The process involved is modified in the existing plans and is taking up new projects.All the projects need approval from the head office/competant authority based on the delegation of power.Some projects are executed by the department itself.Some projects are divided into parts and carried out by the department along with the outsourced people. NEW PROJECTS A team is formed for the prpoer execution of the project work.A schedule is prepared and things are monitored according to the schedule.Once project is identified,one unique identification number is alloted to the project.There after any activity carried out for the project is with referance to the identification number.After project identification process,process flow sheet is prepared.The process flow sheet consists of: Process Identification Bill of material Appointment of consultants if required is done for assisting the projects team in the preparation of various reports and execution of work.Bill of material is consisting of a manpower planning,machinery requirement and other overhead as per the project.This feasibility study for defining the process identification and the bill of material is carried out in details and the feasibility report is prepared.The feasibility report is sent to the head office /unit head for approval.

CHAPTER-4

SWOT ANALYSIS

STRENGTH 1.High skilled manpower 2.Modernized plant having foreign and Indian tecchnology 3.Cordial relationship between management and unions. 4.The setting up of IREL has resulted in a considerable upliftment of the social and economic conditions of the people living in the surrounding areas. 5.In keeping with the environmental concerens,IREL has adopted eco friendly measures ithin yhe surroundings. 6.Strong financial position. 7.Technology collaboration with thje Australian company ROSCHE-one of the largest mineral technology providers in the world.

WEAKNESS 1.Perennial mining problems 2.The inability of the management to control effectively the resistance by the local people in some radical issues. 3.Excess number of civil workers. 4.Decision making process is highly time consuming and complicated. 5.Inactive marketing department

OPPPORTUNITIES 1.The company can start ista own plant for the production of various related products through diversification. 2.Being associated with the company can have a lot of new projects like Uranium Metal plant at Mumbai. 3.The Orissa Sand Complex has taken into confidence to supply 4000 tons of Monazite annually,which can be seperated to produce som costly products like Samarium,Europium. 4.There is a boom in the market for Titanium bearing minerals. 5.Faster growth rates of markets in Asian countries where extrction facilities were limited.

THREATS 1.The local demand for more and more employment 2.Formation of mineral sand protection committee. 3.Over intervention of external political groups in company affairs 4.Protests from environmental activities 5.Fluctuation in the value of currency which adversly affects the export income. 6.Rapid changes in technology. 7.Increasing trend of transportation cost.

CHAPTER-6

FINDINGS AND SUGGESTIONS

FINDINGS 1. Company is having strong commitment towards society. 2. The liquidity analysis carried out clearly indicates that the liquidity of the firm that is the level of current assets relative to current liabilities is satisfactory. 3. The increasing trend of return on equity states that the firm is using the owner's funds efficiently and effectively. Thus able to fulfill the expectations of shareholders who want their wealth to get maximized. 4. The fixed assets turn over are huge because of the increasing sales and the high demand for the firm's products. 5. Inventory turnover ratio is not up to mark because the firm relies mainly on large lot sizes for replenishments rather than small lot sizes. 6. The gross profitability ratio, the net profitability ratio and the earnings per share ratio are showing a decline in the profitability 7. The managers are overloaded with work,but they perform well above the expectations 8. Computerization of the entire department is effective 9. Working conditions in the organisation is remarkably good. 10. The welfare activities implemented by the company are very effective. 11. The employees are satisfied with the welfare policy which are in practice and the scale of pay at present. 12. IREL concentrates on modernization and upgradation of new technology. 13. The employee-employer relationship prevailing in the complany is very good. 14. Majority of the workmen are well experienced and posses great amount of knowledge,particularly relating to the mining and production procedures. 15. Interventions by external political parties continue to be a disturbance in formulating labour policies. 16. The company provides efficient angd effective training to the employees of the organisation. 17. IREL is strongly commited to environmental protection and energy conservation.

SUGGESTIONS 1. The company should diversify its operations into other related areas. 2. The company should increase their production capacity according to the demand of the product. 3. It is highly recommended that the natural resources should be utilized and processed with atmost care and concern for the environment. 4. The company should take more safety measures to reduce accidents among the workers. 5. The management should sustain the faith of the local people by constantly communicating and explaining the companies policies to them.The trust of the local people can be ensured and sustained by constant interaction and communication with them.The company can achieve this by undertaking more socially responsible activities. 6. The company should formulate appropriate HR policies for providing enough work to civil forum workers disseminating them into other areas or by limiting their number by conducting discussions with labour union. 7. The company must make full use of the favourable government policies at present. 8. The company should try to minimize the external interventions of the various political parties.

CONCLUSION

IREL,Chavara is the leading supplier of beach sand minerals to the nation. The company,in its search of new heights,has reached a level of quality which is remarkable. The timely adaptation of technological innovations has been the hallmark of IRE since its inception.The study was descriptive and analytical in nature. All the functional departments were thoroughly studied and the strengths and weaknesses were found out.It was found out that the employees were satisfied with the welfare policies which are in practice and the scale of pay at present.The intervention of political parties continue to be a threat.IREL,Chavara is capable of converting its threats into opportunities with the guidance and control of the top management whose leadership quality is impeccable.