CHAPTER I

INTRODUCATION OF INTERSHIP TRAINNING

In plant training is an integral part of MBA program, because it gives us the practical

knowledge of what we have learnt during our study period. But practical knowledge is also

necessary along with the theoretical knowledge.

One can see how the theories and knowledge are being practically implemented. This

report is about a paper company. We prepared this report carried the information about all

department in the organization and necessary information’s of the company.

Training is the process of learning a sequence of programmed behavior. It is an

application of knowledge. It gives people an awareness of the rules and procedures to guide their

behavior.

Development is a related process. It covers not only those activities which improved job

performance, but also those which bring development of their personalities to help individual’s

progress towards the actualization of their potential capabilities.

Education is the understanding and interpretation of knowledge. Education imparts

qualities of mind and character and understanding of basic principles and develops the capacities

of analysis, synthesis and objectivity

As a MBA student, I inspired for studying various department and their contribution to

the successful running of a factory.

1
 CHAPTER II

INDUSTRY PROFILE
About the industry
India, being the second largest cement producer in the world after China with a total

capacity of 151.2 Million Tones (MT), has got a huge Cement Company. With the government

of India giving boost to various infrastructure projects, housing facilities and road networks, the

cement industry in India is currently growing at an enviable pace. More growth in the Indian

cement industry is expected in the coming years. It is also predicted that the cement production

in India would rise to 236.16 MT in 2011. It's also expected to rise to 262.61 MT in 2012.

The cement industry in India is dominated by around 20 companies, which account for

almost 70% of the total cement production in India. In the present year, the Indian cement

companies have produced 11 MT cement during April-September 2009. It took the total cement

production in 2009 to 231 MT.

The cement industry in India saw the price and distribution control system in the year

1956, established to ensure fair price model for consumers as well as manufacturers. Later in

1977, government authorized new manufacturing units (as well as existing units going for

capacity enhancement) to put a higher price tag for their products. A couple of years later,

government introduced a three-tier pricing system with different pricing on cement produced in

high, medium and low cost plants.

The cement industry in India saw the price and distribution control system in the year

1956, established to ensure fair price model for consumers as well as manufacturers. Later in

1977, government authorized new manufacturing units (as well as existing units going for

capacity enhancement) to put a higher price tag for their products. A couple of years later,

2
government introduced a three-tier pricing system with different pricing on cement produced in

high, medium and low cost plants.

“Cement” is generic term used for all powered material which mixed with water has a
plastic form, but comes a solid structure within a few hours, the structure gaining strength and
bonding properties with age. Defined thus, “Cement” is an ancient building material. Lime and
volcanic ash formed “Cement” in the construction of classic Roman and Greek structures. Urnt
gypsum was the “Cement” used for the Pyramids of Egypt Evidence exits of its usage in the
Indus civilization of Mohenjodaro.

The ancient Roman developed cement concrete similar to the kinds used today. Their
cement has such great durability that some of their buildings, roads and bridges still exist. To
makes cement the Romans mixed slake lime (lime to which water has been added) with volcanic
ash called pozzolana. The ash produced hydraulic cement that hardened under water people lost
the art of making cement after the tall of the Roman Empire in the AD 400’s 1756 John Smeaton
a British again found how to make cement.

Credit for the invention of “Cement” goes to an English-man by the name of Joseph
Aspadian of Leeds England. Construction of the Erie Canal created the first big demand for
cement in U.S. in 1818 Canvas white an American engineer discover rock in Madison country
New York that made natural hydraulic cement with processing cement made from this rock was
used in building the canal.

In 1824, Aspadian manufactured cement, in a rudimentary form, by burning mixture of

limestone and clay. It was termed “Portland Cement” as it resembled the “Portland Stone”, a
popular limestone used for building construction in England. Another quarter of a century passed
before yet another Englishman Isaac Charles Johnson produced a slightly better quality of
Cement in 1950.

3
Industry leaders

The Indian cement industry is the second largest producer in the world comprising 185

large cement plants and 365 mini cement plants. However, just half a dozen players at the top —

UltraTech, ACC, Ambuja, Jaypee Cement, India Cements and Shree Cement — control half of

India's cement market.

Aditya Birla Group

Kumar Mangalam Birla, head of the $40 billion Aditya Birla Group that includes India's

largest cement maker Ultratech Cement, looks all set to cement his leadership position in the

sector.

UltraTech Cement is reportedly looking to buy Indian assets of Holcim and Lafarge SA.

If the move succeeds, it can give a whole new dimension to the consolidation that is underway in

India's troubled cement industry.

In a move that will have far-reaching impact on the Indian cement industry. Holcim and

Lafarge, the world's two largest cement companies, agreed to merge last month to form the

world's largest cement maker with combined annual sales of $44 billion. The two companies are

looking to wrap up the merger by the first half of 2015. Holcim, which entered India in the

middle of the past decade, controls the country's two large cement companies — Ambuja

Cements and ACC. Put together, the Swiss giant has a manufacturing capacity of 58.05 million

tonnes a year (ACC 30.1; Ambuja 27.95 mtpa), which is 17 per cent of India's capacity.

ACC

ACC (ACC Limited) is India's foremost manufacturer of cement and concrete. ACC's

operations are spread throughout the country with 14 modern cement factories, more than 30

4
Ready mix concrete plants, 20 sales offices, and several zonal offices. It has a workforce of

about 10,000 persons and a countrywide distribution network of over 9,000 dealers. ACC's

research and development facility has a unique track record of innovative research, product

development and specialized consultancy services. Since its inception in 1936, the company has

been a trendsetter and important benchmark for the cement industry in respect of its production,

marketing and personnel management processes. Its commitment to environment-friendliness, its

high ethical standards in business dealings and its on-going efforts in community welfare

programmes have won it acclaim as a responsible corporate citizen. ACC has made significant

contributions to the nation building process by way of quality products, services and sharing its

expertise.

In the 70 years of its existence, ACC has been a pioneer in the manufacture of cement

and concrete and a trendsetter in many areas of cement and concrete technology including

improvements in raw material utilisation, process improvement, energy conservation and

development of high performance concretes. ACC’s brand name is synonymous with cement

and enjoys a high level of equity in the Indian market. It is the only cement company that figures

in the list of Consumer Super Brands of India.

Ambuja cements

Ambuja Cements Limited, formerly known as Gujarat Ambuja Cement Limited, is a

major cement producing company in India.[2]The Group's principal activity is to manufacture

and market cement and clinker for both domestic and export markets. Ambuja Cements Ltd

(ACL), a part of a global conglomerate Holcim, is one of India’s leading cement manufacturers

and has completed over 25 years of operations. The company, initially called Gujarat Ambuja

Cements Ltd, was founded by Narotam Sekhsaria in 1983 in partnership with Suresh Neotia.

5
Global cement major Holcim acquired management control of Ambuja in 2006. The Company

has also made strategic investments in ACC Limited.

Market share

Cement is the preferred building material in India. It is used extensively in household and

industrial construction. Earlier, government sector used to consumer over 50% of the total

cement sold in India, but in the last decade, its share come down to 35% Rural areas consume

less than 23% of the total cement. Availability of cheaper building materials for non-permanent

structures affects the rural demand.

Cement demand in India has increased due to the increasing expenditure by the Indian

government in infrastructure. As a result, the participation of larger companies in the sector has

also increased. There are a total of 125 large cement plants and more than 300 small cement

plants operating in the country presently. The cement industry is a homogenous industry with

similar nature of raw materials, rising power costs, similar manufacturing and processing units.

The nature of the product makes it difficult for any player to differentiate in order to corner a

large share of the market. This leads to low margins and makes the industry unattractive.

Market performance

Demand for cement is linked to the economy activity in any country. Broadly, it can be

categorized into demand for housing construction (homes, offices etc) and infrastructure creation

(ports, roads, power plants etc). The real driver of cement demand is creation of infrastructure;

hence cement demand in emerging economies is much higher than developed countries where

6
the demand has reached a plateau. In India too, the demand for cement will be affected by

spending on infrastructure (including housing).

Expected growth of industry

With the boost given by the government to various infrastructure projects, road network

and housing facilities, growth in the cement consumption is anticipated in the coming year. The

favorable housing finance environment is expected to fulfill the vas housing requirements, both

in rural and urban areas. The increase in infrastructure projects by the government couple with

the construction of Global Quadrilateral and the North – South and East- West corridor projects

have led to an increase in consumption of cement. This increase is expected to continue in the

future. The reduction in import duties is not likely to affect the industry as the cement produced

is at par with the international standards and the prices are lower than those prevailing in

international markets.

Cement is a typical industry, characterized by the boom and bust syndrome. A huge

potential market and rapid growth in the early stages lead to a surge in interest and a flurry of

research. The projected growth rates point to a lucrative market. The buoyant markets and huge

profits raked in by players tempt more players into the market.

The production of cement in India grew at a rate of 9.1% during 2006-07 against the total

production of 147.8 MT in the previous fiscal year. During April to October 2008-09, the

production of cement in India was 101.04 MT comparing to 95.05 MT during the same period in

the previous year. During October 2009, the total cement production in India was 12.37 MT

compared to a production of 11.61 MT in the same month in the previous year. The cement

companies are also increasing their productions due to the high market demand. The cement

7
companies have seen a net profit growth rate of 85%. With this huge success, the cement

industry in India has contributed almost 8% to India's economic development.

Scope of the industry

Capacities increase in excess of demand and a glut in capacity is created. Competition

increases, prices fall and margins come under pressure. Competition addition comes to a halt;

weaker players shut ship or sell off to larger ones. Demand catches up and the cycle is repeated

all over again. Perhaps, of all the cyclical industries, the Indian cement industry exhibits this

boom-and bust cycle most visibly. Consider the following:

 TEMPTATION

A huge potential market, easy availability of raw material and cheap labor leads to a

flurry of activity and a surge of interest. The easiest way to estimate the potential that exists is

the per capita consumption of cement, which is abysmally low in India at 82 kgs as against a

world average of 255 kgs and the Asian average of 200 kgs. Although the growth of the industry

depends more on the level of consumer spending rather than on the per capita consumption,

nevertheless, it serves as an easy bench mark to estimate that exists.

 FUEL TO FIRE

The projected growth rates in demand (based on the potential per capita consumption

growth or other drives like the expected GDP growth rate) fuels stock market rallies. Consider

the boom in cement stocks in 1994. Every cement company was attracting valuations it never

dreamt about. Scarcity induced by lower capacities and to a large extends on non-availability of

power, drove cement prices to hilt. The kind of money minted by most cement companies as well

8
as investors in that period made strategists plan enormous increase in capacity. This explains

why capacity creation starting 1994, was so enormous.

 GOVERNMENT CONTROLS

The prices that primarily control the price of cement are coal, power tariffs, railway,

freight royalty and cess on limestone. Interestingly, all of these lrices pare controlled by

government.

 COAL

The consumption of coal in typically dry process system ranges from 20-25% of clinker

production. This means for per ton linker produced 0.20-0.24 ton of coal is consumed. This

contributes 35-40% of the production cost the cement industry consumes about 10mm tons of

coal annually. Since coalfields like BCCL supply a poor quality of a coal. NCL and CCL the

industry has to blend high grade coal with it the Indian coal has a low calorific value (3,500-

4,000 kcal / kg) with as content as high as 25-30% compared to imported coal of high calorific

value (7,000-8,000 kcal /kg) with low ash content 6-7% lignite is also as a fuel blending it with

coal however this process is not very common.

 ELECTRICITY

Cement industry consumes about 5.5bn units of electricity annually while one ton of

cement approximately requires 120-130 units of electricity power tariffs vary according to the

location of the plant and on the production process. The state government supplies this input and

hence plants in different state shall have different power tariffs. Another major hindrance to the

industry is service power cuts most of the cement producing states like AP, MP, experience

power cuts to the tune of 25-30% every causing substantial production loss.

 INFRASTRUCTURE

9
 To reduce uncertainty relating to power, most of the leading companies like ACC, Indian

Royan, and Grasim rely on captive power plants a few companies are also considering power –

generating windmills.

 LIMESTONE

This constitutes the largest bulk in terms of input to cement for producing one ton of

cement, approximately 1.6 ton of limestone is required therefore the cement plant location is

determined by the location of limestone mines.

The major cash outflow takesby the state government the total limestone deposit in the

country is estimated to be 90 billion tons. AP has the largest share 34%, Karnataka 13%, Gujarat

13% ,M.P.8% and Rajasthan 6.5% the plants near the limestone deposit pay less transportation

cost than o place in way royalty payment to the central government and cess on royalties levied

thers.

 TRANSPORTATION

Cement is mostly packed bags now. It is then transported either by rail or road. Road

transportation beyond 200 kms is not economical therefore about 55% cement is being moved by

railways. Therefore is also the problem of inadequate availability, under this scenario,

manufactures are looking for sea routes, this being not only cheap but also reducing the losses in

transit. Today 70% of he cement movement worldwide is by sea compared to 1% in India.

However, the scenario is changing with most of the big players like ULTRA TECH, ACC and

Grasim have set up their bulk terminals.

10
  INFRASTRUCTURE FOR FUTURE

The consumption of cement is determined by factors influencing the level of housing and

industrial construction, irrigation projects, roads and laying of water supply and drainage pipes

etc, the level and growth of GDP and its sect oral composition, capital formation, development

expenditure, growth in population, level of urbanization, etc, in turn, determine these factors. But

the domestic demand for cement is mainly from the housing activities and infrastructure

development. The government paved the way for the entry of the private sector in road projects.

It has amended the National Highway Act to allow private toll collection and identified projects,

bridges, expressways big passes for private construction the budged gave substantial incentives

to private sector construction companies ongoing liberalization will lead to an increase in

industrial infrastructure development. So it is hoped that Indian cement industry shall boom in

near feature.

11
 CHAPTER III

COMPANY PROFILE

About the company

Dr. Rajah Sir M.A. Muthiah Chettiar’s urge to contribute to the nation building cause combined
with his business acumen culminated in establishment of “Shree Cement Corporation Limited”
in 1962 to cater to the growing demands of cement in the country.

The history of the “House of Shree” is linked with the 9 decades old saga. In 1912 took birth the
House of Shreethrough a visionary, idealist and born entrepreneur Dr. Rajah Sir Annamalai
Chettiar who believed in social transformation through business. The founder of the house of
Shreeenvisaged his companies his companies providing the stimulus for industrial growth and
conceived business as a means of improving the living standards of people.

Following the footsteps of his father Dr. Rajah Sir Annamalai Chettiar, Dr Rajah Sir M.A
Muthiah Chettiar contributed to contribute to nation building to establish the company
“SHREECEMENT CORPORATION LIMITED” in 1962 to cater to growing demand of
cement in the country. The company's first manufacturing unit located at PULIYUR, KARUR
DISTRICT, in Tamil Nadu commenced production production in April 1968. Today the group is
being steered under the versatile, dynamic and pragmatic Leadership of D/r.M.A.M.
Ramaswamy and his son Sri M.A.M.R. Muthiah based on the footsteps of Dr. Rajah Sir M.A.
Muthiah Chettiar.

Apart from cement, the ShreeHouse is today engaged in activities as diverse as granite,
engineering, silica, garnet, information technology, plantations, shipping, transportations,
shipping, transportation, stevedoring, clearing and forwarding and logistics having a combined
turnover of about Rs.8500 million.

From a modest beginning of 2 lack tones capacity per annum, it has gradually increased to 15
lack tones today. Presently the plant employs the modern Dry Process Technology. It has the
most advanced, sophisticated, computer controlled state-of-the-art Loesche Mill for Grinding

12
Raw meal, Loesche lignite mill (first of its king in India) a few state pre-heated kiln & electronic
packing plant. Equipped with centralized control room for process control, the advanced
instrumentation and elaborate display screens give up-to-the minute information of the
production process so that any deviation can be promptly corrected.

The company, which has always been striving for Total Quality, possesses international
certificate ISO 9002 and ISO 14001 and takes pride in being acclaimed as one of the major
player in a highly competitive cement industry in India. The company added another feather to
its cap by installing and commissioning a gland, sophisticated, high-tech and power efficient
O&K cement mill resulting in a quantum leap in production to touch one million tone marks.
The company has achieved many laurels through AWARD FOR “BEST PERFORMANCE” in
the cement industry issued by “National productivity council”. Besides it has been customary to
receive National safety Awards.

The company’s new state-of-the Art Green Field Cement Plant in Kari kali village, Dindigul
District, Tamil Nadu, commenced commercial production in October 2001 with a capacity of 0.9
million tones per annum. It is equipped with ABB’s latest knowledge based solution packaged
right from the treatment with Raw Material to the packing cement, making it one of India’s most
modern and efficient plants. With the large infrastructure projects of the Government for
concretizing the National Highways and rural roads, like the Golden quadrilateral and the PM’s
Gram SADAK YOJANA, in the pipeline, the cement industry as well as your company looks
forward to a bright future and hopes to achieve more, milestone in the years to years to come.

Market share in industry

The total market size of cement industry is approximately 15 billion standard kgs or 1.5 million
kgs. 35 percent of the total production comes from the small scale sector with about 1500-1800
units in operation. The organised sector accounts for 20 percent of the total production. The
balance production comes from the un-organised traditional units operating under cottage/tiny
sector numbering approximately 65000 units in the country.

13
The two major players i.e. Adithya Birla and ACC are having a market share of 35% and 33 %
respectively. Ambuja company has 19 % market share and other companies have 24.5%.
ShreeCement Corporation Limited has market share for 15% in the total industry. It strives to
capture the remaining share in the industry by taking whole hearted efforts. Apart from these ,
there are few small scale regional players.

Vision:

The Company deals fairly and honestly with its suppliers i.e. relationships with suppliers are
based on price, quality, service and reputation. It is the responsibility of each Director and officer
to become familiar with and understand these laws, regulations, policies and codes and if
required should seek further explanations and advice concerning their interpretation.

Mission:

To produce quality goods by utilizing various resources

It is responsible for the development of the new products, which could be sold in India and is
also responsible for contracting with the national suppliers.

Opportunities:

The fact that India being second largest cement producer in the world and still having the

lowest per capital consumption itself speaks for the vast potential for growth available in the

sector.

Objectives of the company:

• To progress towards ZERO defect in our activities

14
 • To big about greater employees involvement and satisfaction.

• To achieve safe and healthy environment to employee in suffering.

• To imbibe practical knowledge cement production process.

• To acquire knowledge about the financial as well as managerial aspects of the firm.

Awards & achievements

 National Award for Excellence in Water Management by Confederation of Indian

Industry (CII)

 Outstanding Corporate Vision, Triple Impact - Business Performance Social &

Environmental Action and Globalisation for 2009-10 from Federation of Indian Chambers of

Commerce and Industry

 Asia Pacific Entrepreneurship Award in two categories, Green Leadership and

Community Engagement by Enterprise Asia.

 Indira Priyadarshini Vrikshamitra Award --- by The Ministry of Environment and Forests

for "extraordinary work" carried out in the area of afforestation.

 Subh Karan Sarawagi Environment Award - by The Federation of Indian Mineral

Industries for environment protection measures.

 Drona Trophy - By Indian Bureau Of Mines for extra ordinary efforts in protection of

Environment and mineral conservation in the large mechanized mines sector.

 Indira Gandhi Memorial National Award - for excellent performance in prevention of

pollution and ecological development

 Excellence in Management of Health, Safety and Environment : Certificate of Merit by

Indian Chemical Manufacturers Association

15
 Good Corporate Citizen Award - by PHD Chamber of Commerce and Industry

Market share in industry

The domestic cement market is dominated by large players owing to their size, brand value and
financial strength. In 2006-07, the top 10 players control around 60% of the market in term of
capacity. Aditya Birla Ltd holds major 80 % of market share in India since it is supplied to
North India. ShreeCements holds 25 % of market share. Remaining portions are captured by
other competing companies which produces cement in Tamil Nadu since its prices are very
less.There is a stiff competition in market to capture large market share since real estate business
and construction works are in progress.

16
The Organisational hierarchy

Managing Director

HR Production QA Marketing Finance

Dept Dept Dept Dept
Dept

General Manager

Operation Manager Materials Finance HR Marketing

Manager Q&A Manager Manager Manager Manager

Maintenan
ce
Manager

Executives
Executives Executives

Officers
Officers Officers

Operators Technician

17
Products & Services

Ordinary Portland Cement (OPC)

Gray Ordinary Portland Cement is a high-quality, cost-effective building material mainly

composed of clinker that meets all applicable chemical and physical requirements and is widely
used in all construction segments: residential, commercial, industrial, and public infrastructure.
Shreecement is the result of careful effort in the research and development of our cement
engineers and scientists. It is specially blended with good quality control monitoring systems,
high quality cement engineered for use in all structural, building and particularly useful in
marine and hydraulic construction. ShreeCement is extremely easy to work with and produces
consistently excellent results every time. This consistent quality, versatility and proven strength
make it the choice for builders, architects, engineers, contractors. The composition of the cement
is constantly monitored and maintained to guarantee high quality performance as per cement
class specs requirements.

Portland Pozzolana Cement (Ppc) - Blended Cement

This Blended hydraulic cements are produced by intergrinding or blending Portland cement and
supplementary cementitious materials such as fly ash. The use of blended cements in ready-mix
concrete reduces mixing water and bleeding, improves workability and finishing, inhibits
sulphate attack and the alkali-aggregate reaction, and reduces the heat of hydration. Depending
on the constituents, blended cements can confer desirable qualities to concrete such as lighter
colour, workability, or low heat of hydration. Slag from steel making and fly ash from the power
industry are two commonly added materials in blended cements. By putting waste to work,
blended cements contribute to sustainable development. We've made blended cements for over
20 years.

Sulphate Resisting Portland Cement (SRPC)

SRPC is a type of Portland Cement in which amount of tri-calcium aluminate (C3A) is restricted
to low value. ShreeSRPC has unique quality of having low C3A value. SRPC can be used for
structural concrete wherever OPC are usable under normal condition. Use of ShreeSRPC is more

18
beneficial in the condition where the concrete is exposed to the deterioration due to sulphate
attack and exposed directly to sea coast.

Portland Slag Cement (PSC)

PSC is produced by an intimate and uniform inter-grinding of Portland Cement Clinker and
granulated slag with addition of Gypsum. ShreePSC has unique physical properties which make
it ideal for use in a variety of attack prone application like construction in the saline atmosphere
along our coast liners and soil area and sewage prone area. Shreeoffers an array of blended
cements which have a lower CO2 footprint resulting from their lower clinker content due to the
addition of supplementary cementitious materials. The use of blended cements reinforces our
strong dedication to sustainable practices and furthers our objective of offering an increasing
range of more sustainable products.

Technical Services

ShreeCement Corporation Limited offers various services to our customers. Some of these
include: Selection of proper aggregates materials for concrete mix design We help our customers
in identifying which size and type of aggregates are appropriate for a certain concrete work for
economical concrete mix design as the use of good material is important in order to reduce the
cost of the intended project.

Concrete mix design for different applications

Depending on the structural concrete strength required and condition in which the concrete will
be used, we advise the customers on selection of type/class of cement to be used, maximum
amount of cement per cubic meter of concrete as well as maximum water cement ratio, the use of
admixture to modify the concrete workability etc.

General technical information on cement/concrete

To safeguard the interest of the customers, we always give tips to our customers cement storage
facility, handling of cement bags, stacking of cement bags, preparation and treatment of casted
concrete, general technical information concerning cement etc.

19
 CHAPTER IV
FINANCE DEPARTMENT

MEANING OF FINANCE:
A branch of economics concerned with resource allocation as well as resource management,
acquisition and investment. Simply, finance deals with matters related to money and the markets.
To raise money through the issuance and sale of debt and/or equity is called finance.

In simple words, Arrangement of funds is called finance. All organizations need finance for
operating its different activities. So, we can say finance is just like blood for survival the
business in changing economic environment. Fund, money, saving, cash, reserves and assets are
the basics of finance. Finance word is very deep and in modern age, this word is also known
Business Finance. To create equilibrium in  business finance, we used different tools like
financial analysis, financial planning, ratio analysis, cash flow analysis, fund flow analysis and
working capital management analysis.

Primary Functions of finance department in ShreeCement Corporation Limited:

The five basic corporate finance functions in the company are described as those functions
related to;

1) raising capital to support company operations and investments ( financing functions);

2) selecting those projects based on risk and expected return that are the best use of a company's
resources (aka, capital budgeting functions);

3) management of company cash flow and balancing the ratio of debt and equity financing to
maximize company value (aka, financial management function);

4) developing a company governance structure to encourage ethical behavior and actions that
serve the best interests of its stockholders (aka, corporate governance function); and

20
5) management of risk exposure to maintain optimum risk-return trade-off that maximizes
shareholder value (aka, risk management function).

Main functions of Finance Department in ShreeCement Corporation Limited:

 Preparation of budget, appropriation of accounts, re-appropriations, surrender and

savings.

 Control of expenditure and ways & means position.

 Audit Treasury administration Administration of Taxes i.e. Sales Tax, Entertainment Tax,

Luxury Tax and Entry Tax etc.

 Service Conditions including Freedom Fighters Pensions.

 Resource mobilisation through loans, Institutional Finance, Small Savings, Credit and

Investment and public debt.

 Financial concurrence and advice. Compilation of Codes, Rules and procedures

concerning financial transactions and having bearing on State finance and their

implementation. Safety and investment of funds from consolidated funds, contingency

fund and public account. Contract, recovery and refund of revenue etc.

Responsibilities of finance manager in ShreeCement Corporation Limited:

The finance department head is MR. S. Sharma, who has expert and experience governs the
finance department. The responsibilities of finance department in the company are as follows:

Almost every firm, government agency, and organization has one or more financial managers
who oversee the preparation of financial reports, direct investment activities, and implement cash
management strategies. As computers are increasingly used to record and organize data, many

21
financial managers are spending more time developing strategies and implementing the long-
term goals of their organization.

The duties of financial managers vary with their specific titles, which include controller,
treasurer or finance officer, credit manager, cash manager, and risk and insurance manager.
Controllers direct the preparation of financial reports that summarize and forecast the
organization's financial position, such as income statements, balance sheets, and analyses of
future earnings or expenses. Controllers also are in charge of preparing special reports required
by regulatory authorities. Often, controllers oversee the accounting, audit, and budget
departments.

Treasurers and finance officers direct the organization's financial goals, objectives, and budgets.
They oversee the investment of funds and manage associated risks, supervise cash management
activities, execute capital-raising strategies to support a firm's expansion, and deal with mergers
and acquisitions.

Credit managers oversee the firm's issuance of credit. They establish credit-rating criteria,
determine credit ceilings, and monitor the collections of past-due accounts. Managers
specializing in international finance develop financial and accounting systems for the banking
transactions of multinational organizations.

Cash managers monitor and control the flow of cash receipts and disbursements to meet the
business and investment needs of the firm. For example, cashflow projections are needed to
determine whether loans must be obtained to meet cash requirements or whether surplus cash
should be invested in interest-bearing instruments. Risk and insurance managers oversee
programs to minimize risks and losses that might arise from financial transactions and business
operations undertaken by the institution. They also manage the organization's insurance budget.

Financial institutions, such as commercial banks, savings and loan associations, credit unions,
and mortgage and finance companies, employ additional financial managers who oversee various
functions, such as lending, trusts, mortgages, and investments, or programs, including sales,

22
operations, or electronic financial services. These managers may be required to solicit business,
authorize loans, and direct the investment of funds, always adhering to Federal and State laws
and regulations. (Chief financial officers and other executives are included with top executives
elsewhere in the Handbook.)
Branch managers of financial institutions administer and manage all of the functions of a branch
office, which may include hiring personnel, approving loans and lines of credit, establishing a
rapport with the community to attract business, and assisting customers with account problems.
Financial managers who work for financial institutions must keep abreast of the rapidly growing
array of financial services and products.

In addition to the general duties described above, all financial managers perform tasks unique to
their organization or industry. For example, government financial managers must be experts on
the government appropriations and budgeting processes, whereas healthcare financial managers
must be knowledgeable about issues surrounding healthcare financing. Moreover, financial
managers must be aware of special tax laws and regulations that affect their industry.

Financial managers play an increasingly important role in mergers and consolidations, and in
global expansion and related financing. These areas require extensive, specialized knowledge on
the part of the financial manager to reduce risks and maximize profit. Financial managers
increasingly are hired on a temporary basis to advise senior managers on these and other matters.
In fact, some small firms contract out all accounting and financial functions to companies that
provide these services.

The role of the financial manager, particularly in business, is changing in response to

technological advances that have significantly reduced the amount of time it takes to produce
financial reports. Financial managers now perform more data analysis and use it to offer senior
managers ideas on how to maximize profits. They often work on teams, acting as business
advisors to top management. Financial managers need to keep abreast of the latest computer
technology in order to increase the efficiency of their firm's financial operations

23
 STRUCTURE OF FINANCE DEPARTMENT

Internal check followed by ShreeCements

Internal check implies a system of instituting checks on the day-to-day transactions which
operate continuously as part of the routine system whereby the work of one person is proved
independently or is complementary to the work of another, the object being the prevention or
early detection of errors of fraud.

Objectives of Internal Check

1. To minimize the possibilities of errors, fraud or irregularities.

2. To enhance the efficiency of clerks in a business as the assignment of duties is based on the
principle of division of labour.
3. To distribute work in such a way that no business transaction is left from recording.
4. To prepare final accounts with ease and efficiency. An efficient system of internal check can
make accounts more regular and reliable.

24
5. To exercise moral pressure over the staff.

Internal check with regard to cash receipts by ShreeCements

1. The receiving cashier and the paying cashier is different individuals in the company.
2. All cheques, postal orders and drafts which are received in the name of the business must be
crossed by means of a rubber stamp with ‘Account Payee’ only.
3. All cash received must be remitted to the bank on the every day of the receipt.
4. For cash received after the close of banking hours and kept in the vault of the business house,
a separate entry is to be made in the register of the late remittances.
5. Before the cash is kept inside the vault, the cashier and the responsible official is checked up
the total cash and tally it with daily total of cash receipts maintained by the cashier.
6. All sums that the received daily is listed by some person other than the cashier.
7. Printed receipts are issued for all remittances received. The receipts are signed by a
responsible official.
8. All unused receipt books is kept in the safe custody of a responsible official.
9. Bank reconciliation statements are prepared periodically and the statement of balances is
tallied.
10. The payment into the bank is verified the next day by the responsible official.

Internal Check as to Cash Payments by ShreeCements

1. No payments is made without proper authority and evidence in support of payment.

2. Acknowledgement is obtained for all payments made.
3. While accepting vouchers there shall be verifications as to whether the payments exceeding
Rs.20 bear sufficient stamp duty.
4. All vouchers in support of payment is filed separately in serial order to facilitate verification.
5. All payments as far as possible over a certain amount is made by cheques.
6. No payments is made to the creditor unless the confirmation of balance due to him.
7. No payments is made without the sanction of a responsible official who is authorized for the

25
purpose of payments.
8. No bearer cheques is issued.

Cost accounting department

Cost accounting is the process of recording, classifying, allocating and reporting various costs
incurred in the operations of an enterprise. The complex system of large scale production in
factories created new problems in accounting. The financial accounting was exposed of its
limitations. It failed to meet the needs of modernization of industries. The need for
determination and control of costs as well as problems of pricing in large industrial organizations
necessitated inventions and applications of new set of principles of accounting and thus emerged
cost accounting as an advanced phase of financial accounting.

Objectives of cost accounting department in ShreeCements

1. Ascertainment of cost

It enables the management to ascertain the cost of production, or product, job, contract or
service or unit of production so as to develop cost standard. Costs may be ascertained, under
different circumstances, using one or more types of cost accounting principles standard costing,
marginal costing, uniform costing etc.

2. Fixation of selling price

Cost data are useful in the determination of selling price or quotations or tenders. Apart
from cost ascertainment, the cost accountant analyses the total cost into fixed cost and variable
cost. This will increase the volume of sales more sales that previously thus leading to maximum
profit.

3. Cost control

The object is to minimize the cost of manufacturing. Comparison of actual cost with
standards reveals the discrepancies – variances. If the variances are adverse, the management
enters into investigations. So as to adopt corrective action immediately.

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4. Matching revenue with cost

The determination of profitability of each product, process, department, etc. is the

important object of costing.

5. Special cost studies and investigations

It undertakes special cost studies and investigations and these are the basis for the
management in decision making or policies. This will also include pricing of new products,
contraction or expansion programmes, closing down or continuing a department, product mix,
price reduction in depression etc.

6. Preparation of financial statement, profit and loss account and balance sheet

To prepare these statements, the value of stock, work-in-progress, finished goods, etc. are
essential; and in the absence of costing department, when it has to close the accounts it rather
takes too much time. But a good system of costing facilities the preparation of statements, as
figures are easily available; they can be prepared monthly or even weekly.

Preparation of cost sheet

The company prepares carefully the cost sheet in order to fix the selling price. The
expenses of a product are analysed under different heads in the form of a statement. The
statement is called cost sheet. It is a statement showing the total cost under proper classifications
in a logical order.

Purpose of cost sheet

1. It provides details of total cost.

2. It provides cost per unit in different stages.
3. It helps for comparison and cost control.
4. It is helpful for preparation of tender and quotation etc.,
5. It acts as basis for fixation of selling price.

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Methods of pricing of material issue

1. First in first out method (FIFO)

Materials are issued in the order in which they are received in the store. It means that the
materials received first will be issued first.

Advantages

1. This method is simple to understand and easy to operate.

2. The closing stock is valued at the current market price.

3. This method is more suitable in time of falling prices.

4. Deterioration and obsolescence can be avoided.

5. Issues are priced at cost, no profit or loss arises from pricing.

Methods of Remuneration (or) Wages

The remuneration paid to employees should reduce labour turnover, increase productivity
employees and improve the quality of output. There are two basic methods of wage payment;

Payment made on the basis of time spent by the workers in the factory irrespective of output
produced.

Payment of wages on the basis of production or work done irrespective of time taken by
the workers. They follow piece rate system in the company.

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Piece Rate System

This is also called ‘payment by results’ the workers are paid on the basis of output
prodded by them. The earnings of the workers depend on the number of units of output
produced and the wage rate per unit received by the worker.

SWOT ANALYSIS:

Strengths:

 Very high profit from International markets during peak season.

 The company has a sound financial base mostly through plough back of earnings

Weakness:

 company’s plants are locating in south and west parts of the country resulting into higher
transportation cost to serve other geographical areas.
 Effect of Historical Government Policies
 Lower Productivity and Cost Competitiveness
 Wastage of high level raw materials.

Opportunities:

 Concern has reputation among financial institutions to get financial assistance

Threats :

 Frequent changes in government policies

 Govt. Taxation policy – against manufacturing sectors
 There is high incidences of taxes on products both direct and indirect taxes
 Industry attracts very high taxes as the govt. does not consider it high priority area.

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 PRODUCTION DEPARTMENT

Under its Builders Choice brand name, ShreeCement offers an extensive range of bagged

products that includes Ordinary Portland cements and blended cements to suit most building and
construction applications. For over four decades, the Shreecement companies have built a
reputation for serving the construction industry with high-performance products that encourage
creativity and ensure longevity. As the creative use of cementitious materials continues to grow
in popularity, in both masonry and concrete applications, so too, does our commitment to
providing customers with the widest range of cements to achieve the maximum in creativity,
versatility and integrity. ShreeCements are carefully proportioned, highly accurate blends of
quality materials including blended cement& Portland cement are manufactured under controlled
conditions assuring reliable performance, and providing consistent quality.

ShreeCement has always strived for high quality production and maintained international
standards. The company has won many laurels for its cement production and has ISO 9001/2008,
ISO 14001/2004 and IS 18001/2007 certifications. It has grown steadily from time to time
through its consistent quality and customer service.

PRODUCTION PROCESS OF CEMENT:

Raw Materials
The main raw materials used in the cement manufacturing process are limestone, sand, shale,
clay, and iron ore. The main material, limestone, is usually mined on site while the other minor

30
materials may be mined either on site or in nearby quarries. Another source of raw materials is
industrial by-products. The use of by-product materials to replace natural raw materials is a key
element in achieving sustainable development.

Raw Material Preparation

Mining of limestone requires the use of drilling and blasting techniques. The blasting techniques
use the latest technology to insure vibration, dust, and noise emissions are kept at a minimum.
Blasting produces materials in a wide range of sizes from approximately 1.5 meters in diameter
to small particles less than a few millimeters in diameter. Material is loaded at the blasting face
into trucks for transportation to the crushing plant. Through a series of crushers and screens, the
limestone is reduced to a size less than 100 mm and stored until required. Depending on size, the
minor materials (sand, shale, clay, and iron ore) may or may not be crushed before being stored
in separate areas until required.

Raw Grinding
In the wet process, each raw material is proportioned to meet a desired chemical composition and
fed to a rotating ball mill with water. The raw materials are ground to a size where the majority
of the materials are less than 75 microns. Materials exiting the mill are called "slurry" and have
flowability characteristics. This slurry is pumped to blending tanks and homogenized to insure
the chemical composition of the slurry is correct. Following the homogenization process, the
slurry is stored in tanks until required. In the dry process, each raw material is proportioned to
meet a desired chemical composition and fed to either a rotating ball mill or vertical roller mill.
The raw materials are dried with waste process gases and ground to a size where the majority of
the materials are less than 75 microns. The dry materials exiting either type of mill are called
"kiln feed". The kiln feed is pneumatically blended to insure the chemical composition of the
kiln feed is well homogenized and then stored in silos until required.

Pyroprocessing
Whether the process is wet or dry, the same chemical reactions take place. Basic chemical
reactions are: evaporating all moisture, calcining the limestone to produce free calcium oxide,

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and reacting the calcium oxide with the minor materials (sand, shale, clay, and iron). This results
in a final black, nodular product known as "clinker" which has the desired hydraulic properties.
In the wet process, the slurry is fed to a rotary kiln, which can be from 3.0 m to 5.0 m in diameter
and from 120.0 m to 165.0 m in length. The rotary kiln is made of steel and lined with special
refractory materials to protect it from the high process temperatures. Process temperatures can
reach as high as 1450oC during the clinker making process.

In the dry process, kiln feed is fed to a preheater tower, which can be as high as 150.0 meters.
Material from the preheater tower is discharged to a rotary kiln with can have the same diameter
as a wet process kiln but the length is much shorter at approximately 45.0 m. The preheater
tower and rotary kiln are made of steel and lined with special refractory materials to protect it
from the high process temperatures.

Regardless of the process, the rotary kiln is fired with an intense flame, produced by burning
coal, coke, oil, gas or waste fuels. Preheater towers can be equipped with firing as well.
The rotary kiln discharges the red-hot clinker under the intense flame into a clinker cooler. The
clinker cooler recovers heat from the clinker and returns the heat to the pyroprocessing system
thus reducing fuel consumption and improving energy efficiency. Clinker leaving the clinker
cooler is at a temperature conducive to being handled on standard conveying equipment.

Finish Grinding and Distribution

The black, nodular clinker is stored on site in silos or clinker domes until needed for cement
production. Clinker, gypsum, and other process additions are ground together in ball mills to
form the final cement products. Fineness of the final products, amount of gypsum added, and the
amount of process additions added are all varied to develop a desired performance in each of the
final cement products. Each cement product is stored in an individual bulk silo until needed by
the customer. Bulk cement can be distributed in bulk by truck, rail, or water depending on the
customer's needs. Cement can also be packaged with or without color addition and distributed by
truck or rail

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 MARKETING DEPARTMENT

ShreeCement Corporation Limited takes all efforts to increase sales. The marketing department
has full responsibily to increase the sales. Because sales generates the revenue to the company.
Process of marketing management by ShreeCement Corporation Limited :
(1) identification, selection, and development of a product,
(2) determination of its price for its various products,
(3) selection of a distribution channel to reach the customer's place, and
(4) development and implementation of a promotional strategy.

Sales Promotion activities by marketing department in ShreeCement Corporation

Limited :
Examination of the market
 introducing with the product
 checking of the market by our MVM promo managers
 evaluation of real possibilities for promotional activities
 examination of promotional activities of the competition
Creation of promotional activity
 evaluation of examined samples
 creation of promotional message
 selection of materials for distribution to customers

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  defining the list of retail trade objects which are the object of the promotional activity
Transmission of the message
 defined promo message/activity is being transferred through MVM team of promo co-
operaters on the whole territory of Serbia
 the message is being directly transferred at the place of positioning/selling of products
Distribution of promo materials
 MVM promo co-operators distribute promo materials/products

Reporting about all promotional activities

Every member of MVM team makes detailed reports about all promotional activities in every
check.That kind of reports are being sent to clients so they can track the development and effects
of the whole action
 
Functions of marketing in ShreeCement Corporation Limited :
The functions of marketing in the company are embodied in the aggregate of economic activities
related to the transfer of property right, selling and buying, the transport and storage of goods,
distribution, packaging, financing and procurement. All these areas involve numerous marketing
actions that are distinguished between general and specific functions.
 Market and consumer research. This is the main function in the company. This function
implies obtaining the information about the current market situation and future perspectives. This
is the foundation of all decisions: formulating the strategy, designing a new product or service,
extension to a new market, targeting a specific market.
 Permanent adaptation to the requirements of social and economic environment. This
implies the employment of all resources in order to operatively accommodate to the market
demands. The company's adaptability can be measured by comparing the dynamics of the
supply it is providing to the dimension, structure and level of demand. It depends on the capacity
of the management to use the resources effectively.
 Full satisfaction of demand. This is the objective of ShreeCement Corporation Limited
that aims for a rewarding economic activity. As a company manages to accomplish better the

34
 market requirements, its chances to gain profit, increase its turnover and surpass its competitors,
rise.
 Maximizing of economic efficiency. It assumes the optimization of all economic
processes (production, transportation, storage, distribution) so that the profitability is increasing.
Marketing involves more than its functions in ShreeCement Corporation Limited. It has certain
principles of organizing the company's activity:
 Market knowledge. The customer must be helped to make a choice. For this reason,
various information from the market need to be collected and analyzed by the department in
ShreeCement Corporation Limited . Information about: the structure and dynamics of demand
and preferences of consumers.
 Anticipation of consumer preferences. The marketing department of ShreeCement
Corporation Limited studies and future trends forecasts.
 Marketing for the company, not company for marketing. All resources need to be
invested in the business and the staff needs to be motivated to adhere to the company's general
objective.
Achievement of these principles guides the company to attain the final objective and has a long
term perspective of efficient activities.
 

Product Planning and Development by ShreeCements

The product planning means an attempt to establish the product in line with market needs. It is
defined the act of making out and supervising the search, screening, development and
commercialization of new products, the modification of existing lines and the discontinuance of
marginal or unprofitable item.

Product planning is the initial stage for the entire marketing programme of a concern. Product
planning embraces all activities which enable producers and middlemen to determine what
should constitute a company’s line of products.
Product development a more limited term embraces the technical activities of product research,
engineering and design. The effort of developing products and increasing the scope to satisfy the

35
needs of the consumers, who like a change, is called merchandising. Merchandising is often
termed as product development.
ShreeCements often conducts meeting at executive level and plan about the new product to be
produced and they eliminate unprofitable products in the discussion and bring proposals to a
profitable products to be produced in future.
ShreeCements conducts the meeting with managerial, executive and experts at the time of
product planning and development. The followings are discussed in the meeting are as follows:
1. Which products should the firm make and which should it buy?
2. Should the company expand or simplify its line?
3. What new uses are there for each item?
4. What brand, package and label should be used for each product?
5. How should the product be styled and designed, and in what sizes, colours and materials
should they be produced?
6. In what quantities should each item be produced?
7. How should the product be priced?

Pricing decision by ShreeCements

Price may be defined as the exchange of goods or services in terms of money. Without
price there is no marketing in the society. Exchange of the goods or services takes place only
when the prices are agreed upon by the seller and the buyer. Price can decide the success or
failure of a firm. ShreeCements considers the following factors before it fixes the price to its
each product:
Internal Factors
1. Costs
A conventional approach to the determination of price for a product is based on its cost of
production and distribution. ShreeCements objective is to earn profit. So it considers the cost of
the production when it fixes the price. It fixes the price above the cost to earn profit.
2. Business Objectives
Apart, from the basic preference for profit, ShreeCements has certain other objectives.
These objectives can also influence pricing decisions. These are given below:
(i) Return on Investment

36
 ShreeCements expects a certain rate of return on the investment made every year. It
expects minimum 25% on its investment as return. Then only it can meet its expenses.
(ii) Market Share
ShreeCements is aiming only for a reasonable share of the market, i.e., catering to the
needs of a certain category of buyers only, the price, of its product is to be naturally medium.
(iii) Preventing Competition
The goal of ShreeCements is to prevent its competitors. It fixes the price to its products
as to compete the competitiors.
External Factors
(i) Demand: The demand for a product is nothing but a buyer’s desire to have a product
backed by his ability and willingness to pay for it. Based on the demand of the
product it fixes the price.
(ii) Middlemen: The goods produced by the company is not directly marketed by them.
Normally, there are wholesalers and retailers in the market. The wholesalers buy in
bulk from the ShreeCements and sell in small quantities to the retailers. In addition
to wholesalers and retailers, there are also other intermediaries in the market like
brokers, commission agents and so on. All these intermediaries have to be paid for
their services.
(iii) Government regulations: The Government does regulate business activities. If the
excise and customs duties payable by ShreeCements to the Government are hiked
by the latter, the company usually shift their burden on the consumers by increasing
the price. Similarly, if the sales tax is increased by the Government the burden will
again fall only on the consumer. All such increases will be reflected in the price.
SWOT ANALYSIS:
Strengths:
 timely deliveries
 consistent supplies
 prompt services
 high quality product ranges
 It has a significant and consistent growth over the years.
Weakness:

37
 It has inadequacy to oppose to foreign market needs.
 It is evolving slowly from small-scale unit to a minimum large market player.
 Increased global competition in the post 2005 trade regime under WTO
 There is no direct export to abroad.
Opportunities:
 Globalization and liberalization in India has created new markets abroad for Indian
products
 Lot of unexplored market
 There is increase in scope for specialized and high quality products
 There is no immediate threat of entry by any technically superior company in this
industry sector
 Export potential growing
Threats :
 The rate of demand for increase is not very high
 There is chance to immediate entry after a longer period
 Competition in Domestic Market
 Ecological and Social Awareness
 Frequent changes in government policies

38
 PERSONNEL DEPARTMENT

Personnel management can be defined as obtaining, using and maintaining a satisfied

workforce. It is a significant part of management concerned with employees at work and with
their relationship within the organization.

According to Flippo, “Personnel management is the planning, organizing, compensation,

integration and maintainance of people for the purpose of contributing to organizational,
individual and societal goals.”

According to Brech, “Personnel Management is that part which is primarily concerned with
human resource of organization.”

Nature of Personnel Management

1. Personnel management includes the function of employment, development and
compensation- These functions are performed primarily by the personnel management in
consultation with other departments.
2. Personnel management is an extension to general management. It is concerned with
promoting and stimulating competent work force to make their fullest contribution to the
concern.
3. Personnel management exist to advice and assist the line managers in personnel matters.
Therefore, personnel department is a staff department of an organization.

39
 4. Personnel management lays emphasize on action rather than making lengthy schedules,
plans, work methods. The problems and grievances of people at work can be solved more
effectively through rationale personnel policies.
5. It is based on human orientation. It tries to help the workers to develop their potential
fully to the concern.
6. It also motivates the employees through it’s effective incentive plans so that the
employees provide fullest co-operation.
7. Personnel management deals with human resources of a concern. In context to human
resources, it manages both individual as well as blue- collar workers.

Role of Personnel Manager in ShreeCement Corporation Limited

Personnel manager is the head of personnel department. He performs both managerial and
operative functions of management. His role in ShreeCement Corporation Limited can be
summarized as :

1. Personnel manager in ShreeCement Corporation Limited provides assistance to top

management- The top management are the people who decide and frame the primary
policies of the concern. All kinds of policies related to personnel or workforce can be
framed out effectively by the personnel manager.
2. He advices the line manager as a staff specialist- Personnel manager acts like a staff
advisor and assists the line managers in dealing with various personnel matters.
3. As a counsellor,- As a counsellor, personnel manager attends problems and grievances of
employees and guides them in ShreeCement Corporation Limited. He tries to solve them
in best of his capacity.
4. Personnel manager acts as a mediator- He is a linking pin between management and
workers.
5. He acts as a spokesman- Since he is in direct contact with the employees, he is required
to act as representative of organization in committees appointed by government. He
represents company in training programmes in ShreeCement Corporation Limited..

The scope of personnel management in Shreecement corporation limited

40
Since ShreeCement Corporation Limited is large scale business operations labour unions are
also the result of growth in the size of industrial organisations. Dealing with the problems of
human beings now a days requires specialised knowledge. It is not unusual to find a separate
department for tackling all human problems in the organisation.

I. Procurement :- It includes –

1. Recruitment i.e., tapping the possible portads from where prospective labour supply will
come.
2. Getting information regarding prevailing wage rates and job requirements.
3. Selecting the best candidate by following a systematic selection procedure.
4. Maintaining the records of employees.

5. Introducing the new employee to the officers of the other departments such as Security
Officer, Time Keeper, Cashier etc.

II. Training or Development Function :- The training of the new employees and also of those
who are being promoted is the crucial function of Personnel Department. A training programme
is devised for this purpose. The training increases skills and abilities of the employees. The
various aspects of training are –

1. Training to new employees instructors and supervisors.

2. Training in safety equipments and various types of policies of companies.

3. Training through improvement of education such as evening classes, films, entertainment

programmes etc.

4. Encouraging employees to give suggestions.

III. Promotion, Transfer and Termination :- The performance of the employees is evaluated for
the purpose of taking some vital decisions concerning the employment. Merit rating is a
systematic periodical unbiased evaluation of the performance of the employees.

41
The functions of the Personnel Department in ShreeCement Corporation Limited
1. To lay down a promotion policy.
2. To formulate policies regarding transfers and terminations.
3. Analysis of voluntary separations and knowing the possible causes of such separations.
4. Compensation :- The employees should get adequate and equitable remuneration for the work
being done by them. The functions concerned with fixation of fair wages are given here –
To evaluate jobs and determine their worth in terms of money.
To collaborate with others who may formulate wage plants.
To assist in formulation of policies regarding pension plants, profit sharing
programmes, non-monetary benefits etc.
To compare the wages of the enterprise with the industry and remove
inconsistencies, if any.

5. Welfare Activities provided by ShreeCement Corporation Limited :- These

activities relate to physical and social well-being of the employees and include -
1. Provision of medical facilities such as first aid, dispensaries etc.
2. Suggesting ways and means by which accidents can be eliminated or minimised.
3. To provide restaurants and other facilities.
4. To apply the labour laws effectively.
5. To publish a plant magazine.

6. Collective Bargaining :- In include -

1. To assist in the negotiations which are held with the union leaders.
2. To know the grievances of employees and handling their problems properly.

7.Miscellaneous :-
1. To advise the line managers regarding administration of personnel policies.
2. To secure coordination of all personnel activities.
3. To have an effective communication system.
4. To provide good working conditions.

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Functions of Personnel department in ShreeCements:

The benefits of these functions have been discussed here in detail:

1. Recruitment and Training

This is one of the most important responsibilities of the human resource management team. The
human resource managers work out plans and strategies of hiring the right kind of people. They
design the criteria suitable for a specific job description. Their responsibilities also include
formulating the obligations of an employee and the scope of tasks assigned to him. Based on
these two factors, the contract of an employee with the organization is developed. When
required, they also provide training to the employees according to the requirements of the
organization. An organization cannot build a good team of working professionals without the
help of a good human resource management team.

2. Performance Appraisals

Human resource management encourages every individual in the organization, to work according
to his potential and also helps him increase his potential. The management team communicates
with the employees, all the necessary information regarding their performances and also defines
their respective roles from time to time. This helps the employee to form an outline of their
anticipated goals in much clearer terms and thereby, helps them execute the goals with best
possible efforts. Performance appraisals taken from time to time also help in motivating the
employees.
3. Maintaining Work Atmosphere

The performance of an individual in an organization is largely driven by the work atmosphere or

work culture that prevails at the workplace. A good environment can bring out the best in an
employee. A congenial atmosphere gives the employees job satisfaction as well. A good work
environment is one of the benefits employees can get from human resource management.

4. Managing Disputes

43
There are several issues on which disputes may arise between the employees and the managers in
an organization. In such a scenario, it is the human resource department which acts as a
consultant and mediator to sort out the issues in an effective manner.

5. Developing Public Relations

The responsibility of establishing good public relations lies with the human resource
management to a great extent. They organize business meetings, seminars and various official
gatherings on behalf of the company in order to establish relationships with other business
sectors. Sometimes, the human resource department plays an active role in preparing the
business and marketing plans for the organization too.
Any organization, without a proper setup for human resource management is bound to suffer
from serious problems while managing its regular activities. For this reason, a lot of stress is
given these days for the setup of an effective human resource management system.

Recruitment policy of Shreecements

The recruitment policy of the organisation is such that:

i. It is focused on recruiting the best potential people.

ii. To ensure that every applicant and employee is treated equally with dignity and respect.
iii. Unbiased policy.
iv. To aid and encourage employees in realizing their full potential.
v. Transparent, task oriented and merit based selection.
vi. Weightage during selection given to factors that suit organization needs.
vii. Optimization of manpower at the time of selection process.
viii. Defining the competent authority to approve each selection.
ix. Abides by relevant public policy and legislation on hiring and employment relationship.
x. Integrates employee needs with the organisational needs.

44
Human relations by HR department in the company:

It is the process of interaction among human beings. Human relations is an area on HR

management practice in integerating people into work situation in a way that motivates them to
work together productivity, co-operatively and with economic, psychological and social
satisfaction. It includes:

 Understanding and applying the models of perception, personality, learning, intra and
inter personal relations, intra and inter group relations
 Motivating the employees
 Boosting employee morale
 Developing the communication skill
 Developing the leadership skill
 Redressing employee grievences properly and in time by means of a well formulated
grievance procedure
 Counseling the employees in solving their personal, family and work problems and
releasing their stress, strain and tensions
 Improving quality of work life of employees through participation and other means

SWOT ANALYSIS:
Strengths:
 Team work is one of the essences of its’s ability to success as a trusted preferred supplier.
 Highly motivated and well trained employees.
 Low Cost Skilled Labour
 Better working environment.
 Satisfied workers with good salary.
 Effective management systems with confidence and mutual faith, from the top to the
bottom of the organization structure.
 Top level management involvement & coordination with employees.

Weakness:
 Excess manpower

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  Inadequate compensation payable to employees
 No disciplinary action taken for late comers
 Less promotional activity
 High remuneration leads to high cost of production
 Labourers are rarely availed in market

Opportunities:
 Number of trained and technically skilled employees are availed
 The company has a good working environment, which is helpful to a harmonious
industrial relations.

Threats :
 Frequent changes in government policies
 Skilled and technically trained employees are induced with high remuneration by other
competitor concern.

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 QUALITY CONTROL DEPARTMENT
Quality control is a procedure or set of procedures intended to ensure that a manufactured
product or performed service adheres to a defined set of quality criteria or meets the
requirements of the client or customer in ShreeCement Corporation Limited. quality control is
similar to, but not identical with, quality assurance (QA).

In order to implement an effective quality control program in ShreeCement Corporation Limited

, an enterprise must first decide which specific standards the product or service must meet. Then
the extent of quality control actions must be determined (for example, the percentage of units to
be tested from each lot). Next, real-world data must be collected (for example, the percentage of
units that fail) and the results reported to management personnel. After this, corrective action
must be decided upon and taken (for example, defective units must be repaired or rejected and
poor service repeated at no charge until the customer is satisfied). If too many unit failures or
instances of poor service occur, a plan must be devised to improve the production or service
process and then that plan must be put into action. Finally, the quality control process must be
ongoing to ensure that remedial efforts, if required, have produced satisfactory results and to
immediately detect recurrences or new instances of trouble.

Role of quality control inspector in Shreecement corporation limited:

 Quality control inspectors make sure that products meet standards of quality and safety.

For example, they measure and weigh products, examine samples and test them.

 Quality control inspectors work in a wide range of industries, including food and drink,

pharmaceuticals and electronics.

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 Quality control inspectors make sure that everything from raw materials to finished

products meets quality and safety standards specified in the purchasing documentation.

All production processes, whether large or small, require elements of quality control and

all inspection and testing is carried out to specified requirements that have been agreed

between the purchaser and the supplier.

 Quality control inspectors in ShreeCement Corporation Limited normally work in a

laboratory, workshop or office. They visit the factory floor to take samples of products

and inspect production, and to discuss problems with colleagues.

 They also inspect products purchased by their company from suppliers and maintain

records of supplier performance. This data is important in helping suppliers to improve

their performance and for making decisions regarding which suppliers can be relied on to

meet specified requirements,

 Inspectors regularly check and test samples of a product, as it would be impractical to test

every single item that leaves a factory or workshop.

 The testing methods that quality control inspectors use vary, depending on the type of

product they are working with. For example, in the food processing industry, inspectors

are responsible for making sure that products meet food safety and nutritional standards.

In a pharmaceutical company, an inspector may test the safety and purity of drugs.

 Some quality control tests are routine and quick ShreeCement Corporation Limited. .

Others are more complex and lengthy. Automated systems are often used to very quickly

test thousands of samples.

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  Quality control inspectors keep records of all the tests they have carried out. They use

charts and statistics to analyse their results. They may then write and present a report to

show their findings.

 The inspector may be responsible for declaring that a product is not safe or is not of the

specified quality.

 If there is a problem, quality control inspectors in ShreeCement Corporation Limited

meet with production staff to work out the root cause of the problem and to decide

whether current processes need to be changed. They might make recommendations for

improvement.

Functions of quality control department in Shreecement corporation limited :

 Testing and release or rejection of all incoming raw materials, packing materials, in-
process / intermediates and finished products as per specified specifications.

 Maintaining testing records as per standard procedures for raw materials, packing
materials, in-process / intermediates and finished products.

 Calibration of laboratory instrument / equipment.

 Performing stability study.

 Control sample storage.

 Analytical method validation.

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 Preparation of standard volumetric solutions and maintain standardization record.

 Maintain Labeling procedure at all the stages and records.

 Maintain working / reference standard record of products.

 Analysis of complaint samples as and when required.

 To conduct technical audit / self-inspection.

 Follow safety norms at all the stage during handling of chemicals and using instruments.

 Follow good laboratory practices.

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 CONCLUSION

During this training period, practically it was useful to gather some knowledge
about how the management is very important for a cement company and how it integrates all
departments together to bring out the efficient production with better utilization of available
resources effectively and efficiently

This industrial training has provide in and depth knowledge about the functions &
performance of various activities of this company. All the departments are been coordinated
properly to achieve the full results. There is proper harmony & good relationship between the
people integration and co-operation that leads the organization successfully.

The opportunity was provided to know the production and marketing of this
company. It feeds knowledge to us to maintaining of working capital is essential to meet its daily
day to day expenses.

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