ace pipeline contracts pvt

8/9/2019 Ace Pipeline Contracts Pvt

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PREFACE

Professional study is incomplete without the practicalknowledge. Now a days theory without practical is of little

use. No doubt theory provides the fundamental stone for

the guidance of practice but practice examines the element

of truth lying in the theory. Therefore a stand co-ordination

of theory and practice is very essential to make MMS

perfect. As a student of Business Management, we were

required to undergo 8 (Eight) weeks practical training in

any organization of repute connected with Animation

Education Industry. We were required to work on some

specific research project and work assigned by the

organization.

I completed this practical training at Ace PipelineContracts Pvt,Ltd Mumbai. This project report of the work

consists of preparation of budget & estimated cashflow

statement of pipeline construction projects of the Ace

Pipeline Contracts Pvt,ltd.

Full care has been taken to make this report error free.

Last but not the least i hope this research work will helpfulfor Ace Pipeline Contracts Pvt,Ltd.


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Sr.No Title Page.No

1 Certificate

2 Acknowledgement

3 Executive Summery4 History Of Company

5 Hierarchy In the Company

6 Introduction

7 Details Of Work Done

8 Budgeting

9 Research Methodology

10 Methods Of making Budgeting

11 Actual Format Of Budgeting

12 Cashflow Statement

13 Methods Of Making Cashflow

Statement

14 Actual Format Of Cashflow Statement

15 Difference Between Budgeting &

Cashflow Statement

16 Advantages Of Budgeting & CashflowStatement

17 Recommendation

18


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ACKNOWLEDGEMENTACKNOWLEDGEMENT

Apart from the efforts of me, the success of any project depends

largely on the encouragement and guidelines of many others.I

take this opportunity to express my gratitude to the people who

have been instrumental in the successful completion of this

project.

I take immense pleasure in thanking Mr.R.K.Singh The principle

of Mumbai Institute Of Management & Research, Wadala, for

having permitted me to carry out this project work.

I would like to show my greatest appreciation to Mr. Anoop Singhthe Managing Director Of Ace Pipeline Contracts Pvt,Ltd. for

giving me an opportunity to work in this esteemed organization.

I cant say thank you enough for tremendous support and help I

received from Mr.Bajirao, Industry Mentor. I feel motivated and

encouraged every time I interacted with him. Without hisencouragement and guidance this project would not have

materialized.

Lastly I would like to express my appreciation towards all the Staff

of Ace pipeline Contracts Pvt,Ltd. that I interacted with them for

sparing their valuable time and contributing towards thecompletion of my project.


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Executive Summery


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History Of Ace Pipeline Contracts

Pvt.Ltd.

Ace pipeline Contracts was established in 1989.and has had its

roots in Mumbai.They have grown over the years in our ability to

execute diverse contracts across the nation. Oil & hydrocarbon industry

provides the fuel to the growth of the nation, and they take pride in

building the critical supply chain to the wheels of the nation. Having

growth from the modest start of the execution of shutdown project, they

are transitioning towards the EPC projects and hope to take our values to

the world.

Mission Of Ace pipeline Contracts Pvt.

Ltd.

They are a Construction and Engineering company with a focus on the

hydrocarbon industry, we specialize in laying of cross country pipelines,

with a core competence in area such as pipeline engineering, hydro

testing ,pre-commissioning of the pipeline system, laying pipelines by

trenchless technologies and installation of cathodic protection systems of

pipeline.

Vision Of Ace pipeline Contracts Pvt.Ltd.

They invision ourselves as a leading provider of engineering services to

the hydrocarbon pipeline infrastructer encompassing

design,execution,preservation and O&M with projects across the globe.it

shall be their endeavor to blend technological advances with the benefit

of loe labour cost to provide our customers with world class solutions at

affordable prices.


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ETHICS followed by company for its success are:

To work as a dedicated cohesive

organization.

Be the best employer in its business.

Committed to building and furthering a

reputation of reliability in all its dealing, both on

quality and on their ability to complete the

project schedule.

Building long lasting relationships with

Clients.

Ethical dealings across all our business.

Projectsto be Carried out By Acepipeline Contracts pvt.ltd.

Haldia Petrochemical Ltd.

Reliance Industries Ltd.

Oil & Natural gas Corporation

Oil India Ltd.


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Guajrat State Petronet Ltd.

Bharat Petroleum Corporation Ltd.

Indian Oil Corporation Ltd

Hindustan Petroleum Corporation Ltd.

Mumbai Port Trust

GAIL Ltd & many more.

QUALITY POLICY

Ace Group Of Companies

Ace Pipeline Contracts Pvt.Ltd.

Ace Energy Infrastructure Pvt.Ltd.

Committed to

Maintain its position as a leader in pipeline

construction.

Continual improvement in quality

performance and set targets.


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Assure customer satisfaction and compliance

to their stated and implied needs.

Provide necessary training to employees .

Its services are offered all over INDIA and with some

of the reputed clients like Hindustan Petroleum

Corporation Ltd, ONGC, Bharat petroleum

Corporation Ltd., Reliance industries ltd, etc.


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ACEs quality Objectives

1.To build the corporate image of ACE as one of the

best pipeline project execution organization

through continual improvement and adherence to

quality management system as per ISO 9001:2008

2.To improves its turnover through quality services

in the area of engineering, procurement,

Costruction and project management by executingprojects within time schedules and budget

estimates.

3.To adopt Continual review and improvement as a

way of life by improving expertise and upgrading

competence of its staff through motivation and/or

training.

4.To establish goodwill for ACE with improved

customer satisfaction and fulfilling customer

requirements through data analysis, appropriate

feedback and feed forward reports.

5.To maintain rejection/defects levels of services

provided to a bear minimum level

6.To carry out human resources planning on short

term and long term basis so as to ensure optimum

resources utilization.

7.To conserve natural resources while

implementing the projects.


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Hierarchy Of The company:

Managing Directors:Mr.Anoop Singh

Vice President:Mr.Ravneet Singh

Mr.Tarun Singh

Mr.K.Namdev

C.A(Finance Advisor):-Mr.Bharat Tansalia.

General Manager:Mr.S.Raghunathan

Finance Manager:-Mr.Bajirao

Account Head:Mr.Patil

Purchase Head:Mr.Modi

Hr.Head:Mr.Guman


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Introduction

Budgeting

Budgeting meaning of budgeting in simple words is estimation or

making forcasting about future expense which company have to

incurred for execution of project activities.

Budget of any project will include all the expenses relate to the

project,so while making budgeting all the small expense also have

to be consider.

DOCUMENT REQUIRES FOR MAKING THE BUDGET

For making budget of any pipeline project first off all one should go

through the tender copy

TENDER COPY:-It is a document which gives all the detailsabout project, the terms & condition of the project.It includes main

things like:-

Project Period:-It gives the details about within what time all

mechanical as well as the commissioning part of the pipeline

should be completed.

Scope Of Work (SOW):-It gives the details about what exactly

the task have to do under main heads

Eg:-

Topographical survey:

Pipeline route study including locating the centre line of

pipeline alignment on the ground.

Soil investigation.

Reserved forests, Mining sites, Religious Places.


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How many crossing are there on the path of the pipeline route

& on that basis what angle should keep for making horizontal

directional drilling.

How many power & telephone poles are there in between the

pipeline route. Corrossion Survey which includes chemical analysis of soil

investigation.

Scope Of Rate (SOR):-It gives the details about estimated cost for

executing all the activities related to the project.

Scope Of Quantity(SOQ):-It gives details about quantity of material

required.

Eg.

how much quantity of casing pipes of different diameter will be

required.

Payment Terms:-It gives the details about the payment terms likewhen the owner will make the payment, which further depends

upon the percentage of completion of work.

Eg:-

Piping Material:-

A) 90% Of item rate will be paid on receipt of all material at site.

B) 10% on completion of testing, insulation, commissioning.

Civil Work:-

A)75% till completion of all work

B)25% on acceptance of completion of entire job.

Structural Steel:-A)90% of item rate will be on receipt of all material at site

B)10% on completion of testing, insulation, commissioning


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Details about liquidity damage:-it gives the details about how much

percentage of contract value as LD contractor have to pay for not

completing the project in time.

Details about Bank Garauntee :-It gives the details about how

much percentage of total project cost have to be kept aside in thebank in the favour of contractee.

Test to be carried out:-It gives the details about which different test

the contractor have to be carried out while execution of the project

Eg :-

Non-destructive test(NDT)

Electronic Gauge pigging(EGP)

Hydrostatic test.

Horizontal Directional Drilling(HDD)

Pipeline details:-It gives the details about pipeline

Eg:-How much will be the length of pipelines.

What are diameter pipes have to used for different pipelines.

All above mention details are important from budgeting point of

view.


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CHAPTER-2

Work Done On Budgeting & preparation Of estimated cash flow

statement Of HINDUSTAN PETROLEUM CORPORATION

LIMITED Project.

Details of the projects:-

HPCL is planning to construct pipeline for white oil terminal & LPG

terminal, in which all white oil products except mineral turpentine

oil(MTO) & Hexane which will be received through cross country

pipeline from additional tankage package(ATP)to white oil

terminal.MTO will be received through cross country pipeline from

refinery to new white oil terminal & hexane will be received by tank

trucks & LPG facility will be capable of handling LPG ,Auto LPG &

Propylene,& major quantity of LPG will be supplied to GAIL

terminal.

Following products will be handled at white oil terminal

Mineral Turpentine Oil (MTO)

Aviation Turbine Fuel (ATF)

Naphtha

Super kerosene Oil (SKO)

High Speed Diesel(HSD)

Motor Spirit(MS)


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Soft Super kerosene Oil (Soft SKO)

Following Products will be handled at LPG terminal

Liquefied Petroleum Gas(LPG)

Auto Liquefied Petroleum Gas(Auto LPG)

Propylene

Details Of pipeline

Sr.No PIPELINE NAME UNDERGROUNDPILELINELENGTH(Mtrs.)

ABOVEGROUNDPIPELINELENGTH(Mtrs.)

TOTALLENGTH(Mtrs.)

WHITE OIL TERMINAL PIPELINE DETAILS1 14FIRE WATER

PIPELINE903.16 460 1363.16

2 10ATFPIPELINE

903.16 749.22 1652.38

3 14NAPHTHAPIPELINE

903.16 749.22 1652.38

4 16MS PIPELINE 903.16 749.22 1652.38

5 16HSDPIPELINE

903.16 749.22 1652.38

6 16SKO/ATFPIPELINE

903.16 749.22 1652.38

7 24SKO/HSDPIPELINE

903.16 749.22 1652.38

8 12SSKOPIPELINE

903.16 153.37 1056.53

9 4MTO PIPELINE 3337.89 288.11 3626

10 24COMMON 3337.89 2712.16 6050.05


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PIGGABLEWHITE OILPIPELINE

LPG TERMINAL PIPELINE DETAILS

1 12LPG GAILPIPELINE

692.49 - 692.49

2 6PROPYLENEPIPELINE

3337.89 800.28 4138.17

3 6AUTO LPGPIPELINE

3337.89 800.28 4138.17

4 12LPGPIPELINE

692.49 - 692.49

Project Duration

Sr.No Terminals Details Duration(Months)1 White Oil Terminal 10

2 LPG Terminal 8

Project Cost:-21.5 Cr.

Payment Terms:

Piping Material:-

A) 90% Of item rate will be paid on receipt of all material at site.

B) 10% on completion of testing, insulation, commissioning.

Civil Work:-

A)75% till completion of all work

B)25% on acceptance of completion of entire job.

Structural Steel:-


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A)90% of item rate will be on receipt of all material at site

B)10% on completion of testing, insulation, commissioning

For Erection & laying Of Pipeline

For piping materialA)75% of item rate will be on fabrication & testing

B) 25% after completion of entire job.

Topographical Survey & Soil investigation

A) 75% of item rate on completion of specified job

B) 25% after completion of entire job.

Test to be carried out during the execution of the project

Non Destructive Test (NDT).

Cathodic Protection System (CPS).

Horizontal Directional Boring (HDB).

Soil Investigation test.

Hydrostatic test.

Geotechnical Survey.


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Ace pipeline Contracts Pvt.Ltd will have to pay 7.5 % of

project value per week as LD for not completing the project

ontime & 15 % of the project value as bank garuntee have to

keep aside.

BUDGETING

The meaning of budgeting in simple words is estimation of

expenses or making forcasting about future expense which

company have to incurred for execution of project activities.

Budget of any project will include all the expenses relate to the

project,so while making budgeting all the small expense also have

to be consider.

As Ace pipeline Contracts Pvt.Ltd is basically dealing with pipeline

costruction project,so the major expenses in that area are:-

PROCUREMENT COST

SUBCONTRACTOR SERVISES COST


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OTHER EXPENSE

RESEARCH METHODOLOGY

Sources of DATA COLLECTION

Finance Department

Account Department

Purchase Department

HR Department

Tendor Copy


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Information Collected From Employees

Procedure for making the budgeting of project

Following Steps individual should follow to make the budget of any

project.

1.Go through the tender copy & understand the details about the

project.

2.Depending upon scope of work analyse the requirement of

material for the execution of the project,different test to be carried

out during the execution of the project.

3.With the help of Board of Director deside whether to give any

part of the project to be completed to the sub-contractors.

4.Analyse the different activity to be carried out & based on that

make proper analysis of requirement of labour,equipment,What will

be the Mobilisation cost & many more.


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The standard Format of Budgeting of HPCL project

Procedure to find out the budget of procurement

1)First off all go through SOQ in the tender copy as well as through

the drawings & checked the required numbers of different material.

2)By concerning with the purchase department Cheque the

availability of the different vendors in the market for any particular

item with their rates & depending upon rate & their delivery date

finalize the vendor ,likewise follow the same pocedure for all the

material & depending upon the requirement of quantity make the

budget of the procurement expense.

Procedure to find out budget of Subcontractor Services

1) With the help of Board of directors first off all decide which part

of the project have to be given to the sub-contractor for execution

on contractors behalf.

2)Go through the tender copy to make bench marking of the

length of pipeline where subcontractor services have to be carried

out.

3)cheque the availability of different vendors for the execution of

the services & analyse their different rates to carry out those

services.

3)Analyze what will be requirement of different machinery required

to carried out that activity

Eg: For making the budget of Non destructive test (NDT) Xtechs.

Pvt. Ltd have following rates.

1)Rs.10/-per inch of exposed film using 3wide film

2)Rs.11/-per inch of exposed film using 4wide film

3)Rs.70/-per exposure for joints 2 inch & below

4)Rs1200/-per day unit charge for X-ray tube & Generator.


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5)Service Tax @ 10.3 %

Estimated Cost of NDT

For carryingout NDTthrough X-ray

Diameter ofpipeline

length ofpipeline(Mtrs.) No.of joints

per jointcost Total cost

14" 3015.54 251 540 135699

10" 1652.38 138 480 6609516" 4957.14 413 600 247857

24" 7702.43 642 900 57768212" 1749.02 146 600 87451

4" 3626 302 300 90650

6" 8276.34 690 375 258636

subtotal 1464070

Gamma -rays

Diameter ofpipeline

length ofpipeline No.of joints

per jointcost Total cost

14" 3015.54 251 400 100518

10" 1652.38 138 450 6196416" 4957.14 413 600 247857

24" 7702.43 642 900 577682

12" 1749.02 146 480 69961

4" 3626 302 225 679886" 8276.34 690 270 186218

sub

total 1312187


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machinerycost months

1200*30 8 288000

Mobilization &Demobilization 50000

Subtotal 3114258

Servicetax(10.3%) 320768.556

TotalCost 3435026.381

For making the budget of Cathodic Protection Services.

First off all we have to find out requirement of different material to

carried out test

Sr. No. Item Description

1 CPPSM

2 MMC Anode Bed

3 Anode Junction Box4 Cathode Junction Box

5 1C*35 sq mm cable6 1C*4 sq mm cable

7 3C*6Sq mm cable8 Reference cell

9 Computerized Test Station Unit

10 CTSU reader

11 Pin Brazing Consumables12 Any Other material & consumable required

for the completion of work


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Then individual have to see the availability of the subcontractors

available to carried out that activity.

Sr. No. Pipeline Details Length Of

ThePipeline

Cost Per

Km.

Total Cost

White Oil terminal

1 14" fire water P/L 1.36316 51000 69521

2 10"ATF

1.65238

52221 86289

3 14" NAPHTHA

1.6523851000 84271

4 16"MS1.65238 49000 80967

5 16"HSD1.65238 49000 80967

6 16"SKO/ATF1.65238 49000 80967

7 24"SKO/HSD

1.6523826935

44507

8 12"SSKO 1.0565354000

57053

9 4"MTO 3.62660000

217560

LPG terminal

1 12LPG GAILPIPELINE

0.69249 54000 37394

2 6PROPYLEN

E PIPELINE 4.13817 58000 2400143 6AUTO LPG

PIPELINE 4.13817 58000 240014

4 12LPG 0.69249 54000 37394


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PIPELINETotal 1519876

Likewise we can make the Budget Of different activities of the

subcontractor services.

Procedure for making budget of other expenses

For this first off all we have to see what will be the other

expenses.

A)Drawing Expense.

B)Equipment Rental Charges.

C)Labour Expense.

D)Mobilization,Demobilization expense

E)Site expenses

F)Diesel,Fuel Expense.G)Repair & maintenance Cost

& many more

To find out the budget of other expense first off all one must have

to analyse the execution of the project activity.

Eg.

Suppose one want to find out the labour requirement then as

at the starting of the project menpower requirement will be less as

in the starting all the topographical survey & documentation work

will be carried out & after few month the requirement of the

manpower will be more as project will lead to peak.& again at the


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last menpower requirement will be less as at the last almost all the

task shall been completed.

Again depending upon the monthwise execution of the pipeline

project activity the requirement of the menpower will vary.


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Designation No JUN JUL AUG SEP OCT NOV

no amt no amt no amt no amt no amt noaccount 1

10010 2

22510 2

22510 2

26510 2

26510 2

cook 21033

0 62857

5 62857

5 73881

5 73881

5 6

diesel dispn. 1 5000 21100

0 1 6000 1 6000 1 7500 1documentation 1

13000 1

13000 1

13000 1

13000 1

13000 1

driver 1 7000 3

29600 5

42920 5

42920 7

64090 7

engg 23900

0 61251

48 51042

90 36550

0 49034

0 5engg,ndt 1

27000 3

49290

p & a 1

1800

0 1

1800

0 1

1800

0 1

1800

0 1

1800

0 1

fitter 11124

0 22024

0 44424

0 55124

0 55374

0 4grinder 2

13800 4

28000 8

55832 9

60820 9

60820 5

operator 3

37500 8

86016 8

90000 10

111930 8

88000 7

pm 16000

0 16000

0 16000

0 16000

0 16000

0 1riggerforeman 1

10010 2

20020 1

10010 1

15010 1

15010 1

safety

officer 1

1200

0 1

1200

0 1

1200

0 1

1200

0 1

1200

0 1supervisor 2

50000 2

30000 6

118000 6

114420 6

114430 6

surveyor 3

55000 4

69780 4

69780 3

48750 3

45000 2

weldinghelper 3

11700 15

59715 17

67760 18

70730 18

71730 18

welder 1

20200 11

159440 12

158175 13

168460 13

181900 10

weldingsupervisor 1

12000 1

12000 1

12000 1

16000 1

16000 1

coatingsupervisor 1

12000 1

12000 2

32000 1

16000 1

coatinghepler 5

30000 3

18000 2

12000 3

20700 2

electricianhepler 1 4000 1 4000 1 4000 1 4000 1electrician 2

14410 2

14410 2

14410 2

16410 1

weldingengg 2

54000 2

54000 2

foreman 2

50000 1

25000 1

35000 1

gascutter 1 4500 1 4500 1 4500 1 5300 1helper 15

61116 19

97620 18

72460 18

72460 17

hydra


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For making the equipment rental expense following steps must have to be

1)first of all analyse the requirement of the equipment for the execut

2)Cheque the availability of required equipment for the execution of the pr

3)find out what are the rental charges of equipment

For making the Site expense following steps should be taken:-

1)Analyse what will be the site expense like mess,office setup cost,campus

2)have to analyse what different activity have to be performed under the m

3)Depending upon the menpower how much will be the expense under diff


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Site Expense

A. Mess

Sr.No Head Qty. Rate Month Amt

1 Premises 2 4000 10 80000

2 Elect.& water 2000 10 35000

3 Fridge 2 10000 20000

4 Chairs 42 300 12600

5 Dinning Table 8 8000 640006 Kitchen Utensils 20000

7 LPG gas 10 110000

8 Grossary 10 500000

9 Misc. 40000

Sub Total 881600

B. Campus Cost


1 Store room 2 40000 8 6400002 Elect.& water 25000 10 250000

3 Illumination 100000

4 Fencing 150000

Sub Total114000

0

C. Office Setup


1Building HireCharges 1 40000 10 400000

2 Electricity 10000 10 100000

3 Chairs 15 900 13500

4 Drinking Water 4000 10 40000

5 Table 15 2000 30000

6 Filing Racks 20 3000 60000

7 Computers 12 30000 360000

8 Printers 3 5000 15000

9 Fax machines 1 6000 6000

10 AC 4 10000 4000011 Fans 5 1000 5000

12 Tubelights 10 350 3500

13 Stationeries 60000

14 Misc. 50000

Sub Total118300

0

Total Site Expenses320460

0


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CASHFLOW STATEMENT

In simple words Cash means Money,& there will be either cash inflow or ca

In project Cash inflow means the receipt of bills from the owner & cash o

incurred for execution of project.

Cash flow statement includes following details:-

Cash inflow

Openinig Balance

Internal Funds

Loan details

Sales receipts

Cash Outflow

Procurement Cost

Subcontractor Services Cost


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Other expenses

Loan payment

Interest on loan payment


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While making the cash flow statement individual must have the proper

activities of project.

Eg.

For making the cash flow statement of inflows

first of all individual have to see what are the terms & condition of the paym

that when contractor will receive the bills.

And based on that only individual can get idea about the monthly earning o

Again depending upon the loan terms & conditions when we wil

the loan term month wise.

For making the cash flow statement of cash outflow.

individual must have the proper analysis of monthwise execution of di

Eg.

For procurement individual must have to make the preplanning a

with the purchase department.

For the Subcontractor services expense & for other expenses indi

& have to make analysis which activity will carry out in which month &

monthly expenses of that activity.

by concerning with the fund manager the distribution of different lo

monthwise.


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Difference Between Budget & Cashflow statement

Budget gives the details about the overall expense of the project

Cash flow statement gives the details about the monthwise expe

In budgeting individual only consider expenses (Cash outflow).

In Cashflow statement individual consider both inflow as well as t


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Advantages of maintaining the actual cash flow statement while execu

The company will get idea about the running expense of the proj

The company can keep the track weather the estimated cost flo

also get idea about the efficiency level of the project.


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Recommendations

There should be contribution of every department.

For making of exact cash flow statement there.


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Recommendations

There should be contribution of every department.

For making of exact cash flow statement there.

ace pipeline contracts pvt

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