Dr. Ambedkar Institute of Management Studies and Research

Report on

SUMMER INTERNSHIP PROJECT

BIRLA CORPORATION LIMITED

Prepared by:

POOJA BHAMBHANI

MBA SEM 2

JULY – AUGUST 2012

CERTIFICATE

This is to certify that Ms. ANY BHAMBHANI of Dr. Ambedkar Institute of

Management Studies & Research, Nagpur has done a Summer Internship project

with our organization for a period of 45 days, from 1/07/2012 to 15/08/2012. Her

topic of project was “ PURCHASE AND CASH MANAGEMENT”. We wish her all

the best for her career.

_________________________________

(Name and Designation of industry person)

ACKNOWLEDGEMENT

I am indeed highly obliged to Mr. Sujeet Tiwari from Birla Corporation Limited for

giving me this opportunity to do this summer internship project.

I owe thanks to many people who helped and supported me during the project. My

deepest thanks to Professor, Mr. _____________ for giving such a good project and

his outstanding support, guidance and encouragement throughout, which helped me

to complete this project.

I am thankful to all other faculty members and administrative staff of Dr. Ambedkar

Institute of Management Studies & Research, Nagpur for their valuable help during

the project.

Finally I am thankful to all the people who helped and supported me directly or

indirectly in this project.

_________________________

(Name of Student)

INDEX

Chapters Topics CoveredPage

No.

CHAPTER 1. 1) Company and Industry Profile 1) Introduction of Cement 2) Introduction of Birla Corporation Limited 3) Overview of Birla Cement 4) The Promoters 5) Product and Brand Names 6) Product Profile 7) Location of Plants 8) Achievements 9) Major Players10) Government Policies11) Share Market Position12) Future Prospects13) SWOT

Nb 14) 5 Forces Model

CHAPTER 2. Introduction to Topic & Summer Internship Summary1) Raw Materials 2)

COMPANYAND

INDUSTRY PROFILE

CEMENT

Cement is recognized as one major building block for the development of nation

and a key contributor for infrastructure development.

Cement production commenced in India as early as 1914. Right from the

beginning, this industry faced severe competition from importer followed by price and

distribution controls till 1982. The easing of control and the liberalization process put the

cement industry in vibrant growth path.

In this present cut-throat market competition and current recession in Indian

economy, it is quite pertinent to review the existing operating methodology in terms of

financial activities. In last few years, Satna cement works & Birla Vikas Cement kept the

flag of Birla Corp. Ltd. quite high & were showing a good performance in terms of sales

& profit, but the large capacity addition to this industry forced the management to rethink

about the work culture & style of functioning, so that the company may face the

competition & not only retain their market share but also show a consistent growth over

previous year.

To take a holistic view on inflow of funds, we conducted a study which was based

on actual monitoring of cash management product provided by State Bank of India and

monitoring of deposits at depots located at different places like Allahabad, Kanpur,

Patna & many others. We are happy to present the report of the analysis which

highlights the current status, problem, prosperity & puts forth suggestion to improve the

performance of the company.

What is Cement ?

Cement is a mixture of limestone, clay, silica and gypsum. It is a fine powder which mixed with water sets to a hard mass as a result of hydration of the constitute compounds. It is the most commonly used construction material. Cement is manufactured by burning a mixture of limestone and clay at high temperature in a kiln, and then finely grinding the resulting clinker along with gypsum. The end product thus obtained is called ordinary Portland cement (OPC).

Different Types of Cement

1.Ordinary Portland Cement (OPC):- OPC popularly known as grey cement, has a 5% clinker and 5% of gypsum and other materials. It accounts for 70% of the total consumption. White cement is a variation of OPC and is used for decorative purposes like rendering of walls, flooring etc. it contain a very low proportion of iron oxide.

2.Portland Pozolona Cement (PPC):- PPC is ordinary Portland cement blended with pozzolanic materials (power station fly ash, burnt clays, ash from burnt plant material or siliceous earths) either together or separately.PPC has 80% clinker, 15% pozolona and 5% gypsum and accounts for 18% of the total cement consumption. It is cheaply manufactured because it uses fly ash / burnt clay / coal waste as the main ingredient.

3.Portland Blast Furnace Slag Cement (PBFSC):- Portland Blast Furnace Slag Cement consist of 45% clinker, 50% blast Furnace slag and 5% gypsum and accounts for 10% of the total cement consumed. It is used in construction of dams and similar massive constructions.PBFSC has a lighter colour, better concrete workability, easier finish ability.

a) White Cement :- White Portland cement has essentially the same properties as gray cement, except for color, which is a very important quality control issue in the industry. It is manufactured using fuel oil and with iron oxide content below 0.4% to ensure whiteness.

b) Specialized cement :-

Oil well Cement :- Is made from clinker with special additives to prevent any porosity.

Rapid Hardening Portland Cement :-It is similar to OPC, except that it is ground much finer, so that on casting the compressible strength increase rapidly.

Water proof Cement :-OPC with small portion of calcium stearate or non saponifibale oil to impart water proofing properties.

Introduction of Birla Corporation Ltd.

Overview

Founded in 1919 by the visionary industrialist Shri G.D. Birla, at the outskirts of

the Kolkata, Birla jute manufacturing company Ltd. Was the first company of the Birla

Industrial Conglomerate. Under the stewardship of his nephew Shri M.P. Birla, the

company diversified and expands its business interest beyond jute, to encompass

cement PVC coated fabric, PVC floor covering and auto trims.

After the demise of Late Mr. M.P. Birla in 1990, his wife, Mrs. Priyamvada Birla

took over as chairman of Birla Corporation and continued to lead the company till her

death on 3 July 2004. She was an entrepreneur of distinction strong business acumen

and, under her leadership, the company crossed the Rs. 1,300-plus turnover mark.

The company renamed Birla Corporation Limited, to reflect the wide range of

operation, is the flagship company of the M. P. Birla group. The strategic focus of the

company has been on steady growth by developing and assimilating technologies of

tomorrow to manufacturing an ever widening range of value-added product, while

striving for complete customer satisfaction in India and abroad. Birla Corporation

Limited is proud of safe work practice followed at all its factories and go downs. As an

enlightened corporate citizen, Birla Corporation Limited is keenly aware of social

responsibilities too, and provides education and health care facilities for its employees,

their families and the community at large. Its export in 2004-05 stood at Rs.

85.28crores. Over the year, BCL’s business has grown from strength to strength.

Overview of Birla Cement

The Cement Division of Birla Corporation Limited has seven plants, two each at Satna (M.P.) - Satna Cement Works & Birla Vikas Cement, Chanderia (Rajasthan) - Birla Cement Works & Chanderia Cement Works, Durgapur (W.B.) - Durgapur Cement Works & Durga Hitech Cement - and one at Raebareli (U.P.)-Raebareli Cement Works. They manufacture varieties of cement like Ordinary Portland Cement (OPC), 43 & 53 grades, Portland Pozzolana Cement (PPC), Fly Ash - based PPC, Low Alkali Portland Cement, Portland Slag Cement, Low Heat Cement and Sulphate Resistant Cement.

The cement is marketed under the brand names of Birla Cement SAMRAT, Birla Cement KHAJURAHO, Birla Cement CHETAK, Birla Cement and Birla Premium Cement, bringing the product under the common brand of Birla Cement while retaining the niche identity of SAMRAT for blended cement, i.e. PPC & PSC, for all the units, KHAJURAHO (for the OPC product of Satna) and CHETAK (for the OPC product of Chanderia).

The Division exports large quantities of cement to Nepal, under the brand names of Birla Cement Samrat, Birla Cement Khajuraho and Birla Cement. The special variety of Birla Cement SAMRAT, being produced by the company, is ideal for mass concrete, RCC/pre-stressed/precast structure (for reduced thermal crack), increased water tightness of concrete, increased resistance to sulphate soils and aggressive water and increased resistance to alkali aggregate reaction besides corrosion resistant properties.

All our cement plants are ISO 9001:2000 Certificated, covering the entire range of production and marketing.

Cement plant were set up in MP and Rajasthan and Grinding units in West Bengal and

UP.

Satna Cement Works - 1959

Birla Cement Works - 1967

Durgapur Cement Works - 1974

Birla Cement Works - 1982

Chittor Cement Works - 1986

SCW-Conversion Plant - 1989

Raebareli Unit - 1998

PLANTS AT SATNA IN MADHYA PRADESH:

PLANT OF “SATNA CEMENT WORKS”:

PLANT OF “BIRLA VIKAS CEMENT”:

Plants 

LOCATION OF PLANTS IN INDIA 

 

State Town Units CapacityMillion. Tons

Madhya Pradesh

Satna Satna Cement Works / Birla Vikas Cement 2.00

Rajasthan Chanderia Birla Cement Works / Chanderia Cement Works 2.80

West Bengal Durgapur Durgapur Cement Works / Durga Hitech Cement 1.60

Uttar Pradesh Raebareli Raebareli Cement Works 0.63

 

FOUNDERS OF M. P. BIRLA GROUP:

LATE. SHRI. M. P. BIRLA

LATE. SHMT. PRIYAMVADAJI BIRLA

Products

 The Product and Brand names are as follows :-

Units Products BIS Specifications Brand namesBirla Cement WorksChanderia Cement Works

Portland Pozzolana Cement (PPC)Ordinary Portland Cement (OPC) -43 Gr, 53 Gr

IS 1489 (Part - I)43 Gr - IS 811253 Gr - IS 12269

Birla Cement SamratBirla Cement Chetak

Satna Cement WorksBirla Vikas Cement

PPC OPC (43 Gr.)

IS 1489 (Part - I)IS 8112

Birla Cement SamratBirla Cement Khajuraho

Raebareli Cement Works

PPC IS 1489 (Part - I) Birla Cement Samrat

Durgapur Cement Works

Portland Slag Cement (PSC)

IS 455 Birla CementBirla Premium Cement

Durga Hitech Cement

PPC IS 1489 (Part - I) Birla Cement Samrat

 

 Special Cements 

Sulphate Resistant Cement  IS 12330 Low-alkali Cement Railway Sleeper Grade Cement IRS T-40 (OPC 53S) Low Heat Cement IS 12600

 

Product Profile

At Satna Cement Works & Birla Vikas Cement the dry process of Cement

production followed which is termed as a modern technology. The Entire

Manufacturing process is controlled through a microprocessor based programmable

logic control system to maintain a constantly uniform quality of Cement & high rate of

production. The entire operation of plant is controlled in a single control room. SCW

plant, which was initially, a plant using a wet technology for cement production was

changed on to a dry one in the year 1989. These modern plant have also taken

adequate core to prevent the environment policy & dust nuisance to its surrounding

areas. These cement mills have electrostatic precipitator (ESP) installed to check dust

emission & to ensure health hazard free atmosphere.

Both the plant uses the global technology for the production of goods &

consistent quality cement. The Stacker Reclaimer Technology & the alkali by pass

system along with other sound technology make the manufacturing process of Birla

Cement Khajuraho a highly competitive & unique one.

The various varieties of cement produced at these plants are:

1) Ordinary Portland Cement (33, 43, 53 grade)

2) Portland Pozzolana Cement (PPC)

3) Low alkali Cement.

4) Sulphate resistant Cement.

5) Special Cement for Indian Railway Sleeper (IRS-T-40)

The benefits of using high quality cement manufactured by the company are :

1) Ideal for mass concrete structure.

2) Reduce thermal cracks.

3) Increased water tightness of concrete.

4) Higher fineness, ideal for plastering.

5) Increased resistance for sulphate attack & aggressive water.

6) Increased resistance to alkali aggregate reaction.

7) Improved durability.

Major Players In Indian Cement Industry

ACC Gujarat Ambuja Ultratech Grasim India Cement JK Group Jaypee Group Century Madras Cements Birla Group

Government Policies

Government policies have affected the growth of the cement plants in India in various stages. The control on cement for a long time and then partial decontrol and then total decontrol has contributed to the gradual opening up of the market for cement producers.The stages of growth of the cement industry can be best described in the following stages.

Price and distribution controls (1940-1981)

During the 2nd World War, cement was declared as an essential commodity under the defense of India rules and was brought under price and distribution controls which resulted in sluggish growth. The installed capacity reached only 27.9 MT by the year 1980-1981.

Achievements

1. SCW, BVC & DCW have got ISO 9002 quality certification, covering the

entire range of production & marketing.

2. Best Energy performance award in 1995-96 & 1994-95.

3. Second best improvement in energy performance award in 1995-96.

4. Top export award in 1994-95.

5. First prize in productivity to CCW in 1993-94.

6. Special Export award in 1993-94.

7. Best Energy performance award to SCW in 1993-94.

8. Special export in 1992-93.

9. Top export award for 1990-91 & 1991-92.

10. Second Best Performance in 1991-92.

11. Best Performance award in 1989-90.

12. Best corporate Ethics Award in 2008.

13. Best Corporate Ethics award 2008 from IIPM

14. Green Tech Environment Excellence award in 2008 by green Tech

Foundation NEW DELHI

15. Second best improvement in Electrical Energy Performance award in 2006-

07 by NCBM

16. ‘’ 200 Best under a Billion $ by forbs Asia in 9 OCT 2009.

17. Lal Bahadur Shastri Memorial national award for Excellent Pollution Control

Implementation for 2001-02 by International Greenland Society.

Share Market Position

Share holdingShare holding pattern as on : 30/06/2012 31/03/2012 31/12/2011

Face value 10.00 10.00 10.00

No. Of Shares

% Holding

No. Of Shares

% Holding

No. Of Shares % Holding

Promoter's holding

Indian Promoters 48434191 62.90 48434191 62.90 48434191 62.90

Sub total 48434191 62.90 48434191 62.90 48434191 62.90

Non promoter's holding

Institutional investors

Banks Fin. Inst. and Insurance 4006468 5.20 4006468 5.20 4002618 5.20

FII's 4541087 5.90 5137989 6.67 5177082 6.72

Sub total 16169424 21.00 16226526 21.07 16230988 21.08

Other investors

Private Corporate Bodies 8532089 11.08 8476580 11.01 8477958 11.01

NRI's/OCB's/Foreign Others 115130 0.15 113219 0.15 108643 0.14

Others 651806 0.85 651906 0.85 651906 0.85

Sub total 9299025 12.08 9241705 12.00 9238507 12.00

General public 3102707 4.03 3102925 4.03 3101661 4.03

Grand total 77005347 100.00 77005347 100.00 77005347 100.00

Future Prospects

Company’s Vision & Mission

Birla Cement Vision

Customerization Quality Consistency Product Range Cost competitiveness Employee Empowerment

Birla Cement Mission

To become the best cement unit in the country through human and technical excellence.

To foster the culture of involvement participation team work and innovation. To achieve excellence in all effort and activities by each one of us. To produce a premium quality cement and extend best service to its customers. To establish a neat clean and pollution free environment Commodity should perceive us a progressive well professional organization.

SWOT Analysis

Strengths

Satna brand equity is excellent.

Birla Cement name can be encased.

Good dealer’s network

Consistent market growth in area

Ready availability

Attractive packaging

Financial position of company is very sounds all the payment of parties made in

time, no delay in regular payment.

Established TPH plant due to this production cost will reduce.

WEAKNESS:

No sales tax exemption

Inflexible Pricing System

Absence of credit facilities

Compulsive high pricing

Lack of dump facility

Lack of adequate manpower, professional attitude required.

Insufficient dealers orientation programme

Tight advertising budget

OPPORTUNITIES:

Expected growth in economy

Liberal housing loan scheme

Expansion of dealers network

Thrust in unrepresented areas

Large home market

Lange untapped area

Demand in non-trade/Govt. sectors

THREATS:

Price war amongst the major players to gain share.

Deep inroads by low price brands.

New entrants from Chhattisgarh.

Aggression by sales tax exempted plants.

Porter’s 5 Forces Model for Cement Industry

INTRODUCTION TO TOPIC AND SUMMER INTERNSHIP SUMMARY

RAW MATERIALS FOR CEMENT

1. Limestone 2. Late rite Clinker3. Coal4. Gypsum5. Fly Ash6. Bags

Clinker + Gypsum + Fly Ash = Cement

1.Limestone - Open Mines

Blasting Crushing Conveyor Belt

2.Late rite - Open MarketSuppliers : Satna Minerals Satna Trading Harsh Trading Industrial Minerals Dev Enterprises Satna Khanij Viashnavi Enterprises etc.

3.Gypsum – Two Government Mines

1. Rajasthan State Government Mines2. Central Government Mines

For purchasing gypsum, payment of rail freight is made in advance. After that Indent is being made for purchasing a rack of gypsum. Allotment of rack to Indentor is supplied through railway and then loading gets started. When loading is done then all the gypsum which has been loaded is weighed on weigh bridge. Railway Receipt is being made and payment is done accordingly. After receiving racks of gypsum crosschecking is done for any Short/Excess and rack gets unloaded at unloading point. For unloading 8 hours has been allotted by railway and if any extra time is taken then demurrage charge is taken by railway. Loaded material is received in book stock and then it is consumed.

4. Coal -

Coal

KILN (Normal Ash) Thermal Power (High Ash)

Ash % 30 Ash % 40

Linkage (Government) Linkage Coal Open Market Government Coal Wash Coal Import Coal Pet Coke (BORL + RIL)

5. Fly Ash -

Sources:

NTPC , Unchahar , U.P MPEB , Birsinghpur , M.P IFCO , Phoolpur , U.P HINDALCO , Renusagar , U.P HUL , Orai , U.P NTPC , Vindhya Nagar , M.P

6. Bags - Grade of Cement

OPC – 43 Grade Birla Samrat

OVERVIEW OF PURCHASE DEPARTMENT

PROCESS OF PURCHASE AND RECEIPT

ITEM CODE MASTER

ITEM INDENT (PURCHASE REQUIREMENT)

PURCHASE SECTION

PARTY INTIMATION

PARTY ORDER

PARTY ENQUIRY

PARTY OFFER

COMPARATIVE

PURCHASE COMMITTEE

MEETING

RECEIPT SECTION –

PARTY MATERIAL SENT AS PER CHALLAN

AFTER CHECKING MATERIAL –

ISSUE SECTION

MAIN ACTIVITIES OF ORDERING PROCESS

RFQ COMPARATIVE

PO PCM

Hidden activities carried out by Ordering Process

START

END

Indent Receipt

President Approval

Indent Received

Back

Pass in Purchase RFQ RFQ

Post

RFQ Follow

up

NegotiationCS Received

Back

Deptt. Reco(CS)

Comparative Statement

Quotation Received

PCMPCM HOD-

PurPCM Recd Back

PCM Tech Deptt Approval

PCM back Pur

PCM President Approval

PCM back Pur

PCM Jt. President Approval

PCM back Pur

PCM A/Cs Approval

PO Auth.PCM back Pur

PO PO Print PO Sign

PO Post PO Filling

Content of Purchase Order

Scope of supply Price Package and marking Pre-dispatched clearance documents Excise duty Sales tax Insurance Payment Delivery Road permit Late delivery penalty Performance guarantee Penalty against non-performance Overall liability on all accounts Limitation of liability Rejection Replacement Mode of dispatch

Full truck load Part load consignment

Documentation Inspection Amendent/cancellation Termination by default Jurisdiction Government law

Letter on Intent

Price Scope of supply Terms of payment Delivery schedule (From LOI) Penalty against late delivery Performance guarantee Penalty against non performance Overall liability on all accounts Inspection

OVERVIEW OF CASH MANAGEMENT

Overview of Finance Department

As I was also working in finance department in Birla Corporation Ltd., so its important to give a brief overview of what are the functions and workings of this department. Mainly in manufacturing industry all departments are closely integrated.

Functions and Responsibilities

Functions and responsibilities of the finance wing include the following:

1) Determine the financial resources required to meet the organization’s operating and capital expenditure program.

2) Forecast how much of fund requirement would be met by internal mobilization of funds and how much has to be borrowed from outside.

3) Establish and maintain the system of financial control governing the allocation and use of funds on daily basis.

4) Analysis of financial results of all the operations and making recommendation concerning future operations.

5) Carry out special studies with a view to reduce cost and improve efficiency and profitability.

6) Carry internal audits and also maintain financial records of the company.

Cash Management Product

Necessity of CMP

Previously, the cement was sold through our depot network at various locations situated in MP, UP, Bihar, Jharkhand, Uttaranchal & West Bengal.

Against above sales, funds were collected in the form of Cheque/ Demand Draft and the same were presented at various branches of SBI at depot locations by our representatives.

Funds deposited at depot banks were remitted to our Cash Credit bank account with SBI, Satna.

Traditional Methods of Funds Transfer

Telegraphic Transfer Electronic Transfer

AGENCIES INVOLVED

Funds Remitting Branch Post Office (In case of TT) Funds Receiving Branch

SHORTCOMINGS OF TRADITIONAL METHODS

Blockage of Funds at remitting branch/ in transit Requirement of opening of account at collection centre Comparatively higher cost MIS support not available for Internal Control & Funds Planning No value date credit is allowed in case of delay (In case of TT)

Introduction

Cash Management Product is the service provided by SBI for collection/payment keeping following targets:

Speedier movement of funds for reducing transit float to the minimum Competitive Cost MIS Support for Internal Control & Proper Fund Planning Interest Cost reduction on borrowings

STATE BANK OF INDIA provides cash management services to Corporate Clients under the brand name SBI FAST ( Funds Available in Shortest Time). SBI FAST eliminates the inherent delays of the traditional funds transfer mechanism and enhances liquidity to ensure optimum planning and utilization of funds.

MODULES

CMP services basically includes two modules. They are:

COLLECTION MODULE

Remittance of funds from collection centres to the pooling centre i.e Satna.

DEBIT TRANSFER MODULE

Payment of funds from various locations

Collection Module Procedure

SBI, Mumbai allots a specific code & communicates the same to their branch for resuming CMP services under intimation to us

As the current account is not required to be opened at the collection centre, procedure of remittance of funds is started immediately

After allotment of code our representative presents cheques/demand drafts quoting our code number in the pay in slip with the dedicated CMP collection branches at various locations.

Collection branch transmits summary of instruments presented to CMP Centre, Mumbai for onward transmission to client’s office for MIS purpose.

On completion of clearing, confirmation of credit and details of cheques returned are sent to CMP Centre, Mumbai for crediting \ debiting client’s account.

Details of credit/returned instruments report transmitted to clients through CMP Centre, Mumbai.

TYPES OF INSTRUMENTS PRESENTED

Drawn on the Branch – Credited on the same day High Value Clearing – Credited on the same day General Clearing - As per norms of clearing Other Local SBI Branches – As per norms of clearing Outstation Cheques/ Demand Drafts are not accepted

Debit Transfer Module

Debit Transfer Module envisages the transfer of outstanding balance in the specified expenditure account to the pooling centre.

FEATURES

Clients are required to open current accounts at the CMP linked branches. This facility is available only at CMP Branches.

There is a limit fixed upto which the drawee can be permitted withdrawal – (Day Light Limit)

With in the limit, the payments are made and balances outstanding at the end of the day are swept to the main pooling account.

Types of Instruments Presented

Drawn on the branch – credited on the same day High value clearing –credited on the same day General clearing – as per norms of clearing

ADVANTAGES

No account required at collection branches; funds transferred on the basis of the code allotted

Instant transfer of clear funds from our various depot locations to the Pooling Center at SBI Commercial branch, Satna.

Customized MIS of Presentation/Credit Report on daily basis through E-mail by evening

MIS report helps in fund planning and also to prepare Bank Reconciliation Statement

Comparative Cheaper Cost No blockage of funds at the collection branch/transit. Before using CMP around Rs.3.5 per Rs.1000 was paid as DD

commission and now this is reduced to approximately Rs.0.04 per Rs.1000

UNRESOLVED ISSUES WITH SBI SYSTEM

No remittance facility is available (other than traditional system like TT) at locations where SBI does not have CMP facility. This results into delay in collection of funds at Satna and company has to reimburse DD charges to the parties which has been about Rs. 67 Lacs during 2006-07.

Even SBI with CMP facility does not have trained & experienced man power at some of the locations which results in delay

CASH MANAGEMENT SERVICES (CMS) HDFC BANK

Cash management service is the process of optimizing receivables and payables while ensuring predictability in cash flows. The procedure followed by CMS is same as SBI’s CMP.

CMS Collection Products :

SPEED – Under this product, local cheque /DD presented at HDFC locations is locally cleared and credit is passed to our Central Account

RAPID - This product is similar to SPEED but through Correspondent banks/ Coordinator of HDFC .

Offers by HDFC

Guaranteed transfer of collection proceeds on the same day the funds are cleared at CMS collection center located all over the country to the central account of corporate at a designated pooling center. No accounts need to be maintained at the collection centers.

Day end balance sweep of balance in operative account maintained at CMS centers to facilitate local disbursement.

Transfer of day end balance in collection accounts maintained at various CMS centers to main account.

Customize credit to clients account at Mid-day and end of the day. Customize MIS on collection across the country, including forecast of

expected credit through e-mail on the same day. Centralized Reconciliation Statement.

Benefits to Birla Corporation

Centralized control of cash Cost reduction Enhanced liquidity Interchange of information between treasury and operating units Reduced excess cash balance Cash forecasting and scheduling Effective control over disbursements Efficient Financial Management

CMS Advantages

Faster access to funds

Provides Customized MIS in MS-Excel Format which is helpful in making Analytical Reports

Results in Cost Saving

Distributor presents the cheque to depot

Cheque is recorded in bank voucher slip at depot and collected

Cheque is attached with pay in slip of CMS and sent to bank for clearance

Clearance at HDFCIf yes amount is transferred to main branch Mumbai for further processing

If no unpaid cheques are returned back

Flow chart showing the clearance of cheque through CMS

CONCLUSION

Birla cement has two major competitor – Prism cement and JP cement. The company can face a lot of competition in near future due to

introduction of many more competitors. Birla cement is well established in the markets as far as quality is

concerned. Introduction of new attractive incentive schemes can bring new dealers

and retailers for Birla cement. Price and promotion are the major factors that matters for a customer

while purchasing cement. Market share increase with the increase in number of dealers. Brand ambassador has also influence in sale of cement for example

Sachin Tendulkar of JP cement. Birla cement follows exclusivity policy thus giving them a very narrow no.

of outlets.

BIBLIOGRAPHY

1) Internal data provided by the company2) Data collected from HDFC and SBI bank (Satna)3) Websites:

www.satnacement.com www.birlacorporation.com

4) Mr. Sumit AgrawalAsst. Manager (SCW)