EXECUTIVE SUMMARY

In this competitive scenario theoretical knowledge of subjects are not sufficient, we have to
apply this knowledge practically.
I learned practical knowledge through our 6 -8 weeks training from
2
th
!ay "#$ to #%
th
&uly "#$ from 'ajasthan (tate !ines ) !inerals *imited +'(!!*, on
-.udget and budgeting process/
I am thankful to '(!!* for giving me this opportunity.
In #01, a private sector company was set up called .ikaner 2ypsum
*imited +.2*, to mine 2ypsum from mines situated around .ikaner. In #1$, .3 shares of
.2* were ac4uired by 2ovt. of 'ajasthan and in #10 it was renamed as 'ajasthan (tate !ines
) !inerals *imited.
'(!!* is engaged in e5cavating multi minerals like 'ock phosphate, *ignite,
2ypsum, *imestone.
.udget is essential in every walk of our life. .udgeting provides a
powerful tool to the management for the efficient performance of its functions vi6., formulating
plans, coordinating activities and controlling operations.
7nder training, first I try to understand the process of budgeting. In
'(!!* budget starts keeping in view corporate goals then demand for products is assessed by
the !arketing 8epartment of the concerned (trategic .usiness 7nits +(.7s,. 9ach department
then assesses its capacities to achieve the given targets ) converts into capital and revenue
budgets and then these capital and revenue budgets submit to the :inance 8epartment of the
(.7 which then compiles and consolidates along with necessary notes; justifications and submit
to the (.7 head and then they submit to the :inance 8epartment at corporate office and then
meetings are held, including at the top level, with various heads of (.7s and other departments.
<fter necessary amendments as per the discussions in the meeting the final budget is submitted
to !anaging 8irector and after his approval the same is put up before the .oard of 8irectors for
final approval.
<fter this I have made budget report of corporate office for the period 2%## = #2
through which we can know the budgeted level of activity and budgeted cost of the same,
budgeted cost of actual activity, variance between budgeted figures and actual figures etc. It also
helps to the management for follow up action. <fter all this I conclude that>
?he company makes two type of budget i.e. revenue budget and capital budget.
<ll (.7 ) @A and corporate office make their budget separately.
Aompany makes its budget annually.
Bhole budget is approved first by (.7 heads, then by !.8. and finally by .oard of
8irectors.
Aompany doesnCt use any software for making budget however integrated software called
:<!I( has been prepared to integrate accounting, budgeting and costing which is being
used presently for accounting and would be e5pected to budgeting also.
CONTENTS
1. Introduction of RSMML
2. Financial !rfor"anc! of t#! co"an$
%. S&OT anal$'i'
(. Financial rofil!
). R!'!arc# "!t#odolo*$
+. O,-!cti.!'
/. Sco!
0. 1ata coll!ction
2. R!lia,ilit$ of data
13. Anal$'i'
11. 4ud*!t in RSMML
12. Conclu'ion
1%. O,'!r.ation
1(. Su**!'tion
1). A!ndi5
1+.
4i,lio*ra#$
29D9'<* ID:E'!<?IED
'9@E'?
E:
'ajasthan (tate !ines ) !inerals *td.
+< 2ovt of 'ajasthan 9nterprise,
ID:E'!<?IED @7.*I(F98
7D89' (9A?IED 0+#,+b,
E: ?F9 'I2F? ?E ID:E'!<?IED <A?, 2%%G
Cororat! Offic! R!*i't!r!d Offic!
0, !eera !arg
7daipur- $#$ %%0-ID8I<.
@hone > H#-20-202816$ to 61
:a5 > H#-20-202811%, 20281$
9-mail > rsmmlIsancharnet.in
A-8-%,&anpath, *al Jothi (cheme, &aipur -
$%2 %%0, ID8I<
@hone > H#-#0#-210$1$0,210$$0
:a5 > H#-#0#-210$1$G
9-mail > rsmmljprIsancharnet.in
Ta,l! of Cont!nt'
Chapter-I.........................................................................................................6
The particulars of organisation, functions and duties;..................................6
Chapter-II.....................................................................................................17
The powers and duties of its officers and employees; ...................................17
R!!" is a company registered under Company#s $ct 1%&6, go'erned (y the
)oard of *irectors. The present constitution of the )oard is as under+17
................................................................................................1,
..........................................................................1,
Chapter-III....................................................................................................1,
The procedure followed in the decision ma-ing process, including channels of
super'ision and accounta(ility;............................................................1,
1,
Chapter-I.......................................................................................................1,
The norms set (y R!!" for the discharge of its functions;.........................1,
1%
1%
Chapter-..................................................................................................1%
The rules, regulations, instructions, manuals and records, held (y R!!" or used
(y its employees for discharging its functions;.....................................1%
R!!" is a /o'ernment of Ra0asthan 1nterprise so guided (y )21 guideline. $
part from )21 guideline instructions are issued (y 3inance *epartment and
!ines *epartment of /o'ernment of Ra0asthan..................................1%
Instruments which form the (asis and ena(le its employees to discharge their duties
and functions are as follows+................................................................1%
Chapter-.I..................................................................................................45
$ statement of the categories of documents that are held (y the company or under
its control ;............................................................................................45
The ma0or categories of documents are as under +........................................45
$ statement of the (oards, councils, committees and other (odies consisting of two
or more persons constituted as its part or for the purpose of its ad'ice, and
as to whether meetings of those (oards, councils, committees and other
(odies are open to the pu(lic, or the minutes of such meetings are accessi(le
for pu(lic;..............................................................................................41
$ directory of its officers and employees;.......................................................41
$ directory of 6fficers is placed at $nne7ure-I ..............41
The monthly remuneration recei'ed (y each of its officers and employees, including
the system of compensation as pro'ided in its regulations;.................41
The (udget allocated to each of its agency, indicating the particulars of all plans,
proposed e7penditures and reports on dis(ursements made;.............44
The manner of e7ecution of su(sidy programmes, including the amounts allocated
and the details of (eneficiaries of such programmes;..........................44
2articulars of recipients of concessions, permits or authorisations granted (y it;....44
*etails in respect of the information, a'aila(le to or held (y it, reduced in an
electronic form;.....................................................................................48
The particulars of facilities a'aila(le to citi9ens for o(taining information, including
the wor-ing hours of a li(rary or reading room, if maintained for pu(lic use; 48
The names, designations and other particulars of the 2u(lic Information
6r!fac!
'ajasthan (tate !ines ) !inerals *td. is a +< 2ovt. of 'ajasthan 9nterprise,. Bith its Aorporate
office at 7daipur and its registered office at &aipur engaged in !ining and related business of
various minerals mainly, 'ock @hosphate, *ignite, *imestone, 2ypsum, :luorspar etc.
Information has been documented and published under section 0+#,+b, of the 'ight to
Information <ct, 2%%G.
Ahapter-I
?he particulars of organisation, functions and dutiesK
#.# 'ajasthan (tate !ines and !inerals limited +in short '(!!*, is one of the leading and
progressive enterprises of the 2overnment of 'ajasthan. It occupies a place of pride in
production and marketing of non metallic minerals in India. '(!!* is multi mineral
and multi location enterprise engaged in mining of 'ock @hosphate, *ignite, (!( grade
*imestone and 2ypsum. '(!!* is the leader not only in !ining ) (elling of 'ock
@hosphate, 2ypsum across the country, but also global pioneer in technology in open cast
mining and mineral beneficiation of Aarbonate 'ock @hosphate. .esides
minerals, '(!!* has also forayed into 9nergy (ector and has setup #%6.$% !B
installed capacity Bind @ower @roject at &aisalmer, 'ajasthan.
1.2 6ROFILE
T7E 4E8INNIN8 9 4EYON1
In #02 !;s. Datural (cience +India, @rivate *imited +D(I@*,, a Aalcutta based
Aompany was granted a G years lease to mine gypsum by the 'uler of the erstwhile
Jingdom of .ikaner. In #01 a long-term lease was granted to a newly formed Aompany
called !;s. .ikaner 2ypsum *imited +.2*,. .2* was registered on !ay 1, #01. ?he
(tate and the public of .ikaner held $%3 and 2%3 of its shares. ?he promoters of .2*
held the rest. .2* appointed D(I@* as its managing agent for 2% years.
.2* was initially awarded a contract to provide #%%,%%% !? of 2ypsum to the fertili6er
plant producing <mmonium (ulphate. *ater, the Aompany started selling gypsum to
cement plants all over the Aountry.
<fter the independence of India and subse4uent merger of .ikaner (tate into the (tate of
'ajasthan, the operations of .2* continued to flourish. :ollowing the discovery of the
&hamarkotra 'ock @hosphate deposit in 7daipur 8istrict of 'ajasthan, .2* was
appointed as the contractor for raising rock phosphate on behalf of the (tate in !ay #1%.
?he magnitude of operations at &hamarkotra and the need to develop the 'ock @hosphate
deposit rapidly on scientific lines led to the take over of .2* by the 2overnment of
'ajasthan on %6.#2.#10. ?he name of the Aompany was changed to the 'ajasthan (tate
!ines ) !inerals *imited +'(!!*,. :rom #10 to #88, '(!!* continued to work
as contractors to 2overnment for raising rock phosphate and also mined gypsum as it had
done previously. 8uring this period, '(!!* produced and marketed 6 million tones of
rock phosphate and contributed more than 's. $%%% million to the (tate 95che4uer.
In <pril #88, the 2overnment decided to grant a lease for 'ock @hosphate mining to the
Aompany and '(!!* became a full-fledged mining Aompany in its own right. It has
not looked back since.
'(!!* has now stepped into the 66
th
year of its e5istence.
AMAL8AMATION OF RSM1C &IT7 RSMML
En 2%
th
:ebruary, 2%%$, the other @ublic (ector 7ndertaking in mining sector, 'ajasthan
(tate !inerals 8evelopment Aorporation was merged with '(!!*. ?he merger made
the new entity a formidable force in the mining sector of India. *ignite, gypsum and
limestone sectors received tremendous boost in terms of huge deposits and established
production processes. ?he Aompany 4uickly resolved the issues emerged during the
merger and started consolidating the mines spread in 8 districts of 'ajasthan.
6OST MER8ER SCENARIO
'ock @hosphate continued its prime position in the business profile of the Aompany and
catered to almost 03 of the indigenous demand during 2%%$-%0 and 2%%0-%G. ?he
capacity of industrial beneficiation plant was increased from #G%% ?@8 and the
production got streamlined in 2%%0-%G. ?he production of *ignite was streamlined at
2iral and the Aompany is gearing up fast for providing one million tons of *ignite for the
*ignite based ?hermal @ower plant coming up at 2irl under (tate owned Aompany,
'ajasthan Lidyut 7tpadan Digam *td. .eing pioneer in the *ignite field, '(!!* has
ensured its strong presence in the *ignite based power sector in 'ajasthan. 8ispatches of
gypsum touched $.$6 million tons in 2%##-#2 .'enewed emphasis on environmental
management was stressed upon for the management of 2ypsum !ines. (upply of (!(
grade *imestone to the steel plants of India touched the record level of $.2$ million tons
in 2%##-#2.
?he profit before ta5 for 2%##-#2 as stood at 's.0%8. crores as against previous year
figures of 21#.6 crores. ?he Aompany started a number of ')8 activities to further
strengthen its ')8 activities. 2enerous contributions were made for creation of life
saving medical infrastructure in 8 project districts. ?he company is regular in dividend of
's. $#,%2,%6,%%%;- was declared during the year 2%##-#2. Indeed it was a proud moment
for the Aompany, which started a small entity e5cavating gypsum in #01.
4USINESS 9 6RO1UCT 6ROFILE
S4U 9 6C : ROC; 67OS67ATE : 4AC;8ROUN1
?he (.7 ) @A = 'ock @hosphate of '(!!* is presently engaged in mining of
'ock @hosphate from different mines situated around 7daipur.
Enly about 13 to #%3 of re4uirement of raw material for @hosphatic fertili6er
production in the is being met through indigenous sources and the rest is met
through import.
(.7 ) @A = 'ock @hosphate of has played an important role by contributing
%3 of 'ock @hosphate production of India.

IN1USTRIAL 4ENEFICIATION 6LANT.
?he plant produces .eneficiated 'ock @hosphate Aoncentrate +<vg. %(.3< 6
2
O
)
< for
((@ ) 8<@ !anufacturing 7nits

=.
Eriginal Aapacity > #G%% ?@8
95panded Aapacity > $%%% ?@8
Aapital Investment > 's. $G1.1% millions
4!n!ficiation 6roc!'' 1!.!lo"!nt
Initial lab ) bench scale studies through I.!, Dagpur and other foreign
laboratories.
I.!Cs double stage froth floatation process selected which is most economically
viable beneficiation process.
.ased on the above, established a 2%% tpd pilot plant at &hamarkotra.
8eveloped an industrial beneficiation plant of #G%% tpd capacity.
@lant capacity e5panded to $%%% tonne ;day using energy efficient roller press
technology in 2%%$-%0.
<t &hamarkotra, 7daipur, used in manufacting of ((@ and 8<@, !ain products = high
grade chips, concentrate and low grade direct application fertili6er +'ajphos,.
6roduct' >
<ll products approved by :ertili6er Aontrol Erder, 2overnment of India.
$#.G3 6
2
O
)
Arushed = M/ si6e Figh 2rade 'ockphosphate
+((@ !anufacturing 7nits,
$03 6
2
O
) Cru'#!d
-M/si6e Figh 2rade 'ockphosphate
+8<@;Ditrophosphate !anufacturing 7nits,
$#.G03 6
2
O
)
.eneficiated 'ockphosphate Aoncentrate
+((@ ) 8A@ !anufacturing 7nits, @'E! etc.,
#8.2%3 6
2
O
)
2round

*ow 2rade .eneficiated 'ockphosphate +'<&@FE(,
+:ertili6er for direct application to acidic soils,
$%-$#3 6
2
O
) ?
M/si6e Figh 2rade 'ockphosphate +2itti,
+9lemental @hosphorus !anufacturing 7nits,
6#o'#at! C#i' @?%1.)< 6
2
O
)
=
(uitable for manufacture of :ertili6er = (ingle (uper @hosphate +((@, ) 8i <mmonium
@hosphate +8<@,
4!n!ficiat!d 6#o'#at! Conc!ntrat! @?%1.)< 6
2
O
)
=
(uitable for manufacture of ((@, 8A@ ) proposed use in manufacture of 8<@
Ra-#o'
7sed as 8irect <pplication :ertiliser for <cidic (oil +#8 to 2%3+ 6
2
O
)
=
S4U 9 6C LI8NITE
8IRAL LI8NITE MINESA 4ARMER
?he 2iral *ignite mine is at 0G k! DB of .armer town in 'ajasthan. It has an
area of 20 (4.km. and minable reserves of $0.6% million ton.
?he Aompany has entered into a !emorandum of 7nderstanding with 'ajasthan
Lidyut 7tpadan Digam *td. :or supply of *ignite for the proposed #2G !B
@ower @lant at 2iral. ?he power generation from the plant has commenced from
:ebruary, 2%%1.
;ASNAU : MATASU;7 LI8NITE MINESA NA8AUR
Jasnau = !atasukh *ignite mines are located in the Dagaur district of
'ajasthan. ?he estimated mineable geological reserves of *ignite as per the
approved mine plan are #$.20 million tons at Jasnau and G.2% million tons at
!atasukh mines.
6ERFORMANCE OF S4U 9 6C LI8NITE
(.7 ) @A =*ignite posted a very healthy performance despite the problems
faced at Dagaur due to inrush of water at mines locations.
?he production and sale of lignite in 2%##-#2 was #%.6% lacs metric tones )
'evenue of 's.#2%%.1G lacs.
?he Aompany has also applied for fresh mining leases for (oneri and 2urha west
*ignite deposits has been allotted to '(!!* +2% !illion ?ons,.
!ines at 2iral and Dagaur, used as industrial fuel and suitable for power generation in
*ignite based power plants. :rom 2%%6, lignite would be used for power generation.
8Y6SUM
2ypsum occurs as surface deposit in western district of 'ajasthan. ?he mining
leases are in .ikaner, (riganganagar, .armer, Dagaur, &alore and Fanumangarh
districts.
In 2%##-#2, production of $$.$6 *acs !etric was achieved.
Eperating 2% 2ypsum mines and $ selenite mines.
Aentral 2rinding 7nit for gypsum powder +1% ?@F, has been set up at 'awla to
ensure uniform 4uality standards.
6ERFORMANCE OF S4U 9 6C 8Y6SUM
8uring the year 2%##-#2, the sale of 2ypsum and (elenite was $.$1million tons
as against $.0% million tons in 2%#%-##.
(upplies of 2ypsum powder for land reclamation have been made to Faryana, 7@
) 'ajasthan.
?he commercial production of 2ypsum powder from Aentralised 2ypsum
2rinding 7nits at 'awla was also started during the year 2%%$.
2ypsum ) (elenite located in .ikaner, (riganganagar, .armer, Fanumangarh,
Dagaur ) &alore.
LIMESTONE
(!( grade *imestone with very low (ilica content, one of its kinds in the world.!ines
and Arushing - (i6ing @lant at (anu +&aisalmer,, !ines at 2otan.
7sed in (teel Industry ) customers include (<I*, ?I(AE, .irla Bhite etc.
:luorspar mineral is also produced which is used in chemical industry.
S4U 9 6C LIMESTONE : ACTIVITIES IN 4RIEF
*ow (ilica (teel 2rade *imestone, (anu.
*ow (ilica (teel 2rade *imestone, 2otan.
Figh 2rade *imestone for Bhite Aement 2otan
Figh 2rade *imestone for Ahemical Industry, 2otan
$%-0%3 2rade :lourspar 2itti.
G%-6%3 2rade :lourspar
1%-1G3 2rade :lourspar
Sanu LoB Silica St!!l 8rad! Li"!'ton! 6ro-!ctA Cai'al"!r
!ining +open cast, started in the year #0.
?he limestone from the mines is regarded as the best and most suitable for steel
making process. !ore than 2%% million tones of proved reserves are available.
Aommissioned crushing and screening plants with installed feed capacity of $G%
!? per hour in (eptember #6.
?otal capital investments around 's. 2G% million.
?he Aompany supplies standard si6e *imestone in all steel plants of the giant
public sector steel maker (teel <uthority of India *td +(<I*,.
*ow (ilica *imestone is also supplied to ?ata Iron ) (teel Ao. +?I(AE,,
&amshedpur.
6ERFORMANCE OF S4U 9 6C D LIMESTONE
(.7 ) @A *imestone has registered strong performance during the financial year
2%##-#2 and has touched the $.2$ million tons production milestone.
?he total production of *imestone was $2.$2 lac !? in the year 2%##-#2
compared to $%.8% lac !? in 2%#%-##. In value terms, the turnover of the (.7
was 's. #G$.06 million as compared to 's. #$0.$8 million during the year 2%#%-
##.
:I;* 1;1R/<
:ith a 'iew of di'ersification acti'ities and to protect en'ironment degradation, R!!" has
entered into wind power generation (usiness in 4551. R!!" has commissioned 1=78&5>w
wind energy tur(ine on 75 mtr. high lattice towers at )ada(agh area of ?aisalmer. The wind
farm at )adagarh was e7panded with additional 1=78&5>w :1T@s in !ay 4554. In 455=,
R!!" has commissioned =714&5>w :1Ts in 2ohra .illage of ?aisalmer. 6714&5 >w A7.&
!:B was added in !arch 4556. In last 4556-57, 4&7655 >: A1& !:B windfarm is installed at
)harmsar- 2ohra at ?aisalmer. In year 4557-5, R!!" has installed 44.&!: A1, 7 14&5 >wB
wind farm at Cansuwa atta /orera at ?aisalmer. ;ow the total wind farm capacity of R!!" is
156.85 !:. $nnual /eneration of grid Duality power is now 1,1& lacs >wh from echo friendly
windpower.
RSMML ACTIVITIEES
'ajasthan (tate !ines ) !inerals *imited - one of the largest and most
successful mining companies in India is proud to support four key areas in the
economic development of country namelyK <griculture, (teel, Aonstruction and
@ower.
Enly producer of high grade 'ock phosphate in the country = catering to 683 of
the indigenous 'ock demand for ((@ fertili6er in India. ?otal production of
@hosphate ore has touched #.6 million tons. 'ock handling has crossed #G
million tons per annum.
?he Integrated .eneficiation @lant located at &hamarkotra, 7daipur produces high
grade 'ock phosphate concentrate, utili6ing a uni4ue set of technologies for the
first time in the world.
'ajphos, a direct application phosphatic fertili6er, has become the most effective
solution of the acidic soils of (outhern and Dorth 9astern states.
'(!!* is the largest producer of natural 2ypsum, the most critical input for
high grade cement, supplying 2. million tones of 2ypsum to the cement
industries of Bestern India.
Felping farmers of 'ajasthan, Faryana and 7ttar @radesh in reclaiming millions
of hectare of land, by supplying 2ypsum powder under state and Borld .ank
assisted programmes.
(teel <uthority of India and ?I(AE source low silica (!( grade *imestone from
'(!!*.
'(!!* processes almost 2.G million tones of *imestone every year and supplies
to (teel @lants at .okaro, 8ungapur, 'ourkela, .urnpur, .hilai and &amshedpur.
*ignite is the future of power sector in 'ajasthan and '(!!* is the only
Aompany producing *ignite in 'ajasthan. :rom 2%%6, '(!!* will supply #
million ton of *ignite for power generation.
?his premier mining Aompany of 'ajasthan also supplies high grade *imestone
and fluorite to cement and chemical industries.
6ROFORMANCE AT A 8LANCE +'s. in Arores,
233/D30 2330D32 2332D13 2313D
2311
2311D12
Total
R!.!nu!
6$6.0# 12.$0 G6.%$ ##$6.06 #$GG.0G
Total
E5!nditur!
00.66 10.0G 8%.2 860.16 06.06
6rofit
4!for! Ta5
#86.1G #11.8 #06.## 21#.6 0%8.
R!*i'tration of Co"an$E' 6ro-!ct Bit# E5!cuti.! 4oard of Cl!an
1!.!lo"!nt M!c#ani'" und!r UNFCCC
Eur #0.8 !B small scale grid connected wind power project in &aisalmer, 'ajasthan, India
after completing all procedural re4uirements of 7D:AAA has now been finally registered by
A8! .oard on #0.0.2%%6.+ref.%20$ under methodology <!(.I8,. *ooking to the significant
contribution of the project towards substantial development in India, host country approval
for the project was accorded on 26
th
8ecember 2%%G vide no. 0;22;%G-AAA by !inistry of
9nvironment and :orest +!E9:,, 2ovt. of India .
Aompany shall get #$,$G$ Aarbon 9mission 'eduction points +A9's, every year from the
project till 2%#2 and also will be eligible to get A9's earned from the project since its
commissioning, i.e. <ug. 2%%# under Jyoto @rotocol of 7D:AAA through Alean
8evelopment !echanism.
22.G !B grid connected wind farm project which has already been commissioned in 2%%6 is
also registered under A8! category with 7D:AAA.
RESEARC7 9 1EVELO6MENT
@roducing fused Aalcium !agnesium 'ock @hosphate from &hamarkotra
Aonverting tailing rejects of I.@ to 8irect <pplication :ertili6er for !agnesium
deficient soils.
@lantation of &atropha on waste land and back fill areas for creating .io-fuel
groves.
.eneficiation of low grade 2ypsum for producing high grade 8%3 H material for
cement industry.
!aking the fine si6e *imestone gitti produced at &aisalmer suitable for glass and
allied industries.
.eneficiation of secondary 'ock @hosphate +!ineral reject,,
8evelopment of @hosphate 'ich Erganic !anure +@'E!, .
8evelopment of <patite as semi precious mineral.
ENVIORNMENT
<s a responsible corporate citi6en, '(!!* believes in -reduce, reuse and
recycle./
'(!!* has constructed a huge dam of 2%% mcft. fresh water storage capacity on
&hamri river, which has helped in recharging the regional water table.
95tensive afforestation ; plantation work is being done in and around all mines.
?he Industrial .eneficiation @lant is a "Zero discharge plant. ?he waste water is
treated at acid water treatment plant, resulting in an saving of about #.G million
Au ! of fresh water.
'egular monitoring of different environmental parameters i.e. air, water, dust,
noise etc.
<utomatic water sprinklers on the !ain Faulage 'oad of &hamarkotra !ines,
water injection system at drill units.
(cientific use of e5plosives.
Installation of dust e5traction system at crushing and screening plant and at
Aentral 2ypsum 2rinding 7nit.
?he mined out area is being back filled simultaneously to reclaim the land.
SOCIAL COMMITMENT : AN OVERVIE&
<s a responsible corporate entity committed to discharge its social obligations,
'(!!* has been contributing generously towards the development of the areas
located near its mining sites and other areas of operation.
?hese contributions have been in the areas of
!edical ) Fealth care
9ducation
8rinking Bater
9nvironment
8evelopment of village infrastructure
?he Aompany has been providing medical, educational and other facilities to the
villages situated around its mines.
< contribution of 's. $0.G$ crores has been made in last 8 Nears to the Ahief
!inisterCs 'elief :und for development of !edial and Fealth infrastructure
facilities in !edical Aolleges ) 8istrict hospitals in project districts.
?he contribution has been made to !edical Aolleges ; 8istrict Fospitals at
7daipur, .ikaner, &odhpur, .armer, (ri 2anganagar, &aisalmer, @ali,
Fanumangarh and Dagaur.
!emorandums of 7nderstanding have also been entered with 2overnment of
'ajasthan for utili6ation of these funds.
!edical Aamps are being regularly organi6e in the villages around the mine
location and project areas of the Aompany where free check-up and medicines are
provided.
'(!!* has provided prime land for the project for setting up a #%% bedded
multi-super specialty hospital and 7daipur under a IL arrangement with !;s.
<merican International Fealth !anagement *imited, 7daipur. ?he capital
investment on the hospital envisage 's. 2%% millions.
Ether works for development of village infrastructure include>
Aontribution to panchayats for schools
Improvement in village 2oshalas
<ccording high priority to fulfill its social responsibilities, the Aompany
regularly takes up works related to socio-economic development alongwith
environment restoration and management in the areas where the Aompany has
major mining operations and other business activities.
SU66LY OF 6OTA4LE &ATER
&at!r 'ul$ to Udaiur Cit$
(upplying 1 million litres per day of potable water from &hamarkotra !ines to
city of 7daipur since #0-G.
Aompany has commenced supply of 6 million litres per day of potable water from
Janpur mines in addition to the present supply of 1 million litres per day since
2%%0, Bith this, '(!!* caters to the potable water needs of more than 2 lac
people of the water starved 7daipur city.

&at!r 'ul$ to Villa*!'
(upplying of potable water from &hamarkotra !ines to 1 nearby villages on a
permanent basis since last 8 years.
<de4uate potable water supply is ensured through a permanent pipeline
VOCATIONAL TRAININ8 CENTRES
8ifferent !ines of the Aompany are having elaborate setup of Locational
?raining Aentres.
Ebjectives>
Induction and in-service training of both departmental ) contractorCs
work force.
!onitoring safety policy of '(!!*.
7p-keep of safety records.
<nnual celebration of 9nvironment ) safety weeks.
Ahapter-II
?he powers and duties of its officers and employeesK
RSMML i' a co"an$ r!*i't!r!d und!r Co"an$E' Act 12)+A *o.!rn!d ,$ t#!
4oard of 1ir!ctor'. T#! r!'!nt con'titution of t#! 4oard i' a' und!r>
1 S#ri C.;. Mat#!BA IAS : C#air"an
Ahief (ecretary to the 2overnment of 'ajasthan,
&aipur
2 S#ri Sunil AroraA IAS
@rincipal (ecretary to the 2overnment of 'ajasthan,
8epartment of Industries,
&aipur
%8r. 8o.ind S#ar"aA IAS
@rincipal (ecretary to the 2overnment of 'ajasthan,
8epartment :inance,
&aipur
( S#ri Sud#an'# 6antA IAS
(ecretary to the 2overnment of 'ajasthan,
8epartment of !ines ) @etroleum,
&aipur
) S#ri Nar!'# 6al 8an*BarA IAS
(ecretary +9nergy,
2overnment of 'ajasthan,
&aipur
+ S#ri A.C. &ad#aBanA
95-A!8, Findustan Oinc *td,
Dew 8elhi
/ S#ri A-ita,# S#ar"aA IAS
!anaging 8irector,
7daipur


?he powers are delegated by the .oard to the !anaging 8irector who has further
sub delegated the powers to 2roup 2eneral !anagers and other officers for discharging
their functions and duties.
Ahapter-III
?he procedure followed in the decision making process, including channels of
supervision and accountabilityK
'(!!* is registered under Aompany *aw.
?he .oard of 8irector is the ape5 body of the company. !ost of the major decisions are
taken during .oard !eetings. ?he .oard !eeting is called time to time to take decisions.
?he !anaging 8irector is further delegated powers by the .oard for carrying out the day
to day <dministrative Bork. ?here is delegation of power by !anaging 8irector to
different Efficers for carrying out day to day work

Ahapter-IL
?he norms set by '(!!* for the discharge of its functionsK
(.7 wise and for organi6ation as a whole, physical ) financial targets with reference to
production revenue ) e5penditure being set and e5ecuted through annual .udget.
.road .udget 9stimates for the financial year 2%#2-#$ are as follows>
+'s in *acs,
6ARTICULARS R!.!nu! E5!nditur! 6rofit
(.7 ) @A @hosphate
81GG8.#8 6%111.$2 2618%.86
(.7 ) @A 2ypsum #00.#% #%8%%.80 ###0$.26
(.7 ) @A *ime (tone #6G2G.%% #02%%.22 2$20.18
(.7 ) @A *ignite 22G#.%% #612G.%% G10.%%
@ower 2eneration +Bind
:arms,
G6%0.6 $1$G.11 #868.2
Ether !inerals - 20.0 -20.0
Aorporate .usiness 'evenue 26%%.%% 2G6.# -$G6.#
TOTAL 1)+/)3.2/ 132221.33 (/)22.2/


Be are a Aommercial Ergani6ation so the Aompany is <udited by A<2. ?he Aompany is
e5amined by @7A.Be are preparing balance sheet every year which is e5amined by statutory
audit and A<2.
< part from :inancial norms the productivity of operation are guided by the technical standard
and norms. ?he Aontractual operation are based on specific norms defined in every Aontract.
9very financial year a .udget is made and submitted to the .oard for its approval.
Ahapter-L
?he rules, regulations, instructions, manuals and records, held by '(!!* or
used by its employees for discharging its functionsK
RSMML i' a 8o.!rn"!nt of Ra-a't#an Ent!rri'! 'o *uid!d ,$ 46E *uid!lin!. A
art fro" 46E *uid!lin! in'truction' ar! i''u!d ,$ Financ! 1!art"!nt and Min!'
1!art"!nt of 8o.!rn"!nt of Ra-a't#an.
?he Aompany is following all the 'ules ) 'egulations as enacted by the Aentral and the
state 2overnment for carrying out mining and other activities as and when enforced.
In'tru"!nt' B#ic# for" t#! ,a'i' and !na,l! it' !"lo$!!' to di'c#ar*! t#!ir duti!'
and function' ar! a' folloB'>
a, (ervice rules for e5ecutives
b, (tanding order for workmen
c, @romotion rules for employees etc..
Ahapter-LI
< statement of the categories of documents that are held by the company or under
its control K
T#! "a-or cat!*ori!' of docu"!nt' ar! a' und!r >
a, @roduction> :inancial statement , @erformance, 'eports, and production statistics.
b, @ersonnel ) <dministration > @ersonal files and (ervice books of the
officers;workmen , <A' 'ecords of the officers; workmen, sanction of various
types of advances, files relating to purchases, files relating to selection;filling up of
posts;vacancies, files dealing with legal matters, files relating to vigilance matters
etc. files relating welfare activities etc. 'ules ) 'egulations
c, :inance ) <ccounts > .udget, .udgetary allocations, audit files details of A@:,
advances, their recoveries, details of capital and revenue income and e5penditures
etc., and physical details
d, @urchase ) (tores> Indents, ('Ls, (ILs, (tock 'egisters, 'As and various
Ahallans and vouchers.
e, !arketing> Aommercial papers comprising of invoices delivery challans, orders,
account statements and respective files of various customers and related agencies.
C#at!rDVII
T#! articular' of an$ arran*!"!nt t#at !5i't' for con'ultation Bit#A or
r!r!'!ntation ,$A t#! "!",!r' of t#! u,lic in r!lation to t#! for"ulation of
it' olic$ or i"l!"!ntation t#!r!ofF
.eing a commercial company there is limited scopeCs for consultation with or
representation by, the members of the public in relation to the formulation of its policy of
implementation thereof.
C#at!rDVIII
< statement of the boards, councils, committees and other bodies consisting of two
or more persons constituted as its part or for the purpose of its advice, and as to
whether meetings of those boards, councils, committees and other bodies are open
to the public, or the minutes of such meetings are accessible for publicK
?he .oard of directors are mentioned at @ara 2 of this report. .oard of 8irectors is the
governing body of the organi6ation and !anaging 8irector is the Ahief 95ecutives of the
Aompany. Larious committees operate based on the statutory and other re4uirement.

C#at!rDIX
< directory of its officers and employeesK
A dir!ctor$ of Offic!r' i' lac!d at Ann!5ur!DI
C#at!rDX
?he monthly remuneration received by each of its officers and employees,
including the system of compensation as provided in its regulationsK
?he pay scales of the employees are as under>-
@ay scales of 95ecutives>
2rade @ay (cale 's. 2rade @ay
9 - 1 +@.-0, $1,0%%-61,%%% 8,%%
9 - 6 +@.-0, $1,0%%-61,%%% 8,1%%
9 - G +@.-$, #G,6%%-$,#%% 8,2%%
9 - 0 +@.-$, #G,6%%-$,#%% 1,6%%
9 - $ +@.-$, #G,6%%-$,#%% 6,8%%
9 - 2 +@.-$, #G,6%%-$,#%% 6,6%%
9 - # +@.-$, #G,6%%-$,#%% G,0%%

@ay (cales of Borkmen>
Aategory @ay (cale 's. 2rade @ay
IP-( +@.-2, ,$%%-$0,8%% G,0%%
IP +@.-2, ,$%%-$0,8%% 0,8%%
LIII +@.-2, ,$%%-$0,8%% 0,2%%
LII +@.-2, ,$%%-$0,8%% $,6%%
LI +@.-#, G,2%%-2%,2%% 2,8%%
L +@.-#, G,2%%-2%,2%% 2,0%%
IL +@.-#, G,2%%-2%,2%% 2,%%%
III +@.-#, G,2%%-2%,2%% #,8G%
II +@.-#, G,2%%-2%,2%% #,8%%
I +@.-#(,0,1G%-1,00% #,6G%
In addition to above 8<, F'< and other perks are also applicable as per the prevailing
norms of the company.
C#at!rDXI
?he budget allocated to each of its agency, indicating the particulars of all plans,
proposed e5penditures and reports on disbursements madeK
?he broad details regarding the allocation of the budget is mentioned at @ara 0 of this
report. :urther details are for internal use only.
C#at!rDXII
?he manner of e5ecution of subsidy programmes, including the amounts allocated
and the details of beneficiaries of such programmesK
Aredit policy in place of subsidy as per general commercial practice.
C#at!rDXIII
@articulars of recipients of concessions, permits or authorisations granted by itK

Dot applicable.
C#at!rDXIV
8etails in respect of the information, available to or held by it, reduced in an
electronic formK
Information about various aspects and functions of '(!!* is available on the web site
www.rsmm.com.
C#at!rDXV
?he particulars of facilities available to citi6ens for obtaining information,
including the working hours of a library or reading room, if maintained for public
useK
Dot applicable.
C#at!rDXVI
?he names, designations and other particulars of the @ublic Information
Efficers+@IE, ) <ssistant @ublic Information Efficers +<@IE,K
For Corporate Office
Dame of @IE
8esignation ) Effice
<ddress
Aontact Do. Dame of <@IE 8esignation )
Effice <ddress
S#.4al"uGund
A'aBa
Ahief+@)<, '(!!
*td., Aorporate Effice,
0, !eera !arg,
7daipur+'aj.,
@hone> %20-
20281$,
'es.Do. %20-
28#%01$
:a5> %20-
20281$
(h.!.*.?ailor
:inancial <dvisor,
'(!! *td.,
Aorporate
Effice,0,!eera
!arg, 7daipur
For SBU & PC Rockphosphate
Dame of @IE
8esignation ) Effice
<ddress
Aontact Do. Dame of <@IE 8esignation ) Effice <ddress
S#.L.S.Rat#or!
2roup 2eneral
!anager,(.7 ) @A-
'ockphosphate,
&hamarkotra !ines,
7daipur
@hone> %20-
2$0200#-00$
(h.8inesh
.hupesh
!anager+@)<,, (.7 ) @A-
'ockphosphate, &hamarkotra
!ines, 7daipur
:a5> %20-
2$02000
For SBU & PC Limestone
Dame of @IE
8esignation ) Effice
<ddress
Aontact Do. Dame of <@IE 8esignation ) Effice <ddress
S#.6.C.6uro#it
2roup 2eneral
!anager,(.7 ) @A-
*imestone, 8, Best
@atel Dagar, Aircuit
Fouse 'oad, &odhpur
@hone> %2#-
2G#21%,2G#GG28,
'es>%2#-21GG$#$
(h.N.(.(ankhla
!anager+!ining,, (.7 )
@A-*imestone, 8, Best @atel
Dagar, Aircuit Fouse 'oad,
&odhpur
:a5>> %2#-2G##%2
For SBU & PC Lignite
Dame of @IE
8esignation ) Effice
<ddress
Aontact Do. Dame of <@IE 8esignation ) Effice <ddress
S#.R.;.M!#ta
2roup 2eneral
!anager,(.7 ) @A-
*ignite, Jhanij .hawan,
?ilak !arg, &aipur
@hone>%#0#-
22211#G,222111%
'es>%#0#-2$G112
(h.(umnesh
(harma
!anager+@',, (.7 ) @A-
*ignite, Jhanij .hawan,
?ilak !arg, &aipur
:a5>> %#0#-222186%,
222116#
For SBU & PC Gypsum
Dame of @IE
8esignation ) Effice
<ddress
Aontact Do. Dame of <@IE 8esignation ) Effice
<ddress
S#.R.;.HOS7I
2eneral !anager,(.7
) @A-2ypsum, %2,
2andhi Dagar (cheme,
.ikaner
@hone>%#G#-
22%%#1# to #1G
'es>%#G#-2G0%1#$
(h.'.(.(hekhawat
!anager+@)<,, (.7 ) @A-
2ypsum, %2, 2andhi Dagar
(cheme, .ikaner

C#at!rDXVII
Suc# ot#!r infor"ation a' "a$ ,! r!'cri,!d and t#!r!aft!r udat! t#!'!
u,lication' !.!r$ $!arF
7pdation of information on website is carried out.
Na"! 9 d!'i*nation of A!llat! Aut#orit$ >
S#ri A-ita,# S#ar"aA Mana*in* 1ir!ctorA
Cororat! Offic!A (DM!!ra Mar*A
Udaiur : %1% 33( IN1IA.
@hone> H#-20-202810#-02 'es> %20 = 20G#288
:a5> H#-20-202811%
RACAST7AN STATE MINES 9 MINERALS LIMITE1
'ajasthan (tate !ines and !inerals limited +'(!!*, is one of the leading and progressive undertaking
of the 2overnment of 'ajasthan. It occupies a place of pride in production and marketing of non metallic
minerals in India. '(!!* is multi mineral and multi location enterprise engaged in mining of 'ock
@hosphate, *ignite, (!( grade *imestone and 2ypsum. '(!!* is not only the leader in !ining )
(elling of 'ock @hosphate, 2ypsum across the country, but also global pioneer in technology in open cast
mining and mineral beneficiation of Aarbonate 'ock @hosphate.
.esides minerals, '(!!* has also forayed into 9nergy (ector and has setup 10.8% !B installed
capacity Bind @ower @roject at &aisalmer, 'ajasthan.
INTRO1UCTION
'ajasthan (tate !ines ) !inerals *imited +'(!!*, is one of the premier public sector enterprises of
the 2overnment of 'ajasthan, primarily engaged in mining and marketing of industrial minerals in the
(tate. ?he very objective of the company is to achieve cost effective technological innovations in the
mining of minerals and to diversify into mineral based downstream projects. <part from the above, the
Aompany is also aiming at long term fuel supply to lignite based power projects, apart from setting up
wind energy farms at &aisalmer. ?his company is professionally managed and remains focused towards
increasing productivity and growth.
AMAL8AMATION
Near 2%%$, witnessed completion of amalgamation of 'ajasthan (tate !ineral 8evelopment Aorporation
*imited +'(!8A,, another 'ajasthan (tate 2overnment @(7 with 'ajasthan (tate !ines ) !inerals
*imited +'(!!*, notification was issued by the 8epartment of Aompany <ffairs, 2overnment of India
+Erder Do. (.E.2%1+9, dated #
th
:ebruary 2%%$, under (ection $6 of the Aompanies <ct, #G6 and the
same has come into effect from 2%
th
:ebruary, 2%%$, the date of its publication in the 2a6ette of India
+95traordinary,.
STRATE8IC 4USINESS UNITS 9 6ROFIT CENTRES
<fter amalgamation, the following four mineral based (trategic .usiness 7nits ) @rofit Aentres +(.7 )
@A, namely 'ock @hosphate, *ignite, 2ypsum and *imestone have been set up as a part of corporate
restructuring> -
(trategic .usiness 7nit and @rofit Aentre = 'ock phosphate at 7daipur.
(trategic .usiness 7nit and @rofit Aentre = 2ypsum at .ikaner
(trategic .usiness 7nit and @rofit Aentre = *imestone at &odhpur
(trategic .usiness 7nit and @rofit Aentre = *ignite at &aipur
'ock @hosphate continued its prime position in the business profile of the Aompany and catered to almost
2%3 of the indigenous demand. ?he capacity of industrial beneficiation plant was increased from #G%%
?@8 to $%%% ?@8 and the production got streamlined. ?he production of lignite was streamlined at 2iral
and the company is gearing up fast for providing one million tonnes of lignite for the lignite based
thermal power plant at 2iral under state owned Aompany, 'ajasthan Lidyut 7tpadan Digam *td. .eing
pioneer in the lignite field, '(!!* has ensured its strong presence in the lignite based power sector in
'ajasthan. 8espatches of gypsum touched 2.88 million ton in 2%##-#2. 'enewed emphasis on
environmental management was stressed upon for the management of gypsum mines. (upply of (!(
grade limestone to the steel plants of India touched the record level of 2.% million tonnes in 2%##-#2.
In the year 2%##-#2, company has achieved the profit before ta5 's. (1+A0/A33A+)2 in comparison to profit
before ta5 of 's. 2/1+.2) lac' in 2%#%-##. ?he Aompany started a number of ')8 activities to further
strengthen its ')8 activities. 2enerous contributions were made for creation of life saving medical
infrastructure in 8 project districts. ?he dividend of 's. 2G,G#,%$,%%%;- was declared for the year 2%##-#2.
'(!!* today has broken away from its monopolistic moorings and welcomes competition. :rom a
small backwaters company, it is now rated as a technologically advanced company and an innovator. It
boasts of a highly trained and competent workforce and strong financial base. It has established itself as
the most successful public sector company in 'ajasthan.
T7E ORI8IN
In #01, a small company called .ikaner 2ypsum *imited was incorporated to mine 2ypsum in the ?har
or the 2reat Indian 8esert. :rom its humble beginnings, .2* grew and prospered. ?he sheer magnitude
of operations and the need to rapidly develop the mines compelled the 2overnment of 'ajasthan to take
over the company in #1$. It was rechristened as the 'ajasthan (tate !ines and !inerals *imited and
came to be known by its abbreviation '(!!*. ?he company has not looked back since then.
RSMML TO1AY
'(!!* today comprises of four separate divisions, each works autonomously under the overall
control of the corporate office at 7daipur. ?here are also a number of representative offices in
various cities of India.
RSMML toda$ d!al' in Four 6rincial Min!ral'
2N@(7!,
'EAJ @FE(@F<?9,
*I!9(?ED9 <D8
*I2DI?9.
It also deals in phosphate fertili6ers, which are a direct downstream product of its rock phosphate
operations.
T7E MISSSION
?o become the largest producer of 'ock @hosphate, 2ypsum, *imestone, *ignite and as
dominant market leader.
?o avail opportunities to diversify into other mining activities.
?o ma5imi6e satisfaction of its stakeholders.
'(!!* today deals in 2ypsum, 'ock @hosphate, *imestone and *ignite and also phosphate fertili6ers.
9ach of these forms separate units, and are called (trategic .usiness 7nits, working automatically under
the overall control of the Aorporate Effice at 7daipur.
T7E 8Y6SUM UNITDS4UD6C
'(!!* is the countryCs leading producer of natural 2ypsum and (elenite producing about #.% million
tonnes per year. ?hese are mined in the heart of the ?har 8esert areas where the working conditions are
very harsh. ?he deposits are shallow and scattered over large areas. !ost of the land is owned by private
cultivators.
?he mining of 2ypsum of purity of H1%3 Aa(E0, 2F2E is a co-operative effort between the land owners
and '(!!*. ?he farmers give up his gypsum bearing land to '(!!* in return for an assured share of
profits. <fter mining, the Aompany improves the land condition and returns back to the farmer for
cultivation.
2ypsum fulfils the demands of the cement industries and powder 2ypsum is used by farmers as a direct
fertili6er for reconditioning of alkaline soils for reducing alkalinity and improving crop production.
(elenite is a naturally occurring crystalline form of high purity 2ypsum and is used e5tensively in the
ceramics industries and to manufacture surgical grade @laster of @aris.
T7E 67OS67ATE :S4UD6C
?he major activity of '(!!* is the mining of 'ock phosphate ore. It operates one of the largest and
fully mechani6ed mines in the country at &hamarkotra, 26 Jms. from 7daipur and Janpur 2roup of
!ines located #G Jms. from 7daipur is upcoming as a second 'ock phosphate comple5 in 'ajasthan.
In India the economy being predominantly based on agriculture, the fertili6er production plays a pivotal
role. Enly about $G3 to 0%3 of the re4uirement of raw material for phosphatic fertili6er production is
being met through indigenous sources and the rest is met through import in the form of rock phosphate,
phosphoric acid ) direct fertili6ers. In such a situation &hamarkotra plays an important role by
contributing 83 of rock phosphate production of India.
'ock @hosphate mines at &hamarkotra ) Janpur 2roup of !ines are comple5 deposits. !ining these
rock phosphate deposits is far more difficult than that in most parts of the world. 8espite the comple5ities
of the deposit, e5cellent results have been achieved by continuous innovations. Bith an annual rock
handling of about 2% million tonnes, &hamarkotra is probably the largest open cast mine in India outside
the steel and coal sectors.
En technical fronts the problem of ground water had affected the mining operations, until an effective
dewatering scheme was evolved and implemented. ?he geometry of the ore body i.e thin and sharply
dipping had resulted in long and narrow pits with great depth e5tension, which involves very high
stripping ratio with high lead and lift for waste and mineral. 8espite these entire problems &hamarkotra
project could sustain the very difficult periods because of its commitment towards scientific approach for
e5ploitation of the deposit with planned development of the pits.
T7E LIMESTONE S4UD6C
*imestone !ines are located at &aisalmer and 2otan ) :luorspar mining operations are located at
.hinmal. ?he production from units at &aisalmer and 2otan stood at 2%.20 lacs tones as against 2%.%% lacs
in previous year. (imilar, sales of limestone gitti stood at 2%.0 lac tones as compared to #8.8% lac tones
during the previous year.
8ue to the 'ubust 2rowth in the global demanded for Iron and (teel Industry, India is e5pected to
become the second largest steel producer after Ahina by 2%#G-2%#6. ?he demand for steel will be much
higher dued to the industrial growth, infrastructure and huge house-building activity in the country.
Aompany is all set to capitalist the boom as it is a producer of major raw material of the steel sector. <s a
part of e5pansion plan (<I* has already signed !E7 with the company for supply of (!( grade
limestone from (anu mines on long-term basis. ?he 4uantity of supply will increase from 2. million
tones to 0.0 million tones from 2%##-2%#2 to 2%#1-2%#8. (<I* has increased the 4uantity of procurement
of undersi6ed material by three times. ?he steel plants are also procuring undersi6ed limestone for
sintering.
LI8NITE UNIT DS4UD6C
'(!!* has its two *ignite mines situated at 2iral , .armer district and another mines at Jasnau-
!atasukh , Dagour district .*ignite products are used in power plant .
*ignite activity witnessed significant success after set back of flood at .armer and confined water
problem at Dagaur during the year 2%%6. ?he production and sales of lignite was increased to 6.%6 lacs
!? as compared to 0.61 lac !? product.
?he #2G !B power plant set up by 'ajasthan Lidhyut 7tpadan Digam *td. .ased on 2iral *ignite has
commenced power generation and the company is supplying lignite to it. ?his has lead to the increase in
demand of lignite at 2iral. Fowever, production as well as sales was lower in Jasnau-!atasukh due to
dewatering and other connected problems.
FUNCTIONS OF COR6ORATE OFFICE
#. !aking policies.
2. 95ercising administrative control.
$. 95ercising financial control.
0. @roject planning ) approval and installation.
G. Aonducting ) handling audit.
6. Installation ) monitoring of systems.
1. Aorporate office looks after the funds flow of the company.
8. It looks after the working capital re4uirement.
. Fandling the ta5ation matters.
#%. It prepares accounts and balance sheet for the company as a whole.
##. @lanning;.udgeting.
#2. <warding large contracts.
#$. Aapital purchases, rate contracts ) other large purchases beyond the power of (.7s
#0. *iaising with government ) various other agencies.
COR6ORATE SOCIAL RES6ONSI4ILITY
<s a responsible corporate entity committed to discharge its social obligations, '(!!* has been
contributing generously towards the development of the areas located near its mining sites and other areas
of operation.
?hese contributions have been in the areas of =
o !edical ) Fealth Aare
o 8rinking water
o 9ducation
o 9nvironment
o 8evelopment of village infrastructure
?he Aompany has been providing medical, educational and other facilities to the villages situated
around its mines.
?o improve the medical infrastructure of 7daipur region, which is predominantly a tribal district,
'(!!* has contributed 's. $.%G crores for establishment of Aardio-?horacic (urgery Aentre
and Deo-Datal (pecial Aare 7nit at the !... 2overnment Fospital, 7daipur.
< Aontribution of 's. 2.888 crores has been made to the Ahief !inister :und for development of
!edical and Fealth infrastructure facilities in project districts.
?he contribution has been made to !edical colleges ; 8istrict Fospitals at 7daipur, .ikaner,
&odhpur, .armer, (ri 2anganagar, &aisalmer, Fanumangarh and Dagaur.
!emorandum of 7nderstanding has also been entered with 2overnment of 'ajasthan for
utili6ation of these funds.
!edical Aamps are being regularly organi6ed in the villages around the mine location and project
areas of the company where free check-up and medicines are provided.
'(!!* has provided land for the project for setting up a #%% bedded multi super specialty
hospital at 7daipur under a &L arrangement with !;s <merican International Fealth !anagement
*imited, 7daipur. ?otal capital investment on the hospital envisaged = 's. 2%% millions.
Ether works for development of village infrastructure include>
Aontribution to @anchayats for schools.
Improvement in village 2oshalas.
<ccording high priority to fulfill its social responsibilities, the company regularly takes up works related
to socio-economic development along with environment restoration and management in the areas where
the company has major mining operations and other business activities.
SU66LY OF 6OTA4LE &ATER
(upplying 1 million liters per day of potable water from &hamarkotra mines to city of 7daipur
since #0-G.
'ecently company has commenced supply of 6 million liters per day of potable water from
Janpur mines in addition to the present supply of 1 million liters per day. Bith this, '(!!*
caters to the potable water needs of more than 2 lacs people of the water starved 7daipur Aity.
(upply of potable water from &hamarkotra mines to 1 nearby villages on a permanent basis since
last 8 years.
<de4uate potable water supply is ensured through a permanent pipeline ) 1G%%% liters capacity
2*' in each village.
ME1ICAL 9 7EALT7
:ull :ledged dispensaries at !ine site and Aorporate EfficeK
!anaged by Qualified 8octors and paramedical staff
'egular annual !onitoring of Eccupational Fealth
Fealth facilities e5tended to employees dependents at mine site
Aompany also e5tends medical facility to village population in ) around mine site
'ecently, comprehensive health check up, covering all the 22%% employees, has been conducted
with the help of Dational Institute of !inersC Fealth, Dagpur, India.
FINANCIAL 6ERFORMANCE OF T7E COM6ANY
?he period covered under the study for the financial performance of '.(.!.!.* is three financial years,
vi6, 2%%-2%#%,2%#%-2%##,2%##-2%#2.
S&OT ANALYSIS
6articular'
N
o
t
!
2311D12 2313D11
INCOME
I 'evenue from operations 23 #21$,6$,2$,22# #%18,#G,61,2$#
II Ether Income 21 66,66,82,G62 06,8G,#8,$%8
III Total R!.!nu! @I?II= 1%(3A%3A3)A/0% 112)A33A0)A)%2
IV EX6ENSES
@urchase of Ere #G,6#,6G,G%1 #,62,$8,#G#
Ahanges in inventories of finished goods ) Ethers 22 -#G,%#,0$,8%G -##,0G,02,#$8
9mployee benefit e5penses 2% #$G,0%,21,108 #26,%1,0$,$26
:inance costs 2( #2,2#,##,028 #,GG,6,18
8epreciation ) <mortisation e5pense 62,8,$1,16 12,%,##,#6G
Ether 95penses 2) 1#2,2$,%6,21% 662,28,%%,#0
Total E5!n'!' 22%A(%A3)A12( 0)2A1/A(/A+%1
V 6rofit ,!for! 6rior 6!riod Ad-u't"!nt'A
E5c!tional It!"' 9 Ta5 (1+A0/A33A+)2 2/2A0%A%/A230
@rior @eriod <djustments +Det, 2+ 8,%2,#6,062 #,#$,86,$2%
VI 6rofit ,!for! E5c!tional It!"' 9 Ta5 (30A0(A0(A12/ 2/1A+2A)1A)00
95ceptional items +'efer Dote Do. #2.0, #0,, %
VIII 6rofit 4!for! Ta5 (30A22A0(A12+ 2/1A+2A)1A)00
IX Ta5 !5!n'!>
Aurrent ?a5 #0%,%%,%%,%%% 8%,%%,%%,%%%
?a5 of earlier years -$%,$G,66# -#,%$,$,8#
8eferred ?a5 -#2,%%,20,$1 0,#,6$,1$
X 6rofit for t#! $!ar @VIIIDIX= 201A%3A((A2)( 100A)%A01A++0
XI Earnin* 6!r !Iuit$ '#ar! 2/
.asic and 8iluted $6.21 20.$#
:ace value @er e4uity share #%.%% #%.%%
Beighted <verage Dumber of 94uity (hares 11GG#G%% 11GG#G%%
(BE? <D<*N(I( of '.(.!.!.* is done in the following way for the better understanding of the
companyCs position>-
STREN8T7S
&hamarkotra rock phosphate mines of '.(.!.!.* is one of the largest well -mechani6ed open
cast mines of <sia, which is most modern and scientifically laid out mine.
Industrial beneficiation plant of '.(.!.!.* converting low grade ore of rock phosphate into
higher grade concentrate is the only plant of its kind in the world.
In '.(.!.!.*, research and development activities are integral part of the business activities.
95tensive computeri6ation along with advanced software is being used for evaluation of natural
resources and financial analysis to optimi6e resource utili6ation.
?he service condition and welfare facilities given to the workmen are attractive and handsome.
?he employees are satisfied with the facilities and services given by the company. ?he rate of
labour or employee turnover is almost 6ero and since its inception, no strike or lock- out in the
organi6ation.
'.(.!.!.* Ris having a F'8 department who is arranging training and development programmes
for their e5ecutives and workmen, refresher courses are being arranged by their vocational
training centre, L?A at &hamarkotra mines under the supervision of manager rank e5ecutives.
'.(.!.!.* has its own and separate marketing department at corporate office in 7daipur.
&EA;NESSES
8ue to 2overnment controls, '(!!* has lesser fle5ibility compared to private organi6ation.
.eing 2overnment company, procedural delays hamper 4uick decisions.
.eing 2overnment Aompany, it has to follow government rules and regulations.
O66ORTUNITIES
In the era of economic liberali6ation, '.(.!.!.* may try to obtain I(E- %%% or %%2 in order to
access an e5tra mileage for their brand 4uality.
!ost of the customers have strong faith on the 4uality of materials offered by '.(.(.!.*.
'.(.!.!.* may convert this faith into business by targeting potential ) occasional buyers and by
improving the 4uality of the present service.
?here are many opportunities for the organi6ation for e5pansion and diversification of its
activities in India as well as abroad.
T7REATS
?he government of India controls entire business of phosphatic fertili6ers and as such any change
in the government policies in future may adversely affect the company business.
?he various deposits of minerals under the control of the company are depleting ) would good
e5haust in future.
(ome demand of rock phosphate is being full filled by import from foreign suppliers. <ny
reduction in prices by the foreign suppliers may adversely affect the Indian market.

FINANCIAL 6ROFILE
FINANCIAL MANAGEMENT
Financia Management may !e "e#ine" as panning$ organi%ing an" controing o#
#inancia acti&ities in !usiness enterprises'
:inancial !anagement is concerned with raising of funds at optimum cost and their effective utili6ation
with a view to ma5imi6e the wealth of the shareholders.
It in.ol.!' d!ci'ion "aGin* in t#! folloBin* >D
#. <rrangement of funds
2. Investment of funds
$. :inancing of different activities
0. 8isposal of profits
?he finance manager is primarily concerned with arranging finances in desired 4uantity, critical analysis
of the available investment opportunities and controlling the funds.
?hus, management of finance is crucial for success of business. ?he financial manager must see that
funds are procured in a manner that risks, cost and control considerations are properly managed in a firm
and there is optimum utili6ation of funds.
GENE(AL )B*ECTI+ES

#. ?o help build companyCs approach and policies to resource management.
2. ?o help build the companyCs management process and procedures to plan, estimate, implement,
monitor and evaluateK including internal control procedures.
$. <rrangement of funds ) Eptimum utili6ation of resources.
T#! R!'!arc# M!t#odolo*$ of t#i' ro-!ct r!ort i' a' und!r>D
#. Ebjectives
2. (cope
$. 8ata Aollection
0. 'eliability of data
G. <nalysis
6. Ebservation
1. (uggestion
O4CECTIVES OF T7E STU1Y

T#! r!'!nt 'tud$ ai"' to contri,ut! toBard' t#! ,road o,-!cti.!'A B#ic# ar! a' folloB'>D
?o gain ma5imum insight into the working of '.(.!.!.* in order to understand the practical
functioning of a corporate government enterprise.
?o study the functioning of the finance department in '.(.!.!.*.
?o know the budget and its process and to analy6e the financial statements of '.(.!.!.* and
their interpretation.
?o assess the financial condition and performance of the firm. 'atio <nalysis techni4ue has
been used for analy6ing that.

SCO6E OF T7E STU1Y
:or the purpose of this study '.(.!.!.*. 7daipur +the Aorporate Effice, was selected, keeping in view
of the easy accessibility and convenience in collecting data; information.
?he period covered under the study is three accounting years, i.e., 2%%-2%#%, 2%#%-2%## ) 2%##-2%#2.
?hough, .udget has been prepared for 2%#2-#$ but since the annual accounts of the company for the
accounting year 2%#2-#$ were under finali6ation thatCs why not covered.
1ATA COLLECTION
?here are two types of sources from which data can be collected, these are as follows>-
@i= 6ri"ar$ 1ata
@ii= S!condar$ 1ata
+i, 6RIMARY 1ATA>D @rimary 8ata are those, which are collected for the first time by the
researcher for any particular problem.
+ii, SECON1ARY 1ATA>D ?hose data, which are collected for some earlier research work and are
applicable or usable in the study researcher has primarily undertaken. ?he primary data in one
research work may take the form of secondary data.
For "$ r!'!arc# BorG I #a.! taG!n onl$ t#! S!condar$ 1ata ,!cau'! t#i' 'tud$ i' a,out
GnoBin* t#! ,ud*!t of t#! co"an$A B#ic# can onl$ ,! don! ,$ t#! a't r!cord' of t#!
co"an$.

SOURCES OF SECON1ARY 1ATA
(econdary 8ata can be collected from different sources, these different types of (econdary 8ata
are as follows>-
SOURCES OF SECON1ARY 1ATA
Internal (ources 95ternal (ources
Larious Internal 'eports
@repared by the firm 2ovt. Aommercial Industry !iscellaneous
(ources (ources (ources (ources

<ccounting (ales !iscellaneous
'eports 'eports 'eports
Ot#!r Sourc!' for t#! Stud$>D
In order to achieve the objectives of my study, different methods are adopted including>-
'eview of relevant literature on .udget and .udgeting @rocess.
(tudy of published annual reports of, and .udget of 2%##-#2 of '.(.!.!.*.
8iscussions with companyCs management,
<nd discussion with my mentor at company etc.
?hese e5ercises helped a lot in collecting relevant data and re4uisite information in time for the purpose
of the present study and also to interpret and analy6e the results as also for getting important
classifications about various aspects of the study.
RELIA4ILITY OF 1ATA
< fairly good reliability of data; information can be ascertained from the following, which has duly been
taken into consideration from the following sources>-
(tudy of relevant literature, project reports and articles.
95amination and study of published annual accounts of the company such as, <nnual 'eports of
the company and budget of the company.
.udget information has been taken from the company itself.
@ersonal discussions with companyC management.
8iscussion with the academicians and professionals.
4U18ETARY CONTROL
?he chartered Institute of management <ccountants *andon, 8efines a budget as under
- < plan 4uantified in monetary terms prepared and approved to a defined period of time usually showing
planned income to be generated or e5penditure to be incurred during that period and the capital to be
employed to attain a given objective./
<n analysis of this definition reveals of the following essential of a budget>
It is a plan e5pressed in monetary terms but it can also contain physical units.
It is prepared prior to a defined period of the time +budget period, during which it will operate.
It is related to a definite future period.
It is approved by the management for implementation.
It usually shows the planned income to be generated and e5penditure to be incurred.
It also shows capital to be employed during the period and
It is prepared for the purpose of implementing the policy formulated by the management and the
objective to be achieved during the period.
?hus, a budget fi5es a target in terms of rupees or 4uantities against which the actual performance is
measured. < budget can, therefore, be taken as a document which is closely related to both the
management function as well as the accounting function of an organisation.
AI!<, *andon defines budgetary control as =?he establishment of the budgets relating to the
responsibilities of e5ecutives to the re4uirements of a policy and the continuous comparison of actual
with budgeted result either to secure by individual action the objectives of that policy or to provide a firm
basis for its revision.
?he essentials of budgetary control that are contained in this definition are
+i, 9stablishment of budgets for each function and section of the organi6ation.
+ii, 95ecutive responsibility in order to perform the specific tasks so that objectives of the
enterprise may be attained.
+iii, Aontinuous comparison of the actual performance with that of the budget so as to know the
variations from budget and placing the responsibility of e5ecutives for failure to achieve the
desired result as given in the budget.
+iv, ?aking suitable remedial action to achieve the desired objective if there is a variation of the
actual performance from the budgeted performance.
+v, 'evision of budgets in the light of changed circumstances.
4ud*!tA 4ud*!tin* and 4ud*!tar$ Control
'owland and Billiam in their book entitled .udgeting for !anagement Aontrol has given the difference
between budget, budgeting and budgetary control as follows
-.udgets are the individual objectives of a department, etc. whereas budgeting may be said to be the act
of building budgets. .udgetary control embraces all this and in addition includes the science of planning
the budgets themselves and the utili6ation of such budgets to effect an overall management tool for the
business planning and control/.
?hus a budget is a financial plan budgetary control results from the administration of the financial plan.
6r!li"inari!' for t#! adotion of a '$'t!" of ,ud*!tar$ control
?he following are the pre-re4uisites or steps for the successful implementation of a sound system of
budgetary control>
+i, < concern must have a clearly defined organi6ation chart. ?his is necessary in order to have a clear
idea of authority and responsibility of each e5ecutive so that there may be no conflict among
functional e5ecutive for shirking responsibilities and blaming others for poor performance.
+ii, ?he business objective, plans and policy should be clearly defined and stated in unambiguous
terms. ?he scope of budgetary control should be clearly laid down.
+iii, ?he budget output should be stated in clear terms.
+iv, ?he budget or key factor, if any, must be indicated before starting the preparation of
budgets.
+v, ?here must be efficient system of accounting in order to record and provide necessary
accounting information to the management for successful system of budgetary control.
+vi, .udget committee should be set up for the establishment and efficient e5ecutive of the
plan.
+vii, ?o make budgetary control successful, there should be a proper system of communication
and reporting between the various levels of management. < two way system of
communication should be adopted. ?he top management should be able to communicate the
budget plan to the lower levels in clear terms who in turn should feedback by reporting the
deviation from the targets to the higher levels. En the basis of feedback, the top
management may again communicate instructions to the lower management for taking
corrective action.
+viii, .udget centres should be established for cost control and all budgets should be related to
cost centres. .udget centres will disclose the sections of the organisation where planned
performance is not achieved.
+i5, ?here should be a budget manual to indicate charter of programme. It contains all details
regarding the plan and procedures for its e5ecution. It should also specify the length of the
period.
+5, ?o motivate the workers, the budget must be prepared by those who are responsible for its
performance.
+5i, ?he budget should cover all phases.
+5ii, ?op management approval is necessary in order to get full cooperation and acceptance of
the system of budgetary control. ?he system may fail in future due to disagreements which
may arise later on without approval of the top management.
Ad.anta*!' of 4ud*!tar$ Control
?he important advantages of a budgetary control can be summed up as follows>
#. ?he most important advantage of a budgetary control is to enable management to
conduct business in the most efficient manner because budgets are prepared to get
the effective utili6ation of resources and the reali6ation of objectives as efficiently
as possible.
2. It lays down an objective for the business as a whole. 9ven though a monetary
reward is not offered the budget becomes a game-a goal to achieve or a target to
shoot at-and hence it is more likely to be achieved or hit than if there was no
predetermined goal or target. ?he budget is an impersonal policeman that maintains
ordered effort and brings about efficiency in result.
$. 9veryone working in the concern knows what e5actly to do because budgetary
control laid emphasis on the staff organi6ation.
0. .udgetary control takes the help of different levels of management in the
preparation of the budget. .udget finally approved represents the judgement of the
entire organi6ation and not merely that of an individual or a group of individuals.
?hus, it ensures team work.
G. !anagement by e5ception is possible because the comparison of actual and
budgeted results points out weak spots so that remedial action is taken against weak
spots which are not in conformity with the budgeted performance.
6. It ensures effective utili6ation of men, materials, machines and money because
production is planned according to the availability of these items.
1. It is helpful in reviewing current trends in the business and in determining further
policy of the business because current and future trends are studied in the
preparation of the budget.
8. .udget acts as a measure of efficiency of departments and persons working in the
organi6ation because budgets provide a yardstick against which actual performance
of departments and employees can be compared.
. .udgetary control creates conditions for setting up a system of standard costing.
#%. It helps in promoting a feeling of cost consciousness and in restricting e5penditure
to the minimum.
##. It enhances the standing and credit of the undertaking with the government and the
banks because an efficient techni4ue of cost control is used.
#2. :unctions of planning, co-ordination and control can be better performed with the
help of the budgetary control.
Li"itation' of 4ud*!tar$ Control
?he budgetary control as a management control device suffers from the following
limitations>
#. It may be impossible to achieve the budgeted targets as estimates and forecasts
relating to the future made in the budget can never be perfectly accurate for the
simple reason that future is unpredictable.
2. In rapidly changing conditions it may not be possible to achieve the budgeted
targets. .udgets may have to be revised from time to time, but fre4uent revisions
may prove to be a costly affair.
$. .udgets may serve as constraints on managerial initiative because every e5ecutive
tries to achieve the budgeted targets. It tends to bring about rigidity in control.
0. Aorrelation and coordination of various budgets is e5pensiveK so small organi6ations
cannot afford the employment of budgetary control as a cost control techni4ue.
G. .udgetary control may lead to conflicts among functional e5ecutives.
6. .udget is only a tool of the management and is not a substitute of management.
1. .adly handled budgetary control system with undue pressure and lack of regard to
behavioural aspects may cause antagonism and may lower morale of the employees.
8. .udgets may be developed keeping in view e5isting organi6ation
1iff!r!nt T$!' of 4ud*!t
8ifferent types of budget have been developed keeping in view the different purpose serve.
.udget can be classified according to>
+#, the coverage they encompass K
+2, the capacity to which they are related K
+$, the conditions on which they are based K and
+0, the periods which they cover
Functional 4ud*!t
< functional budget is a budget which relates to any of the functions
of an undertaking, e.g., sales, production, research and development, cash etc. ?he
following functional budgets are generally prepared>
.udget @repared by
+#, (ales .udget including (elling
and 8istribution Aost .udget (ales !anager
+2,@roduction .udget @roduction !anager
+$, !aterials .udget @urchase !anager
+0, *abour and @ersonal .udget @ersonnel !anager
+G, !anufacturing Everhead @roduction !anager
+6, <dministration Aost .udget :inance !anager
+1, @lant 7tilisation .udget @roduction !anager
+8, Aapital 95penditure .udget Ahief 95ecutive
+, 'esearch and 8evelopment Aost .udget ' ) 8 !anager
+#%, Aash .udget :inance !anager
Ma't!r 4ud*!t
!aster .udget is consolidated summary of the various functional budgets. It has
been defined as Sa summary of the budget schedules in capsule form made for the purpose of
presenting in one report, the highlights of the budget forecastS. ?he definition of this budget given
by the chartered Institute of !anagement <ccountant, 9ngland, is as follows>
-?he summary budget incorporating its component functional budgets and which is finally
approved adopted and employedS.
Fi5!d ,ud*!t
?he fi5ed budget is prepared for a specified operation level. In this budget no change
is effected on any change in production level. ?herefore , such budget are not more useful for business
concerns because in practice operational level changes from time to time due to internal and e5ternal
causes such as conditions of demand and supply, market fluctuations etc.
Bhen the actual activity differs from the budgeted level of activity, the use of fi5ed budget as a
basis of performance evaluation does not give correct picture. AI!< 9ngland has defined it, as -a budget
which is designed to remain unchanged irrespective of the level of activity attained./
Fl!5i,l! ,ud*!t
< fle5ible budget may be defined as a budget which is designed to change in
accordance with the level of activity attained. <ccording to AI!< 9ngland fle5ible budget is, -a budget
which by recogni6ing different cost behaviour pattern, is designed to change as volume of output
changes./ 9arlier it was defined as -< budget designed to change in accordance with the level of activity
actually attained./
4a'ic 4ud*!t'
< basic budget has been defined as a budget which is prepared for use unaltered
over a long period of time. ?his does not take into consideration current conditions and can be
attainable under standard conditions.
Curr!nt 4ud*!t'
< current budget can be defined as a budget which is related to the current
conditions and is prepared for use over a short period of time. ?his budget is more useful than a
basic budget, as the targets it lays down will be corrected to current conditions.
Lon*DT!r" 4ud*!t'
< long-term budget can be defined as a budget which is prepared for periods
longer than a year. ?hese budgets help in business forecasting and forward planning. Aapital
95penditure .udget and 'esearch and 8evelopment .udget are e5amples of long-term budgets.
S#ortDt!r" 4ud*!t'
?his budget is defined as a budget which> is prepared for period less than a
year and is very useful to lower levels of management for control purposes. (uch budgets are
prepared for those activities, the trend in which is difficult to foresee over longer periods. Aash
budget and material budget are e5amples of short-term budgets.
Rollin* @Continuou'= 4ud*!t
?his is a budget which is updated continuously by adding a further period +a
month; 4uarter, and deducting a corresponding earlier period. .udgeting is a continuous process under
this method of preparation of budget. Ence the first period elapses, the forecast for that period is dropped
and the forecast for the future period beyond the e5isting budget period is added, thereby a #2 months
forecast is available. Bhere future costs or activities could not be predicted and forecast reliably, this
method is useful. Fowever, it is a costly e5ercise but matched by considerable reduction in operational
variances.
4U18ETIN8>D
.udget is a financial and;or 4uantitative statement that is prepared and approved prior to the budget
period , of the policy to be persuade during that period for the purpose of attaining a given objective.

.udgeting is a critical step in planning and controlling day-to day operations. It is also a time consuming,
multilayered and comple5 process. ?o streamline the budgeting process and ensure more timely and
accurate budgets, companies place great value on a formali6ed process that produces detailed yet fle5ible
budgets that are fully aligned with the strategy goals of the organi6ation.
.alancing fle5ibility and control, sophistication and ease of use, .udgeting is the tool of choice to create
and e5ecute detailed budgets> transforming strategic goals into operational plans. .udgeting typically not
only simplifies the investment but also streamlines the sharing of data with key managers and future goal
and cash flow.
.udget means the future plan or estimation .It covers action in the whole of the organi6ation for a definite
period of time, being a sum total of all <ssets, (ervices and administrative offices put together in case of
'(!!*.
Bu"geting in (SMML
T#! #ilo'o#$>
?he philosophy of budgeting in '(!!* is to optimise itCs operations ) profits ) to chalk out the course
of action to be taken during the year down to the smallest activity.
T#! roc!''>
.udgeting in '(!!* starts keeping in view the corporate goals which themselves are set keeping in
view the economic environment, ta5 regime, govt policies demand for various products , production
capacities etc. ?he demand for various products is assessed by the !arketing 8epartments of the
concerned (.7s. @roduct-wise production ) sales targets for various (.7s are set accordingly. ?he
whole process of setting production ) sales targets is conducted at the top most level keeping in view the
assessed demand ) other factors as mentioned above.
?he sales targets are converted into sales budget including revenue from sales ) related e5penditure of
selling ) distribution.
?he production targets are further split downstream into targets for main production department, like
!ining dept., Arushing 8ept, Industrial .eneficiation @lant +I.@,, Aontracts 8ept. 9tc. ?hese
departments communicate their re4uirements of inputs ) resources as also maintenance etc. to the various
service departments like the different machinery maintenance departments, Borkshop, @urchase dept.,
(tores, Quality Aontrol, Aivil etc.
9ach department then assesses itCs capacities to achieve the given targets;re4uirements ) converts the
same into Aapital ) 'evenue .udgets. ?hus planning is done for each function;department to
synchroni6e with the targets;re4uirements. ?he !ining ) !aintenance departments as well as Arushing
8ept. ) I.@ dept assess the re4uirements of new machinery;assemblies which constitutes part of Aapital
.udget. ?hey also assess the re4uirement of various inputs ) services which constitutes part of revenue
budget. *ikewise, other departments also assess their re4uirements of capital items ) their input;services
re4uirements to synchroni6e with the (.7 targets of production ) sales. &ustification is also given for
capital ) revenue re4uirements.
9ach department then submits its Aapital ) 'evenue budgets to the :inance 8epartment of the (.7
which then compiles ) consolidates along with necessary notes;justifications ) submits the same to the
(.7 head. Ence the (.7 heads give go-ahead for the budget, the same is submitted to the :inance
8epartment at Aorporate Effice. Aorporate Effice then compiles ) consolidates the (.7 budgets
incorporating itCs own budget. <fter this consolidation series of meetings are held, including at the top
level, with various heads of (.7s ) other departments to optimi6e profit.
<fter necessary amendments as per the discussions in the aforesaid meetings, the final budget is
submitted to !anaging 8irector ) after his approvalK the same is put up before the .oard of 8irectors for
final approval.
4ud*!tar$ Control in RSMML >
<fter the final approval of the .oard of 8irectors, the budget document becomes the basis for all
activities during the period. !onitoring of the actual performance ) e5penditure vis-T-vis budget is done
through !I(.
.udget is prepared keeping in mind the following points> -
#. 9conomic environment
2. ?a5 regime ; other changes in loan
$. 2overnment policies
0. Aorporate goal for the year
G. 8emand ) supply position of various products
6. @roduction capacities
1. (.7 targets for production ) sales
8. *ast year e5penditure
. Inflation ; 8eflation
T#! traditional or incr!"!ntal aroac#>D
'(!!* has adopted traditional or incremental approach for .udget.
In the traditional approach, the budget was prepared on the basis of previous years figures. ?he past
spending was e5trapolated every year. ?his carried forward the inefficiencies of previous year to
current year. Fowever, while calculating variable e5penses norms are also considered.
?his budget estimates may change according to period and financial year. *ike inflation;deflation,
bank rate, depreciation, pay commission etc.
*ike in 2%%1-%8-% 'ajasthan government announced 6
th
pay commission by which pay scale or
payment to ) provision for employees were changed which were earlier constant or fi5.
4U18ETIN8>-
.udget is a plan covering action in the whole of the organi6ation for a definite period of time, being sums
total of all the individual activities of assets, services, and administrative offices put together. <n effective
mechanism of financial management and control can be built up only on a sound comprehensive budgetary
system. .udgeting is essentially a managerial process and it should not be mistaken solely as an instrument
providing a basis for obtaining funds or providing a ceiling for e5penditure.
<t '(!!*, .udget is prepared on accrual basis in four components>-
1. Caital ,ud*!t
2. R!.!nu! ,ud*!t >
a. O!ration ,ud*!t
,. 6rocur!"!nt ,ud*!t
c. Ca'# ,ud*!t
1. Caital 4ud*!t:
.udget covering proposals of ac4uisition and disposal of :i5ed <ssets resulting in change in assets base,
enabling conduct businesses of the organi6ation. It is the process of identifying, analy6ing and selecting
investment projects, whose return are e5pected beyond one year. <s also plant ) machinery and other
capital resources re4uired to achieve yearly goals.
<t the head4uarters, the Aapital .udgeting process, to bring that in alignment with plans of the
organi6ation, has been integrated with corporate planning, to primarily focus on the organi6ationCs 4uest
for increasing the productive assets base.
Aapital .udget is the plan for listing the e5pected investment proposals, schemes or projects, result of
which enables the organi6ation to enables the organi6ation to either reduce its operational costs, or increase
its revenue by increasing its working area;assets. It is the proposed plan of ac4uisitions and replacements
of long term assets and their financing. It is a process of deciding whether or not to commit resources to a
project whose benefits will be spread over several time periods. ?here are typically two types of
investments. :irst the selection decisions in terms of obtaining;creating new facilities or e5panding
e5isting facilities such as 95ploration and ac4uisition and improvement of (ervice and Infrastructure
:acilities. <nd second replacement decisions in terms of replacing e5isting facilities like replacement of
typewriter with computer or machinery or e4uipment and old inefficient vessel;rig with an efficient and
update one re4uiring much less operating or repair maintenance e5penses. ?he Aapital .udget is composed
of>-
1. Dew @rojects;(chemes;@roposals>
<. 8irect capital outlay including separate details for>
:inding Aost including @lanned survey e4uipments and e5ploratory drilling e5pensesK
:i5ed <ssets including cost of land, infrastructural facilities, civil, mechanical, electrical and
instrumentation works, townships etc. for finding and creating production ; processing
facilitiesK
:i5ed <ssets including e4uipment those are re4uired to meet the re4uirements of production )
sales.
.. ?echnical AonsultancyK
A. Aommissioning 95pensesK
8. .ought out <ssetsK
9. Interest during AonstructionK
:. Det Borking Aapital re4uirementsK
2. Aapital 95penditure not represented by assetsK
F. ?ownship and (ocial EverheadsK
2. Aapital <ddition 95penses for alteration, amendment, modification for betterment, renovation, or
balancing of e4uipment or facilities, with the objective of reduction in cost or improving profitability over
a period of time.

%. <ny other items of e5penditure incurred for increasing revenues or reduction of costs of the
Aorporation over a period of time e5tending beyond the year in which e5penditure is made.
4ud*!t for"at>
?his format of budget is for (.7 ) @ACs which is used by '(!!*.
Caital ,ud*!t> S4U 9 6C RocG 6#o'#at!
R'. In Lac
6articular' 4ud*!t !'ti"at!'
2313D11
R!.i'!d !'ti"at!'
2313D11
4ud*!t !'ti"at!'
2311D12
Minin* !Iui"!nt
Ancillar$ !Iui"!nt
La,orator$
V!#icl!'
Furnitur! fi5tur! 9
fittin*'
Offic! !Iui"!nt'
El!ctrical !Iui"!nt 9
in'tallation
Ci.il BorG
Sur.!$ 9 lannin*
I46 6roc!''
M!c#anical DM66
M!c#anical DL8O
El!ctrical
In'tru"!ntation
&!i*# ,rid*!
Con'truction of
conn!ctin* Road
MIS
@#ardBar!An!tBorGin* 9
Sit! 6r!aration !tc.=
Land AcIui'ition for
;anur Min!' @ToG!n
ro.i'ion=
Land AcIui'ition for
1;T Min!' @ToG!n
ro.i'ion=
E5lo'i.! Van 9
A",ulanc! for ;8M
En.iron"!nt
"ana*!"!nt c!ll
Con'truction of ST6 at
4a*d#ara Colon$
Saf!t$ "ana*!"!nt
Total
2. R!.!nu! J O!rational 4ud*!t : .udget of Income and 95penditure of 'evenue
incurred for the business of organi6ation.
R!.!nu! 4ud*!t>D
'evenue .udget is supposed to be plan for laying down the e5pected standards of performance in current
operations. It has broadly two components Eperating Income and Eperating 95penses. It is typically
composed of >-
1. 6a$"!nt to 9 ro.i'ion for !"lo$!!'.
2. Minin* 9 roc!''in* !5!n'!'.
%. Financial co't'.
(. S!llin* 9 di'tri,ution.
). Ad"ini'tration o.!r#!ad'.
6. An$ ot#!r it!"' of !5!nditur! incurr!d for carr$in* on Bit# t#! da$DtoDda$
acti.iti!' of t#! CororationA ,!n!fit of B#ic# '#all ,! a.aila,l! durin* t#! $!ar in
B#ic# it i' ,!in* incurr!d.
'evenue .udget broadly includes all revenues from operations of the organi6ation and costs applicable for
generation of such revenue for the time period of a year, segregated between production, general,
administrative, selling and repairs and maintenance cost incurred to maintain the producing;working assets
of the organi6ation.
4ud*!t for"at>
?his format of budget is for (.7 ) @ACs which is used by '(!!*.
REVENUE 4U18ET> S4U 9 6C ROC; 67OS67ATE
R'. In lac
6articular' Actual
2332D13
4ud*!t
!'ti"at!'
2313D11
R!.i'!d
!'ti"at!'
2313D11
4ud*!t
!'ti"at!'
2311D12
A. 6AYMENTS TO
9 6ROVISION
4. FOR
EM6LOYEES
Salar$ and &a*!'
Contri,ution to
6ro.id!nt 9 Ot#!r
Fund'
4onu' JAdditional
r!"un!ration
E"lo$!!' &!lfar!
E5*ratia to !"lo$!!
E"lo$!!' Social
S!curit$
L!a.! Enca'#"!nt
6ro.i'ion for Arr!ar' of
LTA J VI t# 6a$
Co""i''ion incl. 6F 9
8ratuit$
VRS E5!n'!'
4.MININ8 9
6ROCESSIN8
EX6ENSES
6urc#a'! of or!
Stor!' con'u"!d
6a$"!nt to Contractor'
@a= For R!"o.al of
o.!r,urd!n
@c= For E5loration 9
1!.!lo"!nt in 8 4locG
@,= For Tran'ortationA
8rindin* 9 Ot#!r'
1!Bat!rin* of Min!'
Cru'#in*
6lant E5!n'!'
Sa"lin* 9 Anal$'i'
6oB!r C#ar*!'
E5!nditur! on "in!
'af!t$ "!a'ur!'
Ro$alt$
M.R. C!''
6ro'!ctin* 9
1!.!lo"!nt C#ar*!'
R!air' to 6lant
Mac#in!r$
For!'t 6lantation 9
En.iron"!nt cl!aranc!
Co"!n'ation for land
Rural 9 Ur,an
1!.!lo"!nt
Road R!air E5!n'!'
R!air' to ot#!r'
R!ntA Rat!' 9 Ta5!'
Land Ta5
In'uranc!
La,orator$ E5
1!r!ciation
C.FINANCIAL COSTS
Int!r!'t to 4anG
4anG c#ar*!'
8uarant!! Co""i''ion
1. SELLIN8 9
1ISTRI4UTION
S!llin* !5!n'!'
4u'in!'' ro"otion
!5!n'!'
6acGin* c#ar*!'
Fr!i*#t
E. A1MINISTRATIVE
OVER7EA1S
8!n!ral C#ar*!'
R!air' to 4uildin*'
Tra.!lin* 9 Con.!$anc!
V!#icl! UDG!!
6o'ta*!A T!l!#on! 9
T!l!*ra#
S!"inar 9 Conf!r!nc!'
6rintin* 9 Station!r$
Ad.!rti'!"!nt
Su,'crition 4ooG' 9
6!riodical'
Con'ultanc$ C#ar*!'
6rior 6!riod Ad-u't"!nt
Ent!rtain"!nt
1onation
Co"ut!r Maint!nanc!
9 Con'u"a,l!'
L!*al 9 6rof!''ional
C#ar*!'
Lo'' on 'al! of
Mac#in!r$
R!'!arc# 9 1!.!lo"!nt
Total
4ud*!t R!ort>
@erformance evaluation and reporting of variances is an integral part of all control
systems. 9stablishing budgets is in itself of no avail unless a comparison is made regularly between the
actual e5penditure and the budgeted allowances, and all results reported to the management. :or this
purpose, budget reports showing the comparison between the actual and budgeted e5penditure should be
presented periodically in a tabular form or in graphs. ?he reports should be prepared in such a manner
that they reveal the responsibility of a department or an e5ecutive and give full reasons for the variances
so that proper corrective action may be taken.
Anal$'i' of ,ud*!t .arianc! in RSMML for t#! $!ar 2311D12
8epartment > Aorporate office .udget 'eport
@eriod > 2%##-#2
95penses 8ifference
Increase
3
8ecrease
3
'easons
<. @<N!9D? ?E ) @'ELI(IED
:E' 9!@*EN99(
0.11 @ayment to ) provision for
employees decreases due to
decrease in salary ) wages,
contribution to provident )
other funds , provision for
leave encashment.
Aontribution to provident ) other
funds
#%.8
(alaries and Bages %.68
95gratia to employee #2.2
.onus;<dditional 'emuneration 22.G%
9mployee Belfare #0.8%
9mployee (ocial (ecurities #.01
@rovision for leave 9ncashment 6.$2
L'( 95penses G.%
. E@9'<?IED<* 9P@9D(9( 8.$$ Eperational e5penses
increases due to increase in
forest, plantation )
environment projects, rural )
urban development projects,
repairs to others, rent, rates )
ta5es
:orest, @lantation ) 9nvironment #$.60
'ural ) 7rban 8evelopment +(ocial
'esponsibility,
G.2%
'epairs to others #$.#%
'ent, 'ates ) ?a5es 2.%%
8epreciation;<morti6ation #%.$$
A. :ID<DAI<* AE(?( G.8% :inancial costs decreases due
to decrease in interest to
bank ; financial institutions,
decrease in bank charges,
guarantee commission
Interest to .ank; :inancial
institutions
%.26
.ank charges including e5change
rate diff.
$.#8
2uarantee Aommission 81.%%
(elling e5penses %.8
8 .7(ID9(( @'E!E?IED 2%.8%
9. <8!IDI(?'<?IL9
EL9'F9<8(
$0.#G <dministrative overheads
decreases due to decrease in
general charges, repairs to
building, traveling )
conveyance, vehicle up-keep,
electricity ) water, seminar,
training, F'8 ) e5hibition,
advertisement, books )
periodicals, board meeting
e5penses, software upgrade )
e4uipment maintenance,
research ) development )
scientific studies, contribution
to '(!!* foundation.
2eneral Aharges 6G.%1
'epairs to .uilding 16.GG
?ravelling ) Aonveyance G.%$
Lehicle up - keep 2G.2%
@ayment to <uditor >
#. <udit :ee
2. ?a5 <udit :ees
$. :or reimbursement of
e5penses
%.$$
02.G%
@ostage, ?elephone ) telegraph ##.%%
@rinting ) (tationary 66.G%
9lectricity ) water G.$
(eminar, ?raining,F'8 )
95hibition
1$.%%
*egal and @rofessional Aharges #.$#
<dvertisement 10.6$
.ook ) @eriodicals 1G.%%
9ntertainment $2.%
.oard !eeting e5penses $.$$
8onations 18.%8
Aonsultancy Aharges - -
Alaim ) (ettlements ##.G$
(oftware upgrade ) 94uipment
maintenance
1G.6%
Britten off ; <dvance written %.8$
(undry 8ebit .alance 21.81
'esearch ) 8evelopment )
(cientific (tudies
1G.%%
@rovision for 8oubtful debts #G.8$
@rior period e5penses #%.10
Aontribution to '(!!*
:oundation
#%%.%
?otal #8.$8
@rofit #20.0
'(!!* donCt want to publish their internal 8ata.
?here was increase in the profits of corporate office of around #203 compared to budget due to
increase in revenue conse4uent upon recoveries related to wind farm.
CONCLUSIONS
From t,e stu"y o# !u"get o# t,e company$ #oo-ing concusions are ma"e./
?he company makes two types of budget revenue budget and capital budget.
<ll (.7 ) @As and corporate office make their budget separately.
Aompany makes its budget annually based on the traditional approach.
Bhole budget is approved by !.8. ) finally by board of directors.
Aompany doesnCt use any software for making budget however integrated software called
:<!I( has been prepared to integrate accounting, budgeting ) costing which is being used
presently for accounting ) would be e5pected to budgeting also.
?he whole budgeting process is considered to be of standard nature.
Aontrol vis. a vis. .udget is e5ercised through !I(.

I hope that this study of mine is of use to the organi6ation and people concerned and also fulfill the
re4uirements of @28! +finance, programme.
.
SU88ESTION
Areating an integrated data base so that data for budgeting and budgetary control are available at
all times. :or this purpose integrated software called :<!I( +:inance and <ccounts
!anagement Information system, has already been started which in true course will cater to the
above purpose.
A66EN1IX
Ku!'tionnair!>
En conversation with <namika (harma 8! +:)<, +Aorporate office, the answers
of following 4uestions are given below>
Q.# Bhat criteria do you consider while preparing budgetU
<ns. 8emand and supply position of various products, production capacities,
economic environment, ta5 regime, 2ov. policies , corporate goal for the
year, (.7 targets for production ) sales, last year e5penditure, inflation ;
deflation are being considered for preparation of budgets.
Q.2 Bhat types of problems generally you face while preparing budgetU
<ns. .asically we face problems in collection of data.
Q.$ Is there any separate department for budgetingU
<ns. Do, there is no separate department for budgeting. .udget is prepared in
finance department of every (.7 ) @A and corporate office.
Q.0 Bhat is the time period for preparing budgetU
<ns. Be prepare budget annually. 2enerally in the month of &anuary = :ebruary
and then revised it suitably.
Q.G Is there any software for budgetingU
<ns. Aompany doesnCt use any software for making budget however integrated
software called :<!I( has been prepared to integrate accounting, budgeting
) costing which is being used presently for accounting ) would be e5pected
to budgeting also.
Q.6 Bhere the budget meetings are heldU
<ns. <ll meeting are held in 7daipur corporate office up to !anaging 8irector
+!8, level where heads of all (.7 = @A ) heads of all departments of
corporate office meet ) then they discuss giving justification on their
budget.
4I4LIO8RA67Y
Annual reports of the company
Books
Aost <ccounting by = D.J @rasad
Aost <ccounting by = &ain Darang
Website
Bebsite of the company = -www.rsmml.com/