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An Organisation Study at Indian Rare Earths Limited, Chavara, Kollam Submitted in partial fulfillment for the requirement for the award of the degree of MASTER OF BUSINESS ADMINISTRATION M G UNIVERSITY KOTTAYAM Submitted by Ampady S Register No: 10111 Under the guidance of Mr.: Mathew Kurian Faculty Member MBA Department, Caarmel engineering College, Pathanamthitta Caarmel Engineering College Perunad, Pathanamthitta May 2010

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Page 1: Organisation Study - Indian Rare Earths Limited

An Organisation Study

at Indian Rare Earths Limited, Chavara, Kollam

Submitted in partial fulfillment for the requirement for the award of the degree of

MASTER OF BUSINESS ADMINISTRATION

M G UNIVERSITY

KOTTAYAM

Submitted by

Ampady S

Register No: 10111

Under the guidance of

Mr.: Mathew Kurian

Faculty Member

MBA Department, Caarmel engineering College,

Pathanamthitta

Caarmel Engineering College

Perunad, Pathanamthitta

May 2010

Page 2: Organisation Study - Indian Rare Earths Limited

Organisation Study on IREL Chavara

Caarmel Engineering College, Pathanamthitta 2

DECLARATION

I declare that the project report entitled “An

organisation study on Indian Rare Earths Limited” Submitted by me for the award of

Master of Business Administration of M.G University is my own work. The report has

not been submitted for the award of any other degree of this university or any university.

Place: Kollam Ampady S

Date:

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Organisation Study on IREL Chavara

Caarmel Engineering College, Pathanamthitta 3

ACKNOWLEDGEMENT

First of all I wish to express my deep gratitude and thanks to God who helped us in

completing the organisation study successfully.

I shall remain grateful to Mr.: Mathew Kurian, Faculty, MBA Department,

Caarmel Engineering College for his amble guidance and encouragement for completing the

organisation study. I am also extremely grateful to faculty member for their valuable suggestions

and advice regarding this work.

I also express my profound gratitude to project guide Mr: A.Jayapalan,

Sr. Manager, HRM for his valuable guidance and timely advice and well wishers for

encouragement given to us during the course of the project.

It is my pleasure to express a deep sense of grateful to Mr: Chandrasekhar,

Sr. Manager, Safety & Environment Department & MIS without his untiring efforts and

tremendous background information this work would not have materialized. I express my sincere

thanks to all the staff of IREL, Chavara for their co-operation during my study in the company.

Last but not least we thank my parents and for all their moral support and help, they

had given to me.

Page 4: Organisation Study - Indian Rare Earths Limited

Organisation Study on IREL Chavara

Caarmel Engineering College, Pathanamthitta 4

CONTENTS

� Introduction

� Industry Profile

� Company Profile

� Product Profile

� Customer Profile

� Departmentalisation

� HRM Department

� Mining Department

� Production Department

� Quality Control Department

� Stores & Despatch Department

� Internal Audit Department

� Research & Development Department

� Project & Maintanance Department

� Marketing & Sales Department

� Finance Department

� Medical Department

� Security Department

� Safety & Environmental Department

� Purchase Department

� Civil Department

� SWOT Analysis

� Findings

� Suggestions & Recommendations

� Conclusion

� Bibliography

Page 5: Organisation Study - Indian Rare Earths Limited

Organisation Study on IREL Chavara

Caarmel Engineering College, Pathanamthitta 5

Table of Contents

Subject Page Number

Chapter 1

Introduction 7

Objective & Scope of study 9

Methodology &Limitations of the study 10

Chapter 2

Industry Profile 11

Company Profile 14

History of the organization 15

Vision & Mission of IREL 16

Awards & Achievements 17

Product Profile 20

Customer Profile 22

Chapter 3

Human Resource Department 24

Mining Department 37

Production Department 39

Quality Control Department 44

Stores & Despatch Department 46

Internal Audit Department 49

Research & Development Department 51

Project & Development Department 52

Marketing & Sales Department 54

Finance Department 58

Medical Department 62

Security Department 65

Safety & Environment Department 66

Purchase Department 71

Civil Department 72

Chapter 4 SWOT Analysis 73

Chapter 5 Findings 77

Suggestions & Recommendations 78

Conclusion 79

Appendices 80

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Organisation Study on IREL Chavara

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LIST OF TABLES & CHARTS

Name of the Table/Chart Fig. No Page No

Corporate Structure 1 8

Mineral availability & Contribution 2 12

Mineral Details 3 13

Product Profile 4 19

Product & Uses 5 20

Department Structure – HRM 6 24

Manpower Strength of the company 7 26

Pay scale – workmen 8 29

Pay Scale – Officers 9 30

Department structure – Time Office 10 35

Department structure – Mining 11 38

Department structure – Production 12 39

Production Capacity 13 41

Production Process 14 43

Department structure – Quality Control 15 44

Department structure – Stores & Despatch 16 46

Department structure – Internal Audit 17 49

Department structure – Research & Development 18 51

Department structure – Project & Maintanance 19 53

Department structure – Finance 20 58

Department structure – Medical 21 62

Department structure – Security 22 65

Department structure – Safety & Environment 23 66

Department structure – Civil 24 72

Organisation Structure 25

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Caarmel Engineering College, Pathanamthitta 7

INTRODUCTION

Each and every organisation has its own importance

in the economic wealth of the nation. Different organisation meets different needs of people by

offering different products and services. Due to globalisation the world has changed into a global

village. In this fast and 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 organisational study to get practical

exposure. This study is conducted at Indian Rare Earths Limited, Chavara.

IREL Chavara is located 10 km north of Kerala

and 85 km from Trivandrum, capital of Kerala and 135 by road from Kochin 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 a length of 22 kms in the belt of Neendakara

and Kayamkulam.

The deposit is quite rich with respect to Ilmenite,

Rutile and Zircon and the mineral Ilmenite happens to be of weathered variety analysing 60%

Titanium Dioxide (TiO2). The present annual production capacity of Chavara unit engaged in dry

as well as wet (dredging / Upgradation) mining and mineral separation stands at 2,00,000 tones

of Ilmenite, 1,14,500 tones of Rutile, 11,750 tones of Zircons and 10,000 tones of Sillimanite. In

addition to that, the plant has facilities for annual production of ground Zircon called Zirflour and

Microzir of the order of 6,000 tones and 300 tones respectively.

IREL Chavara is one of the oldest and leading

public sector undertaking under the Department of Atomic Energy (DAE). It is an 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 and

Zirflour.

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Organisation Study on IREL Chavara

Caarmel Engineering College, Pathanamthitta 8

CORPORATE STRUCTURE

Mineral Division

Chavara

Corporate & Registered

office at Mumbai

Mineral Division

Manavalakurichi

OSCOM Plant

Orissa

Rare Earths Division

Udyogamandal

Fig No. 1

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Organisation Study on IREL Chavara

Caarmel Engineering College, Pathanamthitta 9

Chapter 1

RESEARCH DESIGN

A research design is a plan of the proposed research

work. The research design simply a specific presentation of the various steps in the process of

research. Design means adopting that type or technique which is most suited for the research and

study of the problem. It is a plan, structure and strategy of investigation conceived so as to obtain

answers to research questions and to control variance.

1.1 OBJECTIVE OF THE STUDY

The main objective of the study is to familiarise

with the organisational functions in the organisation, there are many other minor objectives also.

They are the following:-

� To understand about how an organisation’s system is performing.

� To know about various departments and their functions in an organisation.

� To study the managerial activities performed in an organisation.

� To know how an organisation coordinates its activities.

� To get a practical exposure as the future manager.

1.2 SCOPE OF THE STUDY

The scope of the study is to know about the

organisation, its structure, the functions performed by various departments and to know the

overall performance of the organisation. The study will help the management students to get a

practical exposure.

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Caarmel Engineering College, Pathanamthitta 10

1.3 METHODOLOGY

Both primary and secondary data were used for this

study.

1. Primary Data:-

The primary data can be obtained either through observation or

through direct communication with respondents in one form or another or through personal

interviews. There are several methods for collecting primary data. They are observation method,

interview method, through questionnaire, through schedule etc. Here primary data were obtained

from direct interviews made on with managers, officers and workers of the firm.

2. Secondary Data:-

Secondary data means data that are already available ie: - they refer

to the data which have already been collected by someone else. Here secondary data were

collected from company brouchers, manuals and other records.

1.4 LIMITATIONS OF THE STUDY

� The study is limited to my experience and knowledge.

� Lack of availability of secondary data from published journals and reports.

� Secrecy of the organisation prevents them from giving some of the details

regarding the firm.

� Employees were busy in their work so they could not give more

information.

� Their may be errors due to the bias of the respondents.

� Time is a major limitation in the course of study.

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Caarmel Engineering College, Pathanamthitta 11

Chapter 2

INDUSTRY PROFILE

Rare earths elements series of chemical elements

of the periodic table. The rare elements with atomic numbers 57 through 71. In the early years

these elements were considered as rare elements and so they are called as rare earth metals. Later

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 rock found in certain

countries. The beaches containing the Monazite are found mixed with other minerals too. Most of

these are ores for valuable metals. An ore is a mineral form which metal can be separated

economically. These ores are Ilmenite, Rutile and Zircon. Ilmenite and Rutile forms the ore for

Titanium, Zircon for Zirconium. Even though Aluminum bearing metal Garnet and Sillimanite

are also found along with these beach sand minerals. But they are not commercially exploited for

Aluminum production due to economic reasons. However Garnet and Sillimanite in their natural

form are commercially significant. Ilmenite which is black in colour constitutes a major chuck 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.

The origin of beach sand is from rocks, which are rich with heavy

minerals. This sand particle reaches sea through rivers. The sea level is not remaining constant. It

is regarded that the sea level. It is now really 100 meters above what we had seen 20,000 years

ago. This white sand seen at the beach area contains the main constitute as Quartz. This is lighter

than black sand. As a result of movement of the sea this sand will erode away and black sand get

deposited. The black sand thus deposited 100 years ago is mined and processed.

In the year 1789 Fr. William George (1761- 1817) discovered Ilmenite at

knower in England and stated that this black sand contains some important metal. But he failed to

discover which metal it was. After several time, in the year 1875 the Hungarian scientist Martin

Heen Witch Klapporth found the same metal contains in the Rutile minerals about which Fr.

William George mentioned. After a series of investigations are found those metals content as

Titanium after “Titan” of Greek mythology.

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Technology developed over the year has made the beach sand minerals to

be utilised 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. Ilmenite and Rutile are used in high temperature refactory industry, ceramics industry

etc. Zircon is used in foundries, ceramics, refectories and in the manufacturing of Zirconium

chemicals, metals and alloys. Zirflour is used in foundries for high temperature castings. Garnet

is used in the manufacturing of abrassive polishing glass, TV tubes, for sand blasting and for

water filtration. The beach sand mining and processing industry has vast future because of their

demand in nuclear industry too. In the present scenario of booming economics like India and

china there is a huge demand for the beach sand minerals, Ilmenite in particular.

The current world production capacity of Ilmenite and other Titanium feed

stocks for production of Titanium Dioxide Pigment, Titanium metal, Welding electrodes etc is

used around 70 lakhs million tones per annum (tpa). Approximately half of this from beach sands

and the balance from Ilmenite rocks mostly found in Canada and Norway. In view of the limited

supply of natural Rutile its share of consumption in pigment production is rather small and 55%

of its total availability of about 5 lakhs tpa is used in the non-pigment applications predominantly

in the production of welding rods and Titanium metal. The present production capacity of

pigment in the world is just above 4 lakhs tpa. North America is the largest producer with 37% of

the global capacity. Europe with 32% capacity is the second largest producer and Asia-Pacific

region with 21% capacity is the third. The balance 10% distributed among the rest of the world.

India has the largest resources base of 278 million tones for

Ilmenite. This is the single largest and Ilmenite and least exploited mineral deposit in the world.

However 10% of this is only minerable resources base in India for other minerals are:-

Minerals In Million Tones Contribution to the world

Rutile 18 10%

Zircon 21 14%

Monazite 8 7%

Sillimanite 130 25%

Ilmenite 107 35%

Fig No. 2

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In India the installed production capacity for Ilmenite is around 5-2 lakh tpa

(5-6% of global Ilmenite production) and the production of Ilmenite and Rutile during 2004-05

was over 3-5 lakh tones and 1300 tones respectively.

Presently there are few private organisations engaged in the mining and

mineral separation of beach sand minerals. The Indian players at present are Transworld Garnet

Private Limited, VV minerals, Earth Minerals Private Limited, Tuticorn Titanium Resources and

value addition.

It can be seen that value will be increased about 100 time through value addition natural Ilmenite.

Key success for the beach sand mineral industry are:-

� Increase the Ilmenite capacity to reach economic scale of production.

� Value addition project in minerals and rare earths compound.

� Initiate action to develop new mining areas.

� Forward integrate through stake in world leader in pigment Industry like

Tinfoss, DuPont or selling up a pigments plant.

� Explore other mining options in neighboring countries.

Ti Mineral TiO2 USD/Tones

Mineral feed stock

> Ilmenite 50-60 200-250

Manufacturing feed stock

> Stag

> Syn Rutile

87

93

575

878

TiO2 Pigment

> Rutile GR

> Antase GR

99.8

99.8

3666

3333

Ti Sponge 99% Ti 11111

Ti Mill Productions 99% Ti 22222

Fig No. 3

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Caarmel Engineering College, Pathanamthitta 14

COMPANY PROFILE

On August 18, 1950 Indian Rare Earths Limited (IREL)

was incorporated as a private limited company jointly owned by the govt. of India and Govt. of

Travancore, Cochin with the primary intention of taking up commercial scale processing of

monazite sand at its first unit namely Rare Earths Division (RED) Aluva and Kerala for the

recovery of thorium.

After becoming a full fledged central govt. 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 established two more divisions one at Chavara, Kerala and other at

Manavalakurichi(MK), Tamilnadu.

After a gap of 20 years IREL commissioned its largest division called

Orissa Sand Complex (OSCOM) at Chatrapur, Orissa. Today IREL operates these four units with

corporate office in Mumbai and produces/ sells six heavy minerals namely Ilmenite, Rutile,

Zircon, Monazite, Sillimanite and Garnet as well as various value added products IREL is

making profit for the last 6 years with its sales turnover reaching a peak exceeding Rs: 2600

millions in 2000-01, with export component of above Rs: 1000 millions.

Chavara plant is engaged in the processing of beach deposits available on

the coastal belt of Neendakara- Kayamkulam.

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HISTORY OF THE ORGANISATION

IREL’s history should not be narrated without

mentioning the name of the Germen chemist Mr. Herr Schomberg who has realised that the

shining yellowish brown particles sticking to coir, a coconut fiber shipped from India (1909)

contained Monazite.

This sparkled the discovery of vast deposit of monazite a rich source of

rare earths a group of elements with a wide variety of uses in industry and science. A few plants

were operating at Chavara and Manavalakurichi for the separation of monazite.

1948:- The govt. of India setup atomic energy commission under the chairmanship of Dr: Homi

Bhabha. The export of Monazite was stopped and the possibility of setting up a facility to process

the beach sand mineral for the production of Rare Earths was examined.

1950:- IREL was incorporated at Bombay

1951:- IREL become the full-fledged govt. undertaking under the Department of Atomic Energy

and commissioned construction of its rare earths plants at Udyogamandal in Kerala.

1952:- Rare earth plant was dedicated to the nation on Dec 24 by the Jawaharlal Nehru.

1955:- Opening Thorium factory of Bombay.

1965:- Opening mineral division at Kollam in Kerala state with manufacturing facilities at

Chavara in Kerala and Manavalakurichi in Tamilnadu and a giant mineral sand separation and

synthetic Rutile plant at Chatrapur in Orissa.

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VISION OF IREL

1. 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 achieving by

maximum utilisation of existing capacities, new capacity addition, capturing major portion of the

incremental growth in the global TiO2 feedstock demand and by developing competitive value

added Rutile, Zircon, Sillimanite and Garnet products that make handsome contribution to

revenue and profits.

2. To become the preferred rare earths products supplier (Producer and/ or Marketer)

for domestic customers to ensure long term sentences and profitability of rare earths business and

to achieve adequate efficiency in monazite processing as long as it is necessary / worthwhile.

MISSION OF IREL

1. To harness beach sands in an environmentally and socially responsible manner for

efficiently producing minerals and their traditional and innovative value added products of world

class quality that are used to make increasingly superior/ novel products required by customers.

2. To play a dominant role in developing domestic rare earths market by producing

and/ or marketing the quality value added products to realise maximum potential or rare earths in

a range of applications.

3. To build a professional, creative and committed workforce and nurture an

environment that fosters learning, sharing and development.

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QUALITY POLICY

IREL is committed to provide products of

consistant quality to their satisfaction of the customers through Quality Management Systems

(QMS) implementation.

TECHNICAL EXCELLENCE

IREL uses state of art technology in mining and mineral processing. The rich experience and

professional expertise of people who are one among the best in the industry and strict

compliances to quality standards has enabled IREL to remain as the leading supplier of heavy

minerals to the nation and abroad. IREL is always been driven y innovation and sound

manufacturing practices, be it in product, technology or process.

AWARDS AND ACHIEVEMENTS

IREL has fairly good record in its performance

during the past decade. From 1997-98 onwards all out team efforts was taken up to achieve name

plate capacity for the mining and mineral separation plants in all the three 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 resources

management. In recognition of the company’s efforts, scope awarded prestigious silver Trophy of

‘SCOPE’ award for excellence and outstanding contribution to the Public Sector Management-

Special turn around category for the year 1999-2000. During the year 2006-07 IREL posted all

time high sales turnover exceeding 3600 millions with export component over Rs:1000 millions

& all time high profit before tax of Rs:1000 millions.

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Following are the list of awards & recognition won by IREL during the last ten years.

EXPORT AWARDS

1. Chemical and Allied Products Export Promotion Council (CAPEXIL) special Export

award from processed Mineral group for the year 1996-

97,98,99,2000,01,02,03,04,05,06.

2. Indian Chemical Manufactures Association Certificate of Merit for ISO 9000

certification for 1997, ISO 9002 certification for 1998.

3. Certificate of merit from CHEMEXCIL under the category of basic inorganic and

organic chemicals for outstanding performance for the year 2000-2001 including

Agrochemical Panel.

SAFETY AWARDS

1. AERB safety awards won by Chavara Unit (Winner) for the year 2003.

2. Greentech awards won by Chavara Unit (Winner) for the year 2003.

3. Safety award from National Safety Council, Kerala chapter won b Chavara Unit

(Runner) for the year 2003.

4. National Safety Award (Mines) for lowest Injury Frequency Rate won by Chavara

Unit (Winner) fir the year 2003.

5. Apart from above national level safety Awards company’s Mineral Separation plants

namely Chavara has won many state level awards.

OTHER AWARDS

1. Silver Trophy of ‘SCOPE’ award for excellence and outstanding contribution to the

Public Sector Management _ Special Turn around category for the year 1999-2000.

(SCOPE - Standing conference of Public Enterprises)

2. Enterprise Excellence Award 1999-2000, 2000-2001 from Indian Institute of

Industrial Engineering.

3. Hindi Rajbhasa Shield for the year 2000-2001 for the best amongst PSU’s under

Department of Atomic Energy.

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FUTURE PLAN

In the light of new changing economic scenario

IREL is poised to adopt a two pronged strategy namely consolidation and expansion of the

operations and joint venture for value addition and new production facilities. Company is

poised to reach greater heights in the years to come. The phase I expansion at Chavara is

nearing completion and the expansion at MK is expected to takeoff soon. Expansion of

capacity at OSCOM is also progressing. I addition to expansion of mineral separation plants,

the company is planning to restart the manufacture the rare earths products in big way with

implementation of Monazite Processing Plant (MoPP) at OSCOM which is likely to commence

commercial operation by 2009. The successful completion of expansion activities will bring

forth a new era of higher capacity and profits and the company it is hoped will attain the

pinnacle of glory. The company will continue to be one amongst the most successful PSU’s.

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PRODUCT PROFILE

Product means to the goods and services

combination the company offers to the target market.

Product Specification Specific Gravity Density Packaging

Ilmenite TiO2 - 58% 4.45- 4.54 2600- 2630 In bulk HLP bags with

Polithine liner

Rutile Q

Grade TiO2 - 95% 4.18-4.24 2630-2650

In bulk 50 kg HLP

bags with Polithine

liner

Zircon

Special

Grade

ZrO2 - 58% 4.60-4.70 2900-3000

In bulk 50 kg HLP

bags with Polithine

liner

Sillimanite Q

Grade Al2O3 3.20-3.25 1950-2050 50 kg jute bags

Zirflour ZrO2- 64% - 1800-1850

50 kg laminated HLP

bags with Polithine

liner

Microzir ZrO2- 63.5% - - Liner 20 kg laminated

Polithine bags

Fig No. 4

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Products Uses

Ilmenite Manufacturing of TiO2 pigment synthetic Rutile and Titanium

slag

Rutile Fluxes for welding electrodes

Zircon sand Ceramics, Refractories and foundries.

Zircon Flour Ceramics and foundries.

Microzir Pacifier in Ceramics

Sillimanite Refractories

Garnet Abrasive for sand blasting, water jet cutting and glass polishing.

Monazite Raw material for production of Rare earth Component

Composite RE Chloride Catalyst, Paint driers, basic raw material for Misc. metal which

used as lighter frint & mantles.

Thorium Nitrate Gas Mantles

Fig No. 5

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CUSTOMER PROFILE

Prime customers of the major products of the

company are the following:-

A. ILLMENITE:-

1. KOCHIN MINERALS AND RUTILE LTD. KOCHI.

2. DCW LTD. TUTICORN.

3. TRAVANCORE TITANIUM PRODUCTS LTD.

4. KILBURN CHEMICALS LTD. TUTICORN.

5. KOLMAK CHEMICALS LTD. KOLKOTA.

B. RUTILE:-

1. ESAB INDIA LTD, CHENNAI/ KHARDAH.

2. ADOR WELDING LTD., MUMBAI/CHENNAI.

3. D & H SECHERON ELECTRONICS (I) LTD., INDORE

4. MARUTHI WELD LTD., GURGAON.

5. ROYAL ARC ELECTRODES PVT. LTD.VASAI, THANNE DIST.

C. ZIRCON:-

1. THIRUPATHI MICROTECH (P) LTD., UDAIPUR.

2. RUBY CERAMICS PVT LTD., PUNE.

3. ASTRON CERA, SALAL DIST, SABARKANTHA.

4. JOHNSON MATTHAEY CERAMICS INDIA LTD, HOSUR, TN

5. FOUR FIELD, PUNE.

D. ZIRFLOUR:-

1. FOSECO INDIA LTD., PUNE.

2. VIDEOCON NARMADA GLASS, BHARUCH.

3. H & R JOHNSON (I) LTD., MUMBAI.

4. NAHAR COLOUR & COATING LTD., UDAIPUR

5. BHANU CERGLAZE P.LTD.

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E. SILLIMANITE:-

1. MAITHAN CERAMICS PVT. LTD., CHIRKUNDA, JHARKHAND

2. MANISHRI REFRACTORIES, CUTTACK.

3. ASSOCIATED CERAMICS, CHIRKUNDA, JHARKHAND.

4. TATA REFRACTORIES, BELPAHAR, ORISSA.

5. ASSOCIATED CEMENT COMPANIES LTD., NAGPUR/KATNI.

F. RARE EARTHS CHLORIDE:-

1. CIBA SPECIALITY CHEMICALS, UDYOG NAGAR, GUJRAT.

2. DHIRAJ INTERMEDIARIES P LTD., VAPI, GUJRAT.

3. RAVESHIA PIGMENTS LTD., VAPI, GUJRAT.

4. ANUPAM COLOURS, VAPI, GUJRAT.

5. BERGER PAINTS INDIA LTD., VAPI, GUJRAT.

G. THORIUM NITATE:-

1. FARGO MANTLE PRODUCTS LTD., MUMBAI.

2. MAKANI PRODUCTS LTD., MUMBAI.

3. B.K SHAW INDUSTRIES (P) LTD., KOLKATA.

4. A.D.C MANTLE MANUFACTURING CO., MUMBAI.

5. ELITE INDUSTRIES, MUMBAI.

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DEPARTMENTS

1. HUMAN RESOURCE DEPARTMENT:-

IREL Chavara takes place it’s highly motivated and trained

human resource that has maximised its performance and their by its growth and profit. Morale of

the employees remains facilitating smooth working of the company. Skill requirement related to

different disciplines are identified and training programs and workshops are efficiency of the

human resource.

DEPARTMENT STRUCTURE

Fig No. 6

Sec. Head

Training

Sec. Head

Legal In charge

Welfare

Medical

Personnel Senior Asst.

Time Officer

Security

Guards

Dpty. Manager

Section Head

Senior Manager

(HOD) Medical

Dpty. Admin Officer

Time Officer Manager

Security

General Manager

HRM

Unit Head

Subordinate Staff/ Clerical Staff

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HR department lead by General Manager and two Deputy

Managers assisted him. The Security Department and Time Office are working under the General

Manager of HR Department. Four Deputy Officers and 14 clerical staffs are working under the

Deputy Managers.

People are the most important resources of an organisation

The main functions of HR Department are:-

1. Administration

2. Industrial Relations

3. Training and Employee Welfare

4. Time Management

1. ADMINISTRATION

The administrative functions of HR department

include

a. Manpower planning

b. Recruitment policy

c. Performance appraisal

d. Salary and wages administration

e. Industrial discipline

f. Maintaining service book and personnel file

g. Maintaining reservation register

a) Manpower Planning:-

Manpower Planning is important for any type of

organisation. It is the process which determines how an organisation should move from

its current manpower position to its desired manpower position. For this purpose, the HR

department at IRE collects feedback from all department inorder to identify their

manpower requirements of various departments and then the HR department crosscheck

whether there is any overstaffing in any of the departments. If these departments have

excess of staff, they are transferred to those departments where there is a shortage.

The company considers the number of employees presently

as significantly high. There is a problem that sometime the VRS can lead to scarcity to

workers for particular job. At IREL using the process of multitasking the employees are

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made fit to work in other function also. By the VRS scheme more than 100 employees

have been sent out within span of 3 years.

Manpower of the company

There are 491 employees in the company. Total executives are 105 and

workmen are 380. The number of contract workers are 632.

Details showed as below.

MANPOWER STRENGTH

Male Female Total

Executives 83 22 105

Workmen 355 31 386

Total 438 53 491

b) Recruitment policy:-

Recruitment in Chavara Plant is done through local

employment exchange for find out prospective workers. The office staffs and managers are

recruited by the Head Office through tests and Interviews.

Recruitment Criteria

For the recruitment of candidates, the candidates should be above 18 years

of age. The following steps are taken before the recruitment of employees. They are govt.

guidelines, the recruitment only through employment exchange, notification in internet and

CONTRACT WORKERS

Loading 65

Civil 85

Mining 235

Bagging 218

Canteen 29

Total 632

Fig No. 7

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advertisement in newspaper should be needed. Application will be scrutinised with the help of a

selection committee and eligible candidates are called for an interview.

Selection:-

The steps followed in the selection process are

1. Inviting and receiving applications

2. Scrutinising the applications

3. Selection Test: - The selection tests of employees are

a. Aptitude Test

b. Personality Test

c. Achievement Test

d. Trade Test

Appointment will be based on certain criteria’s like they are medically

tested after that induction training should be given. After training for a period of one year or

more they will be put as permanent employees.

c) Performance Appraisal:-

Appraisal is the evaluation of work quality or merit. In the

case of IRE performance appraisal is a systematic evaluation of employees by supervisors or

other familiar with their performance.

1. Straight ranking method:-

Under this method men as a whole are compares from other men

and ranked on the basis of overall performance.

2. Grading method:-

Under this method certain categories of work such as excellent,

very good, average, poor, very poor are established and defined actual performance of each

employee then compared with the grade definitions and ranked to evaluate the performance of

the employees. Last grade employees that are 8th

& 9th

grade, their work performance have been

observed by supervisors. But in the case of executives MBO’s are observed their performance

and efficiency.

In IRE performance appraisal is done on a yearly basis to asses the

performance of the employees. The appraisal is done by three persons.

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1. Reporting Officer.

2. Reviewing Officer.

3. Evaluating Officer.

Firstly the employees themselves do an appraisal and this is given

to the reporting officer and the person who has done the Key Appraisal together identifies the

Key Result Areas and weightage is allotted to each one of them. This is usually done at the

beginning of the year. The reporting officer checks whether the result areas set where met by the

appraisal or if their any deviation from it. And this is to be sent to reviewing officer and then

evaluating officer. Various other factors such as the appraiser’s managerial skills like job

knowledge, interpersonal skills are also included and guided and that is allotted in the appraisal

and there promotion is based solely seniority.

Promotion:-

In IREL promotion is given seniority based or based on experience.

Promotion is a transfer of an employee to a job that pay more money or that enjoys some

preferred status. Sometimes the company is considering the length of the service, education,

training courses completed, previous work history etc. Sometimes the company is also

considered ability, hard work, co-operation, honesty etc.

Condition for getting Promotion:-

1. Average leave should not exist more than 15 days.

2. Any disciplinary actions should not be taken during the service of periods.

3. Should not apply for job in any other organisation.

These candidates are eligible for getting promotion.

d) Salary and Wages Administration:-

Wages in the widest sense means any economic

compensation paid by the employer under some contract to his workers for the service rendered

by them.

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Acts Followed:

1. Workmen Compensation Act 1923 Sec 2(m).

2. Payment of Wages Act 1936 Sec 2 (VI)

3. Payment of Wages Act 1948

PAY SCALE

The monthly remuneration received by each of the

employees including system of compensation.

FOR WORKMEN

Scale of Pay:-

Grade Scale of Pay

W - I Rs: 4085-70-6885

W - II Rs: 4110-80-7310

W - III Rs: 4120-90-7720

W - VI Rs: 4160-100-8160

W - V Rs: 4185-110-8585

W - VI Rs: 4270-120-9070

W - VII Rs: 4325-135-9725

W - VIII Rs: 4420-155-9845

W - XI Rs: 4465-180-9865

W - X Rs: 5750-190-10500 *

* -Only in RED, Aluva Fig No. 8

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FOR OFFICERS

Scale of Pay:-

Code Designation Pay Scale

E - 0 Deputy Officer 6550-200-11350

E - 1 Officer 8600-250-14600

E - 2 Senior Officer 10750-300-16750

E - 3 Deputy Manager 13000-350-18250

E - 4 Manager 14500-350-18700

E - 5 Senior Manager 16000-400-20800

E - 6 Deputy General Manager 17500-400-22300

E - 7 General Manager 18500-450-23900

E - 8 Chief General Manager 20500-500-26500

E - 8(a) Executive General Manager 21500-550-27000

Directors 22500-600-27300

Chief Managing Director 25750-650-30950

Fig No. 9

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e) Industrial Discipline:-

Disciplinary actions are taken in the HR department.

Procedure for disciplinary actions is on receiving a complaint about a particular employee,

explanation is asked. Employee will give an explanation before 15 days. If the explanation is not

satisfactory he will be given a charge sheet and will also conduct a domestic enquiry. For this

purpose an enquiry officer is placed. After conducting the enquiry the report should be sent to the

disciplinary committee and if necessary certain punishment may also given.

2. INDUSTRIAL RELATION

Most of the disputes will be settled by the company

and trade unions. If it is not cleared, they can approach to the government. The Trade Unions

active in IRE are:-

1. United Trade Union Congress (UTUC)

2. Indian National Trade Union Congress (INTUC)

3. All India Trade Union Congress (AITUC)

4. Travancore Mineral Workers Union (UTUC (B))

5. Indian Employees Rare Earth Federation (CITU)

6. Indian Rare Earth Mazdoor (BMS)

These are the recognised unions. There are some

criteria for recognizing a union; the union will have 15% of employees as their members. Also

some participative forum is present; they are plants committee, safety committee and House

building committee. These committees will have the equal participation.

3. TRAINING & EMPLOYEE WELFARE

Training and Development:-

“Training is the act of increasing the knowledge and skills of an employee for

during a particular job”. Indian Rare Earth Ltd adopted various techniques of training for

increasing the mass productivity. The training program is restructured regularly in IRE. The

objective of training and development in IRE

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1. Increase the efficiency

2. Increase the moral of the people

3. Reduce the absenteeism

Procedure for Training

1. Identifying the training needs

The company identifies the training needs through 3 ways: -

a. Organisation Analysis

b. Task Analysis

c. Man Analysis

2. Executives themselves will discuss the training needs

3. Charting out the training plan for a period

4. Based on feedback individual training is given

Training Methods

IRE has mainly four types of training methods.

1. In-house Training

2. External Training

3. Vocational raining

4. First Aid Training

The training method can be grouped on the basis of level of

personnel in the organisation.

1. In-house Training: - Otherwise known as on the job training. In this

method expert from outside come to the organisation and give training.

2. External Training: - Also known as off job training is given outside the

organisation.

3. Vocational Training: - At least 20% of the employees should be trained

every year.

4. First Aid Training: - 30 people in one batch and give them training.

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Employees Welfare:-

Two types of employee’s welfare are present in IREL. They are

1. Statutory welfare and

2. Non Statutory Welfare

Gratuity, Provident Fund, Pension, Canteen,

Medical Allowance are included in the statutory welfare. Festival Allowance, LTC, Recreation,

Tour Facilities are included in the non statutory welfare. Also the IREL give some kind of

allowances. They are

Shift Allowance

For employees working in shifts expect general shifts will get an

allowance as follows

1st Shift (8 am to 4 pm) - Rs: 10/day

2nd

Shift (4 pm to 12 pm) - Rs: 15/day

3rd Shift (12 pm to 8 am) - Rs: 25/day

Hard Shift Allowance

Since the plant handles sand for its production, it creates a dust in the

atmosphere. Considering this hardship in work every employees of Chavara plant gets Rs: 135/-

month as hardship allowance.

Uniform Allowance

Every employee is provided with two pairs of uniform in every year. Rs:

100/ month as washing allowances is granted for all employees.

Transportation Allowance

Every employee (except officers) gets Rs: 700/- per month as conveyance

allowance. Officers will get 10% of their basic pay as their Transportation Allowance.

Canteen

A round the clock canteen is provided for the employees. Company will

charge Rs: 6/day from each employee. The canteen is under the control of company.

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Attendance Bonus

To increase attendance in the company gives annual bonus of 12 days

wages for every employee who have minimum 268 days presence.

Production Incentives

Every employee gets an amount of Rs: 525/ year as Production Incentive

from the profit.

Leave facilities available in IRE

Casual Leave - 15 days/ year

Sick Leave - 10/year (workers)

10 full/20 half (Officers)

Earned Leave - 33 days (It can be maximum of 300 days)

Surrender Leave - Each employee can surrender maximum 90

days/year or 75% of earned leave.

Other Benefits

� 750 ml milk/ day

� 4 pears soap/month

� One Turkey or Towel/year

� Shoes (1 pair)/ year

� One Umbrella/year

� House loan up to 4.5 Lakhs

� Medical Facilities

� Educational Allowances to workers children

� Festival Allowance

� Group Insurance Scheme

� Holiday Facility

� Leave Travel Concession (LTC)

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4. TIME OFFICE

There is a full fledged office headed by Deputy

administrative officer. It follows a punch card system. Different allowances of employees are

given and it is mainly depend on attendance. It is providing according to the report from the time

office. The time office is working under the HRM department. The main function of this

department is to maintain attendance records, leave and service records etc. The various

allowances, attendance bonus all these records are maintained by the time office department.

Also yearly attendance bonus is given to the employees.

Attendance of 265 days/ year - 12 days salary

Attendance of 262 days/ year - 10 days salary

Attendance of 243 days/ year - 07 days salary

Structure of the time office as follows

Fig No. 10

General Manager HRM

Dpty Admin Officer

Senior Assistant

Assistant Clerk

Attender

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For recording attendance punching system followed here.

The attendance register usually keep in time office. The time office collects attendance from

concerned authority also and match with the punching system and avoiding swapping. Time

office has three centers for punching in convenience of employees. In mining area, in dredging

plant also keep mechanical punching machine. For the purpose of salaries the time office is

sending the records to the finance department. If the finance department asks for any clarification

they will do it.

TRANSFER POLICIES OF IREL, CHAVARA

Transfer is the movement of an employee from one

job to another without involving any substantial change in his duties, responsibilities. The

company is following 4 methods.

1. Production Transfer:-

When a particular department or job is faced with the

pressure of works, its strength may supplement through from other departments. Such transfer’s

are generally made where any department is overstaffed and other is short of manpower.

2. Replacement Transfer:-

A replacement transfer is the transfer of a senior employee

to replace with a junior employee or new one.

3. Shift Transfer:-

When units in shifts, employees are transferred from one

shift to another on similar job.

4. Department Transfer:-

Transfer from one department to another within the plant or

with in the organisation.

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2. MINING DEPARTMENT:-

In IRE the raw materials for production process are collected through

mining process. The production process starts with the collection of beach sand from various

places. For collecting this beach sand IRE uses the following two methods: Sea Washing and

Dredging.

SEA WASHING

Raw sand is collected from sites where deposits are occurred due to natural beach

washing. Presently IRE owns two sites one at Vellanathuruthu/Ponmana and one at 132 mining

area. There is a heavy mineral deposit over a length of 22.5 Km. They are found over or coastal

belt having an average width of 800 meters. The sea waves deposits the minerals sand on the

beach line and it is collected. Then it is send to the mineral separation plant.

DREDGING

Presently IRE, Chavara have two floating dredges (Material Recovery Plant

(MRP)) at Karithura and Puthenthura. These plants are constructed with the help of Neumann

Equipments Private Limited Australia. Each plant was cost about Rs: 10 Crore as establishment

cost.

The plant DWUP used for the mechanised recovery of minerals from the beach

sand. The DWUP consist of a floating dredging plant operating hydraulically and electrically

which could be moved from one place to another based on the requirement. The plant is floating

in an area having a water depth of 6 meters. The sand along with water in the form of slurry (a

mixture of sand and water) is pumped to the heavy Upgradation equipments. The equipment

consist of a series of transfer bin rotating screens called Trommer, Spiral Separators, Hydro

cyclones, pumps etc all being electrically operated. The DWUP can dredge about 40 to 60 tones

per hour. The raw sand having an average at 40% heavy minerals is fed to the floating plant and

updates it to 85 to 90% mineral content. The waste sand (Quarts) from DWUP is used for backfill

the dredged area.

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DEPARTMENT STRUCTURE – MINING

HOD

Section Head

Mining

In-charge Survey In-charge DWC In-charge DWUP

DWUP Operators Mining Personnel

Fig No. 11

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3. PRODUCTION DEPARTMENT:-

The act of making goods and services is called production. In everyday

speech ‘Production’ refers to the act of creating something production involves the physical

conversion of raw materials into tangible goods.

In IRE raw sand is collected through mining process .The sand is filtered

through spirals, cones and jigs to produce a bulk concentration of heavy drying, screening,

electromagnetic and electrostatic processes and used for separation. Minerals found in coastal

areas are collected either manually or mechanical means, productions starts from the mining

process.

DEPARTMENT STRUCTURE – PRODUCTION

HOD PRODUCTION

SH (Production) SH (MIS)

SH (Process Control) Shift In-Charge

Shift Engineers

Production Dept

Personnel

Fig No. 12

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MINING PROCESS

The mining and processing of beach sand are achieved with a good mixture of

modern mechanical devices and manual labour. Beach sand is collected from the surface of a

depth of a meter with the help of dredgers. For a processing of beach sands, the difference in

electric conductivity, magnetic susceptibility and specific gravity of their constituents are taken

into consideration. The beach sand is treated by well gravity methods using spiral, cones and jigs

to produce minerals.

IRE collects raw sand in two different ways:

1. Sea washing or beach washing

2. Mechanical dredging

MINERAL RECOVERY PLANT

The mineral recovery plant consists of a floating dredging plant which could be

moved from one area to another. This is called floating mineral recovery plant. The plant is

placed in an area which has a water depth of 9 meters. The sand along with water is sucked into

the main unit. First the mixture is send to a storage tank called Trammel. Then it is sending for

separation. The waste sand and some quantity of water is pumped out. The mineral content is

pumped from the MRP to concentrate Upgradation plant. The MRP dredges about 40-60 tones

per shift.

CONCENTRATE UPGRADING PLANT (CUP)

The raw sand collected from different sources had different composition. They are

further upgraded using the CUP. In the Concentrate Upgrading Plant enriches the concentrate

from various sources to above 90% heavy minerals using spiral separators making use of gravity

techniques.

MINERAL SEPARATION PLANT (MSP)

In the mineral separation plant individual minerals are separated making use of the

following four properties of the minerals namely

1. Electrical conductivity

Electrostatic separation is used in electrical conductivity.

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2. Magnetic Susceptibility

High and low intensity magnetic separators used.

3. Density Difference

Floater separation.

4. Surface Property

Froth floatation.

The concentrate from concentrate upgrading plant (CUP) having

uniform composition with above 90% heavy minerals content is dried using Fluidised Bed

Drier (FBD). This is then subjected to electrostatic separation using different type of

electrostatic separators. There by it is separated into two fractions namely conducting and

non-conducting fractions.

PRODUCTION CAPACITY OF CHAVARA PLANT

Ilmenite 15000 tones

Rutile 9000 tones

Zircon 14000 tones

Leucoxene 600 tones

Monazite 600 tones

Sillimanite 8000 tones

Zircon flour 6500 tones

ILMENITE

Mainly used in the manufacture of Titanium dioxide, a white pigment by sulphate

process also used in the production of synthetic Rutile and for the production of Ferro Titanium

products.

RUTILE

Rutile used for coating of welding electrodes and also for the production of

Titanium dioxide pigment by the chloride process and for the production of Titanium Tetra

Chloride for the production of Titanium metal and sponge.

Fig No. 13

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SILLIMANITE

Sillimanite mainly used in the manufacture of high temperature refractory. It is

also used in ceramic industry.

ZIRCON

Zircon is used in foundries, ceramics and refractory. It is also used in the

manufacture of zirconium chemicals, metals, alloys etc.

ZIRCON FLOUR

Zircon flour is used in foundries for high temperature castings.

MONAZITE

Monazite is used for the production of Thorium and rare earth’s base products.

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PRODUCTION PROCESS

30 T Bin Beach wastes Conveyors Screens

Primary

Aspirals Middling

Cup Spirals

Seavenger Spirals

Waste Middlings Tail

Plant QIL Conducting

IRMS

CBMS ILMENITE

HTS

IRMS

Rutile IRMS

To NC Circuit

Floatex

Spirals

IRMS

Fig No. 14

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4. QUALITY CONTROL DEPARTMENT:-

IREL Chavara has got ISO 9001: 2000 Quality Systems established for

mining, manufacturing and mineral products.

One of the primary functions of the quality control department is to ensure

quality products according to customer requirements. They harness beach sand in

environmentally responsible manner to produce minerals and innovative value added products,

which are used to make novel products required by customers.

Secondly, they are responsible for maintaining consistant quality of

products to the satisfaction of the customers through quality management system

implementation. They also aim at further improvement of product, technology or process.

The quality control department is also responsible for maintaining

consistency in quality of raw materials during the processing, intermediate and finished product

stages. They make use of chemical and mineralogical testing methods in each stage.

In addition to these functions this department also conducts research and

development activities to support flow shed development work and for solution to process related

problems.

DEPARTMENT STRUCTURE – QUALITY CONTROL

Fig No. 15

Deputy Manager

Chemical Laboratory

Section Head Q.C

Senior Scientific Officer

Scientific Officer

Deputy Scientific Officer

Attenders

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FUNCTIONS

� To ensure that raw materials, in process and finished products confirms to

specified requirements holding compliance with environment , health and

safety requirements.

� Ensuring compliance to health, safety and environmental requirements

INSPECTION AND TESTING PROCESS DETAILS

Raw Sand:-

1. The DWUP and HUP output and tailing are tested for total heavy mineral

content as detailed in quality plan.

2. The raw sand feed to the QIL plant ie the dried HUP output is analysed as

per quality plan.

3. The raw sand being naturally occurring, the specifications are only

desirable values. The variations in quality of 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 the quality plan.

4. These tests are carried out only to make proper adjustments of the process

parameters to set the final product of specified quality.

In-Process Inspection:-

In-process inspection of certain intermediate fraction as detailed in the

quality plan are carried out as per quality plan. These process fractions are not rejected

even if the analysis results do not confirm the desireable specifications. The inspection is

only for subsequent adjustments in the process parameters.

Finished Products:-

1. 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

indicating date, shift and number of bags and rejected are identified as red board indicating “FOR

REWORK”.

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2. Inspection and testing of finished products are carried out and records in

the respective record as per quality plan. Only products confirming to the quality as detailed in

the respective quality plan are taken in to stock. Rejected products are maintained with

authorisation of HOD (Q.C). Inspection and test record clearly indicate whether the product is

accepted or rejected.

5. STORES AND DESPATCH DEPARTMENT:-

The stores act as a store and supply chain, keeping inventory of the

product produced on the hand and supplying requisite raw materials to the manifold department

on the other hand.

All the items in6 the IRE properly stored by this function area,

including finished product inventory. It stores furnace oil, machine parts, office equipments and

stationary etc.

DEPARTMENT STRUCTURE – STROES & DESPATCH

Deputy G M

Manager Stores

Stores Officer

Clerical Staff

Worker

Stores Officer

Clerical Staff

Worker

Fig No. 16

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Stores fall under two categories

1. Capital Items

2. 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 of all items or purchase

requisitions shall from the basis for arranging procurement or other departments, complete in all

respects and duly approved by the controlled authority. Stores are purchased indigenously and

from foreign suppliers through the adoption it secure the most competitive tendering system is

adopted to secure the most competitive tendering, the most competitive rates and eliminate

chance of favour.

The worth of production in the plant is currently between 6-7 Crores. Once in

every 3 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

department to made 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 received, material issued, total remaining are noted in the

Bin cards.

ISSUE:-

The issue made in first in first out method. After the receipt of the material internal note

from the department, the issues are made and same is recorded in the Bin card.

INVENTORY CONTROLE

Under the stores department the inventory control function 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 methods is adopted in IRE Chavara for control of

inventories. The principle types of inventories are:-

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� Raw Material & Supply

� Goods in Progress that is work in progress

� Finished Goods

For reduction of inventories four steps are taken in the Stores and

Despatch Department. They are doing computerization, codification, standardization and value

addition. All the process in stores departments are computerised and inventory management

software is used for this purpose. Coding is given to all inventories. For this, alphanumerical

code is used. Material coding is help to realise what kind of inventories are stored. And location

coding helps to find out where it is stored. By the use of standardisation, physical verification of

inventories are to be done and to be check whether the invoice number and purchase order are

equal.

DESPATCH SECTION

Despatch Section controls the transportation of the finished products o the

outside company. When a customer made a complete settlement of money for purchasing of a

particular product from the company the marketing department placed a delivery order to the

despatch department. The despatch department then prepares an invoice and gave a copy to the

customer. This department also prepares gate pass and state government declaration sheet.

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6. INTERNAL AUDIT DEPARTMENT:-

Chief General Manager is directly looking after the functioning of

Internal Audit Department. Manager (Internal Audit) is the head of the department. There are

internal audit officers and administrative officers other than accountants and clerks working in

this department.

Internal audit department is not regular department in many of the

companies. But in IREL this department is holding special privilege of auditing in to every

accounting matters of IREL. It is functioning in accordance with finance department. It is

necessary to get audit approved from internal audit department for the finalisation of anything

concerned to accounts. The company management is approving all other accounts in the

recommendation of this department.

DEPARTMENT STRUCTURE – INTERNAL AUDIT

Manager

Internal Audit Officer

Clerks Accountants

Fig No. 17

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FUNCTIONS

1. Auditing all the financial transactions of the company.

2. Taking corrective measures to rectify audit objections.

3. Making report to Chief General Manager and Board of Directors.

4. Make sure that every deeds of finance department is in accordance with

the accounting policies of the companies.

5. To participate in the functioning of store purchase committee.

6. To check the legal validity of the financial matters of projects committed

by IRE Ltd.

All the relevant policies of the company are as the basic policies of

this department. Internal Audit Department is auditing the accounts quarterly and sending report

to Chief General Manager regularly.

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7. RESEARCH & DEVELOPMENT DEPARTMENT:-

The company has a well equipped Research and

Development facilities to support flow sheet development works and for solutions to process

related problems. The laboratory is equipped with lab models of Magnetic Separator, High

Tension Separators, Wet Shaking Tables and Froth Floatation Equipment etc.

DEPARTMENT STRUCTURE – RESEARCH & DEVELOPMENT

FUNCTIONS

1. New product development.

2. New compound development.

3. Selection & Evaluation of alternative method.

4. Testing of new products.

5. To analysis and assist plants in problem solving.

6. Ensure quality of raw materials and finished products.

7. Maintain Quality.

8. Research & Development attempts.

HOD R & D

Section Head

R & D Dept Personnel

Fig No. 18

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The department has well mentioned quality objectives and

well practiced quality assurance, quality improvement program. The department uses

mineralogical testing methods for maintaining consistency in quality of raw materials, finished

products and work in progress. The checking of minerals quality is done on a batch basis.

8. PROJECT & MAINTANANCE DEPARTMENT:-

This section is looking after the projects and maintenance

of technological aspects of affairs of the company. This is a section in which mechanical experts

are working on different projects. This section takes over the responsibility of various projects

taken up by IRE Ltd management. They are making efforts to expand the area of performance of

the company.

FUNCTIONS

1. To carry out preventive Maintenance to ensure continuous capability

and to attend breakdown maintenance if any.

2. Projects on mining area of IREL.

3. Projects on technological development.

4. Project on quality assurance.

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DEPARTMENT STRUCTURE – PROJECT & MAINTANANCE DEPARTMENT

Unit Head

HOD Maintanance

SH HUP

SH Auto

SH Mech

SH DWUP I

SH DWUP II

SH DWUP III

SH Elec MSP

SH Elec HUP

SH

Elec.

SH MSP II

SH MSP I

Maintanance Personnel

Fig No. 19

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9. MARKETING & SALES DEPARTMENT:-

Marketing is a social process by which individuals and groups

obtain what they need and wants through creating, offering and freely exchanging products and

services of value with others. It is the art of selling products. Marketing department is

functioning under the control of General Manager of marketing department.

Marketing occupies an important position in the organisation of any business unit.

Marketing functions are not limited to the function of buying and selling but storage, risk bearing

and after sales services etc. marketing is a vital connection link between the producer and

customer.

The marketing section in the IRE is under the direct control of chief General

Manager and this section is headed by the deputy General Manager in his job. The marketing

activities in the company are indirectly linked with the sales section.

IRE has the monopoly in the field of rare earth products. IRE Ltd, Chavara is

engaged in the production of minerals such as Illuminate, Rutile, Zircon, Sillimanite, and Brown

Illuminate from naturally available beach sand products. It also produces value added products

like Zirflour, Microzir. On specific requirements of customers the company also supplies

Sillimanite powder by subcontracting. Among these Illuminate, Rutile, Zircon, Brown Illuminate

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.

Off late, more stress was given as the marketing activities of IRE, by the

company, because of competition, which is growing in the international market and also in Indian

market. A new era has been put up in the company for this purpose.

The bye products of IRE are Zirflour and Monazite. They are mainly purchase by

the Kundara ceramics for the manufacturing of ceramics. The main customers of IRE are the

Government of India and other private company. The main foreign customers are USA, Canada,

UK, France, West Germany, Japan etc.

OBJECTIVES OF MARKETING DEPARTMENT

� Maximum turnover

� Maximum profit

� Maximum customer satisfaction

� Maximum customer relationship

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The chief General Manager of IRE is having the control of topmost level in

marketing department of this unit. There are four superintendents and a clerk engaged in the sales

department. IRE Ltd is working under the administrative control of Department of Atomic

Energy. The head office does the pricing of products. The customers of IRE Ltd are mainly

heavy industries like plant, glass, refineries, ceramics etc for bulk purchases customer and

provided discount.

SALES AND DISTRIBUTION SYSTEM

Here the organisation has been enjoying monopoly. That’s the reason why they

don’t want to make a distribution network. Direct selling is the main system of organisation. The

customer primarily pays the full amount as demand draft (DD) in advance and then the company

gives the products.

For domestic sales, order are received as

1. Through head office

2. Directly from the customers

3. Transferred from the units of IRE

All (except Zirflour, Microzir and Sillimanite powder) are dispatched against

permits obtained after payment of prescribed royalty by IRE in advance to the department if

mining and geology, government of Kerala.

Starting with general condition for sales, majority of the customers place orders

directly with Chavara. Sometimes head office also fixes quota customers wise if necessary, for

the supply of minerals and intimates time to time. If all the formalities are completed delivery

instructions are given by the sales department to stores for delivery of the materials to the

customers.

Exporting

Exporting contract between the seller (IRE) and the buyer (customer) is finalized

at the head office and intimates Chavara regarding the export contract along with the copies of

agreement, purchase order, proposed loading schedule and many other specific instructions for

the execution of the order. Chavara sends samples and product specification to the customer if

required by head office/ buyer.

Exporting carried out through Neendakara but now its through Cochin port

(Bagged Cargo only) shipment through Cochin port is done by C&S agents appointed by seller.

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Pricing

Pricing is a very crucial decision in marketing management. The objective of the

firm is to get maximum profit. This depends upon the correct decision in pricing. Pricing refers to

the process of fixing the price (money value) of a product or service; pricing is an important

function in marketing because it determines the sales volume and the amount of profit. A product

is acceptable to the customer when it is reasonable priced. A sound pricing policy helps to satisfy

customers and to yield profit. Determination of price is influenced by large number of factors

such as cost of production, degree of competition, nature of the product, pricing objectives and

policies of the firm etc.

Samples to the customers

Samples are sending to the customers on their request or as per the instructions

from the head office for their evaluation of sustainability for their requirements. Free samples are

send to the customers as per the following procedures.

Up to 500 Gms: head of the department (marketing) intimates section head (QC) to prepare

samples of required quantity along with the gate pass.

501 Gms to 1 kg: head of the department (marketing) prior approval from the unit head and

follows the above procedures.

Above 1 kg: head office approval with information to unit head and follows the above procedure.

Customer visit

Every quarter, 5 customers are selected for a visit to know prevailing market

conditions.

Customer feedback

Every year customer feedback questionnaires are circulated to the customers and

feedback is compiled for chalking and out suitable strategy for the future marketing.

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The sales department maintains the following records

� Contract review checklist for domestic sale.

� Government of Kerala department of mining and geology and advance remittance and

corresponding permit register.

� Quotations

� Performa invoice

� Payment registers

� DAE license register

� Priority registers

� Delivery registers

� Sales register

� Shipping register

� Daily statement of production , sales and dispatch

� Quarterly statement regarding export

� Monthly report to cabinet

� Production, sale and stock of minerals (monthly)

� Performa for submitting quarterly export performance to federation of Indian export

organisation

� COB license

� Geology permit register

� C-form, D-form, form18 register

� Price list of minerals

� Statement showing production, sales and value (Quarterly)

� Contract review checklist for exports

� Cash receipts

� Bank receipt voucher

� Daily information to sales 26, pending orders of minerals (daily)

� DD register

� Gate pass

� Enquiry/order/amendment from parties

� Customer feedback questionnaires

� Customer file

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10. FINANCE DEPARTMENT:-

Business finance is concerned with the acquisition and

utilization of funds required to meet the financial needs of a business enterprise. Financing is the

process of planning, acquiring, utilizing and controlling the funds used in any kind of business.

Finance is the life blood of business. Every enterprise or company requires finance to start the

work and grow.

A company generally requires large amount of capital. A public company can

raise huge capital through issue of shares. In addition to share capital it can utilize retained profit

in the form of reserves. It can raise borrowed capital through denture and loans. Long term loans

can be obtained from financial institutions. Short term loans are available from commercial

banks.

DEPARTMENT STRUCTURE – FINANCE

Chief General Manager

Finance

Dpty General Manager

Finance

Senior Finance Officer

Dpty Finance Officer

Assistants

Fig No. 20

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SOURCES OF A COMPANY

1. On the basis of time.

2. On the basis of purpose or use.

3. On the basis of source of finance.

4. On the basis of risk.

Finance refers to money, cash or hand available for the operation of

business. Finance may do defined as the requirement of funds wanted. It is the life blood of

business activity. The business pulsates with life only through finance. Finance refers to money,

cash or hand available for the operation of business. Financial management will include

planning, organising, directing and controlling.

The main functions of this department are:-

1. To collect all the receipts 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 of the company on the date of balance sheet.

7. To value finished goods at cost or market price whichever is lower, stock of raw

materials, spares and chemicals are valued at weighted average method.

8. Treat the claims against the company which are not admitted as contingent liability.

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CHIEF GENERAL MANAGER

The finance department is headed by the Chief General Manager

(Finance). A Deputy General Manager (Finance) is there to assist the Chief General Manager in

the operations of the department. In addition to them the department consists of 3 senior finance

officers, 8 deputy officers and attenders.

AUTHORITY, RESPONSIBILITIES AND ROLES:-

AUTHORITY

� Approval of policy, objective and targets.

� Approval of apex manual.

� Defining responsibilities and authority of head of departments, management

representatives.

� Authorizing various committees

� Approval training programs of financial commitment.

� Authorization of decision taken at review meeting such as safety and

environmental protection committee, environment management customer service

and complaint redeemed and protection meetings.

RESPONSIBILITIES

� Overall responsibility for health and safety of IRE, Chavara unit.

� Claiming the review meetings.

� Responsibility of the head office from time to time.

� Ensuring that unit has organized celebration including those related to health,

safety and environment through concerned department.

� Providing resources for the implementation main tenance and continued

improvement of management systems (in consultation with HO required).

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� Implementation of directives received from HO / statutory agencies.

� Ensuring smooth progress of project (including feedback of HO on the program).

ROLES

� Ensuring smooth day to day functioning organisation through concerned HOD /

section head.

� Role as head of the unit in the health, safety and environment related celebration.

� Participation in emergency evaluation (Both mock / actual)

� Compliance to safety related requirements including use of personal protection

equipments as a role model for others.

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11. MEDICAL DEPARTMENT:-

An effective and efficient medical department is functioning in

IREL Chavara. Every family member of the employee is eligible for free attendance and

treatment in the dispensary. Cases beyond the scope of the dispensary will be referred to major

hospitals which are centered in Kollam and Karunagappally. The whole payment is such cases

are done by the company itself. The dispensary is working around the clock.

FUNCTIONS

1. To carryout medical examination of employees and their family members.

2. Examining compliance to environmental requirements.

Senior Manager (Medical) is the top most authority of the Medical

department. Senior Manager is followed by a Section Head/Lady Doctor. The department

comprises of two Doctors, three Pharmacists, three Nurses/Compounders, Laboratory Technician

and an Ambulance Driver.

DEPARTMENT STRUCTURE - MEDICAL

HOD HRM

HOD MEDICAL

SH MEDICAL

Lady Doctor

Nurses/

Compounder

Pharmacist Laboratory

Technician

Ambulance Driver

Fig No. 21

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PROCESS INVOLVED IN MEDICAL DEPARTMENT

A. Out Patient Service:

a) Employees and their departments are provided free medical

services. For this each employee has been allotted a personal dispensary file in which name of

the dependants are included as per the family card issued by the welfare department. Proper

recording of the ailment, investigation and treatment of the employees and the dependants are

entered in the personal dispensary file. Unfit and fit certificate are issued by the medical officers

in the prescribed form for availing sick leave and for rejoining the duty after sick leave.

b) Patients who require specialist’s opinion/ detailed investigation are

sent to recognised hospitals/govt. hospitals/ approved laboratories with a reference letter. List of

approved hospitals/ laboratories as approved by HO is maintained by HOD (Medical). Patients

are taken to recognised hospital only with the reference form issued by medical officer. In the

absence of company medical officer, patients are issued a temporary reference card valid for one

day by the duty Pharmacist/Nurse for immediate admission incase of emergency and within 24

Hrs the reference card issued by the medical officer is to be collected by the employee.

B. Occupational Health Service (OHS):-

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 examination report. The pre-employment medical

examination report is send to the HOD (HRM) for implementing the recommendation of the

HOD (Medical).

C. Periodical Medical Examination:-

In accordance with Atomic Energy Regulatory Board (AERB)

periodical medical examination for all canteen workers and clarified radiation workers is carried

out once in a year and for other radiation workers and other general workers, it is carried out

once in five years. Employees are directed to HOD (Medical) as per the list notified by the

Administrative section. These who are exposed to high noise, loss of hearing bent are also

conducted and feedback is given to the concerned department.

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D. Pre-retirement Medical Examination:-

Concerned employee is given intimation from administration

section at least two months before the date of retirement to carryout pre-retirement medical

examination with a copy to HOD (Medical). Based on this, medical examination is carried out

one month before the retirement of every employee and necessary advice is given to the

employee for his future health maintenance.

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12. SECURITY DEPARTMENT:-

Security of the company assets and premises is vested in the hands

of the staffs of security department. The department is lead by Security Manager and he is

assisted by 6 Head Security Officers and 26 Security Guards.

DEPARTMENT STRUCTURE – SECURITY

FUNCTIONS

1. To give security to the company and its assets.

2. To monitor the entry of employees and visitors.

3. According to ISO procedures 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 mining area. 7 persons are deployed at

Puthenthura, 7 at Vellanathuruthu and 16 at the plant itself.

Two major threats presents in IREL are sabotage and theft. To

prevent sabotage there is a control room and it accessible at every time. In case of emergency the

systems will automatically shutdown and emergency alarm will blow. At that time all the

employees are required to assemble in the assembly points. Another security problem faced by

IREL is theft. There is no clear boundary wall for the company. This may encourage persons to

take away company assets without permission.

General Manager

HRM

Manager Security

Head Security Officers

Security Guards

Fig No. 22

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13. SAFETY AND ENVIRONMENT DEPARTMENT:-

In the present day industrial scenario all the industries had accepted

the fact that safely improves productivity.

IREL Chavara has always been in the forefront in ensuring safety,

welfare and better working environment to all its employees. Their safety slogan is

“Let everyday be a safe day”

DEPARTMENT STRUCTURE – SAFETY & ENVIRONMENT

SH Safety &

Environment

SH Fire Protection

S & E dept

Personnel

HOD S & E

Fig No. 23

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MISSION AND POLICY OF THE DEPARTMENT

MISSION

The mission of IREL is to be a major supplier of beach sand minerals and rare

earth compounds in the domestic and international market, develop and produce chemicals of

strategic importance, value addition with due regard to resources utilization and safety protection.

Consistent with this mission, IREL envisages a safety and environment protection

policy that provides 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 environmental plans to maintain ecological

balance and above all recognizes the use for safety culture man organisation to enhance the

awareness and commitment of all employees to safety.

POLICY

IREL purpose to update and review the safety policy periodically taking into

consideration its industrial experiences advances 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 continued existence in the business throughout

� Conservation of natural resources

� Minimising pollution

� Compliance to applicable environmental rules and corporate guidelines,

periodical health monitoring of employees and creation of environmental

awareness among employees, customers and suppliers.

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SAFETY GUIDE

IREL Chavara follows strict safety guidelines, which are given in the company’s

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 Do’s and Don’ts enlisted in this guide and this will be quite helpful in

averting the slightest possibility of accidents.

SAFETY GUIDELINES

In order to achieve the policy objective certain guidelines are used some of them

are as follows.

CORPORATE LEVEL SAFETY

� An officer of the rank General Manager to co-ordinate at the corporate office all

safety environment and training activities of various units and takes necessary

steps for effective implementation of this policy.

� GM (S&E) assisted by three senior officers at the head quarters on each of the

safety, environment and training.

� The corporate safety setup has been provided with adequate administration /

financial support for coordinating safety policy.

� He 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 etc for fulfilling the statutory requirements.

� He assesses the training needs for various areas and granges for different

categories of employees.

� He interacts with safety teams / experts for carrying out safety audit / environment

audits and assessment of safety performance for award of shield etc.

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UNIT LEVEL SAFETY SETUP

� The head of each unit will be executive director / chief / GM.

� He will be ex-office chairman of the plant level safety and environment protection

committee which will review the monthly safety status of the plant.

� He will implement all the applicable statutory provisions of safety and

environmental control in the unit.

� He will nominate senior level officer as safety and environmental control officer

who will look after the safety and environmental control aspects of the unit.

� He will ensure that operating procedures are followed strictly and technical

specifications are not violated.

SAFETY AND ENVIRONMENTAL PROTECTION COMMITTEE

� The term of members of the committee will be two years and the committee

members will be meeting once in a month.

� The committee will organize safety day / environmental day / fire day and mines

safety week annually and hold competition among the employees relating to

safety and environment during the celebrations.

� The committee will discuss the measures against the unsafe conditions and

practices in the mine / plant as pointed out in the report of workmen’s inspectors.

� The committee will consider safety and health measures to be taken before

commencement of operations of any new electrical / mechanical equipment

proposes.

� Summary of minutes of the meeting will be sent to the GM (S&E) regulatory.

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STANDING ORDER FOR WORKMEN CONCERNING SAFETY

IREL standing orders for workmen also envisages the safety of the organisation

and relevant clauses.

PERSONAL PROTECTIVE EQUIPMENTS

It is divided into two categories

� Personal protective equipment for the various parts of the body i.e. head, eye, ears,

face, hand, arms.

� Respiratory protective equipment required when workers exposed to atmospheric

contaminants like dust, fuel, gases and chemicals let off in the air in the dangerous

concentration.

PROTECTION EQUIPMENTS USED ARE:

� Head protective

� Safety shoes

� Safety belts and lifelines

� Dust respirators

� Eyes and face protection

� Ear muffs

� Aprons

� Gloves

� Respiratory protection devices

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14. PURCHASE DEPARTMENT:-

The main function of purchase department is procurement of

materials at competitive price. All items including real materials other than raw sand are

purchased by this department. In IRE Ltd the purchase department had prime importance.

Formalities of purchase

1. Float enquiry to the right source

2. Scrutinize quotation

3. Obtaining approval of the finance department

4. Release an order

5. Follow up receipt at the store

6. Assistance to give payment in time

Formalities of placing an order

1. Origination of intent

2. Tender enquires

3. Opening of tender on the data mentioned

4. Analysis of all tender

5. Technical evaluation of the tender

6. Selection of the best one

7. Negotiation with the party needed

8. Approval of the selected tender

9. Order placing

10. Follow up

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15. CIVIL DEPARTMENT:-

Maintenance has a direct impact on everything that affects the

overall health and welfare of the organisation. A sound maintenance strategy should therefore be

considered a valuable tool used to assess equipment capability and the continuous improvement

efforts of asset performance.

Civil department consist of deputy manager (civil), two deputy officers and the

work force. They frequently monitor company structures and maintain them properly. In case of

new projects, the base infrastructure has to be erected by this department.

DEPARTMENT STRUCTURE – CIVIL

HOD (Civil)

Section Head

(Civil)

Civil Dept

Personnel

Fig No. 24

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SWOT Analysis

STRENGTHS

� Highly skilled managers and experienced workmen having excellent knowledge

and experience about mining and production process.

� Constant Upgradation of technology.

� A strong and symbiotic relationship between the top level management and the

lower level employees.

� Technological collaboration with the Australian company, ROCHE, one of the

largest mineral technology providers in the world.

� Abundance of raw materials in the company premises itself.

� Support from government of India and the department of atomic energy.

� High concern towards the employees and environment.

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WEAKNESS

� Mining problem.

� Diminishing supply of raw sand.

� The inability of the management to control effectively, the resistance raised by the

local people in form crises.

� Excess number of civil workers.

� High labour charges.

� Due to monopoly promotional activities are less.

� Decision making process is highly time consuming and complicated.

� Shortage of power supply.

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OPPORTUNITIES

� High demand for products.

� Growing demand for Titanium, Zircon, Thorium, Rutile, Ilmenite in international

market.

� Faster growth rate of markets in Asian countries where extraction facilities are

limited.

� The recent efforts to tie-up with other mining companies like KMML, Chavara.

� The favorable state government policies like prohibiting the entry of private

companies into the mining sector.

� As a strategically important company it is always backed by the central

government.

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THREATS

� Entry of private players such as TATA group into the area of black sand mining.

� Over intervention of external political groups in company affairs.

� Fluctuating in the value of currency which adversely affects the export income.

� Increasing transportation cost.

� Protect form environment activists.

� Rapid technological changes in production process.

� Changes in government policies.

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FINDINGS

� The employees were satisfied with the welfare policies which are in practice and the scale of

pay at present.

� Majority of the workmen were well experienced and possess great amount of knowledge

particularly relating to the mining and production process.

� The managers were overloaded with work but they perform well above the expectations.

� The intervention by the external political parties continues to be a disturbance in formulating

labour policies.

� The company has a strong commitment towards the society.

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SUGGESTIONS AND RECOMMENDATIONS

� IREL should take advantage of the growing demand for heavy minerals by increasing the

production.

� The management should sustain the faith of the local people by constantly

communicating and explaining the company’s 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 them by undertaking more socially responsible activities.

This may be in the form of medical facilities running schools, assistance at the time of sea

erosion and trawling ban. They can also provide water and electricity supply to the local

people.

� The company should try to minimize the external interventions of various political

parties.

� The company must take full use of the favorable government policies at present.

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CONCLUSION

IREL is one among well performing companies in Kerala, engaged in the process

of processing rare earth products available among the coastal belts. IRE is reaching new

boundaries with its performance. IRE was incorporated on 18th

august 1950 as a private limited

company under the Indian company’s act of 1913 jointly by the government of India and the

government of Travancore Cochin. In 1951, IREL became a public sector undertaking and two

mineral separation plants, one at Manavalakurichi in Tamilnadu (1967) and the other at Chavara

in Kerala state (1970) were setup.

The organisation study at IRE ltd was an unforgettable experience. The

organizational atmosphere prevailing at IRE is not that of a public sector unit. The concern for

the environment and social responsibility are worth studying. The study helped in having a

practical exposure to real practice in organisation. The study provides insight into the functioning

and coordination of departments in an effective organization.

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BALANCESHEET AS AT 31.03.2009

31.03.2009

(In Crores)

31.03.2008

(In Crores)

I. Sources of Funds

1. Shareholders Fund

a. Capital

b. Reserve & Surplus

2. Loan funds

Secured Loan

Unsecured Loans

II. Application of Funds

1. Fixed Assets

a. Gross block

b. Less Depreciation

c. Net block

d. Capital works in progress

e. Assets pending disposal

2. Investments

3. Deferred Tax Assets (Net)

4. Current Assets, loans & Advances

Current Assets

Inventories

Sundry Debtors

Cash & Bank Balance

Other current assets

Loans & Advances

8636.50

38,629.23

-

3,320.42

50,586.15

43,955.80

24,495.93

19,459.87

709.82

0.49

20,169.58

1.42

1603.98

6020.81

833.48

27281.30

1485.22

7577.76

43,198.57

8636.50

34,973.31

9.31

4,427.23

48,046.35

43,062.78

22,801.74

20,261.04

672.21

15.74

20,948.91

1258.51

523.34

5500.08

2641.61

23381.71

600.66

7103.19

39,227.25

Appendices

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Less Current Liabilities & Provisions

a. Current Liabilities

b. Provisions

Net Current Assets

5. Miscellaneous Expenditure

5631.43

8908.35

14,539.78

28,658.74

152.38

6134.58

7893.95

14,028.53

25,198.72

116.79

Total 50,586.15 48046.35

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PROFIT AND LOSS A/C FOR THE YEAR ENDED 31.03.2009

31.03.2009 31.03.2008

I. INCOME

Gross Sale

Less : Excise duty

Compensation for processing

Thorium

Increase / Decrease in Stock

Other Income

II. EXPENDITURE

Materials Consumed

Employees Remuneration

and Benefits

Manufacturing and other

Benefits

Interest

Depreciation

Capital expenditure not -

represented by the company -

Written off.

III. Profit before extraordinary items

prior period adjustments and

taxation.

Extraordinary items as prior

period adjustments

Profit before Tax

Provision for Tax

33,669.82

13.83

33,655.99

1,443.84

50.46

3,873.74

3,790.89

14,864.69

9,850.06

233.36

1,973.30

-

30,712.30

8,311.73

(23.68)

8,288.05

2,611.25

29,625.02

27.77

29,597.25

1,918.25

778.74

2,662.29

3,045.24

11,449.21

10,009.49

219.29

2,164.10

12.40

26,899.73

8,056.80

14,818.98

22,875.78

7,318.29

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Profit after Tax

Balance brought forward

IV. Profit available for appropriation

Appropriation:-

Proposed Dividend

Tax on Dividend

Transfer to General Reserve

Balance Carried to Balancesheet

5,676.80

33,263.05

38,939.85

1,727.30

293.55

1,000.00

35,919.00

38,939.85

15,557.49

21,226.41

36,783.90

1,727.30

293.55

1,500.00

33,263.05

36,783.90

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BIBLIOGRAPHY

1. C.R. Kothari – Research Methodology methods and Techniques.

2. Prasad L.M – Principals and practice of management.

3. Kottler Philip – Marketing Management.

4. Rejimon.P.M – Indian rare earth is going to expand.

5. Rejimon.P.M – 50 Crores rupees expansion program in IRE.

6. IREL Broucher – Apex manual and departmental procedures of IREL.

7. http://www.indianrareearths.com

8. http://www.irel.gov.in

9. Annual Reports and Journals