irel organisation study

Organisation Study on IREL Chavara 1

DC School of Management and Technology | Trivandrum

Summer Internship Program On Organization Study of

INDIAN RARE EARTHS LIMITED,

CHAVARA

AKHIL P U (Reg. no. 13460007)

MBA 2013-15

KERALA UNIVERSITY

Under the Guidance of



Certificate (of the Institution)

This is to certify that the report entitled “An organisation study on Indian

Rare Earth Ltd” submitted here is a bonafide record of the work done by

AKHIL P U, under the guidance and this work has not been submitted by them for the

award of any other degree, diploma or title of recognition earlier.

DC School of Management and Technology (sd)

Date:………………………..

(Seal)



Certificate ( of the Organisation)

This is to certify that AKHIL P U,2nd semester MBA student of DC School of

Management and Technology has done a project work on “organisation study” in our

organization under the supervision of Mr Chandrasekhar, Sr. Manager safety and

Environment Department during the period from 21 April 2014 to He has

successfully completed the work.

(Seal)

(sd)

Place and Date



DECLARATION

We, AKHIL P U 2nd semester MBA student of DC School of Management and

Technology, do hereby declare that this organization study titled “An Organization

Study onINDIAN RARE EARTHS LIMITED, CHAVARA”under the guidance of

Mr. RAJENDRANis the result of original work during the organization study time. We

have not submitted the same for the award of any degree, diploma. All the data both

primary and secondary are true to the best of my knowledge

.

AKHIL P U

Place: Kollam

Date:



ACKNOWLEDGEMENT

First of all we wish to express my deep gratitude and thanks to God who helped us in

completing the organisation study successfully.

We shall remain grateful to Dr. P.S Mohana Kumar for his amble guidance and

encouragement for completing the organization study. We are also extremely grateful

to faculty member for their valuable suggestions and 2advice regarding this work.

We are more obliged to Dr. VeeranKuttyDirector, Dc School of Management and

Technology for given helpful suggestions and valuable guidance

It is our pleasure to express a deep sense of grateful to Mr jayapalan(Deputy

generalmanager),Mr Chandrasekhar, Sr. Manager( safety and Environment &

QMSDepartment ),Mr SatyabhusanSamantaSr.Manager(Finance) without their

untiring efforts and tremendous background information this work would not have

materialized. We express our sincere thanks to all the staff of IREL, Chavara for their

co-operation during my study in the company.

Last but not least we thank to all the staff members of the DC School of Management

and Technology for the encouragement rendered for the completion of the research

work and also we extend our gratitude to all staff and workers in IREL, Chavara for

their support in our organization study.



LIST OF CONTENTS

Subject Page

Number

Chapter 1 Introduction 9-12

Chapter 2 Industry profile 13-19

Chapter 3 Company Profile 20-24

Chapter 4 Product Profile 25-27

Chapter 5 Customer profile 28-30

Chapter 6 Functional areas of IREL 31-75

Chapter 7 Swot Analysis 76-78

Chapter 8 Porter’s Five Force Analysis 79-81

Chapter 9 PEST Analysis 82-84

Chapter 10 Findings, Recommendations, Conclusion 85-87



LIST OF TABLES & CHARTS

Table No Subject Page no.

2.1 World production reserves 16

2.2 Resources of Monazite in India 17

2.3 Potential RE markets 19

4.1 Product profile 26

4.2 Uses of the product 27

6.1 Manpower strength 34

6.2 Contract workers 34

6.3 Pay scale for Workers and officers 37

6.4 Production capacity of chavara plant 48

Balance sheet 89

Statement of profit and loss account 90



LIST OF FIGURES

Fig no. subject Page no

1.1 Corporate structure 11

6.1 Department structure -HRM 32

6.2 Department structure -Mining 45

6.3 Department structure -Production 46

6.4 Production process 50

6.5 Department structure –Quality control 52

6.6 Department structure –Stores and Despatch 54

6.7 Department structure –Internal Audit 57

6.8 Department structure –R&D 58

6.9 Department structure –Project& maintenance 59

6.10 Department structure –Finance 64

6.11 Department structure –Medical 67

6.12 Department structure –Security 69

6.13 Department structure –Safety& Environment 70

6.14 Department structure -Civil 75



CHAPTER 1 INTRODUCTION



INTRODUTION

Each and every organisation has its own importance in the economic wealth of the

nation. Different organisation meets different needs of people by offering different

products and services. Due to globalisation the world has changed into a global village.

In this fast and changing business scenario, it is imperative for every entrepreneur to

have a vivid understanding of the functional application of the new age business. As a

part of the academic curriculum each student has to undertake an organisational study

to get practical exposure. This study is conducted at Indian Rare Earths Limited,

Chavara.

IREL Chavara is located 10 km north of Kerala and 85 km from Trivandrum, capital of

Kerala and 135 by road from Cochin is perhaps blessed with the best mineral sand

deposit of the country. The plant operates on a mining area containing as high as 40%

heavy minerals and extending over a length of 22 kms in the belt of Neendakara and

Kayamkulam.

The deposit is quite rich with respect to Ilmenite, Rutile and Zircon and the mineral

Ilmenite happens to be of weathered variety analysing 60% Titanium Dioxide (TiO2).

The present annual production capacity of Chavara unit engaged in dry as well as wet

(dredging / Up gradation) mining and mineral separation stands at 2,00,000 tonsof

Ilmenite, 1,14,500tons of Rutile, 11,750 tons of Zircons and 10,000 tons of Sillimanite.

In addition to that, the plant has facilities for annual production of ground Zircon called

Zirflour and Microzir of the order of 6,000 tones and 300 tonsrespectively.

IREL Chavara is one of the oldest and leading public sector undertakings under the

Department of Atomic Energy (DAE). It is an ISO 14001: 2000; OHSAS 18000

certified company supplies beach sand minerals to the foreign and domestic market. It

caters the requirements of developed countries like U.S.A, U.K, Germany,

Australia, Japan etc. The major mineral products of IREL are Ilmenite, Rutile,

Sillimanite and Zirflour.



CORPORATE STRUCTURE

Fig:1.1

RESEARCH DESIGN A research design is a plan of the proposed research work. The research designs simply

a specific presentation of the various steps in the process of research. Design means

adopting that type or technique which is most suited for the research and study of the

problem. It is a plan, structure and strategy of investigation conceived so as to obtain

answers to research questions and to control variance.

OBJECTIVE OF THE STUDY

The main objective of the study is to familiarize with the organisational functions in the

organisation, there are many other minor objectives also. They are the following:-

To understand about how an organisation’s system is performing.

To know about various departments and their functions in an organisation.

To study the managerial activities performed in an organisation.

To know how an organisation coordinates its activities.

To get a practical exposure as the future manager.

OSCOM Plant

Orissa

Corporate & Registered

Office at Mumbai

Rare Earths Division

Udyogamandal

Mineral Division

Manavalakurichi

Mineral Division

Chavara



SCOPE OF THE STUDY

The scope of the study is to know about the organisation, its structure, the functions

performed by various departments and to know the overall performance of the

organisation. The study will help the management students to get a practical exposure.

METHODOLOGY

Both primary and secondary data were used for this study.

1. Primary Data:-

The primary data can be obtained either through observation or through direct

communication with respondents in one form or another or through personal

interviews. There are several methods for collecting primary data. They are observation

method, interview method, through questionnaire, through schedule etc. Here primary

data were obtained from direct interviews made on with managers, officers and workers

of the firm.

2. Secondary Data:-

Secondary data means data that are already available ie: - they refer to the data which

have already been collected by someone else. Here secondary data were collected from

company brouchers, manuals and other records

LIMITATIONS OF THE STUDY

The study is limited to my experience and knowledge.

Lack of availability of secondary data from published journals and reports.

Secrecy of the organisation prevents them from giving some of the details

regarding the firm.

Employees were busy in their work so they could not give more information.

There may be errors due to the bias of the respondents.

Time is a major limitation in the course of study.



CHAPTER-2 INDUSTRY PROFILE



INDUSTRY PROFILE

Rare Earth Elements or Rare Earth Metals are a collection of 17 elements namely

scandium, yttrium and lanthanides (15 elements in the periodic table with atomic

numbers 57 to 71 namely: lanthanum (La), cerium (Ce), praseodymium (Pr),

neodymium (Nd), promethium (Pm), samarium (Sm), europium (Eu), gadolinium (Gd),

terbium (Tb), dysprosium (Dy), holmium (Ho), erbium (Er), thulium (Tm), ytterbium

(Yb) and lutetium (Lu)). Rare earths are not rare in the sense of their abundance, but

have earned this descriptive because they are rarely concentrated enough for an easy

recovery from their ores.

In India, monazite is the principal source of rare earths, which is a prescribed substance

as per the notification under the Atomic Energy Act, 1962. Indian Rare Earths Limited

(IREL) has been the sole producer of Rare Earth compounds in the country. The

recovery of Rare Earth Elements (REE) from Monazite has been restricted due to its

thorium and uranium content. There is a need for concerted efforts both by GSI and

AMD to explore other primary sources of Rare Earth Elements. In the face of

competition from China and due to lack of domestic demand for indigenous materials,

IREL had stopped its production.

Given the concerns over China’ s flexing of its muscle on the international stage by

restricting Rare Earths exports, a wave of Mining projects are revived worldwide to tap

sizeable deposits of Rare Earths. IREL is also planning to restart production of REE.

Keeping this in view and increasing demand of these metals for high tech applications,

Ministry of Mines has stressed the need to incentivize exploration & process R&D for

creating indigenous production capacities. To achieve this, a high level Steering

Committee has been constituted to look into the current availability of Rare Earths and

to suggest short, medium and long term strategies for exploration, production and

processing, to ensure long term availability of the raw material



WORLD SCEANARIO OF RARE EARTH ELEMENTS (REEs)

There is large amount of reserves of rare earths minerals in the world. China holds the

leading position among producers of the rare earths elements or lanthanide elements.

Rare earths are also produced in India, Russia, Kazakhstan, Kyrgyzstan, Thailand,

Malaysia, Russian Federation, Brazil, Canada, Vietnam, South Africa, Indonesia, Sri

Lanka, Mongolia, North Korea, Saudi Arabia, Turkey, Norway, Greece, Nigeria,

Kenya, Tanzania, Burundi, Madagascar, Mozambique and Egypt.

Most recently, it was discovered that Afghanistan may have large deposits of rare earth

metals, estimated to be worth US$89 billion. The rare earth deposits are on the south

bank of the Helmand River in southern Afghanistan.

Given the concerns over China’ s flexing of its muscle on the international stage by

restricting Rare Earth exports, a wave of Mining projects are reviewed worldwide to tap

sizable deposits of Rare Earth. LynaCorporation’s new mining operation in Australia

and Molycorop’s plan to restart Mothballed Mountain Pass Mines is a step in this

direction. It has also encouraged further exploration and spurring more recycling of

Rare Earths.



The World production and reserves of Rare Earth Elements are given in table.

Table:2.1Rare Earth Elements – World Production and Reserves (2009)

INDIAN SCENARIO

In India, monazite is the principal source of rare earths and thorium. The mineral

monazite is a prescribed substance as per the notification under the Atomic Energy Act,

1962. AMD has been carrying out its resource evaluation for over five decades. It

occurs in association with other heavy minerals, such as ilmenite, rutile, zircon, etc. in

concentrations of 0.4 - 4.3% of total heavies in the beach and inland placer deposits of

the country. The resource estimates of monazite in the beach and inland placer deposits

have been enhanced from 7.90 million tonnes in 2002 to 10.21 million tonnes in 2005.

Country Mine

Production

(tonnes)

% of

production

Reserves

(million

tonnes)

% of Total

reserve

United States 0 (no rare earth

mining)

0 13.0 13

China 120000 97 >36.0 36

Russia (and

other CIS

countries)

small <1 19.0 19

Australia small 0 5.4 5

India 2700 2 3.1 3

Brazil 650 <1 small

Malaysia 380 - small

Other 270 - 22.0 22

Total 124000 >99.0



The state wise resources are given below:

All India 10.21

Andhra Pradesh 3.73

Bihar 0.22

Kerala 1.37

Orissa 1.82

Tamil Nadu 1.85

West Bengal 1.22

Table:2.2Resources of Monazite (In million tonnes)

Exploration & Development

Apart from Monazite sands, India has to look for rare earths from the primarysource

rocks. In India, concentration of REE in hard rock has been recorded in association

with carbonatites, syenites, albitites, granites, pegmatite, apatite and phosphorites and

carbonaceous schists. Geological Survey of India has carried out preliminary search for

REE in carbonatite in Koraput and Kalahandi districts of Orissa. Pegmatite and the

granite terrain have been covered in Bhilwara, Ajmer and Udaipur districts of

Rajasthan. Carbonatites of Tamilnadu, West Bengal, Meghalaya and Assam were also

sampled. So far, Bastnaesite has been reported in association with Carbonatite from

Puruliadistt,West Bengal and Monazite has been reported from Carbonatite occurrence

of Sung Valley (Meghalaya),Sevattur (Tamilnadu) and Samchampi (Assam).In addition

GSI has to examine all the data generated from the proterozoic and younger granites

andIron oxide-copper-gold (IOCG) type deposits and also their supergene/

lateriteprofiles. Proper evaluation of existing data and data generated from National

Geochemical Mapping Programme can also help in locating suitable target areas for

further search of REE. Field investigations carried out by AMD for rare metal



pegmatites in the last few years has led to the discovery of significant raremetal

pegmatites at Pandikimal, Jangapara, Bhurpidungri etc. in Jharsugudadistrict of Orissa

and Kawargaon, Bodenar, Metapal, Challanpara etc. in Bastar district of Chhattisgarh

apart from the known and established pegmatite fieldsof Bihar , Rajasthan and

Karnataka. These pegmatites were assessed and evaluated for their economic

exploitability and considerable tonnage wasproved with significant ROM grade. Some

of them viz., Pandikimal, Jangaparain Jharsuguda andBodenar in Bastar district are

under recovery for Columbite-Tantalite. Beryl i s also recovered as a by-product.

Columbite-Tantalite from Jharsuguda area, Orissa is niobium rich whereas those of

Bastar region, Chhattisgarh are tantalum rich. In Southern India, a survey by AMD has

resulted in locating new pegmatitic occurrences in Holenarispur and Nagmangala

Schist Belts of Karnataka. Similarly in Central India Bastar-Koraputpegmatitic belt

(BKPB) and pegmatites around Limboi in Sabarkantha Dist., Gujaratis rare metal

bearing. Marllagalla pegmatite in Nagamangla Schist Belts forms the single largest Nb-

Ta deposit containing economic grades of Ta2O5, which has produced substantial

tonnage of Columbite-Tantalite and Spodumene(lithium bearing mineral).Apart from

pegmatites, the granitic occurrences of Nb-Ta minerals near Kanigiri, Prakasamdistrict,

Andhra Pradesh was also located and evaluated. The carbonatite bodies of Tamilnadu

and Meghalaya were reassessed for their pyrochlorecontent. Samchampi Alkali

Complex in Mikir Hills of Assam is another potential area for Nb-Ta minerals. The

Niobium deposit at the SamchampiCarbonatite Complex, Assam, and India extends

over a considerable stretch. High content of Nb, La, Y and Zr have also been reported

for the first time in rhyolitic dykes associated with Deccan basalt from Alechhills,

Gujarat. The anomalous content in these rocks is due to the presence of xenotime,

ilmenorutile and monazite. The non pegmatitic resources for rare metals are low and

have problems of beneficiation which are being studied by AMD.

Key successes for the beach sand mineral industry are:-

Increase the Ilmenite capacity to reach economic scale of production.

Value addition project in minerals and rare earths compound.



Initiate action to develop new mining areas.

Forward integrate through stake in world leader in pigment Industry

likeTinfoss, DuPont or selling up a pigments plant.

Explore other mining options in neighbouring countries.

Potential RE Markets

Table:2.3

End Use RE required Present Status Expected (2030)

Magnets for wind

turbines

Nd , Pr, Dy, Tb (high

strength magnets have

30 % RE)

12,000 MW of

wind ~ capacity

~ 50,000 MW

EV, Hybrid vehicles

(batteries, motor,

catalytic converter)

La (15 kg per car)

Nd (1 kg per car), Dy,

Tb, Ce

Negligible EV Perhaps up to 1

million vehicles

LED

Y, Eu, Tb Negligible LED Being promoted by

government, could

reach ~ 1 million bulbs

Al, Steel, Mg

industry, grain

refinement

Ce, La , mischmetal Huge growth

rate

Screens brighteners

(cell phone,

computers, TV

screen)

Eu mostly imported Huge growing

market

Other magnets Pr, Sm, Gd mostly imported Computer hard

disks, microphones



CHAPTER 3 COMPANY PROFILE



COMPANY PROFILE

On August 18, 1950 Indian Rare Earths Limited (IREL) was incorporated as a private

limited company jointly owned by the govt. of India and Govt. of Travancore, Cochin

with the primary intention of taking up commercial scale processing of monazite sand

at its first unit namely Rare Earths Division (RED) Aluva and Kerala for the recovery

of thorium.

After becoming a full-fledged central govt. undertaking in 1963 under the

administrative control of Department of Atomic Energy (DAE), IREL took over a

number of private companies engaged in mining and separation of beach sand minerals

in southern part of the country and established two more divisions one at Chavara,

Kerala and other at Manavalakurichi(MK), Tamilnadu.

After a gap of 20 years IREL commissioned its largest division called Orissa Sand

Complex (OSCOM) at Chatrapur, Orissa. Today IREL operates these four units with

corporate office in Mumbai and produces/ sells six heavy minerals namely Ilmenite,

Rutile, Zircon, Monazite, Sillimanite and Garnet as well as various value added

products IREL is making profit for the last 6 years with its sales turnover reaching a

peak exceeding Rs: 2600 million in 2000-01, with export component of above Rs: 1000

million.

Chavara plant is engaged in the processing of beach deposits available on the coastal

belt of Neendakara- Kayamkulam

HISTORY OF THE ORGANISATION

IREL’s history should not be narrated without mentioning the name of the Germen

chemist Mr. Herr Schomberg who has realised that the shining yellowish brown



particles sticking to coir, a coconut fiber shipped from India (1909) contained

Monazite.

This sparkled the discovery of vast deposit of monazite a rich source of rare earths a

group of elements with a wide variety of uses in industry and science. A few plants

were operating at Chavara and Manavalakurichi for the separation of monazite.

1948:- The govt. of India setup atomic energy commission under the chairmanship of

Dr: HomiBhabha. The export of Monazite was stopped and the possibility of setting up

a facility to process the beach sand mineral for the production of Rare Earths was

examined.

1950:- IREL was incorporated at Bombay

1951:- IREL become the full-fledged govt. undertaking under the Department of

Atomic Energy and commissioned construction of its rare earths plants at

Udyogamandal in Kerala.

1952:- Rare earth plant was dedicated to the nation on Dec 24 by the Jawaharlal Nehru.

1955:- Opening Thorium factory of Bombay.

1965:- Opening mineral division at Kollam in Kerala state with manufacturing facilities

at Chavara in Kerala and Manavalakurichi in Tamilnadu and a giant mineral sand

separation and synthetic Rutile plant at Chatrapur in Orissa.

VISION OF IREL

1. To be a leading supplier of beach sand minerals from Asia by supplying 10% of the

world demand for beach sand minerals over the next 7-10 years. It would be achieving

by maximum utilisation of existing capacities, new capacity addition, capturing major

portion of the incremental growth in the global TiO2 feedstock demand and by

developing competitive value added Rutile, Zircon, Sillimanite and Garnet products

that make handsome contribution to revenue and profits.



2. To become the preferred rare earths products supplier (Producer and/ or Marketer)

for domestic customers to ensure long term sentences and profitability of rare earths

business and to achieve adequate efficiency in monazite processing as long as it is

necessary / worthwhile.

MISSION OF IREL

1. To harness beach sands in an environmentally and socially responsible manner for

efficiently producing minerals and their traditional and innovative value added products

of world class quality that are used to make increasingly superior/ novel products

required by customers.

2. To play a dominant role in developing domestic rare earths market by producing and/

or marketing the quality value added products to realise maximum potential or rare

earths in a range of applications.

3. To build a professional, creative and committed workforce and nurture an

environment that fosters learning, sharing and development.

OBJECTIVES OF IREL

To become nationally and globally competitive player in beach sand minerals.

To improve productivity, capacity utilization and cost effectiveness.

To maximise shareholders value.

To strive for optimum value addition through obtaining technology for

improving international market share and growth in domestic market.

To undertake by itself or through independent expert agencies , investigation

into new products as well as beach sand erosion and related phenomena of

company’s operation.

To evolve and implement eco-friendly policies, programmes and projects within

the AERD regulation.



To develop the human resources of the company by optimising their number,

capabilities and quality of life

To strengthen R&D for achieving the above mentioned objectives

QUALITY POLICY

IREL is committed to provide products of consistent quality to their satisfaction of the

customers through Quality Management Systems (QMS) implementation.

TECHNICAL EXCELLENCE

IREL uses state of art technology in mining and mineral processing. The rich

experience and professional expertise of people who are one among the best in the

industry and strict compliances to quality standards has enabled IREL to remain as the

leading supplier of heavy minerals to the nation and abroad. IREL is always been

driven by innovation and sound manufacturing practices, be it in product, technology or

process.



CHAPTER 4 PRODUCT PROFILE



PRODUCT PROFILE

Product means to the goods and services combination the company offers to the

target market.

Product Specification Specific

Gravity

Density Packaging

Ilmenite TiO2 - 58% 4.45- 4.54 2600- 2630 In bulk HLP bags

with Polithine liner

Rutile Q Grade TiO2 - 95% 4.18-4.24 2630-2650 In bulk 50kg HLP

bags with Polithine

liner

Zircon Special

Grade

ZrO2 - 58% 4.60-4.70 2900-3000 In bulk 50kg HLP

bags with Politine

liner

Sillimanite Q

Grade

Al2O3 3.20-3.25 1950-2050 50kg jute bags

Zirflour ZrO2- 64% - 1800-1850 50kg laminated

HLP bags with

Polithine liner

Microzir ZrO2- 63.5% - - Liner 20kg

laminated Polithine

bags

Table:4.1



Products Uses

Ilmenite Manufacturing of TiO2 pigment synthetic

Rutile and Titanium slag

Rutile Fluxes for welding electrodes

Zircon sand Ceramics, Refractories and foundries.

Zircon Flour Ceramics and foundries.

Microzir Pacifier in Ceramics

Sillimanite Refractories

Garnet Abrasive for sand blasting, water jet

cutting and glass polishing.

Monazite

Raw material for production of Rare earth

Component

Composite RE Chloride Catalyst, Paint driers, basic raw material

for Misc. metal which used as lighter

frint& mantles.

Thorium Nitrate Gas Mantles

TABLE:4.2



CHAPTER 5 CUSTOMER PROFILE



CUSTOMER PROFILE

Prime customers of the major products of the company are the following:-

A. ILLMENITE:-

1 KOCHIN MINERALS AND RUTILE LTD. KOCHI.

2 DCW LTD. TUTICORN.

3 TRAVANCORE TITANIUM PRODUCTS LTD.

4 KILBURN CHEMICALS LTD. TUTICORN.

5 KOLMAK CHEMICALS LTD. KOLKOTA.

B. RUTILE:-

1 ESAB INDIA LTD, CHENNAI/ KHARDAH.

2 ADOR WELDING LTD., MUMBAI/CHENNAI.

3 D & H SECHERON ELECTRONICS (I) LTD., INDORE

4 MARUTHI WELD LTD., GURGAON.

5 ROYAL ARC ELECTRODES PVT. LTD.VASAI, THANNE DIST.

C. ZIRCON:-

1. THIRUPATHI MICROTECH (P) LTD., UDAIPUR.

2. RUBY CERAMICS PVT LTD., PUNE.

3. ASTRON CERA, SALAL DIST, SABARKANTHA.

4. JOHNSON MATTHAEY CERAMICS INDIA LTD, HOSUR, TN

5. FOUR FIELD, PUNE.

D. ZIRFLOUR:-

1. FOSECO INDIA LTD., PUNE.

2. VIDEOCON NARMADA GLASS, BHARUCH.

3. H & R JOHNSON (I) LTD., MUMBAI.

4. NAHAR COLOUR & COATING LTD., UDAIPUR

5. BHANU CERGLAZE P.LTD.



E. SILLIMANITE:-

1. MAITHAN CERAMICS PVT. LTD., CHIRKUNDA, JHARKHAND

2. MANISHRI REFRACTORIES, CUTTACK.

3. ASSOCIATED CERAMICS, CHIRKUNDA, JHARKHAND.

4. TATA REFRACTORIES, BELPAHAR, ORISSA.

5. ASSOCIATED CEMENT COMPANIES LTD., NAGPUR/KATNI.

F. RARE EARTHS CHLORIDE:-

1. CIBA SPECIALITY CHEMICALS, UDYOG NAGAR, GUJRAT.

2. DHIRAJ INTERMEDIARIES P LTD., VAPI, GUJRAT.

3. RAVESHIA PIGMENTS LTD., VAPI, GUJRAT.

4. ANUPAM COLOURS, VAPI, GUJRAT.

5. BERGER PAINTS INDIA LTD., VAPI, GUJRAT.

G. THORIUM NITATE:-

1. FARGO MANTLE PRODUCTS LTD., MUMBAI.

2. MAKANI PRODUCTS LTD., MUMBAI.

3. B.K SHAW INDUSTRIES (P) LTD., KOLKATA.

4. A.D.C MANTLE MANUFACTURING CO., MUMBAI.

5. ELITE INDUSTRIES, MUMBAI.



CHAPTER 6 FUNCTIONAL AREAS



DEPARTMENTS

I. HUMAN RESOURCE DEPARTMENT:-

IREL Chavara takes place it’s highly motivated and trained human resource that has

maximised its performance and their by its growth and profit. Morale of the employees

remains facilitating smooth working of the company. Skill requirement related to

different disciplines are identified and training programs and workshops are efficiency

of the human resource.

Fig:6.1

HR department lead by HOD & Section Head to assist him. The Security Department

and Time Office are working under the HOD of HR Department.Executives &

Personnels are working under section head of HRM.People are the most important

resources of an organization.

The main functions of HR Department are:-

1. Administration

2. Industrial Relations

3. Training and Employee Welfare

4. Time Management

1. ADMINISTRATION

The administrative functions of HR department include

a) Manpower planning

b) Recruitment policy

HOD(HRM)

SECTION HEAD(HRM)

HRM Executives

HRM Personnel



c) Performance appraisal

d) Salary and wages administration

e) Industrial discipline

f) Maintaining service book and personnel file

g) Maintaining reservation register

a) Manpower Planning:-

Manpower Planning is important for any type of organisation. It is the process which

determines how an organisation should move from its current manpower position to its

desired manpower position. For this purpose, the HR department at IRE collects

feedback from all department inorder to identify their manpower requirements of

various departments and then the HR department crosscheck whether there is any

overstaffing in any of the departments. If these departments have excess of staff, they

are transferred to those departments where there is a shortage.

The company considers the number of employees presently as significantly high.

There is a problem that sometime the VRS can lead to scarcity to workers for

particular job. At IREL using the process of multitasking the employees are made fit

to work in other function also. By the VRS scheme more than 100 employees have

been sent out within span of 3 years.



Manpower of the company

There are 386 employees in the company. Total executives are 102 and workmen are

284.The number of contract workers are 632.

Details showed as below.

Manpower strength

MALE FEMALE TOTAL

EXECUTIVES 86 16 102

WORKMEN 260 24 284

TOTAL 346 40 386

Table:6.1

CONTRACT WORKERS

LOADING 35

CIVIL 42

MINING 120

BAGGING 110

CANTEEN 12

TOTAL 319

Table:6.2

b) Recruitment policy:-

Recruitment in Chavara Plant is done through local employment exchange for find out

prospective workers. The office staffs and managers are recruited by the Head Office

through tests and Interviews.

Recruitment Criteria

For the recruitment of candidates, the candidates should be above 18 years of age.



The following steps are taken before the recruitment of employees. They are govt.

guidelines, the recruitment only through employment exchange, notification in internet

and advertisement in newspaper should be needed. Application will be scrutinised with

the help of a selection committee and eligible candidates are called for an interview.

Selection:-

The steps followed in the selection process are;

1. Inviting and receiving applications

2. Scrutinizing the applications

3. Selection Test: - The selection tests of employees are

a) Aptitude Test

b) Personality Test

c) Achievement Test

d) Trade Test

Appointment will be based on certain criteria’s like they are medically tested after that

induction training should be given. After training for a period of one year or more they

will be put as permanent employees.

c) Performance Appraisal:-

Appraisal is the evaluation of work quality or merit. In the case of IRE performance

appraisal is a systematic evaluation of employees by supervisors or other familiar with

their performance.

1) Straight ranking method:-

Under this method men as a whole are compares from other men and ranked on the

basis of overall performance.

2) Grading method:-

Under this method certain categories of work such as excellent, very good, average,

poor, very poor are established and defined actual performance of each employee then

compared with the grade definitions and ranked to evaluate the performance of the

employees. Last grade employees that are 8th& 9th grade, their work performance have

been observed by supervisors. But in the case of executives MBO’s are observed their



performance and efficiency.

In IRE performance appraisal is done on a yearly basis to assess the performance of the

employees. The appraisal is done by three persons.

1. Reporting Officer.

2. Reviewing Officer.

3. Evaluating Officer.

Firstly the employees themselves do an appraisal and this is given to the reporting

officer and the person who has done the Key Appraisal together identifies the Key

Result Areas and weightage is allotted to each one of them. This is usually done at the

beginning of the year. The reporting officer checks whether the result areas set where

met by the appraisal or if there any deviation from it. And this is to be sent to reviewing

officer and then evaluating officer. Various other factors such as the appraiser’s

managerial skills like job knowledge, interpersonal skills are also included and guided

and that is allotted in the appraisal and there promotion is based solely seniority.

Promotion:

In IREL promotion is given seniority based or based on

experience. Promotion is a transfer of an employee to a job that pay more money or that

enjoys some preferred status. Sometimes the company is considering the length of the

service, education, training courses completed, previous work history etc. Sometimes

the company is also considered ability, hard work, co-operation, honesty etc.

Condition for getting Promotion:-

1. Average leave should not exist more than 15 days.

2. Any disciplinary actions should not be taken during the service of periods.

3. Should not apply for job in any other organisation.

d) Salary and Wages Administration:-

Wages in the widest sense means any economic compensation paid by the employer under

some contract to his workers for the service rendered by them.

Acts Followed:

1. Workmen Compensation Act 1923 Sec 2(m).



2. Payment of Wages Act 1936 Sec 2 (VI)

3. Payment of Wages Act 1948

PAY SCALE

The monthly remuneration received by each of the employees including system of

compensation.

FOR WORKMEN

Scale of Pay:-

Grade Scale of Pay

W - I Rs: 8340-23470

W - II Rs: 8440-23750

W - III Rs: 8550-24060

W - VI Rs: 8670-24400

W - V Rs: 8800-24770

W - VI Rs: 8940-25160

W - VII Rs: 9090-25580

W - VIII Rs: 9250-26030

W - XI Rs: 9420-28968

Table:6.3

FOR OFFICERS

code Designation Pay Scale

E-0 Deputy Officer 12600-32500

E-1 Officer 16400-40500

E-2 Senior Officer 20600-46500

E-3 Deputy Manager 24900-50500

E-4 Manager 29100-54500

E-5 Senior Manager 32900-58000

E-6 Deputy General Manager 36600-62000

E-7 General Manager 43200-66000

E-8 Chief General Manager 51300-73000



e) Industrial Discipline:-

Disciplinary actions are taken in the HR department. Procedure for disciplinary actions

is on receiving a complaint about a particular employee, explanation is asked.

Employee will give an explanation before 15 days. If the explanation is not satisfactory

he will be given a charge sheet and will also conduct a domestic enquiry. For this

purpose an enquiry officer is placed. After conducting the enquiry the report should be

sent to the disciplinary committee and if necessary certain punishment may also give.

2. INDUSTRIAL RELATION

Most of the disputes will be settled by the company and trade unions. If it is not

cleared, they can approach to the government. The Trade Unions active in IRE are:-

1. United Trade Union Congress (UTUC)

2. Indian National Trade Union Congress (INTUC)

3. All India Trade Union Congress (AITUC)

4. Travancore Mineral Workers Union (UTUC (B))

5. Indian Employees Rare Earth Federation (CITU)

6. Indian Rare Earth Mazdoor (BMS)

These are the recognised unions. There are some criteria for recognizing a union; the union

will have 15% of employees as their members. Also some participative forum is present;

they are plants committee, safety committee and House building committee. These

committees will have the equal participation.

3. TRAINING & EMPLOYEE WELFARE

Training and Development:-

“Training is the act of increasing the knowledge and skills of an employee for during a

particular job”. Indian Rare Earth Ltd adopted various techniques of training for

increasing the mass productivity. The training program is restructured regularly in IRE.

The objective of training and development in IRE



1. Increase the efficiency

2. Increase the moral of the people

3. Reduce the absenteeism

Procedure for Training

1. Identifying the training needs.

The company identifies the training needs through 3 ways: -

a. Organisation Analysis

b. Task Analysis

c. Man Analysis

2 Executives themselves will discuss the training needs

3 Charting out the training plan for a period

4 Based on feedback individual training is given

Training Methods

IRE has mainly four types of training methods.

1. In-house Training

2. External Training

3. Vocational raining

4. First Aid Training

The training method can be grouped on the basis of level of personnel in the

organisation.

1. In-house Training: - Otherwise known as on the job training. In this method

expert from outside come to the organisation and give training.

2. External Training: - Also known as off job training is given outside the

organisation.

3. Vocational Training: - At least 20% of the employees should be trained every

year.

4. First Aid Training: - 30 people in one batch and give them training.



Employees Welfare:-

Two types of employee’s welfare are present in IREL. They are;

1. Statutory welfare and

2. Non Statutory Welfare

Gratuity, Provident Fund, Pension, Canteen, Medical Allowance is included in the statutory

welfare. Festival Allowance, LTC, Recreation, Tour Facilities are included in the no

statutory welfare. Also the IREL give some kind of allowances. They are;

Shift Allowance

For employees working in shifts expect general shifts will get anallowance as

follows

1st

Shift (6 am to 2 pm) -Rs: 25/day

2nd

Shift (2 pm to 10 pm) -Rs: 15/day

3rd Shift (10 pm to 6 am) -Rs: 35/day

Hard Shift Allowance

Since the plant handles sand for its production, it creates a dust in the atmosphere.

Considering this hardship in work every employees of Chavara plant gets Rs: 135/-month

as hardship allowance.

Uniform Allowance

Every employee is provided with two pairs of uniform in every year. Rs: 100/ month as

washing allowances is granted for all employees.

Transportation Allowance

Every employee (except officers) gets Rs: 1200/- per month as conveyance allowance.

Officers will get 10% of their basic pay as their Transportation Allowance.

Canteen

A round the clock canteen is provided for the employees. Company will charge Rs: 6/day

from each employee. The canteen is under the control of company.

Attendance Bonus

To increase attendance in the company gives annual bonus of 12 days wages for every

employee who have minimum 268 days presents.



Production Incentives

Every employee gets an amount of Rs: 525/ year as Production Incentive from the profit. Leave facilities available in IRE

Casual Leave - 15 days/ year

Sick Leave - 10/year (workers)

10 full/20 half (Officers)

Earned Leave - 33 days (It can be maximum of 240 days)

Surrender Leave - Each employee can surrender maximum 90

Days/year or 75% of earned leave.

Other Benefits

750 ml milk/ day 4

pears soap/month

One Turkey or Towel/year

Shoes (1 pair)/ year

One Umbrella/year

House loan up to 7.5 Lakhs

Medical Facilities

Educational Allowances to workers children

Festival Allowance

Group Insurance Scheme

Holiday Facility Leave Travel Concession

(LTC)

4. TIME OFFICE

There is a full-fledged office headed by Deputy administrative officer. It follows a punch

card system. Different allowances of employees are given and it is mainly depend on

attendance. It is providing according to the report from the time office. The time office is

working under the HRM department. The main function of this department is to maintain

attendance records, leave and service records etc. The various allowances, attendance



bonus all these records are maintained by the time office department. Also yearly

attendance bonus is given to the employees.

Attendance of 265 days/ year -12 day’s salary



Structure of the time office as follows;

Fig:6.1.1

For recording attendance punching system followed here. The attendance register usually

keep in time office. The time office collects attendance from concerned authority also and

match with the punching system and avoiding swapping. Time office has three centers for

punching in convenience of employees. In mining area, in dredging plant also keep

mechanical punching machine. For the purpose of salaries the time office is sending the

records to the finance department. If the finance department asks for any clarification they

will do it.

HOD(HRM)

SECTION HEAD(TIME OFFICE)

TIME OFFICE(PERSONNEL)



TRANSFER POLICIES OF IREL, CHAVARA Transfer is the movement of an employee from one job to another without involving

any substantial change in his duties, responsibilities. The company is following 4

methods.

1. Production Transfer:-

When a particular department or job is faced with the pressure of works, its strength

may supplement through from other departments. Such transfers are generally made

where any department is overstaffed and other is short of manpower.

2. Replacement Transfer:-

A replacement transfer is the transfer of a senior employee to replace with a junior

employee or new one.

3. Shift Transfer:-

When units in shifts,employees are transferred from oneshift to another on similar job.

4. Department Transfer:-

Transfer from one department to another within the plant or within the organisation.



MINING DEPARTMENT In IRE the raw materials for production process are collected through mining process.

The production process starts with the collection of beach sand from various places. For

collecting this beach sand IRE uses the following two methods: Sea Washing and

Dredging.

SEA WASHING Raw sand is collected from sites where deposits are occurred due to natural beach

washing. Presently IRE owns two sites one at Vellanathuruthu/Ponmana and one at 132

mining area. There is a heavy mineral deposit over a length of 22.5 Km. They are found

over or coastal belt having an average width of 800 meters. The sea waves deposits the

minerals sand on the beach line and it is collected. Then it is send to the mineral

separation plant.

DREDGING The plant DWUP used for the mechanised recovery of minerals from the beach sand.

The DWUP consist of a floating dredging plant operating hydraulically and electrically

which could be moved from one place to another based on the requirement. The plant is

floating in an area having a water depth of 6 meters. The sand along with water in the

form of slurry (a mixture of sand and water) is pumped to the heavy Upgradation

equipments. The equipment consist of a series of transfer bin rotating screens called

Trommer, Spiral Separators, Hydro cyclones, pumps etc all being electrically operated.

The DWUP can dredge about 40 to 60 tons per hour. The raw sand having an average

at 40% heavy minerals is fed to the floating plant and updates it to 85 to 90% mineral

content. The waste sand (Quarts) from DWUP is usedfor backfill the dredged area.



DEPARTMENT STRUCTURE – MINING

Fig:6.2



PRODUCTION DEPARTMENT

The act of making goods and services is called production. In everyday speech

‘Production’ refers to the act of creating something production involves the physical

conversion of raw materials into tangible goods.

In IRE raw sand is collected through mining process .The sand is filtered through

spirals, cones and jigs to produce a bulk concentration of heavy drying, screening,

electromagnetic and electrostatic processes and used for separation. Minerals found in

coastal areas are collected either manually or mechanical means, productions starts

from the mining process.

DEPARTMENT STRUCTURE – PRODUCTION

Fig:6.3



MINING PROCESS

The mining and processing of beach sand are achieved with a good mixture of modern

mechanical devices and manual labour. Beach sand is collected from the surface of a

depth of a meter with the help of dredgers. For a processing of beach sands, the

difference in electric conductivity, magnetic susceptibility and specific gravity of their

constituents are taken into consideration. The beach sand is treated by well gravity

methods using spiral, cones and jigs to produce minerals.

IRE collects raw sand in two different ways:

1. Sea washing or beach washing

2. Mechanical dredging

MINERAL RECOVERY PLANT

The mineral recovery plant consists of a floating dredging plant which

could be moved from one area to another. This is called floating mineral recovery plant.

The plant is placed in an area which has a water depth of 9 meters. The sand along with

water is sucked into the main unit. First the mixture is send to a storage tank called

Trammel. Then it is sending for separation. The waste sand and some quantity of water

is pumped out. The mineral content is pumped from the MRP to concentrate

Upgradation plant. The MRP dredges about 40-60 tones per shift.

CONCENTRATE UPGRADING PLANT (CUP)

The raw sand collected from different sources had different composition. They are

further upgraded using the CUP. In the Concentrate Upgrading Plant enriches the

concentrate from various sources to above 90% heavy minerals using spiral separators

making use of gravity techniques.

MINERAL SEPARATION PLANT (MSP)

In the mineral separation plant individual minerals are separated making use of the

following four properties of the minerals namely



1) Electrical conductivity

Electrostatic separation is used in electrical conductivity.

2) Magnetic Susceptibility

High and low intensity magnetic separators used.

3) Density Difference

Floater separation

4) Surface Property

Froth floatation.

The concentrate from concentrate upgrading plant (CUP) having uniform composition

with above 90% heavy minerals content is dried using Fluidised Bed Drier (FBD). This

is then subjected to electrostatic separation using different type of electrostatic

separators. There by it is separated into two fractions namely conducting and non-

conducting fractions.

PRODUCTION CAPACITY OF CHAVARA PLANT

Ilmenite 200000 tones

Rutile 114500 tones

Zircon 11750 tones

Sillimanite 10000 tones

Zir flour & Microzir 6000,300 tones

Table:6.4



ILMENITE: - Mainly used in the manufacture of Titanium dioxide, a white pigment

by sulphate process also used in the production of synthetic Rutile and for the

production of Ferro Titanium products.

RUTILE: - Rutile used for coating of welding electrodes and also for the production

of Titanium dioxide pigment by the chloride process and for the production of Titanium

Tetra Chloride for the production of Titanium metal and sponge.

SILLIMANITE: - Sillimanite mainly used in the manufacture of high temperature

refractory. It is also used in ceramic industry.

ZIRCON: - Zircon is used in foundries, ceramics and refractory. It is also used in the

manufacture of zirconium chemicals, metals, alloys etc.

ZIRCON FLOUR: - Zircon flour is used in foundries for high temperature castings.

MONAZITE: - Monazite is used for the production of Thorium and rare earth’s base

products.



PRODUCTION PROCESS

Fig:6.4



QUALITY CONTROL DEPARTMENT

IREL Chavara has got ISO 9001: 2000 Quality Systems established for mining,

manufacturing and mineral products.

One of the primary functions of the quality control department is to ensure quality

products according to customer requirements. They harness beach sand in

environmentally responsible manner to produce minerals and innovative value added

products, which are used to make novel products required by customers.

Secondly, they are responsible for maintaining consistant quality of products to the

satisfaction of the customers through quality management system implementation.

They also aim at further improvement of product, technology or process.

The quality control department is also responsible for maintaining consistency in

quality of raw materials during the processing, intermediate and finished product

stages. They make use of chemical and mineralogical testing methods in each stage.

In addition to these functions this department also conducts research and

development activities to support flow shed development work and for solution to

process related problems.



DEPARTMENT STRUCTURE – QUALITY CONTROL

Fig:6.5

FUNCTIONS

To ensure that raw materials, in process and finished products confirms to

specified requirements holding compliance with environment , health and

safety requirements.

Ensuring compliance to health, safety and environmental requirements.

INSPECTION AND TESTING PROCESS DETAILS

Raw Sand:-

1) The DWUP and HUP output and tailing are tested for total heavy mineral content

as detailed in quality plan

2) The raw sand feed to the QIL plant ie the dried HUP output is analysed as per

quality plan.

3) The raw sand being naturally occurring, the specifications are only desirable

values. The variations in quality of raw sand do not affect the quality of final

products. So no reduction of raw sand is resorted to, even if the analysis results are

not as for the quality plan.

HOD(QC)

SH(Q C)

Q C EXECUTIVCES

Q C EXECUTIVES



4) These tests are carried out only to make proper adjustments of the process

parameters to set the final product of specified quality.

In-Process Inspection

In-process inspection of certain intermediate fraction as detailed in the quality plan is

carried out as per quality plan. These process fractions are not rejectedeven if the analysis

results do not confirm the desireable specifications. The inspection is only for subsequent

adjustments in the process parameters.

Finished Products:-

1) The products under tests are identified by a yellow board indicating the date, shift

and number of bags. Those products passed the tests are identified by a green board

indicating date, shift and number of bags and rejected are identified as red board

indicating “FOR REWORK”.

2) Inspection and testing of finished products are carried out and records in the

respective record as per quality plan. Only products confirming to the quality as

detailed in the respective quality plan are taken in to stock. Rejected products are

maintained with authorisation of HOD (Q.C). Inspection and test record clearly

indicate whether the product is accepted or rejected.



STORES AND DESPATCH DEPARTMENT

The stores act as a store and supply chain, keeping inventory of the product

produced on the hand and supplying requisite raw materials to the manifold

department on the other hand.

All the items in6 the IRE properly stored by this function area, including finished product

inventory. It stores furnace oil, machine parts, office equipment and stationary etc.

DEPARTMENT STRUCTURE – STORES & DESPATCH

Fig:6.6

Stores fall under two categories 1. Capital Items

2. Consumable Items

Capital items, which give return for long term revenue items or a consumable item

means that which are consumable only for a short period.

HOD(S&D)

SH(S&D)

S&D EXECUTIVCES

S&D EXECUTIVES



Procurement of items of capital nature is to be made only after the approval by the

competent authority duly verified by internal auditors with prior conclusion in the

capital budget.

Stores action is responsible for arranging procurement of all items or purchase

requisitions shall from the basis for arranging procurement or other departments,

complete in all respects and duly approved by the controlled authority. Stores are

purchased indigenously and from foreign suppliers through the adoption it secure the

most competitive tendering system is adopted to secure the most competitive tendering,

the most competitive rates and eliminate chance of favour.

The worth of production in the plant is currently between 6-7 Crores. Once in every 3

months inventory statistics is prepared and send to the head office in Mumbai. Stores

follow Bin card and Cardex System. This department has three major functions as

follows.

RECEIPT:

The consignment items are properly verified with the receipts and requested the

particular department to made inspection on each items.

STORAGE:

The received items are stored in proper locations and preserve them until the issue.

Each item has its own Bin card. The quantity received, material issued, total remaining

are noted in the Bin cards.

ISSUE:-

The issue made in first in first out method. After the receipt of the material

internal note from the department, the issues are made and same is recorded in the Bin

card.

INVENTORY CONTROLE

Under the stores department the inventory control function is done. If excess stock is

obtained, it is properly informed to the marketing department to promote sales and if

any shortage obtained it is properly informed to production department to increase the



production. Usually ABC inventory control methods is adopted in IRE Chavara for

control of inventories. The principle types of inventories are:

Raw Material & Supply

Goods in Progress that is work in progress Finished Goods

For reduction of inventories four steps are taken in the Stores and Despatch

Department. They are doing computerization, codification, standardization and value

addition. All the process in stores departments are computerised and inventory

management software is used for this purpose. Coding is given to all inventories. For

this, alphanumerical code is used. Material coding is help to realise what kind of

inventories are stored. And location coding helps to find out where it is stored. By the

use of standardisation, physical verification of inventories are to be done and to be

check whether the invoice number and purchase order are equal.

DESPATCH SECTION

Despatch Section controls the transportation of the finished products o the outside

company. When a customer made a complete settlement of money for purchasing of a

particular product from the company the marketing department placed a delivery order

to the despatch department. The despatch department then prepares an invoice and gave

a copy to the customer. This department also prepares gate pass and state government

declaration sheet.



INTERNAL AUDIT DEPARTMENT

Chief General Manager is directly looking after the functioning of Internal Audit

Department. Manager (Internal Audit) is the head of the department. There are internal

audit officers and administrative officers other than accountants and clerks working in this

department.

Internal audit department is not regular department in many of the companies. But in IREL

this department is holding special privilege of auditing in to every accounting matters of

IREL. It is functioning in accordance with finance department. It is necessary to get audit

approved from internal audit department for the finalisation of anything concerned to

accounts. The company management is approving all other accounts in the

recommendation of this department.

DEPARTMENT STRUCTURE – INTERNAL AUDIT

Fig:6.7

FUNCTIONS

Auditing all the financial transactions of the company.

Taking corrective measures to rectify audit objections.

Making report to Chief General Manager and Board of Directors.

Make sure that every deeds of finance department is in accordance with the

accounting policies of the companies.

To participate in the functioning of store purchase committee.

To check the legal validity of the financial matters of projects committed by IRE

Ltd.

MANAGER

INTERNAL AUDIT OFFICER

PERSONNEL



All the relevant policies of the company are as the basic policies of this department.

Internal Audit Department is auditing the accounts quarterly and sending report to Chief

General Manager regularly.

RESEARCH & DEVELOPMENT DEPARTMENT

The company has a well-equipped Research and Development facilities to support flow

sheet development works and for solutions to process related problems. The laboratory is

equipped with lab models of Magnetic Separator, High Tension Separators, Wet Shaking

Tables and Froth Floatation Equipment etc.

DEPARTMENT STRUCTURE – RESEARCH & DEVELOPMENT

Fig:6.8

FUNCTIONS

New product development.

New compound development.

Selection & Evaluation of alternative method.

Testing of new products.

To analysis and assist plants in problem solving.

Ensure quality of raw materials and finished products.

Maintain Quality.

Research & Development attempts.



PROJECT & MAINTANANCE DEPARTMENT

This section is looking after the projects and maintenance of technological aspects of

affairs of the company. This is a section in which mechanical experts are working on

different projects. This section takes over the responsibility of various projects taken up

by IRE Ltd management. They are making efforts to expand the area of performance of

the company.

FUNCTIONS

To carry out preventive Maintenance to ensure continuous capability and to

attend breakdown maintenance if any.

Projects on mining area of IREL.

Projects on technological development.

Project on quality assurance.

DEPARTMENT STRUCTURE – PROJECT & MAINTANANCE DEPARTMENT

Fig:6.9



MARKETING & SALES DEPARTMENT

Marketing is a social process by which individuals and groups obtain what they need

and wants through creating, offering and freely exchanging products and services of

value with others. It is the art of selling products. Marketing department is functioning

under the control of General Manager of marketing department.

Marketing occupies an important position in the organisation of any business unit.

Marketing functions are not limited to the function of buying and selling but storage,

risk bearing and after sales services etc. marketing is a vital connection link between

the producer and customer.

The marketing section in the IRE is under the direct control of chief General Manager

and this section is headed by the deputy General Manager in his job. The marketing

activities in the company are indirectly linked with the sales section.

IRE has the monopoly in the field of rare earth products. IRE Ltd, Chavara is

engaged in the production of minerals such as Illuminate, Rutile, Zircon, Sillimanite,

and Brown Illuminate from naturally available beach sand products. It also produces

value added products like Zirflour, Microzir. On specific requirements of customers the

company also supplies Sillimanite powder by subcontracting. Among these Illuminate,

Rutile, Zircon, Brown Illuminate are categorized as “Scheduled Minerals” for which

the customer is required to obtain license from the Department of Atomic Energy

(DAE) Mumbai for their purchase.

Off late, more stress was given as the marketing activities of IRE, by the

company, because of competition, which is growing in the international market and

also in Indian market. A new era has been put up in the company for this purpose.

The bye products of IRE are Zirflour and Monazite. They are mainly purchase by the

Kundara ceramics for the manufacturing of ceramics. The main customers of IRE are

the Government of India and other private company. The main foreign customers are

USA, Canada, UK, France, West Germany, Japan etc.



OBJECTIVES OF MARKETING DEPARTMENT

Maximum turnover Maximum profit

Maximum customer satisfaction

Maximum customer relationship

The chief General Manager of IRE is having the control of topmost level in marketing

department of this unit. There are four superintendents and a clerk engaged in the sales

department. IRE Ltd is working under the administrative control of Department of

Atomic Energy. The head office does the pricing of products. The customers of IRE

Ltd are mainly heavy industries like plant, glass, refineries, ceramics etc for bulk

purchases customer and provided discount.

SALES AND DISTRIBUTION SYSTEM

Here the organisation has been enjoying monopoly. That’s the reason why they don’t want

to make a distribution network. Direct selling is the main system of organisation. The

customer primarily pays the full amount as demand draft (DD) in advance and then the

company gives the products.

For domestic sales, order are received as

Through head office

Directly from the customers

Transferred from the units of IRE

All (except Zirflour, Microzir and Sillimanite powder) are dispatched against permits

obtained after payment of prescribed royalty by IRE in advance to the department if

mining and geology, government of Kerala.

Starting with general condition for sales, majority of the customers place orders

directly with Chavara. Sometimes head office also fixes quota customers wise if

necessary, for the supply of minerals and intimates time to time. If all the formalities

are completed delivery instructions are given by the sales department to stores for

delivery of the materials to the customers.

Exporting

Exporting contract between the seller (IRE) and the buyer (customer) is finalized at



the head office and intimates Chavara regarding the export contract along with the

copies of agreement, purchase order, proposed loading schedule and many other

specific instructions for the execution of the order. Chavara sends samples and product

specification to the customer if required by head office/ buyer.

Exporting carried out through Neendakara but now its through Cochin port (Bagged

Cargo only) shipment through Cochin port is done by C&S agents appointed by seller.

Pricing

Pricing is a very crucial decision in marketing management. The objective of the firm

is to get maximum profit. This depends upon the correct decision in pricing. Pricing

refers to the process of fixing the price (money value) of a product or service; pricing is

an important function in marketing because it determines the sales volume and the

amount of profit. A product is acceptable to the customer when it is reasonable priced.

A sound pricing policy helps to satisfy customers and to yield profit. Determination of

price is influenced by large number of factors such as cost of production, degree of

competition, nature of the product, pricing objectives and policies of the firm etc.

Samples to the customers

Samples are sending to the customers on their request or as per the instructions from the

head office for their evaluation of sustainability for their requirements. Free samples are

send to the customers as per the following procedures.

Up to 500 Gms: head of the department (marketing) intimates section head (QC) to

preparesamples of required quantity along with the gate pass.

501 Gms to 1 kg: head of the department (marketing) prior approval from the unit head

andfollows the above procedures.

Above 1 kg: head office approval with information to unit head and follows the above

procedure.

The sales department maintains the following records

Contract review checklist for domestic sale

Government of Kerala department of mining and geology and advance

remittance and corresponding permit register.



Quotations

Performa invoice

Payment registers

DAE license register

Priority registers

Delivery registers

Sales register

Shipping register

Daily statement of production , sales and dispatch

Quarterly statement regarding export

Monthly report to cabinet

Production, sale and stock of minerals (monthly)

Performa for submitting quarterly export performance to federation of Indian

exportOrganization

COB license

Bank receipt voucher

Cash receipts

DD register

Gate pass



FINANCE DEPARTMENT

Business finance is concerned with the acquisition and utilization of funds required to

meet the financial needs of a business enterprise. Financing is the process of planning,

acquiring, utilizing and controlling the funds used in any kind of business. Finance is

the life blood of business. Every enterprise or company requires finance to start the

work and grow.

A company generally requires large amount of capital. A public company can raise huge

capital through issue of shares. In addition to share capital it can utilize retained profit in

the form of reserves. It can raise borrowed capital through denture and loans. Long term

loans can be obtained from financial institutions. Short term loans are available from

commercial banks.

DEPARTMENT STRUCTURE – FINANCE

Fig:6.10

SOURCES OF A COMPANY

On the basis of time.

On the basis of purpose or use.

On the basis of source of finance.

On the basis of risk.

Finance refers to money, cash or hand available for the operation of business. Finance

may do defined as the requirement of funds wanted. It is the life blood of business

activity. The business pulsates with life only through finance. Finance refers to money,

HOD(FINANCE)

SH(FINANCE)

FINANCE EXECUTIVCES

FINANCE EXECUTIVES



cash or hand available for the operation of business. Financial management will include

planning, organising, directing and controlling.

The main functions of this department are:-

To collect all the receipts and make all the payments.

To record all the transactions and prepare the final accounts.

Maintain the accounts as per the provisions of the section 20(g) of the Companies

Act 1956.

Provide depreciation at the rate prescribed in schedule 14 of the Companies Act

1956, on a straight line method.

To account excise duty on goods manufactured when it is dispatched.

To ascertain the accrued gratuity liability of the company on the date of balance

sheet.

To value finished goods at cost or market price whichever is lower, stock of raw

materials, spares and chemicals are valued at weighted average method.

Treat the claims against the company which are not admitted as contingent liability.

CHIEF GENERAL MANAGER

The finance department is headed by the Chief General Manager (Finance). A Deputy

General Manager (Finance) is there to assist the Chief General Manager in the operations

of the department. In addition to them the department consists of 3 senior finance officers,

8 deputy officers and attenders.

AUTHORITY, RESPONSIBILITIES AND ROLES:-

AUTHORITY

Approval of policy, objective and targets.

Approval of apex manual.

Defining responsibilities and authority of head of departments, management

representatives.

Authorizing various committees

Approval training programs of financial commitment.

Authorization of decision taken at review meeting such as safety and environmental

protection committee, environment management customer service and complaint



redeemed and protection meetings.

RESPONSIBILITIES

Overall responsibility for health and safety of IRE, Chavara unit.

Claiming the review meetings.

Responsibility of the head office from time to time.

Ensuring that unit has organized celebration including those related to health,

safety and environment through concerned department.

Providing resources for the implementation main tenance and continued

improvement of management systems (in consultation with HO required).

Implementation of directives received from HO / statutory agencies.

Ensuring smooth progress of project (including feedback of HO on the

program).

ROLES

Ensuring smooth day to day functioning organisation through concerned HOD /

section head. Role as head of the unit in the health, safety and environment related

celebration. Participation in emergency evaluation (Both mock / actual) Compliance to safety related requirements including use of personal protection

equipment as a role model for others.



MEDICAL DEPARTMENT: An effective and efficient medical department is functioning in IREL Chavara. Every

family member of the employee is eligible for free attendance and treatment in the

dispensary. Cases beyond the scope of the dispensary will be referred to major

hospitals which are centered in Kollam and Karunagappally. The whole payment is

such cases are done by the company itself. The dispensary is working around the clock.

FUNCTIONS

To carryout medical examination of employees and their family members.

Examining compliance to environmental requirements.

Senior Manager (Medical) is the top most authority of the Medical department. Senior

Manager is followed by a Section Head/Lady Doctor. The department comprises of two

Doctors, three Pharmacists, three Nurses/Compounders, Laboratory Technician and an

Ambulance Driver.

DEPARTMENT STRUCTURE - MEDICAL

Fig:6.11

PROCESS INVOLVED IN MEDICAL DEPARTMENT

1) Out Patient Service:

a) Employees and their departments are provided free medical services. For

this each employee has been allotted a personal dispensary file in which name

of the dependants are included as per the family card issued by the welfare

department. Proper recording of the ailment, investigation and treatment of the



employees and the dependants are entered in the personal dispensary file. Unfit

and fit certificate are issued by the medical officers in the prescribed form for

availing sick leave and for rejoining the duty after sick leave.

b) Patients who require specialist’s opinion/ detailed investigation are sent to

recognised hospitals/govt. hospitals/ approved laboratories with a reference

letter. List of approved hospitals/ laboratories as approved by HO is maintained

by HOD (Medical). Patients are taken to recognised hospital only with the

reference form issued by medical officer. In the absence of company medical

officer, patients are issued a temporary reference card valid for one day by the

duty Pharmacist/Nurse for immediate admission incase of emergency and

within 24 Hrs the reference card issued by the medical officer is to be collected

by the employee.

2) Occupational Health Service (OHS):

Pre-employment Medical Examination:-

Normally recruited employees before joining are directed to undergo a medical

examination by the medical officer. Medical examination is carried out as per the pre-

employment medical examination report. The pre-employment medical examination

report is send to the HOD (HRM) for implementing the recommendation of the HOD

(Medical).

3) Periodical Medical Examination

In accordance with Atomic Energy Regulatory Board (AERB) periodical medical

examination for all canteen workers and clarified radiation workers is carried out once in a

year and for other radiation workers and other general workers, it is carried out once in five

years. Employees aredirected to HOD (Medical) as per the list notified by the

Administrative section. These who are exposed to high noise, loss of hearing bent are also

conducted and feedback is given to the concerned department.

4) Pre-retirement Medical Examination

Concerned employee is given intimation from administration section at least two

months before the date of retirement to carryout pre-retirement medical examination



with a copy to HOD (Medical). Based on this, medical examination is carried out one

month before the retirement of every employee and necessary advice is given to the

employee for his future health maintenance.

SECURITY DEPARTMENT

Security of the company assets and premises is vested in the hands of the staffs of

security department. The department is lead by Security Manager and he is assisted by

6 Head Security Officers and 26 Security Guards.

DEPARTMENT STRUCTURE – SECURITY

Fig:6.12

FUNCTIONS

To give security to the company and its assets.

To monitor the entry of employees and visitors.

According to ISO procedures they maintain the discipline of the employees,

their uniform etc.

Two major threats presents in IREL are sabotage and theft. To prevent sabotage there is

a control room and it accessible at every time. In case of emergency the systems will

automatically shut down and emergency alarm will blow. At that time all the

employees are required to assemble in the assembly points. Another security problem

faced by IREL is theft. There is no clear boundary wall for the company. This may

encourage persons to take away company assets without permission.

HOD(SECURITY)

SH(SECURITY)

SECURITY GUARDS



SAFETY AND ENVIRONMENT DEPARTMENT

In the present day industrial scenario all the industries had acceptedthe fact that safely

improves productivity.IREL Chavara has always been in the forefront in ensuring

safety,welfare and better working environment to all its employees. Their safety slogan

is“Let everyday be a safe day”

DEPARTMENT STRUCTURE – SAFETY & ENVIRONMENT

Fig:6.13

MISSION AND POLICY OF THE DEPARTMENT

MISSION

The mission of IREL is to be a major supplier of beach sand minerals and rare earth

compounds in the domestic and international market, develop and produce chemicals of

strategic importance, value addition with due regard to resources utilization and safety

protection.

Consistent with this mission, IREL envisages a safety and environment protection

policy that provides a safety working environment to prevent injury and ill health to its

employees. It also ensures environmental protection by minimizing environmental

input that may arise from its operations and provide appropriate environmental plans to

maintain ecological balance and above all recognizes the use for safety culture man

organisation to enhance the awareness and commitment of all employees to safety.



POLICY

IREL purpose to update and review the safety policy periodically taking into

consideration its industrial experiences advances in the technology and regulatory

requirements.

ENVIRONMENTAL POLICY

IREL Chavara is committed to protect, conserve and improve the environment

in which it operates for the continued existence in the business throughout

Conservation of natural resources

Minimising pollution

Compliance to applicable environmental rules and corporate guidelines,

periodical health monitoring of employees and creation of environmental

awareness among employees, customers and suppliers.

SAFETY GUIDE

IREL Chavara follows strict safety guidelines, which are given in the company’s safety

guide. Safety team will update the safety guide as per the requirement to throw more

clear light on the processes as well as equipments engaged in the plant, including

procedures to ensure the safety of both men and machinery.

There are Do’s and Don’ts enlisted in this guide and this will be quite helpful in

averting the slightest possibility of accidents.

SAFETY GUIDELINES

In order to achieve the policy objective certain guidelines are used some of them

are as follows.

CORPORATE LEVEL SAFETY

An officer of the rank General Manager to co-ordinate at the corporate office all

safety environment and training activities of various units and takes necessary

steps for effective implementation of this policy.

GM (S&E) assisted by three senior officers at the head quarters on each of the

safety, environment and training.

The corporate safety setup has been provided with adequate administration /



financial support for coordinating safety policy.

He liaisons with various outside agencies like Atomic Energy regulatory board

SARCOP health, physics division of BARC, DGM of mines safety, ministry of

environment and forest etc for fulfilling the statutory requirements.

He assesses the training needs for various areas and granges for different

categories of employees.

He interacts with safety teams / experts for carrying out safety audit /

environment audits and assessment of safety performance for award of shield

etc.

UNIT LEVEL SAFETY SETUP

The head of each unit will be executive director / chief / GM.

He will be ex-office chairman of the plant level safety and environment

protection committee which will review the monthly safety status of the

plant.

He will implement all the applicable statutory provisions of safety and

environmental control in the unit.

He will nominate senior level officer as safety and environmental control

officer who will look after the safety and environmental control aspects of

the unit.

He will ensure that operating procedures are followed strictly and technical

specifications are not violated.

SAFETY AND ENVIRONMENTAL PROTECTION COMMITTEE

The term of members of the committee will be two years and the committee

members will be meeting once in a month.

The committee will organize safety day / environmental day / fire day and

mines safety week annually and hold competition among the employees relating

to safety and environment during the celebrations.

The committee will discuss the measures against the unsafe conditions and



practices in the mine / plant as pointed out in the report of workmen’s

inspectors.

The committee will consider safety and health measures to be taken before

commencement of operations of any new electrical / mechanical equipment

proposes.

Summary of minutes of the meeting will be sent to the GM (S&E) regulatory.

STANDING ORDER FOR WORKMEN CONCERNING SAFETY

IREL standing orders for workmen also envisages the safety of the organizationand

relevant clauses.

PERSONAL PROTECTIVE EQUIPMENTS

It is divided into two categories

Personal protective equipment for the various parts of the body i.e. head, eye,

ears, face, hand, arms.

Respiratory protective equipment required when workers exposed to

atmospheric contaminants like dust, fuel, gases and chemicals let off in the air

in the dangerous concentration.

PROTECTION EQUIPMENTS USED ARE

Head protective

Respiratory protection devices

Safety belts and lifelines

Safety shoes

Dust respirators

Eyes and face protection

Ear muffs

Aprons

Gloves



PURCHASE DEPARTMENT

The main function of purchase department is procurement of materials at competitive

price. All items including real materials other than raw sand are purchased by this

department. In IRE Ltd the purchase department had prime importance.

Formalities of purchase

Float enquiry to the right source

Scrutinize quotation

Obtaining approval of the finance department

Release an order

Follow up receipt at the store

Assistance to give payment in time

Formalities of placing an order

Origination of intent

Tender enquires

Opening of tender on the data mentioned

Analysis of all tender

Technical evaluation of the tender

Selection of the best one

Negotiation with the party needed

Approval of the selected tender

Order placing

Follow up



CIVIL DEPARTMENT

Maintenance has a direct impact on everything that affects the overall health and

welfare of the organisation. A sound maintenance strategy should therefore be

considered a valuable tool used to assess equipment capability and the continuous

improvement efforts of asset performance.

Civil department consist of deputy manager (civil), two deputy officers and the work

force. They frequently monitor company structures and maintain them properly. In case

of new projects, the base infrastructure has to be erected by this department.

DEPARTMENT STRUCTURE – CIVIL

Fig:6.14



CHAPTER 7 SWOT ANALYSIS



STRENGTHS

Highly skilled managers and experienced workmen having excellent knowledge

and experience about mining and production process.

Constant Upgradation of technology.

A strong and symbiotic relationship between the top level management and the

lower level employees.

Technological collaboration with the Australian company, ROCHE, one of the

largest mineral technology providers in the world.

Abundance of raw materials in the company premises itself.

Support from government of India and the department of atomic energy.

High concern towards the employees and environment.

WEAKNESS

Mining problem.

Diminishing supply of raw sand.

The inability of the management to control effectively, the resistance raised by

the local people in resource crises.

Excess number of civil workers.

High labour charges.

Due to monopoly promotional activities are less.

Decision making process is highly time consuming and complicated.

Shortage of power



OPPORTUNITIES

High demand for products.

Growing demand for Titanium, Zircon, Thorium, Rutile, Ilmenite in

international market.

Faster growth rate of markets in Asian countries where extraction facilities are

limited.

The recent efforts to tie-up with other mining companies like KMML, Chavara

The favorable state government policies like prohibiting the entry of private

companies into the mining sector.

As a strategically important company it is always backed by the central

government.

THREATS

Entry of private players such as TATA group into the area of black sand

mining.

Over intervention of external political groups in company affairs.

Fluctuating in the value of currency which adversely affects the export income.

Increasing transportation cost.

Protect form environment activists.

Rapid technological changes in production process.

Changes in government policies.



CHAPTER 8 PORTERS FIVE FORCE MODEL



RIVALRY BETWEEN SUPPLIERS

In the current scenario IREL is free from rivalry between suppliers.

As beach sand is the raw material for IREL, there is no chance to depend

external suppliers.

IREL has a mining area of 20 km from neendakara tokayamkulam, and mining

is done by the mining department of IREL.

BARRIERS TO ENTRY/THREAT OF NEW ENTRY

IREL, incorporated in the year 1950 at Mumbai and chavara plant opened in

the year 1970.

For the last thirty nine years IREL chavara could make its own demand in

the industry.

Q –grade is considered as the first quality in all over the world.hence

opening barrier is nil in the case of IREL.

BUYER POWER

Major buyers are

Cochin minerals & rutile ltd

Travancore titanium products

Tum chemicals ltd

Tuticorinkolmak chemicals ltd,Kolkata

Because of high requirement of heavy minerals for the buyers IREL can maintain the

demand of the products above benchmark more and more companies are opened in

plastic and paint industry as the result of globalisation .hence buyers policies is less,and

it is an advantage for IREL.



SUPPLIER POWER

For IREL ,the supply of raw material is done by its own mining department so the

influence external suppliers are nill hence supplier power is favourable to IREL.

THREAT OF SUBSTITUTES

RUTILE,ZIRCON,MONAZITE,SILLIMANITE,ILMENITE are the major products

of IREL .in these products none of them has substitutes. hence the supplier power is

favourable to IREL



CHAPTER 9 PEST ANALYSIS



POLITICAL ENVIRONMENT

Influence of political trade unions in IREL –labor unions are well co-operate

with the management to achieve the common objective of the organisation.

Environmental policies of state and central government are opted to ensure

healthy environmental condition .so IREL is forced to keep eco- friendly

standards for mining and related process.

Ten policies is favourable to IREL.

The stable political conditions in state and central government are favourable to

IREL.

ECONOMIC ENVIRONMENT

The effect of inflation did not directly affect the sales volume because of the

constant demand of its products.

In the present scenario, the exchange rate of Indian currency is comparatively

steady ;it will be an advantage for Indian industries.

SOCIAL ENVIRONMENT

IREL gives employment to hundreds of people directly or indirectly.so IREL

has a good acceptance among local society.

People in the coastal regions make some problems when new mining process

opens.

It is difficult to attach those lands because of the interference of local leaders who

are argued for environment protection.



TECHNOLOGICAL ENVIRONMENT

Technological factors are favourable to IREL .because IREL uses modern

machinery for production.

The internal communication system of IREL is most modern.that include WIFI

network,remote accessing&voip.it helps the managers to maintain healthy and

effective administration.



CHAPTER 10 FINDINGS, SUGGESTIONS &

CONCLUSION



FINDINGS

The intervention by the external policies parties continues to be a disturbance in

formulating labor practices.

IREL had strong and symbiotic relationship between the top level management

and lower level employees.

The company had a strong financial position.

Constant upgradation of technology.

IREL had a good support from government of INDIA and the department of

atomic energy.

Since, IREL is a monopoly the promotional activities are less.

Unavailability of land for the expansion of the unit capacity.

Higher labour charges.

Since the company is located 4km away from NH(national highway) the time

consuming and the transportation cost is very high

SUGGESTIONS AND RECOMMENDATIONS

The company can adopt different mode of sales other than the direct sales which

is mainly done in IREL.

The government policies can change any time and so there is a possibility for

the entry of privet players .so the company should always be careful to maintain

its product quality ,brand identity, customer relationship etc

IREL should take advantage of the growing demand for heavy minerals by

increasing the production.

The management should sustain the faith of the local people by constantly

communicating and explaining the company’s policies to them. The trust of the

local people can be ensured and sustained by constant interaction and

communication with them. The company can achieve them by undertaking

more socially responsible activities. This may be in the form of medical



facilities running schools, assistance at the time of sea erosion and trawling ban.

They can also provide water and electricity supply to the local people.

The company should try to minimize the external interventions of various

political parties.

CONCLUSION

IREL is one among well performing companies in Kerala, engaged in the process of

processing rare earth products available among the coastal belts. IRE is reaching new

boundaries with its performance. IRE was incorporated on 18th august 1950 as a private

limited company under the Indian company’s act of 1913 jointly by the government of

India and the government of Travancore Cochin. In 1951, IREL became a public sector

undertaking and two mineral separation plants, one at Manavalakurichi in Tamilnadu

(1967) and the other at Chavara in Kerala state (1970) were setup.

The organisation study at IRE ltd was an unforgettable experience. The organizational

atmosphere prevailing at IRE is not that of a public sector unit. The concern for the

environment and social responsibility are worth studying. The study helped in having a

practical exposure to real practice in organisation. The study provides insight into the

functioning and coordination of departments in an effective organization.



Appendices

BALANCE SHEET AS AT 31ST MARCH, 2013

Year ended

31stmarch,2013

Yearended

31st

march,2012

Year ended

31st

march,2011

EQUITY & LIABILITIES 1) Shareholders’ Funds

a) Share Capital

b) Reserves and Surplus

Total

2) Non-Current Liabilities

a) Other long term liabilities

b) Long term provisions

Total

3) Current Liabilities

a) Trade payables

b) Other current liabilities

c) Short term provisions

Total TOTAL OF EQUITY & LIABILITIES

ASSETS 1) Non-Current Assets

a) Fixed Assets

(1) Tangible assets

(2) Intangible assets

(3) Capital work-in-progress

Total

b) Non-Current Investment

c) Deferred Tax Assets (Net)

d) Long Term Loans and advances

e) Other Non-Current Assets

Total

2) Current Assets

a) Inventories

b) Trade receivable

c) Cash and bank balance

d) Short term loans and advances

e) Other current assets

Total TOTAL OF ASSETS

8636.50

65054.35

73690.85

5414.01

4616.81

10030.82

1122.56

10107.83

14552.22

25782.61

8636.50

53139.57

61776.07

5515.31

3934.95

9450.26

1031.54

7041.15

12569.81

20642.50

8636.50

40104.33

48740.83

5397.70

2451.16

7848.86

1011.46

6851.74

4514.55

12377.75

109504.28

91868.83

68967.44

16323.20

35.74

9796.51

26155.45

1.42

5488.20

4226.50

1827.05

11543.17

13140.49

192.19

52781.18

3662.07

2029.73

71805.66

17773.93

34.64

2624.80

20433.37

1.42

4002.46

5035.40

511.53

9550.81

6822.13

237.71

50847.82

1723.01

2253.98

61884.65

19146.66

20.89

1355.03

20522.58

1.42

1300.43

4412.89

3020.46

8735.20

4572.71

180.14

31342.02

1523.45

2091.34

39709.66

109504.28 91868.83 68967.44



STATEMENT OF PROFIT AND LOSS FOR THE YEAR ENDED 31ST MARCH, 2013

Year ended

31st march,

2013

Year ended

31st march,

2012

Year ended 31st

march, 2011

REVENUE a) Revenue from operations

b) Other income TOTAL REVENUE

EXPENSES a) Cost of material consumed

b) Charges in inventories of

finished goods, Work-in-

progress and stock-in trade

c) Employee benefits expenses

d) Finance cost

e) Depreciation and amortization

expenses

f) Other expenses TOTAL EXPENSES

Profit before prior period

adjustments (net), exceptional items,

extraordinary items and tax

Prior period adjustments (Net)

Profit before exceptional items,

extraordinary items and tax

Exceptional items

Profit before extraordinary items

and tax

Extraordinary items

Profit before tax

Tax expenses

a) Current tax

b) Deferred tax asset(or liability)

PROFIT FOR THE PERIOD

52765.79

6617.22

59383.01

2890.00

(6087.08)

19876.05

800

1907.71

15321.44

34709.03

24673.98

63.53

24610.45

866.09

23744.36

-

23744.36

9571.48

(1485.74)

63218.22

4897.28

68115.50

3612.94

(1805.94)

19920.03

141.38

2063.37

14498.98

38428.76

29686.74

391.53

29295.21

4311.10

24984.11

-

24984.11

10641.22

(2702.03)

39975.91

3031.53

43007.44

3767.16

1776.35

17549.09

150.869

2025.11

12379.85

37648.25

5359.19

115.45

5243.74

-

5243.74

-

5243.74

1260.78

793.60

15658.62 17044.92 3189.36



BIBLIOGRAPHY 1. C.R. Kothari – Research Methodology methods and Techniques.

2. Prasad L.M – Principals and practice of management.

3. Kottler Philip – Marketing Management.

4. Rejimon.P.M – Indian rare earth is going to expand.

5. Rejimon.P.M – 50 Crores rupees expansion program in IRE.

6. IREL Broucher – Apex manual and departmental procedures of IREL.

7. http://www.indianrareearths.com

8. http://www.irel.gov.in

9. Annual Reports and Journals

http://www.indianrareearths.com/

http://www.irel.gov.in/