Chapter – I

Introduction

1

INTRODUCTION

1.1) Introduction to Aluminium Industry.Global society faces a great challenge to shift human economic activity and lifestyles on to a

sustainable path in the 21st century, including meeting threats from climate change. The story of

the aluminium industry over the decades ahead must be one of how it is part of the solution for a

sustainable future. The metal aluminium has a vital role to play in successfully addressing this

sustainability challenge.

Aluminium is the third most abundant element in the earth's crust and constitutes 7.3% by mass.

The existence of was first established in 1808 but there were a few historical mentions of

aluminium use. The aluminium metal was extracted from the ore after many years of research. It

was possible only in the year 1854 to develop a viable commercial production process of

aluminium.

Primary aluminium is the hot molten metal that is produced in the smelter. Secondary aluminium

is the finished goods made from primary aluminium.

Aluminium is a young material, and in the little more than a century since its first commercial

production, it has become the world’s second most used metal after steel. The demand for

aluminium products is increasing year by year, so why is aluminium a metal in such demand and

what is its role in the lives of future generations?

1.2) Why Aluminium? Modern life is full of advantages brought about by the use of aluminium. Some of the major

benefits of this unique metal are:

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Strength:-

Pure aluminium is soft enough to carve but mixed with small amounts of other metal to form

alloys, it can provide the strength of steel, with only one-third of the weight.

Durability:-

Aluminium sprayed on a polymer forms a thin insulating sheet. It is durable and its life is very

long.

Flexibility:-

Its combination of properties ensure aluminium and its alloys can be easily shaped by any of the

main industrial metal working processes - rolling, extrusion, forging and casting.

Impermeability:-

Aluminium has excellent barrier function which makes it ideal for food

And drink packaging and containers. It keeps out air, light and

Microorganisms while preserving the contents inside.

Lightweight:-

Aluminium used in transport reducing the weight of the vehicles, hence in providing fuel

efficiency, reducing energy consumption and greenhouse gas emissions.

Corrosion-resistant:-

The metal's natural coating of aluminium oxide provides a highly effective

Barrier to the ravages of air, temperature, moisture and chemical attack,

Making aluminium a useful construction material.

Recyclable:-

Once made, aluminium can be recycled again and again, using only a very

Small fraction of the energy required to make "new" metal. Recycling saves

About 95% of the energy required for primary production.

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Other:-

Aluminium is a superb conductor of electricity which has seen it replace copper in many electrical

applications. It is also non-magnetic and

Non-combustible, properties invaluable in advanced industries such as

Electronics or in offshore structures.

1.3) Global Aluminium Industry: Global Production:-

Global production of primary aluminium rose from 32 million tons (MT) in 2005 to 34 MT in 2006,

a jump of 6%. In 2007, it further increased to 38 MT, an increase of 12% YoY. China alone

accounted for 29% of global primary aluminium production. Primary aluminium production is

concentrated in relatively few countries. China alone produced 26 percent of the world total in

2006.The top five producers—China, Russia, Canada, the United States, and Australia—accounted

for 59 percent of world output that year. Production is found where energy is cheap because making

aluminium uses large quantities of electricity. The world’s largest aluminium smelter, now being

planned for construction in Dubai, will have its own 2,600-megawatt power plant.

Aluminium Producing Countries:

The ore of the metal i.e. bauxite generally occurs in the tropical and

Sub tropical areas of earth and is present in almost all continents except

Antarctica with the estimated deposits of 65 billion tons. The major producers of primary

aluminium in the world are: United States of America, Russia, Canada, European, China, Australia,

Brazil, Norway, South Africa, Venezuela, Bahrain, United Arab Emirates, India, and New Zealand.

4

The global production of aluminium figures around 38 million tons and the above-mentioned countries

share more than 90% of the aluminium production. China and India reported the greatest increases in

aluminium output, at 12 percent and 11 percent respectively.

1.1) Graph representing Global aluminium production

1.2) Global consumption:- Asia showed the largest annual increase in consumption of primary aluminium, driven largely by

increased industrial consumption in China, which has emerged as the largest aluminium

consuming nation, accounting for 30% of global primary aluminium consumption in 2007. As far

as global consumption is concerned, it increased by 8.2% in 2006 and touched 34.7 MT. In

2007, the corresponding figures were 10% and 37.8 MT respectively. Globally, newer packaging

applications and increased usage in automobiles is expected to keep the demand growth for

aluminium over 5% in the long-term. Asia will continue to be the high consumption growth area

led by China, which is expected to continue to register double-digit growth rates in aluminium

consumption in the medium-term. The following are the various applications areas of

Aluminium:

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1.Transportation

2.Construction

3.Packaging

4.Electrical

5.Engineering

6. Consumer Durable

1.4) Indian Aluminium Industry The Indian aluminium sector is characterized by large integrated players like Hindalco and

National Aluminium Company (Nalco). The other producers of primary aluminium include

Indian Aluminium (Indal), now merged with Hindalco, Bharat Aluminium (Balco) and Madras

Aluminium (Malco) the erstwhile PSUs, which have been acquired by Sterlite Industries.

Consequently, there are only three main primary metal producers in the sector namely Balco

(Vedanta), National Aluminium Company (Nalco) and Hindalco (Aditya Birla Group).

1.5) History Aluminium production in India Commenced in 1938 with the commissioning of Aluminium Corporation of India's (Indal) plant

in technical and financial collaboration with Alcan, Canada having a capacity of 2,500 ton per

annum. The plant started with sheet production using imported aluminium ingots. In 1959,

Hindustan Aluminium Corporation (Hindalco) was set up at Renukoot undertaking

Was commissioned in 1965 with a capacity of 10,000 ton per annum. This was followed in 1975

by Balco, a PSU with a similar capacity of 10,000

ton. Finally in 1987, National Aluminium Company (Nalco) with a capacity of 0.218 mn ton was

commissioned in technical collaboration with Pechinery of France. In the 1970s, the government

regulated and controlled the aluminium industry through price distribution controls and barriers

to entry. The 1970 Aluminium Control Order compelled the Indian companies to sell 50 % of

the aluminium produced for electricalpurposes.The government decontrolled the industry in 1989

with the removal of the Aluminium Control Order. The industry was de-licensed in 1991 and was

allowed liberal import of capital goods and technologies. The demand for aluminium grew 6 % in

the 1980. Aluminium demand post liberalization registered a growth rate of 12%. This coupled

with the increase in the global aluminium prices ($1800/ ton in 1994) led to increased

investments in this sector. The downstream capacity in the aluminium industry spurted due to

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sufficient duty differential between aluminium ingots or primary metal and value added

downstream products. In March 1993 while the duty on aluminium ingots was 25% the duty on

downstream products was 70%. However with the change in the tariff structure undertaken in the

1997 budget, duty on semi-fabricated metal was lowered to 25%. This change adversely affected

the fortunes of the downstream producers.

1.6) MILESTONE IN INDIAN ALUMINIUM INDUSTRY

1938: 1st Aluminium Production Company was established which Was known as Aluminium

Production Company, (currently Known as INDAL).

1959: HINDALCO commenced its operation with 2, 00,000 TPA

Facility at U.P.

1965: MALCO followed the suit with a capacity of 10,000 TPA.

1965: BALCO, the 1st PSU also was established in the same year with a capacity of 1, 00,000

TPA.But it started production in 1975.

1987: NALCO another PSU started its operation with the Capacity of 0.218 million TPA.

1.7) Features of Indian Aluminium Industry•Highly concentrated industry with only five primary plants in the country.

• Controlled by two private groups and one public sector unit.

•Bayer-Hall-Heroult technology used by all producers.

• Electricity, coal and furnace oil are primary energy inputs.

•All plants have their own captive power units for cheaper and un-interrupted power supply.

• Energy cost is 40% of manufacturing cost for metal and 30% for rolled products.

•Plants have set internal target of 1 – 2% reduction in specific energy consumption in the next 5 –

8 years.

• Energy management is a critical focus in all the plants.

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• Two plants have declared formal energy policy.

• Each plant has an Energy Management Cell.

1.8) Primary Aluminium Production

India is considered to be the fifth largest producer of Aluminium in the world. It accounts to

around 5% of the total deposits and produces about 0.8 million tons of aluminium. It is estimated

that if the country’s aluminium consumption rate maintains, it’d be having the reserves for over

350 years. India has confirmed 3 billion tonnes of Bauxite reserves out of the global reserve of 65

billion tonnes. The worldwide alumina production competence is around 58 million tonnes in

which India has 2.7 million tonnes. Most of the bauxite mines lie in Bihar, Karnataka and Orissa.

In India, the production of aluminium is highly concentrated and is in the hands of the following

three companies

•Bharat Aluminium Co. Ltd (BALCO)

•National Aluminium Co. Ltd (NALCO)

•Hindustan Aluminium Co. Ltd (HINDALCO)

India is the eighth leading producer of primary aluminium in the world. The Ministry of Mines,

Government of India puts the production target for the year 2007-08 at 1,237 KT, an increase of

84 KT from previous year's 1,153 KT. The production of aluminium in India has grown

substantially in last five years. Production got a boost due to adding of extra smelting capacity in

recent years and rising domestic demand emanating from packaging, construction, automobiles

and electrical sectors. India's contribution in global aluminium production is less than 5 per cent

despite having 7.5 per cent of the world's total bauxite deposits and 7 per cent of bauxite

production

The consumption of primary aluminium has risen sharply since 2002

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And reached 1,080 KT by 2006. From the end of the 1990s till 2002,

The consumption remained almost stagnant, around 500- 600 KT. The reason for this growth

after 2002 lies in the demand generated from Automobile, construction and packaging sectors.

The per capita consumption of aluminium in India continues to remain abysmally low at under 1

kg as against nearly 25 to 30 kgs in the US and Europe, 15 kgs in Japan, 10 kgs in Taiwan and 3

kgs in China. The key consumer industries in India are power, transportation, consumer durables,

packaging and construction. Of this, power is the biggest consumer (about 44% of total) followed

by infrastructure (17%) and transportation (about 10% to 12%).However, internationally; the

pattern of consumption is in favor of transportation, primarily due to large-scale aluminium

consumption by the aviation space.

1.3) GRAPH OF CONSUMPTION OF PRIMARY ALUMINIUM IN

INDIA

(The sector wise Indian consumption pattern of Aluminium)

(The above chart shows the consumption of Primary Aluminium in India)

1.9) Analysis of Indian Primary Aluminium

Market9

The primary Aluminium production market in India is an oligopolistic market. The primary

aluminium is a homogenous product. As the product is homogenous we can term the market as

Pure Oligopoly. Though there are some grades in aluminium based on aluminium concentration

like EC (Electrical conductivity) Grade, etc but there are very less difference in the quality of

the product. There is little or no gap between the demand and supply as the supply just matches

the demand. Moreover there is a huge demand from countries like china hence there is not

constraint on the number of consumers. There are only 3 players in the aluminium market in

India with total production of 1250 KT in 2008. The entry into market is possible but not easy

due to the heavy initial capital that is required to setup the plant. As aluminium is a homogenous

product there is no price war between the three players and these firms are price takers. Though

the company sells the product at price which is decided by them, the firms mostly go by the price

on the London Metal Exchange (LME). In the Indian aluminium industry all the firms are price

takers and there is no clear leader as all the 3 firms have almost equal market share. The price is

decided by demand and supply in the commodity market.

DOMESTIC MARKET SHARE

1.10) Financial year 09`

Global production of primary aluminium rose continuously from 32 million tonnes (MT) in 2005

to 38 MT in 2007, registering a CAGR of 9%. However, during 2008 the production remained

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flattish at around 38 MT (2007 levels) on account of significant fall in demand in the second half

of the year due to the global credit crisis. This created a large amount of demand supply gap, thus

making the inventory levels at LME reach their multi year highs. China accounted for around

30% of the total global aluminium production. Asia, once again showed the largest annual

increase in consumption of primary aluminum, driven largely by increased industrial

consumption in China, which has emerged as the largest aluminum consuming nation, accounting

for 35% of global primary aluminum consumption in 2008. As far as the global consumption

goes, it declined by around 3%YoY to 37 MT in 2008.

The Indian aluminium industry registered a growth of around 9% in FY09. Strong growth in

industrial, infrastructure, automobile, transportation and power sectors during the first half of the

fiscal were the key drivers for the demand. However, realizations for the fiscal fell significantly

on account of fall in LME prices due to the global credit crisis, thus causing a dent in margins. On

the other hand, the steep depreciation of Indian rupee against the US dollar impacted the industry

positively. The total aluminium production in the country stood at around 1.35 m tonnes in FY09

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Chapter –II

COMPANY POFILE

2.1 Bharat Aluminum Co. Ltd.

12

(BALCO) was incorporated in the year 1965 as a Public Sector Undertaking (PSU). BALCO has several “firsts” to its credit. It is the first public sector enterprise in the country which started producing aluminium in 1975. In 1987-88, a captive power plant of 270 MW was added to cater to the power requirement of the unit. BALCO has been the first in the Indian Aluminium Industry to produce the Alloy Rods, which is a Feedstock for all Aluminium Alloy Conductors, needed for today’s power transmission lines. Till 2001, BALCO was a public sector enterprise owned 100% by Government of India (GoI). In the year 2001, GoI divested 51% equity and management control in favour of Sterlite Industries (I) Limited.

In the last 41 years, BALCO has built up a production capacity of 200,000 tonnes per annum of alumina production capacity, 350,000 tonnes per annum of smelting capacity and expanded its fabrication facility to include three Properzi Rod Mills, three pig casting machines, integrated hot .and cold rolling mills, and captive power plants of 810MW capacity

      Bharat Aluminium Company Ltd. (BALCO) has been closely associated with the Indian aluminium industry, playing a pivotal role in making aluminium a leading metal with myriad uses ranging from household and industrial requirements to aerospace applications. BALCO is part of Vedanta Resources, a London listed metals and mining major with Aluminium, Copper and Zinc operations in UK, India and Australia.

      Bharat Aluminium Company is one of the largest producers of aluminium in India. Till 2001, the government disinvested 51 per cent of its equity and management control in favour of Sterlite Industries (I) Ltd at a cost of US$ 123 million. Today, BALCO is an integrated aluminium company with captive bauxite mines, a captive power plant, refineries and smelters. BALCO's plant at Korba in Chhattisgarh produces 100,000 tonnes of aluminium every year. Its captive power plant has a capacity of 270 MW to meet its own requirement. Currently,BALCO is executing a US$ 863 million expansion plan to increase its aluminium production. It set up a 540 MW electricity generation plant for captive consumption. It is also setting up

13

GREENFIELD SMELTER at Korba. Its capacity proposed to be increased by 245,000 tna. The cost of project is presumed to be around $800 m.

Bharat Aluminium Co. Ltd. (BALCO) was incorporated in the year 1965 as a Public Sector Undertaking (PSU). BALCO has several “firsts” to its credit. It is the first public sector enterprise in the country which started producing aluminium in 1975. In 1987-88, a captive power plant of 270 MW was added to cater to the power requirement of the unit. BALCO has been the first in the Indian Aluminium Industry to produce the Alloy Rods, which is a Feedstock for all Aluminium Alloy Conductors, needed for today’s power transmission lines. Till 2001, BALCO was a public sector enterprise owned 100% by Government of India (GoI). In the year 2001, GoI divested 51% equity and management control in favour of Sterlite Industries (I) Limited.

      In the last 41 years, BALCO has built up a production capacity of 200,000 tonnes per annum of alumina production capacity, 350,000 tonnes per annum of smelting capacity and expanded its fabrication

facility to include three Properzi Rod Mills, three pig casting machines, integrated hot and cold rolling mills, and captive power plants of 810MW capacity

14

2.2 HISTORICAL BACKGROUND 

      A number of events & decisions as well as lack of decisions, were responsible for the situation confronting the new CMD in Oct 19991.

      BALCO was conceived as a primary producer of Aluminium including ingots, wire rods, extrusions & rolled products. The company was formed in 1965, & the project was subsequently formulated.

      The Alumina plant (2lakh TPA capacity) was se up with the technical collaboration with erstwhile USSR Co. consequently until 1982; BALCO operated only one Pot line.

      After considerable debate, the captive power plant was located adjacent to the NTPC super thermal power station at KORBA in order to share some common infrastructure facilities & not inside the premises of BALCO. The plant was procured from GEC-Alsthom and commissioned in1987. Meanwhile, a high powered committee (copula) visited BALCO

15

in1982 and ordered the supply power to BALCO from the super thermal power station of NTPC to enable commissioning of the second Pot line.

      Though all the units of the plant were not completely commissioned, the complete manpower had been recruited. Since its inception in 1965, BALCO has had all chief executives inducted from outside the industry

Until 1989, the demand for Aluminium was in excess of supply and Aluminium was a controlled commodity. The company was unprepared for this, being the highest cost Producer, with few value added products, little contact with end users and no experience in selling. 

2.3 VEDANTA

Vedanta Resources plc is one of the first Indian companies to be listed at the London Stock Exchange. Vedanta has its principal operations throughout India with further operations in Armenia, Australia and Zambia. The major metals produced by the group are Aluminium, copper, zinc and lead. Vedanta aims to produce a million tones per annum of all the non-ferrous metals with the lowest cost of production in the entire world, thereby becoming a world- class metals and mining group. BALCO is a member of Vedanta Resources plc.Vedanta has a strong track record in managing operations and improving costs and output.  Our Indian zinc and copper operations rank in the top quartile of global cost efficiency.  In addition to the existing operations, Vedanta has an exceptional range of expansion projects across each of our metals. 

Economic interest of Vedanta in the operating companies

16

The Aluminium division of Vedanta is divided between three companies, MALCO, VAL and BALCO.  VAL is based in Orissa, BALCO is in central India and MALCO is in the south.  While VAL is yet to get operational, BALCO is operating at the capacity of 345,000 TPA (for both the Smelters) compared to 35,000 at MALCO.  All are integrated operations, with their own bauxite mines which is converted to alumina and then on to aluminum.  Substantial expansion has taken place at BALCO, which has increased Vedanta's total aluminum output to 400,000 TPA.  The alumina for the expansion, in turn, will come from the new Vedanta Alumina project at Orissa.

Vedanta, as on date, is the 3rd largest supplier of aluminum in India, with a market share of around 20% but with the new Smelter being fully commissioned this year BALCO has become the largest supplier of aluminum. Demand for aluminum in India is dominated by electrical transmission, consumer durables and transportation.  Recent growth has been over 10% per annum and consumption of aluminum in India remains low by international standards.

Company Profile

B – Building on Teamwork

A – Ambitious Targets

L – Leadership Pursuit

C – Customer Delight

O–Operational Excellence

2.4 Geographical Location

1. Nearest town and railway station is Korba.

2. Korba is well connected with Champa (55 km by road) and Bilaspur (115 km) by state highway.

3. Both Bilaspur and Champa are important stations on Mumbai – Howrah route.

4. Nearest airport is Raipur, about 220 km by road.

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2.5 BOARD OF DIRECTORS

18

2.6 BALCO PHILOSOPHY

19

NAME DESIGNATION CATEGORY

     

Mr. ANIL AGARWAL

NON-EXECUTIVE

CHAIRMAN

NOMINEE OF STERLITE

INDUSTRIES (INDIA)

LTD

Mr.NAVIN AGARWAL

NON-EXECUTIVE

CHAIRMAN VICE

CHAIRMAN

NOMINEE OF STERLITE

INDUSTRIES (INDIA)

LTD

Mr. TARUN JAIN

NON-EXECUTIVE

DIRECTOR

NOMINEE OF STERLITE

INDUSTRIES (INDIA)

LTD

Ms. AJITA BAJPAI PANDE

NON-EXECUTIVE

DIRECTOR

NOMINEE OF

GOVERNMENT OF

INDIA

Mr.SANJIV KUMAR

MITTAL

NON-EXECUTIVE

DIRECTOR

NOMINEE OF

GOVERNMENT OF

INDIA

Mr G. SRINIVAS

NON-EXECUTIVE

DIRECTOR

NOMINEE OF

GOVERNMENT OF

INDIA

Mr. PRAMOD SURI WHOLE TIME DIRECTOR

NOMINEE OF STERLITE

INDUSTRIES (INDIA)

LTD

Mr. GUNJAN GUPTA

CEO & WHOLE TIME

DIRECTOR

NOMINEE OF STERLITE

INDUSTRIES (INDIA)

VISION:

“To achieve global standard of excellence in productivity and customer satisfaction”

MISSION:

“To create world class Aluminium Company and generate strong financial return”

CORE VALUES:

BALCO culture finds expression in its five core values-

Commitment to excellence

Commitment and competence to the people

Customer satisfaction

Globally one of the lowest cost producers

Team work

At Balco, there is a constant effort to improve in all areas of operations. Plans are efforts to

modernize the existing infrastructure to bring it on par with the best in the world.

2.7 QUALITY POLICY:

To attain self-reliance.

To promote uphold its image as marks of quality products.

To promote quality products at competitive price, and thus enhance age-old charm.

To maintain the brand loyalty of its customers.

ASSETS & LOCATIONS

Bharat Aluminium Co. Ltd. (BALCO) is a partially integrated Aluminium company with

Captive Bauxite Mines, Captive Power Plants, Refineries and Smelters.

2.8 BALCO operations can be categorized into four major activities:

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2.9 OPERATION OVERVIEW

BALCO is a partially integrated operation with its own Captive Bauxite Mines, Refinery and

Smelters, producing primary aluminum and also has 810 MW captive power plants.

BALCO operations can be categorized into four major activities:

Mining

Refining

Smelting

Fabrication

2.10 PRODUCTION FLOW

Aluminium ore, most commonly bauxite, is plentiful and occurs mainly in tropical and sub-

tropical areas: Africa, West Indies, South America and Australia. There are also some

deposits in Europe. Bauxite is refined into aluminium oxide tri hydrate (alumina) and then

electrolytic ally reduced into metallic aluminium. Primary aluminium production facilities

are located all over the world, often in areas where there are abundant supplies of

inexpensive energy, such as hydro-electric power.Two to three tonnes of bauxite are required

to produce one tonne of alumina and two tonnes of alumina are required to produce one

tonne of aluminium metal.

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MINING

SMELTING

REFINING

FABRICATIONCORE

2.11 BALCO CAPACITIES:

GAMI aluminum smelter: 2, 45,000 TPA

VS aluminium smelter: 1, 00,000 TPA

Captive power plant: 810 MW

2.12 BAUXITE MINING CAPACITY

Bodai Daldali Mine:Bauxite reserve :3.8 mn MT

Manipat Mine:Bauxite reserve : 3.3mn MT

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2.13 PROUCT RANGE:

Ingots

Wire Rods

Aluminum Sheets

Billets of various alloys

Cast bursbar’s of various dimensions

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2.14 PRODUCT OVERVIEW

      

24

BALCO

ALUMINIUM METAL AND ITS SEMIS

PROCESS PRODUCTS

UNWROUGHT ALUMINIUM

WROUGHT ALUMINIUM

INGOTS OR PIGS

CASTING ALLOY

BUS BARS

BILLETS PRODUCTS

PROPERZI RODS

ROLLED PRODUCTS

EXTRUDED PRODUCTS

CONDUCTORS

INTERMEDIATEPRODUCT

CO-PRODUCTS

BY-PRODUCT

WASTE PRODUCT

2.15 BALCO FINANCE DEPARTMENT

Balco Finance Department is divided in to mainly 6 Heads:

i) Plant Operation

ii) Treasury

iii) MIS

iv) EAG

v) SAG

vi) Taxation

(1) Plant Operation: It performs several functions which include:-

Releasing payments to suppliers & contractors

Preparation of various MIS Reports like Monthly COP, Projections, Variance

analysis etc and submission of the same to the MIS department.

Analyze the Cost of production so as to control/reduce COP

Analyze the trend of various heads of the expenditure over the period of time

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Monitoring the stock levels of Raw materials & WIP to ensure better working

capital management

Proper control over advances & creditors

To participate in the procurement process of Raw materials, Spares etc.

To carry out financial feasibility study of the capex proposals.

To ensure that the properties of the company are fully insured and to file claims

in case of damages.

TREASURY DEPARTMENT: It performs mainly Four Functions:

Fund Management: This section deals with the overall management of Inflow and

Outflow of the fund in company. Mainly the inflows occur through the selling of the

Aluminum and Power sale. And they invest the surplus balance of the in MUTUAL

FUNDS.

Trade Finance: This section mainly deals with the transactions related to the market. For

this they mainly use 3 tools:

i) Letter of Credit

ii) Bank Guarantee

iii) Cash Credit

Project Finance: In this, total requirement of funds for new expansion project is

assessed and accordingly this is arranged from various banks. The borrower should fulfill

all the legal formalities of Bank and as per the assets base of the borrower the banker

fixes a limit of credit. The project finance function takes care of the fund requirement for

the expansion projects.

Forex Management: This section deals with management of forex inflow and outflow

arising due to import/export transactions. In order to manage foreign exchange

fluctuation risk, following tools are used to minimize the risk associated with foreign

currency

i) Forward Contract: These are the contract which is used to book the future

outward and inward in respect of foreign currency for a particular date. We

should book the contract with the in today’s exchange rate (Rs to $) and

encash it on the fixed date.

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ii) Option Contract: This is square off with another contract and we choose to

purchase the Dollar and the balance is automatically settled between the

difference rate and credit in our Bank Account.

SAG (Sales Accounting Group):

This department is responsible for the accounting/invoicing of sales (power as well as metal)

transactions on regular basis and performs the various functions as under:

Sales Invoicing.

Letter of Credit and Bank Guarantee Custody/ Decision on encashment, discounting of

Letter of Credit.

Price list, Discount structure etc.

Accounting for sales, realization from customer.

Monitoring & control over debtors through marketing department

To avail benefits under various export incentive schemes in co-ordination with the

indirect taxation department

EAG (Employee Accounting Group):

This department deals with the employee’s salary and all the incentives given to the

employee of the company:

Salary payment and Accounting thereof

Medical / Travel advance adjustment / recovery.

To deduct Provident Fund contribution from the salaries of the employees and

deposits the same with the Govt. authorities.

To ensure Compliance with Income tax laws (TDS)

To deduct Rent, Electricity charges etc from salary of the employees

To deduct loan installment from the salary of the respective employees.

Taxation Department:

27

In BALCO taxation Department is divided in to two parts i.e. Direct Taxation and

Indirect Taxation. The Head office of Direct Taxation is situated at New Delhi. The

Indirect taxation Calculation is done here only.

MIS (Management Information System)

Its main Functions are:

Collect the information from all the departments of finance.

Preparation of Periodical reports.

Consol the reports as Balco as Whole.

Deals with auditors.

Monthly EXCO meeting reports preparation should be done.

Monthly Projects should be submitted

28

CHAPTER-III

Methodology

 

RESEARCH METHODOLOGY

29

3.1Introduction

Research methodology is a way to systematically solve the research problem. It may be

understood as a science of studying now research is done systematically. In that various

steps, those are generally adopted by a researcher In studying his problem along with the

logic behind them. It is important for research to know not only the research method but

also know methodology. The procedures By which researchers go about their work of

describing, explaining and predicting phenomenon are called methodology. Methods

comprise the procedures used for generating, collecting and evaluating data. All this

Means that it is necessary for the researcher to design.His methodology for his problem

as the same may differ From problem to problem. data collection is important step in any

project and success of any project will be largely depend upon now much accurate you

will be able to collect and how much time, money and effort will be required to collect

that necessary data, this is also important step. Data collection plays an important role in

research work. Without proper data available for analysis you cannot do the research

work accurately.

3.2 Types of data collection

There are two types of data collection methods available.

1.) Primary data collection 2.) Secondary data collection

1) Primary data

The primary data is that data which is collected fresh or first hand, and for First time

which is original in nature? Primary data can collect through Personal interview,

questionnaire etc. to support the secondary data.

2) Secondary data collection method

30

The secondary data are those which have already collected and stored. Secondary data

easily get those secondary data from records, journals, Annual reports of the company

etc. It will save the time, money and efforts to collect the data. Secondary data also made

available through Trade magazines, balance sheets, books etc. This project is based on

primary data collected through personal interview of head of account department and

other concerned staff member of Finance department. But primary data collection had

limitations such as Matter confidential information thus project is based on secondary

Information collected through three years annual report of the Company, supported by

various books and internet sites. The data collection was aimed at study of working

capital management of the company:

Secondary data :-

The secondary data has been collected from the past records, internet and internal magazines of the organisation. The secondary data has been compiled to form a consolidated sheet of data which showed the cost of production, price of hot metal, price of ingot, cost of alumina and power. The global demand and supply data and data regarding the China’s aluminium production and consumption have been collected from company records and internet.

3.3 Objectives of Study

Study the process of sales account group and excise duty to know the future requirement of product and control of cost of production any of the company can earn profits and increase sales. With this primary objective of the study, the following further objectives are framed for a depth analysis.

To study process of sales account and excise duty in BALCO. To study the optimum level of sales. To study estimation of sales. To study receivables accounts, Cash management, Inventory position. To study export activities in BALCO. Sales Invoicing. Letter of Credit and Bank Guarantee Custody/ Decision on encashment, discounting of

Letter of Credit.

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Price list, Discount structure etc.

Accounting for sales, realization from customer.

Monitoring & control over debtors through marketing department

To avail benefits under various export incentive schemes in co-ordination with the

indirect taxation department

3.4Limitation of this study

Following limitations were encountered while preparing this project:

1) Limited data:-

This project has completed with annual reports; it just constitutes one part of data

collection i.e. secondary. There were limitations for primary Data collection because of

confidentiality.

2) Limited period:-

This project is based on three year annual reports. Conclusions and recommendations are

based on such limited data. The trend of last three year may or may not reflect the real sales

position of the company

3) Limited area:-

Also it was difficult to collect the data regarding the competitors and their financial information. Industry figures were also difficult to get.

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LITERATURE REVIEW:-

THE COORDINATED REFORM OF TARIFFS AND INDIRECT TAXES

Pradeep Mitra

Tariff reduction designed to encourage outward-oriented development will work only if alternative sources can be found to replenish revenue lost in the cause of reducing protection. Integrated reform of tariffs with taxes would seem to be the answer, but so far analysts have often tended to treat the two instruments separately.

This article looks at the tariff and tax instruments used by developing countries to protect their producers and to increase their revenues, and then lays out the contours of an integrated structure for taxes with tariffs. This structure takes into account not only objectives of efficiency and equity but also constrained administrative capacity. The analysis concludes with an examination of how these ideas may be used to guide the coordinated reform of tax and tariff structures.

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CHAPTER-IV

SALES ACCOUNT AND EXCISE

DUTY IN TAXATION

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SALES ACCOUNT (BALCO)

SALES: - A sale is the pinnacle activity involved in selling products or services in return for money or other compensation. It is an act of completion of a commercial activity. A sale is completed by the seller or the provider of the goods or services to an acquisition or appropriation or request followed by the passing of title (property or ownership) in the item and the application and due settlement of a price, the obligation for which arises due to the seller's requirement to pass ownership, being a price he is happy to part with ownership of or any claim upon the item. The purchaser, though a party to the sale does not execute the sale, only the seller does that. To be precise the sale completes prior to the payment and gives rise to the obligation of payment. If the seller completes the first two above stages (consent and passing ownership) of the sale prior to settlement of the price, the sale is still valid and gives rise to an obligation to pay.

SALES ACCOUNT: - Sale is a transfer of property for money or credit. In double-entry bookkeeping, a sale of merchandise is recorded in the general journal as a debit to cash or accounts receivable and a credit to the sales account. The amount recorded is the actual monetary value of the transaction, not the list price of the merchandise. A discount from list price might be noted if it applies to the sale.

Fees for services are recorded separately from sales of merchandise, but the bookkeeping transactions for recording "sales" of services are similar to those for recording sales of tangible goods. In bookkeeping, accounting, and finance, Net sales are operating revenues earned by a company when it sells its products. Revenue (net sales) is reported directly on the income statement as Sales or Net sales. In financial ratios that use income statement sales values, "sales" refers to net sales, not gross sales. Sales are the unique transactions that occur in professional selling or during marketing initiatives. Revenue is earned when goods are delivered or services are rendered. The term sales in a marketing, advertising or a general business context often refers to a contract in which a buyer has agreed to purchase some products at a set time in the future. From an accounting standpoint, sales do not occur until the product is delivered. "Outstanding orders" refers to sales orders that have not been filled.

Account Sales

An account sale is a statement of affairs relating to the consignment. This is a statement prepared and sent by the consignee to the consignor to keep him informed of the transactions of the business. It is a periodic statement i.e. it is made for a certain period with a starting date and an ending date. The details in the account sales form a basis for accounting for the transactions at the consignees end.

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Therefore, whenever we work out a problem on consignment accounting, we prepare an "Account Sales" if it is not given in the problem (which would be the case in majority of the problems).

The statement carries a heading to indicate the period relevant to the data in the statement.

Account Sales as sent to "the consignor" by "the consignee" for the sales made on consignment

For the period from _____ to _____. For the three months ending 31st March 2005.

SALE IN BALCO

a)

Financial arrangement. Purchase order/ sales contract. Raising of sales order. Sales planning /despatch. Loading of consignment. Invoicing. Removal of consignment.

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ALLUMINIUM SCARP

DOMESTIC EXPORT AUCTION TENDER

PROCESS IN SALES ACCOUNTING :-

PRICING INVOICING EXPORT ACTIVITIES DOMESTIC SALES SCRAP SALES BILL DISCOUNTING CREDIT NOTES INTEREST DEBIT NOTES PAYMENTS REGIONAL PAYMENT SALES RETURN REFUND

4.1PRICING:-

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PRICING ACCORDING TO METAL

PRIMARY METAL SECONDARY METAL

BASIC PRICE BASIC PRICE

TRADE DISCOUNT

FLAT DISCOUNT

PRODUCT DISCOUNT

TRADE DISCOUNT

FLAT DISCOUNT

CASH DISCOUNT

AT PRESENT IN BALCO:-

PRIMARY METAL:- TRADE DISCOUNT: - RS 19950 FLAT DISCOUNT: - RS 1500 PRODUCT DISCOUNT:- RS 1900,2400 & RS 500

SECONDARY METAL:-

TRADE DISCOUNT: - RS 7000 FLAT DISCOUNT: - RS 4000 CASH DISCOUNT:- RS 1500

4.2INVOICING :-

An invoice or bill is a commercial document issued by a seller to the buyer, indicating the products, quantities, and agreed prices for products or services the seller has provided the buyer. An invoice indicates the buyer must pay the seller, according to the payment terms. The buyer has a maximum amount of days to pay these goods and are sometimes offered a discount if paid before. In the rental industry, an invoice must include a specific reference to the duration of the time being billed, so rather than quantity, price and discount the invoicing amount is based on quantity, price, discount and duration. Generally speaking each line of a rental invoice will refer to the actual hours, days, weeks, months etc being billed. From the point of view of a seller, an invoice is a sales invoice. From the point of view of a buyer, an invoice is a purchase invoice. The document indicates the buyer and seller, but the term invoice indicates money is owed or owing. In English, the context of the term invoice is usually used to clarify its meaning, such as "We sent them an invoice" (they owe us money) or "We received an invoice from them" (we owe them money).

PARTIES OF INVOICING AT A TIME OF SALE:-

a) Local partiesb) Government partiesc) Exportd) National parties

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IN BALCO INVOICING ARE OF 4 TYPES OF GOODS:-

1. Finished goods2. Primary products3. Scrap4. Vanadium.

COPY OF INVOICING:-

TOTAL 8 COPIES ARE ISSUE

Two copy for transporterOne copy for buyerOne copy for RegionOne copy for sales account groupOne copy for extra party

Two copy for taxation.

INVOICING PROCESS:-

.

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OUT BOUND DELIVERY

INVOICE

DESPATCH GROUP (D.A)

TRANSPORT

LORRY RECEIPT

4.3EXPORT ACTIVITIES:-

Export procedure

Processing an Export order

You should not be happy merely on receiving an export order. You should first acknowledge the export order, and then proceed to examine carefully in respect of items, specification, preshipment inspection, payment conditions, special packaging, labeling and marketing requirements, shipment and delivery date, marine insurance, documentation etc. if you are satisfied on these aspects, a formal confirmation should be sent to the buyer, otherwise clarification should be sought from the buyer before confirming the order. After confirmation of the export order immediate steps should be taken for procurement/manufacture of the export goods. In the meanwhile, you should proceed to enter into a formal export contract with the overseas buyer.

Entering into an Export contract

In order to avoid disputes, it is necessary to enter into an export contract with the overseas buyer. For this purpose, export contract should be carefully drafted incorporating comprehensive but in precise terms, all relevant and important conditions of the trade deal.There should not be any ambiguity regarding the exact specifications of goods and terms of sale including export price, mode of payment, storage and distribution methods, type of packaging, port of shipment, delivery schedule etc. The different aspects of an export contract are enumerated as under:

Product, Standards and Specifications Quantity Inspection Total Value of Contract Terms of Delivery Taxes, Duties and Charges Period of Delivery/Shipment Packing, Labeling and Marking Terms of Payment-- Amount/Mode & Currency Discounts and Commissions Licenses and Permits Insurance Documentary Requirements Guarantee Force Majeure of Excuse for Non-performance of contract Remedies Arbitration It will not be out of place to mention here the importance of arbitration clause

in an export contract Court proceedings do not offer a satisfactory method for settlement of commercial disputes, as they involve inevitable delays, costs and technicalities. On the

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other hand, arbitration provides an economic, expeditious and informal remedy for settlement of commercial disputes. Arbitration proceedings are conducted in privacy and the awards are kept confidential. The Arbitrator is usually an expert in the subject matter of the dispute. The dates for arbitration meetings are fixed with the convenience of all concerned. Thus, arbitration is the most suitable way for settlements of commercial disputes and it may invariably be used by businessmen in their commercial dealings.

Export Pricing and Costing

Export pricing should be differentiated from export costing. Price is what we offer to the customer.Cost is the price that we pay/incur for the product. Price includes our profit margin, cost includes only expenses we have incurred. Export pricing is the most important tool for promoting sales and facing international competition. The price has to be realistically worked out taking into consideration all export benefits and expenses. However, there is no fixed formula for successful export pricing. It will differ from exporter to exporter depending upon whether the exporter is a merchant exporter or a manufacturer exporter or exporting through a canalising agency. You should also assess the strength of your competitor and anticipate the move of the competitor in the market. Pricing strategies will depend on various circumstantial situations. You can still be competitive with higher prices but with better delivery package or other advantages.Your prices will be determined by the following factors:

o Range of products offered o Prompt deliveries and continuity in supply o After-sales service in products like machine tools, consumer durables o Product differentiation and brand image o Frequency of purchase o Presumed relationship between quality and price o Specialty value goods and gift items o Credit offered o Preference or prejudice for products originating from a particular source o Aggressive marketing and sales promotion o Prompt acceptance and settlement of claims o Unique value goods and gift items

Export Costing is basically Cost Accountant's job. It consists of fixed cost and variable cost comprising various elements. It is advisable to prepare an export costing sheet for every export product. For the format of the export costing sheet and other relevant details refer to Nabhi's EXPORTERS MANUAL AND DOCUMENTATION.As regards quoting the prices to the overseas buyer, the same are quoted in the following internationally accepted terms:

Various depots of Balco

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Jaipur

Delhi

Faridabad

Baddi

jalandhar

Ahemedabad

Bhiwandi Kolkata

Silvasa

Nagpur

Bangalore

Hyderabad

Chennai

Export is done from “Nagpur” and “Vishakhapattanam”.

DOCUMENT OF EXPORT :-

BILL OF LANDING:-

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BALCONORTH

EASTSOUTH

WEST

A bill of lading (sometimes referred to as a BOL,or B/L) is a document issued by a carrier to a shipper, acknowledging that specified goods have been received on board as cargo for conveyance to a named place for delivery to the consignee who is usually identified. A thorough bill of lading involves the use of at least two different modes of transport from road, rail, air, and sea. The term derives from the verb "to lade" which means to load a cargo onto a ship or other form of transportation.

A bill of lading can be used as a traded object. The standard short form bill of lading is evidence of the contract of carriage of goods and it serves a number of purposes:

It is evidence that a valid contract of carriage, or a chartering contract, exists, and it may incorporate the full terms of the contract between the consignor and the carrier by reference (i.e. the short form simply refers to the main contract as an existing document, whereas the long form of a bill of lading issued by the carrier sets out all the terms of the contract of carriage);

It is a receipt signed by the carrier confirming whether goods matching the contract description have been received in good condition (a bill will be described as clean if the goods have been received on board in apparent good condition and stowed ready for transport); and

It is also a document of transfer, being freely transferable but not a negotiable instrument in the legal sense, i.e. it governs all the legal aspects of physical carriage, and, like a cheque or other negotiable instrument, it may be endorsed affecting ownership of the goods actually being carried. This matches everyday experience in that the contract a person might make with a commercial carrier like FedEx for mostly airway parcels, is separate from any contract for the sale of the goods to be carried, however it binds the carrier to its terms, irrespectively of who the actual holder of the B/L, and owner of the goods, may be at a specific moment.

Straight bill of lading: - This bill states that the goods are consigned to a specified person and it is not negotiable free from existing equities, i.e. any endorsee acquires no better rights than those held by the endorser. So, for example, if the carrier or another holds a lien over the goods as security for unpaid debts, the endorsee is bound by the lien. Although, if the endorser wrongfully failed to disclose the charge, the endorsee will have a right to claim damages for failing to transfer an unencumbered title.

Also known as a non-negotiable bill of lading; and from the banker's point of view this type of bill of lading is not safe.

Order bill of lading

This bill uses express words to make the bill negotiable, e.g. it states that delivery is to be made to the further order of the consignee using words such as "delivery to A Ltd. or to order or assigns". Consequently, it can be endorsed by A Ltd. or the right to take delivery can be transferred by physical delivery of the bill accompanied by adequate evidence of A Ltd.'s intention to transfer.

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Bearer bill of lading

This bill states that delivery shall be made to whosoever holds the bill. Such bill may be created explicitly or it is an order bill that fails to nominate the consignee whether in its original form or through an endorsement in blank. A bearer bill can be negotiated by physical delivery.

Surrender bill of lading

Under a term import documentary credit the bank releases the documents on receipt from the negotiating bank but the importer does not pay the bank until the maturity of the draft under the relative credit. This direct liability is called Surrender Bill of Lading (SBL), i.e. when we hand over the bill of lading we surrender title to the goods and our power of sale over the goods.

CERTIFICATE OF ORIGIN:-

A Certificate of Origin (often abbreviated to CO or COO) is a document used in international trade. It traditionally states from what country the shipped goods originate, but "originate" in a CO does not mean the country the goods are shipped from, but the country where their goods are actually made. This raises a definition problem in cases where less than 100% of the raw materials and processes and added value are not all from one country. An often used practice is that if more than 50% of the sales price of the goods originates from one country, that country is acceptable as the country of origin (then the "national content" is more than 50%). In various international agreements, other percentages of national content are acceptable.

When countries unite in trading agreements, they may allow Certificate of Origin to state the trading bloc as origin, rather than the specific country.

The certificate of origin must be signed by the exporter, and often notarized and then validated by a Chamber of Commerce.

Most chambers of commerce and some trade associations have been authorized by their Customs agencies to certify non-preferential, and in some cases, preferential certificates of origin. Thus, a chambers’ role in the issuance and attestation of Certificates of Origin is both unique and vital in facilitating international trade. International Certificate of Origin Guidelines is the result of 18 months’ work by ICC’s World Chambers Federation (WCF), incorporating the best practice from several national chambers and organizations to produce the first international procedures and guidelines manual for chambers in the issuance of non-preferential certificates of origin.

Companies may consult the WCN Chamber of Commerce Directory (www.worldchambers.com) to find their nearest chamber who may offer this service. For more information regarding the ICC WCF's role concerning Certificates of Origin, please visit

SHIPPING BILL:-

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Customs document used where drawback is claimed, such as on goods exported or on dutiable goods transshipped or re-exported from a bonded warehouse. It serves basically as a statistical record.

CHAMBER OF COMMERECE CERTIFICATE: -

A chamber of commerce (also referred to in some circles as a board of trade) is a form of business network, e.g., a local organization of businesses whose goal is to further the interests of businesses. Business owners in towns and cities form these local societies to advocate on behalf of the business community. Local businesses are members, and they elect a board of directors or executive council to set policy for the chamber. The board or council then hires a President, CEO or Executive Director, plus staffing appropriate to size, to run the organization.

The largest chamber of commerce in the United Kingdom is Greater Manchester Chamber of Commerce with more than 5,000 members. The oldest known existing chamber in the English-speaking world with continuous records is the Glasgow Chamber of Commerce, which was founded in 1783.

4.4 DOMESTIC SALES:-

Financial arrangement.

Four types of financial arrangement:-

a. Advance payment.i. Cheque

ii. Pay orderiii. Demand draftiv. Banker cheque

b. Letter of credit: - A letter from a bank guaranteeing that a buyer's payment to a seller will be received on time and for the correct amount. In the event that the buyer is unable to make payment on the purchase, the bank will be required to cover the full or remaining amount of the purchase. Letters of credit are often used in international transactions to ensure that payment will be received. Due to the nature of international dealings including

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factors such as distance, differing laws in each country and difficulty in knowing each party personally, the use of letters of credit has become a very important aspect of international trade. The bank also acts on behalf of the buyer (holder of letter of credit) by ensuring that the supplier will not be paid until the bank receives a confirmation that the goods have been shipped. 

c. Bank guarantee: - A guarantee from a lending institution ensuring that the liabilities of a debtor will be met. In other words, if the debtor fails to settle a debt, the bank will cover it.

d. Clean credit.

A bank guarantee and a letter of credit are similar in many ways but they're two different things. Letters of credit ensure that a transaction proceeds as planned, while bank guarantees reduce the loss if the transaction doesn't go as plan

A letter of credit is an obligation taken on by a bank to make a payment once certain criteria are met. Once these terms are completed and confirmed, the bank will transfer the funds. This ensures the payment will be made as long as the services are performed.

A bank guarantee, like a line of credit, guarantees a sum of money to a beneficiary. Unlike a line of credit, the sum is only paid if the opposing party does not fulfill the stipulated obligations under the contract. This can be used to essentially insure a buyer or seller from loss or damage due to nonperformance by the other party in a contract.

For example a letter of credit could be used in the delivery of goods or the completion of a service. The seller may request that the buyer obtain a letter of credit before the transaction occurs. The buyer would purchase this letter of credit from a bank and forward it to the seller's bank. This letter would substitute the bank's credit for that of its client, ensuring correct and timely payment.

A bank guarantee might be used when a buyer obtains goods from a seller then runs into cash flow difficulties and can't pay the seller. The bank guarantee would pay an agreed-upon sum to the seller. Similarly, if the supplier was unable to provide the goods, the bank would then pay the purchaser the agreed-upon sum. Essentially, the bank guarantee acts as a safety measure for the opposing party in the transaction.

These financial instruments are often used in trade financing when suppliers, or vendors, are purchasing and selling goods to and from overseas customers with whom they don't have established business relationships. The instruments are designed to reduce the risk taken by each party.

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Purchase order/sales contract: -

A purchase order (PO) is a commercial document issued by a buyer to a seller, indicating types, quantities, and agreed prices for products or services the seller will provide to the buyer. Sending a PO to a supplier constitutes a legal offer to buy products or services. Acceptance of a PO by a seller usually forms a one-off contract between the buyer and seller, so no contract exists until the PO is accepted

A written sales contract between buyer and seller detailing the exact merchandise or services to be rend from a single vendor. It will specify payment terms, delivery dates, item identification, quantities, shipping terms and all other obligations and conditions. Purchase orders are generally preprinted, numbered documents generated by the retailer's financial management system which shows that purchase details have been recorded and payment will be made.

Raising sales order: - Increase in sales order.

Order processing

The document action button (bottom right of the order window) will initiate order processing (it displays the default action as its label). The available actions are:

Complete: Reserves stock and initiates any further document processes (for example, shipment and invoice creation for an On Credit Order). Document status is set to complete.

Close: For a completed order, sets quantity ordered to equal the quantity delivered so far (thus preventing further shipments being created. Document status is set to closed, which prevents any further updates to the order.

Void: Sets all quantities to zero and document status to voided. Any automatically generated linked documents are automatically voided as well (for example, a Warehouse Order will have any shipments voided).

Reactivate: Takes a completed order and changes it document status to in progress, allowing it to be edited. This will result in automatically generated linked documents being reversed.

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Sales planning /dispatch: - Sales is an Indicator of Strength

Sales are the name of the game in many businesses and organizations. To have a successful business you must have profitable sales. There is a formula to increasing sales. Training, product knowledge, and the sales environment you present to customers all have a bearing on your sales. The tools and techniques you employ to sell your product or service also relate to the bottom line. Does your company want more sales? These are the tools and techniques that Sales Creators excels in providing for and training company personnel on after assessing deficiencies and strengths.

Loading of consignment: -

Consignment is the act of consigning, which is placing a person or thing in the hand of another, but retaining ownership until the goods are sold or person is transferred. This may be done for shipping, transfer of prisoners, or for sale in a store (i.e. a consignment shop).

Features of consignment are:

1. The relation between the two parties is that of consignor and consignee and not that of buyer and seller

2. The consignor is entitled to receive all the expenses in connection with consignment3. The consignee is not responsible for damage of goods during transport or any other

procedure.4. Goods are sold at the risk of consignor. The profit or loss belongs to consignor only.

The word consignment comes from Fr. Consigner "to hand over or transmit", originally from Lat. consignor "to affix a seal," as was done with official documents just before being sent.

4.5 Scrap sales:-

AUCTION-99%

TENDER -1 %

4.6 BILL DISCOUNTING:-

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Bill Discounting

While discounting a bill, the Bank buys the bill (i.e. Bill of Exchange or Promissory Note) before it is due and credits the value of the bill after a discount charge to the customer's account. The transaction is practically an advance against the security of the bill and the discount represents the interest on the advance from the date of purchase of the bill until it is due for payment.

Under certain circumstances, the Bank may discount a bill of exchange instead of negotiating them. The amount the Bank advances to you also depends on your past record and reputation of the drawee.

Usually, the Bank may want some conditions to be fulfilled to be able to discount a bill:

A bill must be a usance bill It must have been accepted and bear at least two good signatures (e.g. of reputable

individuals, companies or banks etc.) The Bank will normally only discount trade bills Where a usance bill is drawn at a fixed period after sight, the bill must be accepted to

establish the maturity

The advising or confirming bank will hide the reimbursement instruction from the beneficiary so that his bank must present the documents to the nominated bank for negotiation in order to obtain payment under the DC terms.

Bills which are financed by the receiving branch, whether drawn under a DC or not, are treated as Bills Receivable by both the remitting branch and the receiving branches.

Presenting a bill

Bills may be presented to the nominated bank in two ways:

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1. With recoursewe check the documents and confirm that they comply with the DC terms, and send the bill with the original DC to the nominated bank requesting payment. The nominated bank need not recheck the documents and it can claim a refund from us in the case of an unspotted discrepancy. We pay our customer after receipt of funds from the nominated bank.

2. Without recoursewe pass the original DC and unchecked documents to the nominated bank on a collection basis, requesting payment. The nominated bank has to check the documents in the normal way. Usually, we present documents to the nominated bank without recourse:

a. When the opening bank is a member of the Bank nominated for payment, acceptance or negotiation

b.When the nominated bank has confirmed the DC

c.When the nominated bank is the drawee

If you have a good standing, we can give you an advance against an OBN bill. You will then have to repay the advance from the proceeds of the bill.

Finance Against Collection

You as an exporter may ask the Bank for finance against a collection bill. Now, if your buyer will close the sale only if he gets credit, you may involve the Bank to arrange for the same. This will allow you to be flexible in the payment terms.

The remitting bank may finance a good creditworthy exporter by purchasing or discounting his collection bills under an "Export Line". However,

If the importer refuses a bill the Bank has purchased, the Bank must be sure of being able to get a refund.

The importer must be reliable. The Bank usually tries to avoid the risk of refusal by keeping in touch with large banks.

The Bank always ensures that when a bill is purchased, it is drawn on approved drawees within limits.

4.7 CREDIT NOTES: -

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A credit note or credit memorandum (memo) is a commercial document issued by a seller to a buyer. The seller usually issues a Credit Memo for the same or lower amount than the invoice, and then repays the money to the buyer or sets it off against a balance due from other transactions.

It can also be a document from a bank to a depositor to indicate the depositor's balance is being increased because of an event other than a deposit, such as the collection by the bank of the depositor's note receivable.

Features

A credit note lists the products, quantities and agreed prices for products or services the seller provided the buyer, but the buyer returned or did not receive. It may be issued in the case of damaged goods, errors or allowances. In respect of the previously issued invoice, a Credit Memo will reduce or eliminate the amount the buyer has to pay. Note: A Credit Memo is not to be substituted as a formal document. The Credit Memo rarely contains: PO #, Date, Billing Address, Shipping Address, Terms of Payment, List of products with quantities and prices. Usually it references the original Invoice and sometimes states the reason for issue.

4.8 INTEREST DEBIT NOTES:- What is a 'Debit Note'? Debit Note proves that a debit entry has been made to a debtor's or creditor's account. A customer or supplier can be debited for variety of reasons such as purchase return, wrong quantity or quality of product, rate difference, discount, commission, etc.When goods are returned to the supplier, a Debit Note is made out of his name. But if you want to record the stock also (in case of Purchase Return) then you must enter 'Purchase Return' voucher 'Purchase'.For rest of the cases (where stock is not affected) you can prepare a Debit Note. 

How to create 'Debit Note'?

1. After Login, click Accounting 2. Then click on Debit Note

1. Voucher No: It is used for voucher identification. It is a combination of alphabets and numbers. “AB” series is set by default if any other series is not created. It can be changed.Last entered series for Debit Note, will be set in Combo Box from list of series. You can change this series. The Voucher No. is set according to the voucher series. It is set to the maximum number for the selected Voucher Series. You can change it.

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2. Date: Enter the date on which transaction is entered. The last Debit Note date is set by default.

3. Debit Account: Only the accounts that fall under 'Sundry Debtor' and 'Sundry Creditor' group will appear in debit side of Debit Note. Here you will see the Closing Balance for selected Debit Account.

4. Credit Account: The accounts other than Cash/Bank group, Sundry Debtor, Sundry Creditor and VAT on Sales group are shown in this Combo Box. If you select debit Account from CST on Sales/Purchase or VAT on Purchase you can enter taxable amount for the Tax applied. Here you will see the Closing Balance for Credit Account.

5. Amount: Enter the debited amount in this field.

6. Narration: You can select a Narration from the Combo Box or enter another narration.

7. Taxable Amount: If you select an account from CST. On Sales/Purchase or Vat On Purchase group, then taxable amount field will appear. Taxable amount is assessable value on which VAT or CST is calculated. If you do not enter any amount then the system will take the Taxable amount as zero and VAT and CST reports are prepared accordingly.Taxable Amount does not have any accounting effect. It is only for preparing VAT and CST reports. If you want proper VAT/CST reports, then enter the basic taxable amount (Amount on which VAT/CST is calculated) in the taxable amount field.

8. VAT: If you want to apply VAT you can select this Check Box.

9. VAT Rate: Here you can enter the percentage of VAT to be applied on the amount. This is retained in the Combo Box. New value can be added every time a new voucher is created.

10. Rounding: If this option is selected then you will get the Grand Total in round figures only. Example: If the total is Rs. 102.37 and if rounding is selected, the Grand Total will be Rs. 102.00. If the total is Rs. 102.64 and if rounding is selected, the Grand Total will be Rs. 103.00.

11. Account: This Combo Box contains all the accounts under VAT on Purchase Group. When you select a VAT Rate and if there is a VAT account for that rate, that account will be set in the Combo Box. If there is no VAT account for the selected VAT Rate, 'VAT on Purchase' account will be set. You can change this account. The calculated VAT amount will be credited to the selected account.

12. Grand Total: This total includes Tax amount (VAT) and the Amount you have entered. If you have selected Rounding Check Box, The difference between actual amount and total after rounding goes into Purchase Round Off account. If the Rounded amount is less than 50 paise it is debited in Purchase Round Off account else it is subtracted by 1 and credited in Purchase Round Off account.

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13. Finish: On click of 'Finish' button the Debit Note will be saved. If you select a customer or supplier whose Bill Breakup facility is selected then you have to perform Bill Break Up.

14. Finish & Print: If you want to save the voucher and Print it simultaneously, click this button. The voucher is saved and you can see the Print Preview of the voucher. If you select a customer or supplier whose Bill Break Up facility is selected then you have to perform Bill Break Up.

15. Close: In order to close the open screen, click 'Close' button. If you close the screen without performing 'Finish', the voucher will not be saved. You can also use 'Esc' to close the screen.

                Accounting Effects of Debit Note.In Debit Note Account selected from credit combo is credited and account selected from debit combo is debited and VAT account is credited.Example:

Account Debit Amount Credit Amount

LG Electronics 172.00 00.00

Bank A/c Charges 00.00 165.00

Vat on Sale 4% 00.00 6.60

Purchase Round Off 00.00 0.40

4.9 PAYMENTS:-

A payment is the transfer of wealth from one party (such as a person or company) to another. A payment is usually made in exchange for the provision of goods, services or both, or to fulfill a legal obligation.

The simplest and oldest form of payment is barter, the exchange of one good or service for another. In the modern world, common means of payment by an individual include money, cheque, debit, credit, or bank transfer, and in trade such payments are frequently preceded by an invoice or result in a receipt. However, there are no arbitrary limits on the form a payment can take and thus in complex transactions between businesses, payments may take the form of stock or other more complicated arrangements.

In law, the payer is the party making a payment while the payee is the party receiving the payment.

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Payment methods

There are two types of payment methods; exchanging and provisioning. Exchanging is to change coin, money and banknote in terms of the price. Provisioning is to transfer money from one account to another. In this method a third party must be involved. Credit card, debit card, money transfers, and recurring cash or ACH (Automated Clearing House) disbursements are all electronic payments methods. Electronic payments technologies are magnetic stripe card, smartcard, contactless card and mobile handset. Mobile handset based payments are called mobile payments.

4.10REGIONAL PAYMENT :- Contents of regional payment:-

4 Main zone of balco (Kolkata, Delhi, Mumbai, Bangalore). Every zone have 1 financial officer. Treasury mail – who make the payment Every month its deal with the balco Sundary expenses payment. It deal once in a month. Jaipur is only city it deals twice in month i.e.15 days according to government of

rajasthan.

4.11SALES RETURN

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TYPES OF SALES RETURN

PARTY RETURN

DEPOT RETURN

EXPORT RETURN

DAMAGE

NOT AS PER ORDER

PROCESS

REASON OF SALES RETURN

PROCESS OF SALES RETURN:-INFORMATION IN ZONEAUDIT BY MARKTING AND QUALITY PERSONNOTE OF APPROVALINVOICE RETURNMATERIAL RETURNWEIGHT CHECKING IN BALCOUNLOAD OF MATERIAL

4.12REFUND:- Refund basically means to stop the dealing with balco. Refund must be balance the amount or close the account of party. Refund must be given by the request of party, party can give some approximately amount. This amount may be less or more in case of less amount balco can refund only that amount which party can request.

PENDING:-

Difference in balance must be given to the parties. C form is pending

PROCESS:-

Party must give all statement to balco. C form must be ok.

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REFUND

PENDING PROCESS MADE

Zone product manager requiste for refund.

MADE: after all documents is clear then balco can refund the balance amount of parties if any?

TAXATION

4.13 Taxation:-

The act of levying a tax, or of imposing taxes, as on the subjects of a state, by government, or on the members of a corporation or company, by the proper authority; the raising of revenue; also, a system of raising revenue. The act of taxing, or assessing a bill of cost.

TAXATION

To tax (from the Latin taxo; "I estimate", which in turn is from tango; "I touch") is to impose a financial charge or other levy upon a taxpayer (an individual or legal entity) by a state or the functional equivalent of a state such that failure to pay is punishable by law.

4.14 Taxation principles

 Definition:-

Basic concepts by which a government is meant to be guided in designing and implementing an

equitable taxation regime.

These include:-

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(1) Adequacy: taxes should be just-enough to generate revenue required for provision of

essential public services.

(2) Broad Basing: taxes should be spread over as wide as possible section of the population, or

sectors of economy, to minimize the individual tax burden.

(3) Compatibility: taxes should be coordinated to ensure tax neutrality and overall objectives of

good governance.

(4) Convenience: taxes should be enforced in a manner that facilitates voluntary compliance to

the maximum extent possible.

(5) Earmarking: tax revenue from a specific source should be dedicated to a specific purpose

only when there is a direct cost-and-benefit link between the tax source and the expenditure, such

as use of motor fuel tax for road maintenance.

(6) Efficiency: tax collection efforts should not cost an inordinately high percentage of tax

revenues.

(7) Equity: taxes should equally burden all individuals or entities in similar economic

circumstances.

(8) Predictability: collection of taxes should reinforce their inevitability and regularity.

(9) Restricted exemptions : tax exemptions must only be for specific purposes (such as to

encourage investment) and for a limited period.

(10) Simplicity: tax assessment and determination should be easy to understand by an average

taxpayer.

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TAX

INDIRECT TAX

DIRECT TAX

4.15 Indirect tax:- The term indirect tax has more than one meaning.

In the colloquial sense, an indirect tax (such as sales tax, value added tax (VAT), or goods and services tax (GST)) is a tax collected by an intermediary (such as a retail store) from the person who bears the ultimate economic burden of the tax (such as the customer). The intermediary later files a tax return and forwards the tax proceeds to government with the return. In this sense, the

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Commercial

Excise Customs

Service Tax

Wealth tax Income tax

Levied upon assesses

Has to be born by individual directly

Levied on sales / manufactures

Burden is transfer to consumer

term indirect tax is contrasted with a direct tax which is collected directly by government from the persons (legal or natural) on which it is imposed. Some commentators have argued that "a direct tax is one that cannot be shifted by the taxpayer to someone else, whereas an indirect tax can be."

An indirect tax may increase the price of a good so that consumers are actually paying the tax by paying more for the products. Examples would be fuel, liquor, and cigarette taxes. An excise duty on motor cars is paid in the first instance by the manufacturer of the cars; ultimately the manufacturer transfers the burden of this duty to the buyer of the car in form of a higher price. Thus, an indirect tax is such which can be shifted or passed on.

Indirect tax- the burden of these taxes are passed on the consumer indirectly are to name the few of these taxes, they are

A. Sales tax (central as well as state level value added tax).B. ExciseC. CustomsD. Service Tax

4.16 Direct tax :- The term direct tax generally means a tax paid directly to the government by the persons on whom it is imposed. In the general sense, a direct tax is one paid directly to the government by the persons (juristic or natural) on whom it is imposed (often accompanied by a tax return filed by the taxpayer). Examples include some income taxes, some corporate taxes, and transfer taxes such as estate (inheritance) tax and gift tax. In this sense, a direct tax is contrasted with an indirect tax or "collected" tax (such as sales tax or value added tax (VAT)); a "collected" tax is one which is collected by intermediaries who turn over the proceeds to the government and file the related tax return. Some commentators have argued that "a direct tax is one that cannot be shifted by the taxpayer to someone else, whereas an indirect tax can be."[1]

Direct taxes – few of direct tax commonly known are

Income tax

wealth tax

INDIRECT TAX IS VERY WIDE SUBJECT:-

HERE I HAVE COVERED FEW ASPECTS RELATING TO SOME OF INDIRECT TAX UNERGONE DURING LEARNING

4.17 EXICES DUTY:-

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Taxation of inputs, like raw materials, components and other intermediaries had a number of limitations. In production process, raw material passes through various processes stages till a final product emerges. Thus, output of the first manufacturer becomes input for second manufacturer and so on. When the inputs are used in the manufacture of product `A', the cost of the final product increases not only on account of the cost of the inputs, but also on account of the duty paid on such inputs. As the duty on the final product is on ad valorem basis and the final cost of product `A' includes the cost of inputs, inclusive of the duty paid, duty charged on product `A' meant doubly taxing raw materials. In other words, the tax burden goes on increasing as raw material and final product passes from one stage to other because, each subsequent purchaser has to pay tax again and again on the material which has already suffered tax. This is called cascading effect or double taxation.

This very often distorted the production structure and did not allow the correct assessment of the tax incidence. Therefore, the Government tried to remove these defects of the Central Excise System by progressively relieving inputs from excise and countervailing duties. An ideal system to realize this objective would have been to adopt value added taxation (VAT). However, on account of some practical difficulties it was not possible to fully adopt the value added taxation.

Hence, Government evolved a new scheme, `MODVAT' (Modified Value Added Tax). MODVAT Scheme which essentially follows VAT Scheme of taxation. i.e. if a manufacturer A purchases certain components(raw materials) from another manufacturer B for use in its product. B would have paid excise duty on components manufactured by it and would have recovered that excise duty in its sales price from A. Now, A has to pay excise duty on product manufactured by it as well as bear the excise duty paid by the supplier of raw material B. Under the MODVAT scheme, a manufacturer can take credit of excise duty paid on raw materials and components used by him in his manufacture. It amounts to excise duty only on additions in value by each manufacturer at each stage.

The modvat scheme is regulated by Rules 57A to 57U of the Central Excise Rules and the notifications issued there under (The Central Excise Rules, 2002 (Section 143 of the Finance Act, 2002).

Modvat Scheme ensures the revenue of the same order and at same time the price of the final product could be lower. Apart from reducing the costs through elimination of cascade effect, and bringing in greater rationalization in tax structure and also bringing in certainty in the amount of tax leviable on the final product, this scheme will help the consumer to understand precisely the impact of taxation on the cost of any product and will, therefore, enable consumer resistance to unethical attempts on the part of manufacturers to raise prices of final products, attributing the same to higher taxes.

Subsequently, MODVAT scheme was restructured into CENVAT( Central Value Added Tax) scheme. A new set of rules 57AA to 57AK , under The Cenvat Credit Rules, 2004, were framed and whatever restrictions restrictions were there in

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MODVAT Scheme were put to an end and comparatively, a free hand was given to the assesses. Under the Cenvat Scheme, a manufacturer of final product or provider of taxable service shall be allowed to take credit of duty of excise as well as of service tax paid on any input received in the factory or any input service received by manufacturer of final product.

EXICES DUTY

Central Excise duty is an indirect tax levied on those goods which are manufactured in India and are meant for home consumption. The taxable event is 'manufacture' and the liability of central excise duty arises as soon as the goods are manufactured. It is a tax on manufacturing, which is paid by a manufacturer, who passes its incidence on to the customers.

The term "excisable goods" means the goods which are specified in the First Schedule and the Second Schedule to the Central Excise Tariff Act, 1985 , as being subject to a duty of excise and includes salt.

The term "manufacture" includes any process,

a) Incidental or ancillary to the completion of a manufactured product and b) Which is specified in relation to any goods in the Section or Chapter Notes of the First

Schedule to the Central Excise Tariff Act, 1985 as amounting to manufacture or c) Which, in relation to the goods specified in the Third Schedule, involves packing or

repacking of such goods in a unit container or labelling or re-labelling of containers including the declaration or alteration of retail sale price on it or adoption of any other treatment on the goods to render the product marketable to the consumer?

As incidence of excise duty arises on production or manufacture of goods, the law does not require the sale of goods from place of manufacture, as a mandatory requirement. Normally, duty is payable on 'removal' of goods. The Central Excise Rules provide that every person who produces or manufactures any 'excisable goods', or who stores such goods in a warehouse, shall pay the duty leviable on such goods in the manner provided in rules or under any other law. No excisable goods, on which any duty is payable, shall be 'removed' without payment of duty from any place, where they are produced or manufactured, or from a warehouse, unless otherwise provided. The word 'removal' cannot be necessarily equated with sale.

The removal may be for:-

1. Sale2. Transfer to depot etc.3. Captive consumption4. Transfer to another unit5. Free distribution

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Thus, it can be seen that duty becomes payable irrespective of whether the removal is for sale or for some other purpose.

4.18 INPUT GOODS:-

The term "Input" means: -

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GOODS

INPUT GOODS

CAPITAL GOODS

RAW MATERIAL

PAINT

FUEL

PIPES

STORAGE TANK

MACHINERY (PARTS, SPARES)

100% AS SOON AS MATERIAL BASED IN PLANT

50% FIRSTL YEAR REST AMOUNT CAN SUBSEQUENT YEAR

1. All goods, except light diesel oil, high speed diesel oil and motor spirit, commonly known as petrol, used in or in relation to the manufacture of final products whether directly or indirectly and whether contained in the final product or not and includes lubricating oils, greases, cutting oils, coolants, accessories of the final products cleared along with the final product, goods used as paint, or as packing material, or as fuel, or for generation of electricity or steam used in or in relation to manufacture of final products or for any other purpose, within the factory of production

2. All goods, except light diesel oil, high speed diesel oil, motor spirit, commonly known as petrol and motor vehicles, used for providing any output service;

Explanation 1: The light diesel oil, high-speed diesel oil or motor spirit, commonly known as petrol, shall not be treated as an input for any purpose whatsoever.

Explanation 2: Inputs include goods used in the manufacture of capital goods which are further used in the factory of the manufacturer;"

The term "Input service" means any service: -

1. Used by a provider of taxable service for providing an output service; or 2. Used by the manufacturer, whether directly or indirectly, in or in relation to the

manufacture of final products and clearance of final products from the place of removal,

And includes services used in relation to setting up, modernization, renovation or repairs of a factory, premises of provider of output service or an office relating to such factory or premises, advertisement or sales promotion, market research, storage upto the place of removal, procurement of inputs, activities relating to business, such as accounting, auditing, financing, recruitment and quality control, coaching and training, computer networking, credit rating, share registry and security, inward transportation of inputs or capital goods and outward transportation upto the place of removal;"

4.18 CAPITAL GOODS:-

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Manufacturer and service providers can avail Cenvat credit of capital goods used by them. The plant and machinery and allied items are purchased by a manufacturer. Such goods known as capital goods may be duty paid. The capital goods shall be used in manufacture of final products or for providing output service. The CENVAT credit in respect of duty paid on capital goods shall be taken only for an amount not exceeding fifty percent of the duty paid in the same financial year and the credit of balance amount can be take in any financial year subsequent to the financial year in which the capital goods were received.

An advantageous scheme for procurement of Capital Goods

The EPCG scheme allows import of capital goods (including CKD/SKD thereof as well as computer software systems and spares, jigs, fixtures, dies and moulds) at 0%/3.09% Customs duty as against the normal total of 23.895%/20.805%, thus providing a duty saved value of more than 20% of the import value. This is subject to an Export Obligation (EO) equivalent to 6/8 times of duty saved, to be fulfilled over a period of 6/8 years reckoned from the date of issuance of license. For large projects, SSI etc. there are more relaxed norms of EO.

The scheme covers manufacturer exporters with or without supporting manufacturer(s) / vendor(s), merchant exporters tied to supporting manufacturer(s) and Service Providers.

Actual user conditions: Import of capital goods are subject to Actual User condition till the export obligation is completed.

Export obligation: The export obligation needs to be fulfilled by the export of goods capable of being manufactured or produced by the use of the capital goods imported under the scheme. In addition up to 50% of the EO can also be fulfilled by any alternate product of the company or even Group Company. Deemed Exports like supplies to Power Projects, Projects funded by WB/ADB/JBIC etc, EOUs etc. can also be utilized to fulfill the EO

Indigenous Sourcing: A person holding an EPCG license may source the capital goods from a domestic manufacturer instead of importing them. The domestic manufacturer supplying capital goods to EPCG license holders shall be eligible for refund of Excise Duty paid by him. In addition the indigenous supplier can import his own raw material duty free and other benefits which can be discussed.

4.19 CREDIT:-

WHEN YOU CAN TAKE?

On receipt of goods into your factory premises.

FOE AVAILLING CREDIT DOCUMENT NEEDED:-

1. Goods received in factory (goods received note ‘stores’).

2. Duplicate of transport copy.

a) Name of customer/consignee

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b) Excise number-registration number with excise duty, excise control code 15

3. Material description (CAPTER HEADING).

4.20 CLEARANCE:-

DOMESTIC

EXPORT

CAPTIVELY CONSUMED

A. DOMESTIC:- PAY ON DUTY.

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EXCISE CREDIT

BASIC EXCISE DUTY

EDUCATIONAL CHESS

SECONDARY HIGHER EDUCATION CHESS

WITH OUT PAYMENT OF DUTY

BALCO DEPOT RG23D (REGISTER)

REGISTERS:-

a) RG1:- DAILY MANUFACTURES (DAILY STOCK REGISTER).

b) RG23A:-INPUT MATERIAL ENTRY.

c) RG23C:- CAPITAL GOODS CREDIT ENTRY.

B. EXPORT:-

NILL DUTY.

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100% EXPORT ORIENTED UNITS

SPECIAL ECONOMIC ZONE

JOB WORK

MERCHANT EXPORT

NILL DUTY (FORM CT 3)

NILL DUTY EQUIVAL-ENT TO EXPORT

NILL DUTY (FORM CT1)

MATERIAL CLEARED FOR EXPORT TO PORT SHALL BE EXPORTED WITHIN 6

MONTHS OF CLEARANCE FROM YOUR FACTORY.

IN CASE NOT YOU HAVE TO PAY DUTY.

WHEN MATERIAL COMES IN FACTORY ESTIMATE EXCISE RANGE OFFICE

(D3).

REPAIR:-

REPAIR IN 180 DAYS OTHERWISE COMPANY HAVE TO PAY DUTY.

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PURCHASE MATERIAL

SALE AGAIN YOU NEED TO PAY DUTY

Chapter – V

Conclusions & Scope of further work

5.1 FINDINGS

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1. Current ratio of the company is 1.53 times which is ideal for the company.

2. Sale in 2008-09 is decreased because of economic slowdown in global market.

3. Vedanta becomes a big aluminum a power major in South Asia by 2012 by their

expansion projects and Balco play a major role in it.

5.2 CONCLUSION

After analysis we have find that Balco is number one leading industrial sector in C.G Balco have maintained customer relationship It is a fast growing segment sector in aluminium Balco give more concentrate towards increasing sales Balco should not only concentrate on national market a part from this they should focus

on international market also. Many of user’s purchase the Balco product with the help of financial institution Balco can win the overall competitive advantage in the market nationally as well as

globally After the study we have conclude that the mostly customer enjoy the customer benefit Mostly of the customers satisfied with balco products

5.3 Scope of further work:-

1. TO ESTIMATE THE COST OF PRODUCTION.2. TO INCRESE IN EXPORT.3. MAINTAIN GOOD RELATIONSHIP WITH MOU PARTIES.4. INCREASE IN SALES INCLUDING SCRAP SALES.5. TAX ARE LEVYING ACCORDING TO PRODUCT (PRIMARY & SECONDARY).

BIBLOGRAPHY

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Bharat aluminium company audit reports

Balco magazines “Balco Manch”

Vedanta audit reports

INDIRECT TAX (DR.H.C.MALHOTRA & PROF.V.P.AGARWAL)

WEBLIOGRAPHY

www.vedantaaluminium.com

www.balcoindia.com

www.vedantaresource.com

http://en.wikipedia.org/wiki/Invoice

http://en.wikipedia.org/wiki/Sales_(accounting)

http://www.futureaccountant.com/consignment-accounting/study-notes/account-sales.php

http://www.google.co.in/search?hl=en&q=+sales+planning&aq=o&aqi=&aql=&oq=&gs_rfai =

http://jobsearch.naukri.com/mynaukri//mn_newminnernew.php?f=260610001194&xz=11_0_15

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