Varsha summar intenship program
Download as PPTX, PDF5 likes699 views
The document provides information about the Visakhapatnam steel plant (RINL) summer internship program. It discusses the history and operations of the steel plant, located in Visakhapatnam. The plant began operations in 1992 and produces over 3 million tons of liquid steel annually using modern production methods. The document also outlines the plant's vision, major departments, customers, competitors and various analyses conducted as part of the internship.
Varsha summar intenship program
- 1. SUMMER INTERNSHIP PROGRAM Vizag steel plant (RINL)
- 2. • Steel is an alloy of iron and carbon that is widely used in construction and other applications because of its hardness and tensile strength. • steel had been produced in bloomer furnaces for thousands of years, steel's use expanded extensively after more efficient production methods were devised in the 17th century for blister steel and then crucible steel. • Today, steel is one of the most common materials in the world, with more than 1.3 billion tons produced annually. • It is a major component in buildings, infrastructure, tools, ships, automobiles, machines, appliances, and weapons. ABOUT STEEL PLANT
- 4. • Visakhapatnam steel plant is also called as RINL which means “RASHTRIYA ISPAT NIGAM LIMITED”. • The foundation for RINL was laid by the then Prime Minister Mrs. Indira Gandhi on 20th January 1971. • The Project was estimated to cost Rs.3, 897.28 cores based on prices as on 4th Quarter of 1981. • On completion of Construction of the whole Plant in 1992, the cost escalated to around 8500 Cr. • Visakhapatnam Steel Plant is one of the most modern Steel Plants in the country. • The plant was dedicated to the nation on 1st August 1992 by the then Prime Minister, P.V.Narasimha Rao. ABOUT STEEL PLANT
- 6. Vision • To be a continuously growing world class company • Harness our growth potential and sustain profitable growth. • Deliver high quality and cost competitive products and be the first choice of customers. • Create an inspiring work environment to unleash the creative energy of people. • Achieve excellence in enterprise management. • Be a respected corporate citizen, ensure clean and green environment and develop vibrant communities around us.
- 7. Mission To attain 16 Mt liquid steel capacity through technological up- gradation, operational efficiency and expansion; augmentation of assured supply of raw materials; to produce steel at international Standards of Cost & Quality; and to meet the aspirations of stakeholders
- 9. • Human Resource Department • Finance Department • Marketing Department • Administration And Welfare Department • Raw Material Handling Plant • Coke Oven Department • Sinter Plant Department • Blast Furnace • Steel Melt Shop • Rolling Mills • Wire Rod Mill • Medium Merchant & Structural Mill (MMSM) • Law Department
- 10. COMPANY Customer
- 11. • The Main Customers Of The Steel Plant Are : • Builders • Construction Companies. • Indian Railways. • State Governments. • Visakhapatnam Steel Products Are Also Being Exported To Other Countries.
- 13. Competitors • Bharat Refectories Ltd. • Hindustan Steel Works Construction Ltd. • Jindal Steel and Power Ltd. • Tata Iron Steel Company Metal Scrap Trade Corporation Ltd. • Metallurgical and Engineering Consultants India Ltd. • National Mineral Development Corporation Ltd. • Sponge Iron India Ltd. • Steel Authority India ltd.
- 14. ABBREVATIONS
- 15. GM - GENERAL MANAGER ED - EXECUTIVE DIRECTOR RINL - RASHTRIYA SPAT NIGAM LIMTED F&A - FNANCE AND ACCOUNTS TTI - TECHNICAL TRAINING INSTITUTE CISF - CENTRAL INDUSTRIAL SECURITY FORCE IT - INFORMATION TECHNOLOGY MM - MATERIAL MANAGEMENT
- 16. Visakhapatnam steel plant technology •7m tall Coke Oven Batteries with coke dry quenching. •Biggest Blast Furnaces in the country. •Bell less top changing system in Blast Furnace. •100% slag granulation at the Blast Furnace cast house. •Suppressed combustion—LD gas recovery system. •100% continuous casting of liquid steel. •‘Tempcore’ and ‘Stelmor’ cooling process in LMMM & WRM. •Extensive waste heat recovery systems. •Comprehensive pollution control measure
- 17. On Job Training
- 18. • On-the-job training (OJT) is a form of training taking place in a normal working situation. • On-the-job training, sometimes called direct instruction, is one of the earliest forms of training. • It is a one-on-one training located at the job site, where someone who knows how to do a task shows another how to perform it.
- 19. COMPANY Task Undertaken In Vsp
- 20. TASK UNDERTAKEN IN VSP VSP is operating at 3.00 M.T. of liquid steel at present. It is framed to Enhance its capacity to produce 6.3M.T of liquid steel by expansion. The estimated cost of expansion is: Approved cost: 11,999 Crs (Base Jun, 2005) Debt component: 2399.8 Crs. Assumed in calculation as per rate as 5.5%. How expansion will affect the capacity in positive way:
- 22. Man Power as on 01-03-2014 Works Non-works project mines total Executive 4250 1511 421 117 6299 Non-Executive 11016 800 48 221 12085 total 15266 2311 469 338 18384
- 23. Man Power as on 01-03-2014 0 2000 4000 6000 8000 10000 12000 14000 16000 18000 20000 executves non-excutives total Man power works non-works projects mines total
- 25. The INVESTMENT DECISIONS of a firm are generally known as the capital budgeting, or capital expenditure decisions A capital budgeting decision may be defined as the firm’s decision to invest its current funds most effectively in the long- term assets in anticipation of an expended flow of benefits over a series of years. The features of investment decisions : The exchange of current funds for future benefits. The funds are invested in long-term assets. The feature benefits will occur to the firm over a series of years
- 26. Year Construction year Operation Year Capital cost Expected Cash inflow Year no Cash flow Net cash 2011-12 1 0 10133 0 1 -10133 -10133 2012-13 2 0 933 0 2 -933 -11066 2013-14 3 0 933 0 3 -933 -11999 2014-15 4 1 0 1154.54 4 1154.54 -10844.5 2015-16 5 2 0 2187.04 5 2187.04 -8657.42 2016-17 6 3 0 2718.78 6 2718.78 -5938.64 2017-18 7 4 0 2684.85 7 2684.85 -3253.79 2018-19 8 5 0 2798.69 8 2798.69 -455.1 2019-20 9 6 0 2657.31 9 2657.31 2202.21 2020-21 10 7 0 2298.82 10 2298.82 4501.03 2021-22 11 8 0 2210.36 11 2210.36 6711.39 2022-23 12 9 0 2159.06 12 2159.06 8870.45 2023-24 13 10 0 2140.15 13 2140.15 11010.6 2024-25 14 11 0 2123.82 14 2123.82 13134.42 2025-26 15 12 0 3755.22 15 3755.22 16889.64 DATA USED FOR THE TASK
- 27. Formulas applied Payback period ₌ Cost of investment Annual net cash flow Accounting rate of return = Annual after-tax net income Annual average investment NPV= Present value of cash inflow – present value of cash out flow I R R = A L + (H – L) B-A Where L : Lower discount rate at which NPV is positive H : Higher discount rate at which NPV is negative A : NPV at lower discount rate, L B : NPV at higher discount rate. PV of cash inflow Initial Cash outlay P I = Profitability index Where, PI : Profitability index PV : present value
- 29. S W O T A N A L Y S I S S- STRENGTHS: State –of-the technology High commitment to achieve capacity levels Areas of excellence Economies of scale High expansion potential Strong commitment to conserve environment W-WEAKNESSES High capital rated charges Low return product –mix Productivity below international levels Practices not as per with international standards
- 30. O-OPPORTUNITIES Shore based Sizeable export markets Access to import resources Proximity to southern markets Increasing domestic demand due to thrust on infrastructure development T- THREATS Rising input costs Increasing competition Sensitive to exchange rate variation Possibility of import duties declining further. Excise duties continue to be high Lack of alternative sources for major raw materials S W O T A N A L Y S I S
- 32. • The project completion cost is estimated to be Rs. 11999. Cr. • The payback period of the project in VSP is 5 years and 2 months. The payback period is less than the target period so the project may be accepted. • The NPV of the project is positive than the value of the capital. • The Internal rate of return is Internal rate of 15.73% it is greater than the cost of capital i.e., 18% so the project accepted. • The company has to maintain at 7: 3 (debt: equity), that is better for company. • It also maintains 60: 40, but equity to be raised SUGGESTIONS
- 33. COMPANY Findings
- 34. • The project completion cost is estimated to be Rs.11999. Cr. • The payback period of the project in VSP is 5 years and 2 months. The payback period is nearly 1/3 of the 15 years, the economic life project so the project is viable. • The NPV of the project is positive and higher than the cost of the capital. • The Internal rate of return is Internal rate of 15.73% it is greater than the cost of capital. So the project is accepted. • The estimated cash flows of the project are after payment of interest and tax. • Expansion from 3.0MT capacity to 6.3MT capacity undertaken is profitable. • Increase in Debt component is decreasing the Profitability due to the tax on debt as dividend on equity is not considered as entire equity is held by GOI. Had dividend on equity is considered, the evaluation will change. • The completion cost may further increase if any delay in construction process. FINDINGS
- 36. • The Skills Required For Performing This Task Are Observation Skills. • Thorough Verification Of The Company’s Financial Data. • As Capital Budgeting Involves All The Aspects Of Finance There Should Be The Basic Knowledge Of Finance. • Good Communication Skills. SKILLS REQUIRED
- 38. a) Since the procedure and polices of the company will not allow to disclose confidential financial information, the project has to be completed with the available data given to us. b) The period of study that is 8 weeks is not enough to conduct detailed study of the project. c) The study is carried basing on the information and documents provided by the organization and based on the interaction with the various employees of the respective departments. d) Lack of knowledge. Some of the lack full-fledged knowledge of the concept and its difficult to collect a specific opinion from them. e) The duration of the project is short to collect the required information accurately GAP ANALYSIS
- 39. By this I conclude that the summer internship programme which has been undergone in steel plant has been completed with the data given. I had got aware of the real time corporate experience and this programme has also helped me to approach many corporate persons. I am satisfied with by work and task assigned to me. CONCLUSION