ACC Cement .docx

ACC Limited - Sindri Cement Works. A project on

Inventory management And Control in ACC Company.

SUBMITTED ByMr.Shobhit E.D. Tirkey

Central University of Jharkhand

Under the Guidance of Accounts/Finance

Department ACC LimitedSINDRI CEMENT WORKS,

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ACC Limited - Sindri Cement Works.

SINDRI.

GUIDE’S CERTIFICATE

This is to certify that the project report entitled “A project on Inventory management And Control in ACC Company.”

Submitted by Mr.Shobhit E.D. Tirkey in partial fulfillment of Internship completed by him under my supervision and guidance.

To the best of my knowledge and belief the matter by him is original in nature and has not been copied from any sources.

Place: SINDRI Finance Department

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ACC Limited - Sindri Cement Works.Date:14.07.2011 Project Guide

ACKNOWLEDGMENT

It gives me immense pleasure in acknowledging the valuable assistance extended to me by various personalities in the successful completion of the report.

I am very much thankful to the Finance Department for providing me valuable guidance for preparation of this Project Report.

I am also thankful to all the staff members of Finance Dept., Sindri for assisting me, without whose kind co-operation this Project Report would not have been completed.

Place:Date:

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ACC Limited - Sindri Cement Works.Mr.Shobhit E. D. Tirkey

CONTENTS

S.NO. TOPIC PAGE NO.

1. INTRODUCTION 05-10

2. INTRODUCTION OF MAJORDEPARTMENTS 11-15

3. Over View Of Finance Department 16-36

4. CONCLUSION

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ACC Limited - Sindri Cement Works.5. BIBLIOGRAPHY 39

CHAPTER -1INTRODUCTION

About A.C.C

1.Genesis

The story dates back to the year 1936, when war of clouds were gathering over Europe, the economy of the western world was deep in recession. It was an etched in people s memory more for a gloomier world than for all round optimism. An Indian industry was reeling under severe difficulties. But undaunted by the times, one man was F.E.Dinashaw -a man of tremendous foresight and outstanding initiative.

The vision was to build a strong and unified cement industry that would not only withstand all difficulties but also fulfill its responsibility towards the development the under developed nation. The result was the amalgamation of ten of the existing cement companies-belonging to four large industrial houses of that time, viz-the house of TATA, KHATAU, DINSHAW AND KILLICK NIXON-to

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ACC Limited - Sindri Cement Works.form the nucleus of factories then today known as The Associated Cement Companies ltd. (A.C.C).

Barely three year later, was the fledging company catapulted into the fiery cauldron of World War II, and resources were geared to meet that onslaught. Soon after, India got her independence. A.C.C was fully poised to fulfill the hopes and aspiration of people across the length and breadth of the country.

For more than six decades now, A.C.C has been forging a pioneering path making cement and fulfilling its commitment of nation building.. Along the way, it sharpened its experience on the cutting edge of the latest processes /technologies / learning/adapting not just transplanting—to meet the specifies of local operating parameters. In the process- setting standards, innovating, not just meeting needs, but anticipating them. Creating a balance between material progress and the long-term interest of all men and the nations. A new association was forged between ACC and the Holcim group of Switzerland in 2005.. Holcim is the world leader in cement as well as being large suppliers of concrete, aggregates and certain construction-related services. Holcim is also a respected name in information technology and research and development. The group has its headquarters in Switzerland with worldwide operations spread across more than 70 countries.

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BRIEF INTRODUCTION

ACC- SINDRI CEMENT WORKS

Plant inaugurated by Mr. Khatau, the then Chairman of A.C.C on 21st December1955

Manufacturers Portland slag cement, in the brand name of “ACCOUNT Super”

Present rated capacity : 1 MTPA

It is an ISO 9001 (since Feb. 2000) & ISO 14001 (since July 2002) certified unit.

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Description of sindri Cement Works.

Sindri Cement Works, a unit of The Associated Cement Companies Limited (here-in-after referred to as “SCW”), having its factory at P.O. ACC Colony, District –Dhanbad, Jharkhand was commissioned in the year 1955. The factory was primarily established for using the waste product of Fertilizer Corporation of India (here-in-after referred to as FCI) which was manufacturing Ammonium Sulphate by using highly enriched Gypsum as one of the component and the waste product of the process which was called sludge had high content of lime in it. Which s was used for producing clinker, an intermediate and essential product to cement.

With the closure of FCI, the clinker production was badly affected. SCW tried to continue the production of clinker by purchasing limestone, but

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ACC Limited - Sindri Cement Works.since there was no limestone quarry nearby, the production of clinker was not feasible and economically viable ultimately Sindri works stopped. Producing clinker and then the corporate management decided to convert the Sindri Works from full-fledged unit to a grinding unit from 1995 .Thereafter, SCW is only engaged in the process of grinding clinker, gypsum and slag to produce Portland Slag Cement (here-in-after referred to as PSC).The unit is getting clinker from its sister unit mainly from Chaibasa( Jharkhand ) Jamul ( Chhatisgarh ) and Kymore ( Madhya Pradesh) Bargarh ( Orrisa).

In 1996, SCW undertook expansion by establishing a Vertical Rolling Mill (VRM) and mechanizing the packing cement & loading system. The commercial production from the expanded capacity commenced on 01-04.1998 with an installed capacity of 6 lakhs tones per annum. In respect of the incremental production, SCW was granted an exemption from payment of Sales Tax under the Bihar Industrial Policy, 1995. It has been made to understand that SCW has also

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ACC Limited - Sindri Cement Works.undertaken a restructuring and modification activity which has increased the installed capacity to 1 million tons per annum.

MAJOR RAW MATERIALS

1. Blast furnance slag

Received from SAILl Bokaro. Transported by rail. Moisture : 10-12%

2. Clinker

Received from sister works-Chaibasa Jamul, Kymore.

Transported by rail.

3. Gyspum

Imported from Holcim Trading Co ,Dubai/Singapore

Transported by Ship/Rail.

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Chapter- 2INTRODUCTION OF MAJOR

DEPARTMENTS

The main department of A.C.C

(a) Human resource.

(b) Finance.

(c) Production (grinding/Packing).

(d) Laboratory.

(e) Purchase.

(f) Information system department.

(g) Store.

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Short description of various departments.

(a) Human resource-

HR plays a very important role in any company. Basically HR main functions are recruitment, selection ,training,placement,induction.But., in ACC LIMITED all major functions like recruitment, selection etc are governed by HR Division at Head Office

The role of human resource in ACCOUNT sindri is to keep his eye on the departments which are running or functioning under this unit,

(b) Finance-

It also plays very critical role in the proper functioning of any business. Here in

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ACC Limited - Sindri Cement Works.Sindri unit finance plays a key role in the day today activities or operations. It pays to vendor supplying various materials /services and receives the payment from customer, In this unit railway carries raw materials, finished goods and various materials, which includes the various day today activities or operations like keeping the records of incoming and outgoing of raw materials and final goods. So in this view finance plays a critical role. Finance department consists different sections like:

c) Production-

Sindri Cement works is a grinding unit and presently manufacturing only Port Land Slag Cement. The clinker is received from sister plant. Mineral gypsum is presently procured from Holcim, Thailand. Clinker, slag, mineral gypsum is received by rail & phospho gypsum by road. The Sindri Cement has got for numbers of cement mill and one of vertical Raw Mill ( VRM) .They grind the Gypsum & Clinker in Cement Mills and Slag in VRM .The grinded

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ACC Limited - Sindri Cement Works.materials are mixed in blender in the proportion decided by quality norms and supervised by laboratory. Thus mixed materials are transported to cement silo of packing department through pipe line and from there it is packed in 50 Kg bags by rotary packer to be dispatched to selling points by rail/road(d) Laboratory-

In this manufacturing unit the main role of laboratory is to check the quality of both the row material and finished goods. So in this lab there is a quality control dept which plays the major role in the functioning to laboratory. In quality control dept they check the quality of the raw material which the comes from different places or units and also check the quality of the finished good (PSC) Portland stag Cement,

(e) Purchase-

The purchase department of. unit Manufacturing is mainly concern with the purchase of different types of materials which requires in production. Generation of purchase order by

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ACC Limited - Sindri Cement Works.obtaining quotation from market against purchased requisition generated by various system of SAP...

(f) Information system department-

ISD Department i.e. Information Systems Department in ACC is out sourced to NIT whose main job is to maintain :

Maintaining Layer2, Layer3 networking devices, LAN/WAN connectivity, Servers (ISA, Exchange, Desktop Management, and SAP).To provide local IT support to company to allow efficient working of the IT Infrastructure. To ensure that proper documentation for all SOP (standard operations procedure), configurations management for IT.,Network security Support for configuration / installation of new IT infrastructure. Co-ordination with third parties regarding maintenance under warranty / out-of-warranty issues & request for quotes for new.

(a) Store-

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The store department of ACCOUNT Sindri manufacturing unit is concern with the inventory management of raw materials ,stores and spares and packing materials..

Chapter – 3

Over View Of Finance Department

Over view

indri cement works is a grinding unit of ACC Ltd. Under flagship of Holcim the largest

cement manufacturer in the cement Industry.SAs Finance plays a crucial role in operation of any business of manufacturing unit the same is with Sindri unit. Following is the brief over view of finance department of this unit.

Finance has a key role in day to day activities of Sindri unit its major functions is to fulfill the financial requirements of the plant.

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The finance department of ACC Limited is broadly divided into six major sections with each department has their own function which together keeps rein on the management of its working capital. This department is only concerned with the expenses and stock of the company

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The finance department of Sindri Cement works consists different sections :

1. ACCOUNT RECEIVABLE / TARRIF SECTION :

The function of this department mainly concerned with the receiving of the money and in regard to these receiving they maintain the tells which is known of Account receivables. It mainly act as the receiving of money and another instruments. It covers all the receipts from different units like receipts from employee, Refunds from railways and also received the mount from sale of scrap and other materials.

AR considers mainly these three parties from whom they have to received the amounts:

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1. Employees: The companies make the EMI (equally

monthly installment) receipt against the loan and advances provided to the employees. The payment of these EMI’s is not received by this manufacturing unit, these receipt are received by the head office. This unit deals with only the making of receipts.

2. Customers: The ACC unit of Sindri, don’t sell their finished goods to the customers directly it is being done by the separate marketing division ,for the unit account receivable form scrap dealers only

3. Railways:The railway plays a vital roll for this

unit. This is the third and very important party from whom the unit have to receive the amount after considering the missing of wagons and damage of material the railway is liable to pay back or to refund the amount

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which is already paid to the railway for the transportation facility provided.

2. ACCOUNT PAYABLE SECTION:-

It plays a major role for all payments for venders and employees. It mainly include the function of payment to different vendor from whom the copany has received the material or services etc.

1.VENDORS:- The vendor is a person/organization from whom the company is receving the materials or services In the Sindri manufacturing unit (ACC) vendor plays a very important role in the smooth functioning of the company. Vendors are there which provides raw materials to the company like, slag, gypsum, HDPE bags. These vendors also provides transportation facilities to the company through the railways and

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ACC Limited - Sindri Cement Works.roadways. Sometimes these vendors also provides labour or workers to the company. There are two categories of venders:-

1. NORMAL VENDORS.2. GOVERNMENT VENDORS.

1. Normal Vendors, include three type of vendors:

i). Local vendors :- These vendors restrict the boundaries of outside vendors. It means, these vendors belong to the local area or within district.

ii). Head Office Vendors :- these vendors are from outside, its means these vendors do not belong to the local areas. These vendors render their services form outside the local area or within district. These vendors are hired by the Head Office ACCOUNT which is in Mumbai.

iii). Contractor:- Contractors are those who provide services to the plant locally.

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2. Government Vendors:- Government Venders are those vendor whom the company make the statutory payment against their services. Payment are also in the form of excise, sales ton. Railway is the best example of the government under. Railways provides the facilities of transportation of raw material, machinaries and etc. which helps in the production of cement. It also carries the finish goods from sindri manufacturing unit to the market.

3.General ledger Section :-

1) General ledger: The central task of G/L accounting is to provide a comprehensive picture of external accounting and accounts ,recording of all business transaction (primary posting as well as settlements from internal accounting) in a software system that is fully integrated with all other operational areas of the companyand ensure that the accounting data is always complete and accurate.

This section works as a security point or reference point for all the activities of accounts payable and accounts receivable, assets management etc.Here the automatic and simultaneous posting of all sub ledger items in appropriate general ledger accounts takes place through all modules

. Every entry in the accounts department has to pass with GL. For every thing there is a dedicated

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8nuber GL assigned which is called account number and the entry in these GL are being done on the basis of some pre defined nomenclature. The account number has been classified in to different categories, the first two numbers indicates the categories like10 XX XX XX- Sales/Revenues 20 XX XX XX- Cost/Expenses 30 XX XX XX- Assets 40 XX XX XX Liabilites50 XX XX XX Capital /Retained earning

There are further division and subdivision in the GL number which is indicated by the rest of the numbers

Every machinery and expense points (ex-a/c office, Time office, VRM) got an identification no. which is called cost centers. which have also been allotted seven digit alpha numeric/numeric numbers ,which have been grouped in the following way, where the first digit/numbers indicates the grouping like number starting from B0 is for Plant administration ,I0 for mobile equipment,50 for Grinding and 60 for packing etc.and next three digit is for the unit for Sindri it is 205and last two number indicates stages/numbers of that unit for example 5020510,-50isFor cement grinding 205 is plant number for Sindri,10 is for Portland Slag cementGrinding.

The SAP system has following stock account Raw Materials FuelsFinished & semi finished Product Parts and supplies ( also includes Packing Materials)

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The list of expenses account is very exhaustive and contains various types and nature of accounts for repair ,salary and wages for other amenities( traveling exp.Medical reimbursement ,LTA etc .

ASSETS MANAGEMENT:- Management of assets is also play a very important role in the finance department. Management of Assets includes the sale, purchase or acquisition of assets and the proper record of their maintenance.

The asset management section of sindri cement works mainly deals in capital assets or can say fixed assets like plant & machinery, furniture & fixture etc. For the purchase and maintenance of these fixed and capital assets they prepare CESS (capital expenditure sanction scheme) and history sheet which is maintained after the preparation of CESS (capital expenditure sanction scheme).

The asset management incharge also keep there record depreciation of fixed asset.

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The rate of depreciation is decided by the head office not by the incharge of the asset management of different units. The list of charging depreciation of different fixed assets is made and given by head office to different units. On the basis of these lists they charge the depreciation on different fixed assets.

The head office this also given the limited authority of sanctioning the purchase of any fixed assets which is upto 10 lakhs. Above 10 lakhs the purchase of any fixed assets is only possible by the permission granted by Head Office.

5. CONTROLLING/COSTING SECTION:-

It takes into consideration the function of evaluating the per unit costs of the materials either it is raw or it is finished. This function of costing helps in knowing through which process the finished

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product passes through and the cost of the product at different processes.

It reflect the cost of product. It has major function over all products. It observes and report the deviation in costs of products which are the end result of all transactions.

It has the responsibility of products costing. It observes all the transactions for specific period to calculate the cost of finished product and also it has a specific role in reporting to the top management regarding the cost of product and also with the various aspects of product costing and assumptions over cost.

6. PAYROLL SECTION:-

It operates all employees salary (only monthly paid) related activities. It prepares the salary related data for a whole

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month for all employees and forward it to payroll consultant for processing the salaries.

It also includes the data or information about the newly recruited employees, monthly or yearly leave records, transfer of employees, promotion or demotion of employees or retirement of employees. On the basis of these informations the payroll section incharges calculate their monthly salaries and sent it to the head office (Mumbai) for close verification ofall salary related bills.

It also considers the LIC premium and monthly re-payment against loans taken by the employees or deductions which helps in getting the fair and ACCOUNTurate salaries to the employees after close verification by the head office (Mumbai).

7. TAXATION SECTION:-On the most of the purchase

of materials the company has to pay excise duty/service tax for which the company gets the

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CENVAT credit to be availed while paying the excise duty for the finished product i.e.Cement the taxation section captures the excise duty so paid in the system before passing of the invoices and keeps track track of the same It is an important and most significant source of revenue for the companyIt is also responsible for sale tax/Income tax deduction and deposit form vendors.

Acoounting procedure of Raw Materials /Stores Spares/Services in Cement ManufacturingUnit of ACC Sindri Cement Works

After being the subsidiary of HOLCIM Limited a multinational and one of the biggest Cement and ready mix company of the world the need was felt to migrate to a world class technology of Information and technology and from February 2007 The ACC Limited which was earlier using Oracle 9i and developer 6i has Migrated to an System Application &Products in Data Processing (SAP ) ,an IBM product which is available in multiple languages and being used over 12million users across the

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ACC Limited - Sindri Cement Works.globe based solution ,where there is a single integrated system for its all activities

The full integrated SAP R/3 system which is a multi-company, ,multi-currency and multi-languages and uses best business practices across the globe and have on line /real-line access and have the facility of data entry once at source .Its reported can be downloaded in excel worksheet directly and can be used for different reports and analysis which has got different module only six of the following module has been implemented in ACC Limited through out the country 1 Sales/Shipping /Billing Process (SD) 2 Purchase and Inventory (MM) 3 Production Process (PP) 5.) Maintaince Activity (PM) 6 Human Resources ( HR) 7 Finance ( Revenue & Expenditure(FI) 8 Controlling (Analysis Report of control) (CO)

SD-The Sales and Distribution application modules helps to optimize all the tasks and activities carried out in sales delivery and billing and being operated mainly by marketing division of ACC Limited spread all across the country.

MM –The Materials Management application module supports the procurement and inventory function occurring in day to day business operations and the key element of which includes

Material procurement (Purchasing)Inventory Management Material ValuationVendor evaluationPurchasing Information System and inventory

controlling information

PP- It is production module where the consumption of raw materials packing materials are booked and it also raises PR when the stocks comes to a certain level

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ACC Limited - Sindri Cement Works.PM- This system is for plant maintenance, where all the maintaince activity is planned and executed. In this module when ever a activity is planned and executed ,the system checks the availability of the materials services required and raises purchase requisition if required.

The finance Controlling module (FICO)of ACC Limited is broadly divided into two major division FI and CO FI-The financial accounting application module is deigned for automated management and external reporting of general ledger accounts receivable ,account payable and other sub ledger accounts with a user defined chart of accounts.

CO-The controlling application module represents the company’s flow of cost and revenue .It is a management instrument for organizational decision .There are six major sections of FI application module with each department has their own function which together keeps rein on the management of its working capital. In financial books of account the entries flow from the all above module This department is only concerned with the expenses and stock of the companyA brief note about each of the departments:

2)The Accounts payable (AP): The Sindri Cement Works of ACC Limited is a grinding unit which has no raw materials of its own it is procuring the raw materials /Stores &Spares, Power,etc from market or getting some materials from its sister unit based in Jharkhand and in near by States and the finance department has major role to play for procuring and accounting the same.The Major Raw Material for manufacturing of Portland Slag Cement (PSC) are

(a) Clinker-An intermediate product of cement manufacturing produced by burning lime stone at very high temperature ,The Sindri Cement Works being a grinding unit procure the same from its near by sister unit.

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(b) Slag-It is a waste product of steel industries Blast Furnace, where lime stone is added to clean iron of impurities

(c) Gypsum-The Gypsum is added to increase the setting time of the cement .

(d) Additive –Some chemicals like Sodium Sulphate ,Fused Silica ,AMA-60 etc.is also added to increase the strength of the Cement.

. All purchase of the material is accounted through accounts payable department where every transaction is General ledger based and simultaneously updating the vendor account .A Vendor is a person/organization from whom the company the company is taking any materials or services.A customer is a person /organization to whom the company is providing the materials /services. .All the accounting in SAP is either vendor based and customer based.. For the purpose of accounting the company even treats their employees as a vendor/customer as it is taking the services from its employees and for that the company has an obligation to pay them.

The account is payable to the vendors for two types of activities:

i) For supply of Raw Material/Stores Spares : this department pays the vendors against the supply of material by them. Whenever there is a need of any material arises in the user department it generates a PR (purchase requisition) although it cannot release it. Because releasing of the PR is not under his or her jurisdiction. It is released by some higher managerial staff or whom the company has given the ID.

A Purchase Requisition contains the details of materials/Service required by the department

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like item description, quantity, requirement date.

There is a different type of purchase requisition

(a) SAP –Requisition This Purchase requisition is the default procurement channel for purchase of stockable material, where in PP(Production Planning) and PM(Plant Maintenance) module when the material stock falls below a certain level the system generates the purchase requisition. The Raw materials, fuels ,consumable materials ,stores and spares usually falls in this category.

(b) Manual Requisition- Other than the SAP requisition the department raises the manual requisition for materials(like admn items /services /Capex) required by them. The department preparing .While raising a manual PR or defining a scope of work, the department requires to gives accurate and clear description...

The SAP system has got a separate database within the Materials Management module, called Material Master, which contains the list of materials commonly required by the cement industry with a predefined number assigned to it and all the necessary specification of the materials.At the time of the preparation of the PR the department just put theMaterial no required by them.The PR specially service PR and non stock keeping items also contains the account assignment description which indicates the nature of accounting entries required to be

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passed by the system at the time of receipt of materials/services.For the materials it is predefined accounting assignment and it will go to stock account numbers only.For the services the department has to give expenses account number and the cost center (the expenses point) with consultation with finance section

ACC Limited has a well organized Purchase Section with a centrally based organization at it Head Office at Mumbai called Central Procurement Organisation .At the Plant Level it has a also purchase section .All the bulk requirement common to its various manufacturing plant like coal,Gypsum,slag,fly ash, lime stone purchase ,bauxite, Packing materials are being looked by central procurement section which finalizes contract against which the unit raises Purchase order based on its requirement. The material of very high value items of fixed asset in nature is also handled by Central Procurement(CP) After the release of PR slip, the purchase department at unit level decided according to laid down policy whether to forward the requirement to CP or to take action at works level. The purchase department then floats the tenders to its registered vendors and after getting the offers from them, the PO (purchase order) slip is released to vendor generally to the vendor quoting the lowest rate and meeting the all requirement or to vendor who has got the propriety of the material or who is manufacturer or its authorized representativeThe PO contains all taxes details, term condition for supply ,payment, if it is a service PO the safety and envoirment rules to be

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followed at works for service contract ,penalty and discounts etc. , The vendors who are registered with the company and having a fixed registration number i.e Vendor Number .A vendor is registered through a Vendor Registration Form in which full details of the vendor regarding its organization and tax registration, specialization,parternship,contact number are present along with their valid bank account number dully certified by their banker . In Vendor’s Registration Form emphasis is also given on vendors bank a/c no and it is advised to the banker to have a account with bank where e-payment facilities are available. As ACC limited is concerned that vendor should get payment at earliest and it pays preferably through e-mode of payment..

Till the time of issue of PR/PO slip no accounting entry is passed but as soon as the material comes into the store or lab the department prepares a Goods Receivable Report (GAR) and the same is inspected by the concerned department and after their accepting the material in the system ,the system passes the following accounting entry ..

It is stock a/c -- Dr To GAR/Invoice received a/c -- CrSimultaneously the credit balance is shown in vendor account a/c

. The inspecting officer have the option to reject the material if they are not complying with the specification mentioned or on the ground of any valid reasons.

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ii) Services supply: In case of services again the department will raise a PR slip and they can name the register vendor also from whom they want the services to be rendered. These services can be cleaning, packing, transportation by road /rail, whitewash, service of lawyer etc. Then again the same process goes on as it is in the case of material supply.

After getting the services the department prepares a Service Entry Sheet (SES) confirming that they rendered the following services. This SES is always raised by the department and passed through the higher authority for confirmation because services are intangible in contrary of materials which are tangible. As soon as the SES is passed an accounting entry is passed on the basis of acconunt assignment mentioned in purchase requisition .

Expense a/c ---- Dr To GAR/Invoice received a/c --- CrThe same credit lies with the vendor also.

After the receipt of the materials/and services the vendors submits their invoices to finance department with the details of the supply of the materials or services .

The finance department verifies the invoices on the basis of credit balances lying in vendor account for the above and assuring that all taxes provisions has been complied with.

Here also there is two tire controls the person passing the invoices are empowered only to park the document in the system and

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it is posted by the finance head or the officer assigned.

. After verification of the invoices the finance department sends the advices for payment to their Central Processing Center for payment based at their Head Office at Mumbai trough E-mail giving the documents no and amount of payment . Head Office then makes payment to the suppliers or vendors through E-payment as first option if all the bank data of the vendor is updated or by cheque. All the details of the payment are also send to the vendor by e-mail given at the time of registration or by Post along with the cheque. payment.

Here it is worth mentioning that all the above from PR to payment itis system based and there is no manual entries involved

ACC Limited takes the services of these two banks for the payment of their centralized payment to suppliers or vendorsi) HDFC Bank andii) Citi Bank

If the details of the vendors bank a/c is not filled in correct in the Vendors Registration Form then they will not get the payment that’s why it give emphasis on vendors bank a/c having the facility of E-payment while registering the vendors. In case the vendor’s bank a/c does not have the facility of E-payment then they will receive a cheque at par.

*In some cases the company pays in advances to the suppliers or vendors especially the Govt. vendors. In that case the following accounting entry have been passed

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Vendors advances a/c --- Dr To Bank a/c --- CrAnd at the time of final payment the system generates a pop up message showing their advances. Then the in charge of the AP (accounts payable) adjusts such amount before and the balance amount .to the vendor..When the materials is issued from stock the following accounting entries is passed by the system Consumption account --- Dr To Stock account Cr

Iii In some cases the company has to procure the materials from its sister unit based Within states of Jharkhand or near by states ,in case of Sindri Cement works .it is Getting one of the main essential raw materials Clinker from its sister unit Chiabasa Cement works for which PR and PO is not required to be made .The

supplying unit makes a PO for transfer of quantity ,this order is called STO( Stock Transfer order

Stock a/c --- Dr Business Area Sindri To Stock a/c –Cr Business Area Chibasa

This stock transfer is being done at the manufacturing cost of the sending Unit .The receiving unit has to be bear the transportation and other cost of ransfer.

3)Accounts receivable: In the manufacturing unit ,the

customer based accounting is very less as the sales activities are being carried out by the Separate wing called marketing and Sales sos the unit has lest number of amount to receive Sindri Cement works . is also being a manufacturing unit does not have robust accounts receivable section. It gets its accounts receivable only through the sell of scrap.

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While purchasing material every material which has got a specific code in the system has its pre defined stock account from the above and a predefined expenses for example slag has its own code, cement has its own. Now if a PR slip is raised for slag it will have predefined stock GL i.e Raw Materials and if it is consumed it has Slag consumed GL but the cost centre may differ When the material is received the following accounting entries is passed in the system

Stock a/c --- DrGoods received /Invoice Received a/c --- Cr The same credit entry will be copied in vendor account as credit balance i.e amount payable to them

When the consumption of the materials takes place the following entries will be passed by the system.

Consumption a/c --- Dr To stock a/c --- Cr

Asset Management: This section deals with mainly fixed asset of the company :

CONCLUSIONS

There is mainly about the one commodity which is cement and the manufacturing unit sindri cement works.

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ACC Limited - Sindri Cement Works.As per the whole report these helps the other persons or students to know about the finished product (cement and its varities) and also the raw material used and also the function of finance department consists of different sections in Sindri cement works. Each of the different unit of cement industry has its own financial rules and regulations. The productions of this unit (Sindri Cement Works) is increasing year by year. This year its production capacity reched from 6 to 10 lakhs ton PA. ACC LIMITED IS GOVERNED BY HOLCIM GROUP.

The increasing production of these units are growing and helps the Indian economy to grow faster.

BIBILOGRAPHY

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ACC Limited - Sindri Cement Works. www.ACClimited.com www.google.co.in www.askACC.com VARIOUS REPORTS OBSERVED WHILE PROJECT.

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http://www.askACC.com/

http://www.google.co.in/

http://www.ACClimited.com/

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ACC Cement .docx