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1.

SYNOPSIS
INDIA is the major exporter oI spice condiments & coir to
diIIerent parts oI the world .The export helped India realize one oI its
potential resource that was available in plenty across the cost oI Kerala
could be called black gold Ior the soil had vast application in m any
industries.Here SCHOMBERG a GERMAN scientist noticed that the
coir Iiber exported Irom Kerala contained a brown particle which he
Iound out to be beach sand

Irom the costal belts oI Kerala..On Iurther
examination he was able to realize that the beach sand possessed some
extraordinary properties .He took it to his lab& on Iurther examination he
was able to Iind the chemical composition oI the sand to be the same as
that oI monazite a rare earth material .This discovery illuminated the
Iuture oI monazite.
This lead to the setting up oI the atomic energy commission under
the chairmanship oI DR HOMI J BHABA .The export oI rare earth soil
was stopped the possibilities Ior mining the soil were examined.
IRE 1LTD (1REL) incorporated in the year 1950 at Mumbai is a
government oI India undertaking under the administration control oI the
department oI atomic energy (DAE) engaged in mining and processing
'oI beach sand bearing heavy minerals Irom the costal belts. During 1951
IREL became a public sector undertaking and two mineral separation
plants, one at MANVALAKURICHY in TAlVIlLNADU (1967) and the
other at CHAVARA, Kerala (1970) were set up Chavara plant is engaged
in the processing oI beach sand deposits available on the coastal belts oI
NEENDAKARA-Kayamkulam .

. METHODOLOGY OF THE STUDY
With a broad view to achieving the objective given in the study,
the entire investigation was carried out in the Iollowing manner.
1. Much oI the data received Ior the study has been collected Irom
the records oI Company.
2. Many details related with the Iinancial statements are Irom the
oIIicials in the Iinance department.
3. Observation oI the Iunctioning oI departments.
4. Library reIerence is another way oI sources oI Iunds.
.1 PERIOD OF STUDY
The period oI study was Irom 03 February 2011 to03 May 2011.
OB1ECTIVES OF THE STUDY
The study is carried out with the Iollowing objectives;
1. To study the Iinancial perIormance oI this company using ratios.
2. To compare Iinancial results oI various years.
3. To measure the Iinancial position oI the company.
4. To understand about the Iinancial operations oI the company.
5. To analysis the comparative balance sheet.
6. To give suggestions based on the Iindings oI the study.

.3 LIMITATION OF THE STUDY
1. Restricted data because oI oIIicial secrecy
2. InsuIIicient time.
3. Limited knowledge oI subject
4. Busy and hectic schedule oI oIIicials
5. Respondent`s biases and personal prejudice, also may aIIect the
inIormation and hesitation in revealing certain Iacts also be an
obstacle in giving Iurnishing certain details.

3.1 INDUSTRY PROFILE
Mining industry is one oI the largest industries in the world.
Mining industry is concerned with the direct tapping and utilization oI
natural resources, which are mostly perishable sand mining is a
signiIicant kind oI mining in which special expertise is needed. Black
sand mining is all about discovering and putting into use ijeavy minerals
called as Rare Earths. The term 'Rare Earths' denotes the group oI 17
chemically similar metallic elements that includes scandium, vtrium and
lanthanides. The group oI Rare Earths has greatly inIluenced our day to
day liIe with numerous applications namely in the areas oI metallurgy,
magnets, ceramics, electronics, optical, medical and nuclear energy.
3. WORLD SCENARIO
A global increase in miniilig capacity is currently underway with
numerous new projects around the world. These will be replacing, in
part, dwindling reserves Irom existing procedures. Current demand is
steadily increasing but may not be suIIicient tp support the projected
production Irom all the new projects. The major mineral sand deposits oI
the world are spread throughout diIIerent continents across the globe.
The exploration Ior mineral sand deposits has intensiIied since the mid
1980s due to increasing use and demand Ior heavy minerals. The major
countries where these deposits Iound are Australia, Canada, India,
Kenya, Madagascar, Mozambique, South AIrica etc.

3.3 INDIAN SCENARIO
India has over 7000km coastal line and has reserves oI minerals in
the beach sand. India has large reserves oI beach sand heavy minerals in
the coastal stretches around the country speciIically in south west coast
oI Kerala and Maharashtra. Beach sand contains the important heavy
minerals such as Ilmenite, Rutile, Leucoxene, Zircon, Monazite and
Sillimanite. IRE has situated various plants in diIIerent locatioris such as
Bombay (Maharashtra), Manavalakurichi (Tamil Nadu), Chatrapur
(Orissa), Chavara and Aluva (Kerala). There are some private companies
also which are operating in India.
3.4 STATE SCENARIO
GcId's own country is the best owecjl with a long coastal belt.
Kerala state is endowed with a number oI occurrences/deposits oI
minerals such as heavy minerals sands (Ilmenite, Rutile, Zircon,
Monazite, sillimanite) Gold, Iron ore, Bauxite, Graphite, China clay, Fire
clay, Tile and Brick clay, Silica sand, Lignite, Lime stone, Lime sheel,
Dimension stone (Granite), Gemstones, Magnetite, Steatite etc. However
mining activities on large scale are conIined mainly to a Iew minerals
heavy mineral sands, China clay and to a lesser extent lime stone/lime
Shell, Silica sand and Granite. In Iact heavy minerals sand and china clay
contribute more than 90 oI the total value oI mineral production in the
state.
The state owns mineral deposits like placers, China clay (kaolin),
Limestone, Lime shell, Silica sand, Bauxite, Graphite, Iron ore, Granite
etc. The major mineral based industries like Indian Rare Earths Ltd;
Chavara ,Kerala Minerals and Metals Ltd; Chavara, Malabar Cements;
Walayar , Travancore Cements Ltd; Kottayam, Kundra Ceramics;
Kollam, English Indian Clays Ltd (E1CL); Thiruvanthapuram,
Excel Glass Industry; Alappuzha, Kerala Clays and Ceramics products
Ltd; Palayanagadi ;Kannur are some oI the mineral based industries
working in the state since several years. The resources oI beautiIul
ornamental granites in the state are being exported to diIIerent countries.
IRE itselI has got two plants in the state. One is at Chavara and the
other in Aluva. Chavara plant is engaged in the processing oI beach sand
deposits available on the coastal belt oI Neendakara-Kayamkulam.
Chavara barrier beach with a width oI 225m is divided into 8
blocks numbered Ho8 Ior separating limonite Ior the manuIacture oI
Ti02. The blocks are apportioned between Kerala Minerals and Metals
Ltd (KMML) a state government undertaking and Indian Rare Earths Ltd
(IRE) a Government oI India enterprise under

INDIAN RARE EARTHS LIMITED
4.1 HISTORY OF IREL
In the 'early part oI the 20
th
century large bundles oI coir, a
coconut Iiber product, used to be shipped to Europe Irom southwestern
coastal regions oI India. In presence oI line particleis oI shining
yellowish brown sand in the bundles around the curipsity oI scientist
Mr. Schomberg a German chemist in 1909, identiIied these shiny
particles as the mineral grains oI Monazite, discovery that provide to be
immediate beneIit to the Germans. They were aware oI the commercial
potential oI this mineral as this as the main source oI thorium Nitrate, an
essential material Ior the production oI gas mantle. The electric lamp was
not in vogue at that time, and the gas mantle lamps were being widely
used. Tracing back to the source oI export coir, the German made
investigation Ior the possible source oI Monazite. In South India this
resulted in their establishing oI the Iirst mineral sand company Ior the
production oI Monazite. This German company was the pioneer concern
oI the exploitation oI the heavy mineral in India.
During World War 1 the British seized the German cosmopolitan
company, Schomberg was arrested and deported. Since then up to
independence the mineral sand industry had been British monopoly.
With the advent oI electric lamp, gas mantles lost their demands and
Monazite seemed to Iace great recession. This led to the investigation Ior
other valuable minerals in the beach sand and soon other heavy minerals
like Illuminate, Rutile, Zircon, Sillimanite, etc were discovered in the
same raw monazite sand used by the industry. Geological Survey oI
India established the presence oI huge quantities oI these import heavy
minerals in a strip oI land between the two tidal channels oI Neendakara
and Kayamkulam in Qulin district.
Geologically the region is a part oI a tiny narrow coast oI upliIted
territory sediments along the west coast over a Iine 100km Irom Cape
comparing to the north, the alluvial mineral sands rest over this
sedimentary Iormation. The natural history oI heavy minerals sands
begin Irom the crystalline rocks oI the western Ghats oI the Nilagiri hills.
These rocks contain minute crystals oI grains oI heavy minerals. During
weathering, these rocks have been decomposed and warm out and carried
in to the sea. In the course oI these grains are transported Iurther and
Iurther Irom the original site in the maintains by stream to be ultimate
deposited in the sea. Here to the peculiar nature oI the sea currents and
the waste action the accumulating sand grains have been swept back on
the beach sand and not carried away into the sea. The action oI the waves
concentrates these sands by working away the constituents that are light.
The Quilon deposits have been there a rich source oI rare earths and
other heavy minerals having a wide variety oI users in industry and
science.
The Iirst Iull-Iledged minerals industry in Chayara was established
by Mr. F.X Pereira and sons (Travancore) Pvt Ltd in 1932. Later other
Iorms were also established. The end oI 1930, Iour companies engaged
in the business with a distance oI 7km along the (phavara beach. They
were Pereira and sons pvt Ltd, Travancore mineral company Ltd,
Associated mineral company Ltd and Hopkins & William Ltd.
In 1948, the Government oI India setup the Atomic Energy
Conversion under the chairmanship oI Dr. Homibaba. The export oI
Monazite was stopped and the possibility oI setting up a Iacility to
process the minerals oI the production oI rare earths was examined.
On August 18, 1950 IREL was incorporated as Pvt ltd Company
jointly owned by Government oI India, Government oI Travancore and
Cochin with the primary intention oI taking up commercial scale
processing oI Monazite sand at its Iirst unit namely Rare Earth Division,
Aluva, Kerala Ior the recovery oI thorium.
In 1951, IRE became a Iull-Iledged Central Government
undertaking. In 1963 under the administrative control oI Department oI
Atomic Energy (IAE), IREL took over a number oI private companies
engaged in mining and separation oI beach sand minerals in southern
parts oI the country.
For over 30 years diIIerent unit oI the mineral sand industry at
Manavalakurichi in Tamilnadu and at Chavara in Kerala were in the
control oI Ioreign countries. They came under government control soon
aIter independence. In 1965 it was established as a large-scale public
sector undertaking with an authorized capital oI 70001akhs. Later IRE
took over the sand separation units and setup a modern mineral
separation plant at Chavara in 1971. The plant is situated 16km north oI
Kollam.
The deposit oI heavy minerals sand is Iound in the coastal area
between Neendakara and Kayamkulam extending over a length oI 22km
with average width oI 200m. Fine Neendakara - Kayamkulam coastal
sand deposit is commonly known as Chavara deposit. This area is
estimated to contain valuable heavy minerals deposit worth 10 billion.
This has been Iound to be one oI the richest deposits in the world.
1986 were exhausting the sources oI supply oI rare sand Ior IRE,
Chavara exhausted with the result that production oI minerals in the unit
and its export to developed countries were threatened. The solution was
to change over Irom the system oI manual mining oI surIace area over
the large tracts oI land to deep mining up to 20 Ieet in the available land
with the use oI sophisticated technology. This project work commenced
in 1988, completed in 1990 at a cost oI Rs.14 cores with a Ioreign
exchange content oI around Scrores.
IREL commissioned its largest division called Orissa sand
complex IOSCOM) Chatrapuri in Orissa (1986). The Company has been
signiIicant carries oI valuable Ioreign exchange Ior the nation. IREL has
been exporting its products to advanced countries like USA, UK, France,
Canada, West Germany, and Japan etc. Over 15 export awards IREL has
won bear eloquent testimony to its consistent export perIormance.
Indian Rare Earths Limited (IREL), incorporated in the year 1950
at Bombay is a Government oI India undertaking under the
administrative control oI the Department oI Atomic Energy (DAE),
engaged in mining and processing oI beach sand bearing heavy minerals
Irom the coastal belts. During 1951 IREL became a public sector
undertaking and two mineral separation plants, one at Manavalkurichi in
Tamilnadu (1967) and the other at Chavara, Kerala state (1970) were
se`up. Chavara plant (an ISO 9002 company) is engaged in the
processing oI beach sand deposits available on the coastal belt oI
Neendakara- Kayamkulam.


.1 CHAVARA MINERAL DIVISION
Located 10 Km north ofKollam, 85 Km from Thiruvananthapuram
capital oI Kerala and 135 Km by road Irom Kochi is perhaps
blessed with the best mineral sand deposit oI the country. The plant
operates on a mining area containing as high as 40 heavy minerals and
extending over a length oI 23 Km in the belt oI Neendakara and
Kayamkulam. The deposit is quite rich with respect to limonite, rutile
and zircon and the mineral-limonite happens to be oI weathered variety
analyzing 60 TiO2. The present annual production capacity oI Chavara
unit engaged in dry as well as wet (dredging/ up-gradation) mining and
mineral separation stands at l,54,000t oI limonite, 9,500t oI rutile,
14,000t oI zircon and 7,000t oI sillimanite. In addition the plant has
Iacilities Ior annual production oI ground zircon called zirIlor (-45
micron) and microzir (1-3 micron) oI the order oI 6,000t and 500t
respectively.
. MANAVALAKURICHI (MK) MINERAL DIVISION:
Plant 8 situated 25 KMs north oI KaxiyaIcumari (Cape
Comorin), the southernmost tip oI the Indian sub-continent. All weather
major seaport corin and the nearest airport at Thiruvanan-
thapuram are equidistant, about 65 KMs Irom the plant site. Nagercoil
at a distance oI about 18 kms Irom the pIant, is the cIosest major
Railway station. MK plant annually produces about 90,000t limonite oI
55. T1O2 grade, 3500t rutile and 10,000t zircon in addition to 3000t
monazite and 10,000t garnet based primarily on beach washing supplied
by Iishermen oI surrounding Iive villages. IREL has also mining lease oI
mineral rich areas wherein raw sand can be made available in large
quantities through dredging operation. In addition to mining and minerals
separation, the unit has a chemical plant to add value to zircon in the
Iorm oI zircon Irit and other zirconium based chemicals in limited
quantities.
.3 ORISSA SANDS COMPLEX (OSCOM):
OSCOM "Was commissioned at a place called Chatrapuri
about 150 Kms Irom the Capital oI Orissa - Bhubaneswar and about 320
Km Irom all weather seaport-Visakhapatnam to exploit the huge placer
deposit across a mining area oI 24.64sq.km. to produce 2,20,000 ton
limonite having 50 TiO2 content and associated minerals like rutiIe,
zircon, sillimanite, garnet, etc. The Iacility was quite unique in the sense
that Ior the Iirst time IREL ventured into dredging and concentration
operation at OSCOM. It is quite eIIiciently engaged in dredging oI the
raw sand, it's up gradation, drying and Iinally separation plant. Ilmenite
is primarily exported to customers engaged in productior` oI slag and
sulphatable TiO2 pigment Thorium plant is in operation since 19te at
OSCOM to produce 240 ton per annum mantle grade Thorium Nitrate.
.4 RARE EARTHS DIVISION (RED) Aluva:
Unlike the three units oI IREL as described earlier, RED is an
exclusively value acjding chemical plant wherein the mineral monazite
produced by MK, is chemically treated to separate thorium as hydroxide
upgrade and rare eartrls in its composite chloride Iorm. It is located on
the banks oI river Periyar at a distance oI 12 Km by road Irom Kochi.
This plant was made operational way back in 1952 to take on processing
oI 1400t oI monazite every year. However over the years, the capacity oI
the plant was gradually augmented to treat about 3600t oI monazite.
Elaborate solvent extraction and ion exchange Iacilities were built up to
produce individual R.E. oxides, like oxides oI Ce, Nd, Pr and La in
adequate purities. Today RED has built up large stock pile oI impure
thorium hydroxide upgrade associated with rare earths and unreacted
materials. HenceIorth, RED proposes to treat this hydroxide upgrade
rather than Iresh monazite to convert thorium into pure oxalate and rare
earth as two major Iractions namely Ce oxide and Ce oxide Iree rare
earth chloride.
. INDIAN RARE EARTH RESEARCH CENTRE (T1R1ERC):
Corporate Research Centre is located at Kollam, Kerala and carries out
research in the Iield oI value added products Irom beach sand minerals,
undertakes consultancy projects on mineral separation and Ilow sheet
development, carrying out mineral analysis and caters to the needs oI
internal and external customers. It is engaged in various R&D activities
such as processing oI Monazite by alternate route, processing oI nano
rare earth materials and other value addition on minerals with the
ultimate objective oI commercialisation. Research centre also`
coordinates the research activities oI RED, Aluva and Technical Services
Division at OSCOM, Chatrapur, Orissa. This Research Centre was
earlier known as Mineral Research and Development Centre since 1991
and later renamed as Indian Rare Earths Research Centre Irom July 2003.
This Centre is also certiIied with ISO 9001.
With the objective oI promoting Industrial scale .R&D" that
would be beneIicial to its overall program in terms oI nuclear and related
materials, Indian Rare Earths Limited Technology Development Council
(IRELTDC) was constituted in 2006 by the Secretary, DAE with
members Irom BARC, IGCAR, CSIR and other leading Institutions. The
Chairperson oI this Council is the ScientiIic Advisor to Director, BARC
and Co-Chairperson is the CMD oI IREL. The Head, IRERC is its
Member Secretary.
The Research Centre is equipped with various equipments and
instruments like magnetic, gravity, electrostatic separators, Iloatation
cells, grinding mills, vacuum Iilters, mixer settlers, Ion exchange
columns, particle size analyzer, XRD/XRF, thermal analyzer, ICP atomic
absorption spectrometers, UV spectrometers, petro logical microscopes,
etc. Ior various analytical and research purposes.
The annual saIety audit oI all the operating units 8 carried out
every year with the objective oI improving the overall saIety standards
and increasing the saIety awareness among the employees. The Audit
Committee, consisting oI External experts, Heads oI saIety Irom all the
units and the Head oI the Corporate SaIety, recommends Ior the CMD's
Shield in various categories; SaIety, Housekeeping, Environment &
Energy.

.1 QUALITY POLICY
IREL is committed to provide products oI consistent quality to
their satisIaction oI the customers through Quality Management Systems
(QMS) implementation.
. TECHNICAL EXCELLENCE
IREL uses state oI art technology in mining and mineral
processing. The rich experience and proIessional expertise oI 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 oI heavy
minerals to the nation and abroad. IREL is always been driven y
innovation and sound manuIacturing practices, be it in product,
technology or process.
.3 AWARDS AND ACHIEVEMENTS
IREL has Iairly good record in its perIormance during the past
decade. From 1997-98 onwards all out team eIIorts was taken up to
achieve name plate capacity Ior mining and mineral separation plants in
all the three locations, total sales turnover, share oI export and proIit aIter
tax started improved by leaps and bounds and the company recorded
increasing proIit since then. In addition to production and Iinancial
perIormance, IREL has excelled in the areas oI marketing, saIety and
human resources management. In recognition oI the company's eIIorts,
scope awarded prestigious silver Trophy oI 'SCOPE' award Ior
excellence and outstanding contribution to the public sector
Management- specpl turn around pategory Ior the year 1999-2000.
During the year 2006-07 IREL posted all time high sales turnover
exceeding 3600 million with export component over Rs:IOOO millions. '
Following are the list oI awards & recognition won by 1REL during the
last ten years.
.3.1 EXPORT AWARDS
1) Chemical and Allied products Export promotion council
(CAPEXIL) special Eport award Irom processed Mineral group
Ior the year 1996 97,98,99,2000,01,02,03,04,05,06.
2) Indian Chemical ManuIacturers Association CertiIicates oI merit
Ior ISO 9000 certiIication Ior 1997, ISO 9002 certiIication Ior
1998.
3) CertiIicate oI merit Irom CHEMEXCIL under the category oI
basic inorganic and organic chemicals Ior outstanding
perIormance Ior the year 2000-2001 including Agrochemical
panel.
.3. SAFETY AWARDS
1) AERB SaIety awards won by Chavara unit (Winner) Ior the year
2003.
2) Genentech awards won by Chavara unit (Winner) Ior the year
2003.
3) SaIety award Irom National saIety council, Kerala chapter won b
Chavara unit (Runner) Ior the year 2003.
4) National saIety Award (Mines) Ior the lowest Inquiry Frequency
Rate won by Chavara unit (winner) Ior the year 2003.
5) Apart Irom above National level SaIety Awards company's
Mineral separation plants namely Chavara has won many level
awards.
.3.3 OTHER AWARDS
1) Silver Trophy oI 'SCOPE' award Ior excellence and outstanding
contribution to the public sector Management -special Turn
around category Ior the year 1999- 2000 .(SCOPE- standing
conIerence oI public Enterprises)
2) Enterprise Excellence Award 1999-2000, 2000-2001 Irom Indian
Institute oI Industrial Engineering.
3) Hindi Raj bhasa shield Ior the year 2000-2001 Ior the best
amongst PSU's under Department oI Atomic Energy.
.4 VISION STATEMENT
To be a leading supplier oI beach sand minerals Irom Asia by
supplying 10 oI the world demand Ior beach sand minerals over
the next 7-10 years. It would be achieved by maximum utilization
oI existing capacities, new capacity addition, capturing major
portion oI the incremental growth in the global Tio2 Ieedstock
demand and by developing competitive value added rutile, zircon,
sillimanite and garnet products that make handsome contribution
to revenue and proIits.
To become the preIerred rare earths products supplier (producer
and/ or marketer) Ior domestic customers to ensure long-term
sustenance and proIitability oI rare earths business and to achieve
adequate eIIiciency in monazite processing as long as it is
necessary/ worthwhile.
. MISSIQN STATEMENTS
To harness beach
sands in an environmentally and socially responsible manner Ior
eIIiciently producing minerals and their traditional and innovate
value-added products oI world-class quality, that are used to make
increasingly superior/ novel products required by customers.
To play a dominant role in developing domestic rare earths market
by producing and / or marketing the quality value-added products
to realize maximum potential oI rare earths in a range oI
applications.
To build a proIessional, creative and committed workIorce and
nurture an environment that Iosters learning, sharing and
development.
. OB1ECTIVES
To become nationally and glpbally competitive player in beach
sand minerals
To improve productivity, capacity utilization, and cost
eIIectiveness.
To maximize shareholder's value.
To align towards strategic activities oI interest to DAE and
become a substeitial supplier oI uranium Irom secondary sources.
To strive Ior optimum value addition through obtaining
technology Ior improving international market share and Ior
growth in the domestic market.
To undertake, by itselI or through independent expert agencies,
investigation into new products as well as beach sand erosion and
related phenomena oI Company's operation.
To evolve and implement eco-Iriendly policies, programmes and
projects within the AERB regulations.
To develop the human resources oI the company by optimizing
their number, capabilities and quality oI liIe.
To strengthen R&D Ior achieving the above mentioned objectives.
To achieve production oI iluminate and associate minerals oI 8
lakh tones by 2009-10.

.1 PRODUCTS
Products Uses
Ilmenite ManuIacturing oI TiO
2
pigment, synthetic rutile
and titanium slag.
Rutile Fluxes Ior welding electrode
Zircon Sand Ceramics, reIractory`s and Ioundries
Zircon Flour
(-325 Tyler
Mesh)
Ceramics and Ioundries
Microzir (1.2
micron)
PaciIier in ceramics
Sillimanite ReIractory`s
Garnet Abrasive Ior sand blasting, water jet cutting and
glass polishing
Monazite Raw material Ior production oI Rare Earth
compounds

7.2PRICE LIST EFFECTIVE FROM 06-06-2010
PRODUCT

PRCEATONNE



llmenite 'Q'
Grade (NAW)

Rs. 3425. 00

Per tonne Waked at
works (NAW)

llmenite 'Q'
Grade (Bagged)

Rs.3750.00

Per tonne (ex-works
Chavara bagged)

Rutile 'Q' Grade

Rs.31 000.00

-do-

Zircon 'Q' Grade

Rs.40, 000.00

-do-

Sillimanite 'Q'
Grade

Rs.6000.00


-do-

Zirflor
(-SOOmesh)

Rs.44, 000.00

-do-

Zirflor
(-200mesh)

Rs.43, 000.00

-do-

Brown llmenite

Rs.16, 000.00

-do-
*

Sillimanite
Powder
(-SOOmesh)

Rs.14, 500.00

-do-

Sillimanite
Powder
(-200mesh)

Rs.13, 50o!oO

-do-

ome8tc Sale8 Order proce88ng

.3 CUSTOMERS
The prime customers oI the major products oI the company are the
Iollowing
A. ILMEMTE:
1. COCHIN MINERALS AN RUTILE LT., KOCH'
2. DCW LTD., TUTICORIN
3. TRAVANCORH TITANIUM PRODUCTS, TH1RUVANANTHAPURAM
4. KILBURN CHEMICALS LTD., TUTICORIN
5. K.OLMAK CHEMICALS LT, KOLKATTA
B. RUTILE
1. ESAB INDIA LTD., CHENNAI / (CHARD AH
2. ADOR WELDING LTD., MUMBAI / CHENNAI
. D&H SECHERON ELECTRODES (I,) LTD., INDORE
4. MARUTI WELD LTD., GURGAON
5. ROYAL ARC ELECTRODES PVT. LTD.
b
VASAI, THANE DIST.
C. ZIRCON:
1. TIRUPATI MICROTECH rP) LTD., UDAIPUR
2. RUBY CERAMICS PVT. L TD, PLWE
3. ASTRON CERA, SALAL, DIST.SABARKANTHA
4. JOHNSON MATTHEY CERAMICS INDIA LTD., HOSUR,
TAMIL NADU
5. FOUR FIELD, PUNE
D. RFLOR:
1. FOSECO INDIA LTD., PUNE
2. VIDEOCON NARMADA GLASS, BHARUCH
3. H&R JOHNSON (INDIA) LTD., MUMBAI
4. NAHAR COLOUR & COATINGS PJLTD, UDAIPUR
5. BHANU CERGLAZE P.LTD
E. SILLIMANITE:
1. MAITHAN CERAMICS PVT. LTD, CHIRKUNDA, JHARKHAND
2. MAMSHRIREFRACroR/ES, CUTTACK
3. ASSOCIATED CERAMICS, CHIRKUNDA, JHARKAND
4. TATA REFRACTORIES, BELPAHAR, ORISSA
5. ASSOCIATED CEMENT COMPANIES LTD., NAGPUR / KATNI
F. RARE EARTHS CHLORIDE:
1.CIBA SPECIALITY CHEMICALS, V.UDYOGNAGAR, GUJARAT
2.H1RAJ INTERMEIATES P.L., V.APJ, CUJARAT
3.RAVESHIA PIGMENTS LTD., VAPL GUJARAT
4. ANUPAM COLOUR`, VAPI, GUJARAT
5.BERGER PAINTS INDIA LTD., VAPI, GUJARAT
G. THORIUM NITRATE:
1. FARGO MANTLE PRODUCTS LTD.. MUMBA!
2.MAKAN1 PRODUCS LTD.. MUMBAJ
3.B.K. SHAW 11MDUSTR1ES P.LTD., KOLKATA
4.A.D.C. MANTLE MANUFACTURING CO., MUMBAI
5. ELITE INUSTRIES, MUMBAI

.0 DEPARTMENTAL DETAILS
A Business organization has to perIorm a number oI activities in
order to run itselI. The organizational structure oI IREL Chavara consists
oI IiIteen major departments. All these departments come under the head
oI the Chavara plant. Departmental heads directly report to the Head oI
the plant. Each department has to perIorm the diIIerent Iunctions.
The ChieI General Manager (COM) is the top oIIicial in the
Management oI IREL, Chavara. IREL has separate department head Ior
each department. The Senior Managers and Deputy Managers support
most oI the departmental heads.
The various Iunctional departments oI IREL
W Production Department
W HRM Department
W Marketing & sales Department
W Finance Department
W Purchase Department
W Mining Department
W Medical Department
W Stores & Dispatch Department
W Pr6ject& Maintenance Department
W Quality Department
W Safety & Environment Department

W CiviI Department
W Security Department
W Research & DeveIopment Department
W InternaI Audit Department
.1 PRODUCTION DEPARTMENT
The act oI making goods and services is called production. In
everyday speech 'production' reIers to the act oI creating something
involves the physical conversion oI raw materials into tangible goods.
In IRE raw sand is collected through mining process. The sand is
Iiltered through spirals, cones and jigs to produce a bulk concentration oI
heavy drying, screening, electromagnetic and electrostatic processes and
used Ior separation.
Minerals Iound in coastal areas are collected either manually or
mechanical means, productions starts Irom the mining process.

PRODUCTION CAPACITY OF CHAVARA PLANT
Mmenite

150000 tones

#:9e

9000 943es

Zircon

14000 tones

Leucoxene

600 tones

Monazite

600 tones

Sillimanite

8000 tones

Zircon flour

6500 tones

ILMENITE
Mainly used in the manuIacture oI Titanium dioxide, a white
pigment by sulphate process also used in the production oI Synthetic
Rutile and Ior the production oI Ferro Titanium products.
RUTILE
Rutile used Ior coating oI welding electrodes and also Ior the
production oI Titanium dioxide pigment by the chloride process and Ior
the production or Titanium Tetra Chloride Ior the production oI Titanium
metal and sponge
SILL1MAN1TE
Sillimanite mainly used in the manuIacture oI high temperature
reIectory. It is also used in ceramic industry.

IRCON
Zircon is used in Ioundries, ceramics and reIactory. It is also used
in the manuIacture oI zirconium chemicals, metals, alloys etc.
IRCON FLOUR
Zircon Ilour is used in Ioundries Ior high temperature castings.
MQNAITE
Monazite is used Ior the production oI Thorium and rare earths
base products.

CHART 1 -ORGANIATION CHART OF PRODUCTION
DEPARTMENT
HOD PRODUCTON
SH (Production) SH(MS)
Shift in charge SH (Process Control)
Shift Engineers
Production Dept: Personal
. HUMAN RESOURCE DEPARTMENT
IREL Chavara takes place it's highly motivated and trained human
resource that has maintained its perIormance and their by its growth and
proIit. Morale oI the employees remain Iacilitating smooth working oI
the company. Skill requirement related to diIIerent disciplines are
identiIied and training programs and workshops are eIIiciently oI the
human resource.
CHART 2-ORGANIATION CHART OF H R DEPARTMENT
Unit Head
General Manager HRM
Deputy Manager Senior Manager HOD Deputy Admin Officer
Section Head Training Medical Senior Asst. Time OIIicer
Subordinate StaII - Clerical StaII

.3 MARKETING &SALES DEPARTMENT
Marketing is a social and managerial process by which the product
and services reach to the ultimate consumer. Individuals and groups
obtain what they need and want through creating and exchanging
products and values with others. All policy decisions, pricing decisions,
Marketing decisions etc are taken at the corporate oIIice at Mumbai.
There is overseas Market and domestic market Ior the production oI
IREL. The overseas orders are directly placed with Mumbai oIIice. The
customers primarily pay Iull amounts on DD in advance and then the
company gives the product.
IRE has the monopoly in the Iield oI rare earth products .IRE
LTD, Chavara is engaged in the production oI minerals such as
ILLUMINATE, RUTILE, ZIRCON, SILLIMANATE, and BROWN
ILLUMINATE Irom naturally available beach sand products. The bye
products oI IRE are ZIRFLOUR and MONAZITE. They are mainly
purchase by the Kundra ceramics Ior manuIacturing oI ceramics. The
main customers oI IRE are the Government oI India and other private
company. The main Ioreign customers are USA, France, West Germany,
Japan etc
CHART 3-ORGANIATION CHART OF MARKETTING
DEPARTMENT
Unit Head
HOD Marketing
Section Head
Marketing Personnel
.4 FINANCE DEPARTMENT
Finance reIers to many cash or hands available Ior the operation oI
business. Finance may be deIined as the requirement oI Iunds needed. It
is the LiIe Blood and the nerve center oI business activities. Finance is
very essential Ior the smooth Iunctioning oI business. It has been rightly
termed as universal lubricant which keeps the enterprise dynamic.
According to /. F. Bradley, "Fnancal management 8 the area oI
- business mgt devoted to a judicious use oI capital and a careIul
selection oI sources oI capital in order to enable a business Iirm to move
in the direction oI reaching its goals"
OBJECTIVES OF FINANCIAL MANAGEMENT
Maintaining oI adequate liquid assets.
Maximization oI proIit
W Maximization of wealth.
FUNCTIONS OF FINANCIAL MANAGEMENT
Estimation oI Iinancial requirement oI Iirm.
Selection oI right and appropriate sources oI raising Iunds.
W AIter selecting the right sources, raise the Iunds required by the Iirm
EIIective working capital management to ensure smooth running oI
business.
The Iinancial management also ensures IulIilling obligations oI
business.
The Iinance department is the core oI the IREL, Chavara .Every
Iunctioning oI the IREL is made by the Iinance department.
CHART 4 -ORGANIATION CHART OF FINANCE
DEPARTMENT
HOD finance
Section Head Finance
Finance Dept: Personnel
FUNCTIONS OF FINANCE DEPARTMENT
To get all receipts and make all payments
To record all the transactions and prepare the Iinal document
Preparation oI balance sheet and proIit & loss account
Calculating labor and overhead cost oI operations and products
Monitoring the attendance record oI the employees Ior calculating
bonus and allowances
Preparation oI cash Ilow statements to show the actual cash receipts and
payment oI the company.
IREL Chavara Iinance department department covers major area oI
work and process as Iollows.
1.Cash book
2. Bankbook
3. Purchase accounting
4. Stores accounting
5. Sales accounting '
6. Journal vouchers
7. payment to contractors and suppliers against work order inclusive oI
advance, reIund oI HMD, S/D Retention money and return back oI BG
(payments with TDS eIIect)
8. Royalty payments and submission oI annual returns
9. Establishment accounts including PF, gratuity, leave encashment,
medical bills and pension.
10. Costing
11. Budgeting-re venue and capital
12.Fixed Assets
13.Final Accounts H.MIS-Routine
15.MIS-Non routine reports
16. VAT monthly return and assessments
. PURCHASE DEPARTMENT
To assist and Iacilities the production process in the plant is a well
organized purchase department. Which purchases the requisite raw
materials required Ior the Iunctioning oI every department. The purchase
department equipments like high tension separators, magnetic
separators etc Ior potential supplies. Other major Iunctions oI the
purchase department are:
To scrutinize departmental Requisition
To determine likely source oI supply
To issue enquiries oI tenders
To receive quotations '
To tabulate quotations and Iorward it to tenders receive back with
recommendations to issue purchase order or work order
To assist vendor evaluation
To keep inIormed the department concerned about lead time and time
and on usual supply situation
CHART 5 ORGANIATION CHART OF PURCHASE
DEPARTMENT
Unit Head
HOD pin-phase
Purchase Personnel
SH Purchase

.RESEARCH &DE VELOPMENT DEPARTMENT
The company has a well equipped Research and Development
Iacilities to support Ilow sheet development works and Ior solutions to
process related problems. The laboratory is equipped with lab models oI
magnetic separator, High Tension Separators, Wet shaking Tables and
Froth Flotation Equipment etc.
CHART 6 -ORGANJATION CHART OF R&P DEPARTMENT
HOD R&D
Section Head
R&D Dept:
FUNCTIONS
1) New product development
2) New compound development
3) Selection & Evaluation oI alternative method
4) Testing oI new products
5) To analysis and assist plants in problems solving
6) Ensure quality oI Raw materials and Iinished products
7) Maintain Quality
8) Research & Development attempts

The department has well mentioned quality objectives and well
practiced quality assurance, quality improvement program. The
department uses mineralogical testing methods Ior maintaining
consistency in quality oI raw materials, Iinished products and work in
progress. The checking oI materials quality is done on a batch basis.
. INTERNAL AUDIT DEPARTMENT
ChieI General Manager is directly looking aIter the Iunctioning oI
internal audit department. Manager (IRE) is the head oI the department.
There are internal audit oIIicers and administrative oIIicers other than
accountants and clerks working in this department.
Internal Audit department is not regular department in many oI the
companies. But in IREL this department is holding special privilege oI
auditing into every accounting matters oI IREL. It is Iunctioning in
accordance with Iinance department. It Iunctions to get audit approval
Irom internal audit department Ior the Iinalization oI anything concerned
to accounts. The company mgt is approving Iinancial statements and all
other accounts in the recommendation oI this department.
CHART 7 -ORGANIATION CHART OF INTERNAL AUDIT
DEPARTMENT
General Manager
Deputy Finance Finance Officer
Officer
clerk
FUNCTIONS OF NTERNAL AUDT DEPARTMENT
Auditing all the Iinancial transaction oI the company.
Taking corrective measures to rectiIy audit objections.
Making reports to chieI general manager and board oI directors,
To participate in the Iunctioning oI store purchase committee.
W Make sure that every deeds oI Iinance department is in accordance
with the accounting policies oI the company.
To check the legal validity oI the Iinancial matters oI projects
commited by IREL
All the relevant policies oI the company are as the basic policies
Ior this department. Internal audit department audits the accounts
quarterly and sends reports to chieI general manager regularly.

.1 Brief about Ratios
Financial statements are the main documents stating -Iinancial
perIormance oI the company Ior the past year. Further the Iinancial
statements serves as the instruments Ior analyzing and interpreting the
Iinancial aspects oI the company. One weather outsider or the insider oI
the company can judge the perIormance oI the company through
Iinancial statements
Ratio analysis is one oI the popular tools oI Iinancial statement
analysis. In simple words, a ratio is deIined as "the indicated quotient oI
two mathematical expressions." and as "the relationship between two or
more things." A Iinancial ratio is deIined as a relationship between two
variables taken Irom Iinancial statements oI a concern.
Ratios helps to understand about each and every aspects oI the
company indicated in this very easily. So ratio analysis are treated as one
oI the very important type oI Iinancial instrument. Ratios are widely used
in stock exchanges like BSE, NSE etc .popularly.
Classification of Ratios.
1. On the basis of Fnancal Statement8.
ProIit and loss ratios.
Balance sheet ratios.
Inter-statement ratios/mixed ratios.

2. On the basis oI time to which the ratios computed belong:
*Structural ratios
* Trend ratios.
Primary Ratios
Every commercial concern consider proIit as its prime objective
and thereIore, any ratio that relates to such objective is treated as primary
ratio. This ratio includes;
* Return on capital and
* Gross margin to sales.
Secondary Ratios.
The ratios other than primary ratios are known as secondary ratios.
Such ratios are treated as supporting ratios to the primary ratios. The
ratios covered by this category are;
* Turnover ratios.
*Expenses ratios.
*Earnings per share,
*Liquidity ratios.
* Leverage ratios.
* ProIitability ratios
* Activity ratios.
Liquidity Ratios (Tested of Short-Term Solvency).
The liquidity ratios indicate the liquidity position oI a company.
They, in Iact, measure the ability oI a company to meet its current
liabilities as they Iall due. II the company does not have suIIicient
current assets in relation to its current liabilities it might be unable to
meet its commitments, and be Iorced into liquidation. Thus, ratios that
compare the relationship between various groups oI current assets and
current liabilities are computed to measure the liquidity position oI the
company. Such ratios help in ascertaining the eIIectiveness oI the
working capital management.. The Iollowing are the important liquidity
ratios:
. Current Ratio
Current ratio is one oI the oIten prepared and used types oI ratio.
This ratio indicates the company's ability to meet its current obligations
with the current resources.
Current Ratio Current Assets
Current Liabilities
Current assets include cash, bank balance, stock, -work-in-
progress, trade debtors, short term loans and advances and accounts
receivable. On the other hand current liabilities include accounts payable,
sundry creditors, accrued income taxes, proposed dividend, borrowings
Irom Iinancial institutions and outstanding expenses etc. The higher the
ratio, the better it can meet current obligations. But at the same time a
higher current ratio would mean that the company might have an
excessive investment in current assets that do not produce a signiIicant
return. On the other hand, a low current ratio would indicate that
suIIicient cash is not available to pay current liabilities. A Irequently
used guideline to evaluate the adequacy oI the current ratio is 2:1
Table-1
Current Ratio
Year

Current Assets

Current
Liabilities
Ratio

2005-2006

90,63,0100.84

13,26,51,420.56

0.68

2006-2007

22,58,35,723.90

12,23,08,757.19

1.84

2007-2008

35,70,69,835.95

28,50,14,248.91

1.25

2008-2009

26,00,45,438.66

19,52,17,469.52

1.33

2009-2010

30,09,17,247.70

18,73,69,908.15

1.60



Chart-1
Current Ratio



Interpretation of current ratio
The increase in the current ratio shows that there has been
improvement in the liquidity position oI the Iirm. The current ratio
measures only the quantity oI the current asset and not the quality oI
current assets. Seeing the current ratio Ior the last 3 years we can say
that the company`s ability to meet current obligation is satisIactory.
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.3Acid-Test Ratio (Liquid Ratio)
Acid -test ratio provides an even more critical look at the ability oI
the company to meet its day-to-day obligations. It signiIies a very short-
term liquidity oI a business concern, and it is thereIore, also called liquid
ratio. Liquid Assets includes cash and Bank Balances, Marketable
securities, Temporary Investments and A/Cs receivable. Liquid
Liabilities excludes the borrowings Irom Iinancial institutions and
outstanding expenses Irom current liabilities.
Acid-Test Ratio Liquid Assets
Liquid Liabilities
An acid-test ratio oI 1:1 sis considered ideal and satisIactory. Too
low a ratio suggests not only inability to take advantage oI cash discounts
and other rewards Ior prompt payment (such as lower interest rates on
borrowings). Further, a company with a low ratio may be Iorced to
obtain a short-term loan plus interest charges, or implement some other
measures to obtain the required cash. On the other hand, an excessive
amount oI quick assets could indicate that these assets should be put
more productive or proIitable use elsewhere in the enterprise.

Table-
Acid Test Ratio (Quick Ratio)
Year

Current Assets

Current
Liabilities
Ratio

2005-2006

1,44,76,766.10

132,651,420.56

0.109

2006-2007

64,58,431.21

1,22,308,757.19

0.052

2007-2008

70,90,698.83

285,014,248.91

0.024

2008-2009

1,22,43,893.49

195,217,469.52

0.062

2009-2010

141,299,915.14

187,369,908.15

0.754



Chart-
Acid Test Ratio



Interpretation of Acid Test Ratio.
As the Acid Test ratio shows the company's ability to meet the
liquid liabilities like short term borrowings, outstanding expenses etc, the
company is having a good commendable level in terms oI liquid ratio.
There has been a rise in the in the quick assets shows the Iinancial
strength oI the company but it can be used Ior more productive areas
other than keeping it idle.
.4 Activity Ratios
Activity ratios measure the eIIiciency is a Iirm in employing the
available resources. Such ratios reIlect the degree oI eIIectiveness oI
Iund utilization in the business activities. Activity ratios are popularly
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known as 'Turnover Ratios' because they highlight the ability oI
management to convert or turn over the assets oI the Iirm into sales.
These ratios make a comparative study oI the level oI sales and the
investment in various assets accounts. A sharp rise in this ratio may
indicate that the company is expanding too quickly, and is allowing sales
to increase more rapidly, than the underlying asset base, a situation oIten
reIerred to as "over trading". Conversely, a reduction in the ratio can
indicate a decline in eIIiciency or a Iall in demand Ior the Iirm's
products. The important activity ratios are below:
Fixed Assets Turnover Ratio.
Total Assets Turnover Ratio.
Inventory Turnover Ratio.
Average Collection Ratio.
9.4.1 Fixed Assets Turnover Ratio
The ratio measures the eIIiciency in the utilization oI Iixed assets.
The sale is calculated by gross sales minus excise duty. The ratio oI
sales to Iixed assets measures the turnover oI the plant and is expressed
as under
Fixed Assets Turnover Turn over
Net Fixed Assets



Table-3
Fixed Assets Turnover Ratio
Year

Turnover

Net Fixed Assets Ratio

2005-2006

75,30,62,225.59

62,32,43,991.04

1.20

2006-2007

78,11,18,492.33

85,36,59,978.33

0.91

2007-2008

83,27,99,464.02

1,144,641,532.46

0.72

2008-2009

109,96,24,491.29

1,089,657,211.41

1.00

2009-2010

92,67,14,035.50

1,058,694,370.97

0.87









Chart-3
Fixed Assets Turnover Ratio


Interpretation of Acid Test Ratio.
The Iixed asset turnover ratio shows a good level oI utilization oI
company`s Iixed assets Ior the past Iew years. This is an indication oI
high volume oI output and more increasing demand Ior the company`s
product. Altogether it shows that the company is in a position to utilize
its Iixed assets like plant, machinery, buildings etc eIIectively. However
in the last year it shows a decline.
9.4.2 Total Assets Turnover Ratio
This ratio measures the overall perIormance and activity oI the
business organization. Shows the Iirm`s ability to generate sales Irom all
Iinancial resources committed to total assets

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Total Assets Turnover Turn over
Total Assets

Table-4
Fixed Assets Turnover Ratio
Year

Turnover

Total Assets Ratio

2005-2006

75,30,62,225.59

713,874,091.80

1.05

2006-2007

78,11,18,492.33

1,079,495,702.00

0.72

2007-2008

83,27,99,464.02

1,501,711,368.00

0.55

2008-2009

109,96,24,491.29

1,349,702,650.00

0.81

2009-2010

92,67,14,035.50

1,359,611,618.00

0.68






Table-4
Total Assets Turnover Ratio



Interpretation of Total Asset Turnover Ratio
The Total assets turnover ratio is not showing a satisIactory
perIormance in the 2006 to 2008. But iI we look at the initial last 2 years
it shows a good perIormance by the Iixed assets. As this ratio covers the
entire assets oI the company, some improvement in some particular asset
will enhance the value oI the other and vice versa.




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.4.3 Inventory Turnover Ratio
This ratio indicates the eIIiciency oI the Iirm in producing and
selling its products.
Inventory turnover Cost oI goods sold
Average inventory
The average inventory is the opening and closing balances oI
stock divided by 2 (opening stock closing stock /2). The cost oI goods
sold is gross sales minus proIit beIore tax.

Table-
Inventory Turnover Ratio
Year

Cost of goods
sold

Average
Inventory
Ratio

2005-2006

675,910,118.60

72,497,354.39

9.32

2006-2007

741,911,553.50

75,089,726.91

9.88

2007-2008

609,343,680.50

72,907,194.96

8.35

2008-2009

869,444,401.40

62,104,400.71

13.99

2009-2010

818,734,650.60

48,601,557.19

16.84

Chart -
Inventory Turnover Ratio


Interpretation of Total Asset Turnover Ratio
The inventory turnover ratio shows diIIerent results Ior every
years. Even iI it shows an increasing trend the decline in 2007 08 years
can not be hidden. Generally high turnover ratio shows a good inventory
turn over. But in over all the ratio shows a resulting perIormance.
.4.4 Debtors Turnover Ratio
Debtors turnover indicate the number oI times debtors turnover
each year. Generally, the higher the value oI debtor`s turnover, the more
eIIicient is the management oI credit.
Debtors turnover Credit sales
Average Debtors
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To outside analyst, inIormation about credit sales and opening and
closing balance oI debtors may not be available. ThereIore, debtors
turnover can be calculated by taking year end balance oI debtors.

Table-
Debtors Turnover Ratio
Year

Credit sales

Average debtors Ratio

2005-2006

75,30,62,225.59

6,854,731,99

109.86

2006-2007

78,11,18,492.33

6,959,311.78

112.24

2007-2008

83,27,99,464.02

40,617,191.24

20.50

2008-2009

109,96,24,491.69

2,581,122.15

426.0

2009-2010

92,67,14,035.50

31,721,892.20

29.21


Chart -
Debtors Turnover Ratio


Interpretation Debtors Turnover Ratio
The debtors turnover ratio indicates the number oI times the
debtor`s turnover ratio during a year. But a precaution is needed while
interpreting a very high debtors ratio because a very high ratio may
imply a Iirms inability due to lack oI resources to sell on credit thereby
losing sales and proIits.
.4. Average Collection period
The average number oI days Ior which debtors remain outstanding
is called the Average Collection Period (ACP). Here the ratio is
calculated by multiplying the debtors with 365 (no oI days in an year)
and then dividing it by the total turnover.

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ACP 365 Debtors *365
Debotrs turnover Turnover


Table-
Average Collection Period (in days)
Year

Debtors

Net Sales Ratio

2005-2006

6,854,731.99

75,30,62,225.59

3.32

2006-2007

6,959,311.78

78,11,18,492.33

3.25

2007-2008

40,617,191.24

83,27,99,464.02

17.80

2008-2009

2,581,122.15

109,96,24,491.69

0.85

2009-2010

31,721,892.20

92,67,14,035.50

1.19



Chart -
Average Collection Period (in days)


Interpretation of Average Collection Period
This shows the period Ior which the debtors oI the Iirm remain
outstanding aIter the Iirm has made sales to its customers. The ration in
the year 2005-06 shows a Iair transaction with the debtors. But it is
getting increased Ior the coming years and suddenly decreased. This
shows that the liberal credit policy oI the company is being misused by
the debtors. However ACP calculated at diIIerent points oI times will
vary on account oI varying sales rate although there may not be any
change in the collection rate.



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9.4.6 Working Capital Turnover Ratio
A Iirm may like to relate net current assets (or net working capital)
to sales. This ratio shows the relationship between sales and current
assets Ior a particular period oI time. Thus it may be computed as
Working capital turnover Turn over
Net current assets

Table-
Working capital turnover ratio
Year

Debtors

Net Sales Ratio

2005-2006

75,30,62,225.59

42,021,319.66

17.9

2006-2007

78,11,18,492.33

103,526,966.80

7.54

2007-2008

83,27,99,464.02

72,055,587.00

11.56

2008-2009

109,96,24,491.69

64,827,969.00

16.96

2009-2010

92,67,14,035.50

113,547,339.60

8.16



Chart - : Working Capital Turnover Ratio

Interpretation of Working Capital Turnover Ratio:
The trend showing Iluctuations, it happened out oI sales
Iluctuations the years. Particularly in the last two years the ratio shows
insuIIicient sources oI working capital Ior the company. The reciprocal
oI this ratio would the amount oI net current asset needed Ior generating
one rupee oI sales. And the gap will be met Irom bank borrowings and
other sources oI Iunds.
.:Leverage Ratios (Tests of Long Term Solvency)
Leverage is an indication oI the use a company makes oI the
borrowed Iunds to increase the return on owner's equity. Leverage ratios
measure the contribution oI Iinance by owners compared with Iinance
provided by the Iirm's creditors. As the liquidity test measures the ability
oI a Iirm to meet its current Iinancial obligations, the leverage ratios, a
test oI solvency, attempts to monitor the ablty oI a Iirm to pay alt oI its
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debts-current as weII as non-current, as they become due. The capital
structure oI almost every company consists oI two major components;
Equity Captalcaptal that belong to owners - investors. Debt
capital-amount that belongs to creditors.
The proportion oI debt capital to me total capital oI the Iirm is
usually reIerred to as leverage or trading on the equity. The Iundamental
economic principle underlying leverage is that whenever Iunds are
borrowed at a lower rate oI interest than the borrower can earn on those
Iunds, the rate oI return oI owner's equity is increased over what it
otherwise would have been had the borrowed Iunds been provided by the
owners. Borrowing too heavily, however, can invite Iinancial diIIiculty
primarily because interest payments and principal repayments are
contractual obligations that must be honored. The ability to obtain arid to
repay ` long-term debt oIten depends oI the Iirm's ability to obtain
capital Irom shareholders. ThereIore the relationship between
shareholder equity and creditor's equity is evaluated. The leverage ratios
commonly used are:
..1: Interest Coverage Ratio.
A company is considered solvent iI its revenue is more than its
interest and the expenses. A company that is able to meet the interest and
other expenses is said to be soIvent. Against this background, one oI the
approaches to test solvency oI the enterprise is interest coverage ratio.
This ratio measures how many times a company could pay interest
expenses which are calculated by dividing interest expenses by earnings
available Ior payment oI this background, one oI the approaches to test
solvency oI the enterprise is interest coverage ratio. This ratio measures
how many times a company could pay an interest expense which is
calculated by dividing interest expenses into earnings available Ior
payment oI interest expenses.
Interest coverage Ratio - Earnings beIore Interest and Tax
Fixed Interest Charges
Table-
Interest coverage ratio
Year

Earnings before
interest tax

Interest charges Ratio

2005-2006

77,152,106,88

1,353,309,89

57

2006-2007

39,206,938.77

1,481,142,00

26.47

2007-2008

223,455,783.59

21,787,699.75

10.25

2008-2009

230,180,089.69

11,454,119.25

20.09

2009-2010

107,979,384.00

3,638,364.00

29.67




Chart -
Interest coverage ratio


Interpretation of Interest Coverage Ratio
The trend showing Iluctuations, it happened out oI Earnings
beIore Interest Tax Iluctuations over the years. The ratio shows that the
eIIiciency oI the company towards the payment oI interest and other
expenses is not satisIactory. Further it shows that Iunds readily available
Ior interest payment were not adequate.
.Profitabilitv Ratios.
ProIit is the diIIerence between revenues and expenses over a
period oI time usually one year. ProIit is the ultimate 'output' oI a
company, and the company will be in trouble in Iuture iI it Iails to make
suIIicient proIits. ThereIore, the Iinancial manager should continuously
evaluate the eIIiciency oI the company in term oI proIits. The
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proIitability ratios are calculated to measure the operating eIIiciency oI
the company. Besides management oI the company, creditors and owners
are also interested in the proIitability oI the Iirm. Creditors want to get a
required rate oI return on their investment. This is possible only when the
company earns enough proIits. Generally, two major types oI
proIitability ratios are calculated:
ProIitability in relation to investment
ProIitability in relation to sales.
Generally calculated ratios are;
..1Gross Profit Margin Ratio.
This ratio indicates the relaton8hp between gross proft and
8ale8. It reIlects how well cost oI goods sold, a major expense item, is
being controlled. It shows the proIit made on sales beIore taking account
oI overheads. Thus, the gross proIit margin highlights the production
eIIiciency oI a concern. It is always preIerred to express this ratio in
terms oI percentage.

Gross ProIit Margin Ratio Sales - Cost oI Goods Sold * 100
Turnover
Gross Operating ProIit *100
Turnover
A high gross proIit margin ratio is a sign oI god management. A
gross margin ratio may increase due to any oI the Iollowing Iactors;
Higher sales prices, cost oI goods sold remaining constant
Lower cost oI goods 8old, 8ale8 prices remaining constant
A combination oI variations in sales prices and costs, the margin
widening, and
An increase in the proportionate volume oI higher margin items.
The analysis oI these Iactors will reveal) to the management, how a
depressed gross proIit margin can be improved.
Table-11
Gross profit margin ratio
Year

Profit after tax

Turnover Ratio

2005-2006

7,60,93,420.88

75,30,62,225.59

1.01

2006-2007

3,96,00,893.77

78,11,18,492.33

0.05

2007-2008

11,60, 77,899.35

83,27,99,464.02

0.13

2008-2009

22,78,12,277.05

109,96,24,491.69

0.20

2009-2010

11,21,44,940.91

92,67,14,035.50

0.12


Chart -11
Gross profit margin ratio

Interpretation of Net Profit Margin Ratio
The trend reveals the Iirm's capacity to withstand adverse
economic conditions. The Iirm can survive in the Iace oI Ialling selling
prices and even in delaying demand. The Iirm is able to achieve
satisIactory return on shareholder's Iunds in the initial years. But when it
comes to the last year it is seen a declining trend
1
in the proIitability. It
may be due to high cost oI production and the management's
responsibility towards diIIerent other expenses also.
. Return on Equity Ratio. (ROE]
Common or ordinary shareholders are entitled to the residual
proIits. The rate oI dividend is not Iixed; the earnings may be distributed
to shareholders or retained in the business. Nevertheless, the net proIits
aIter ' tax represent their return. A return on shareholder's equity is
calculated to see the proIitability oI owner's investment. The
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20032006 20062007 20072008 20082009 20092010
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shareholder's equity or net worth includes paid-up share capital, share
premium and reserves and surplus less accumulate losses. Net worth can
also be Iound by subtracting total liabilities Irom total assets.
ROE ProIit aIter Taxes
Equity
Table -13:Return on Equity Ratio
Year

Profit After Tax

Equity

Ratio

2005-2006

7,60,93,420.88

93,97,43,420.90

0.08

2006-2007 3.96,00,893.77 90,32,50,893.80 0.04
2007-2008 11,60,77,899.35 20,24,42,899.00 0.57
2008-2009 22,78,12,277.05 109,14,62,277.00 0.20
2009-2010 11,21,44,940.91 97,57,94,940.00 0.11
Chart -13
Return on Equity Ratio


Interpretation of Return on Equity (ROE)
This ratio is mainly used by the investors beIore making
investment in the particular company. This ratio shows the dividend
policies oI the company. Here Irom the above table and chart it is clear
that even iI the return on equity has been reduced to an extent Ior the past
two years, the company is generally providing good return to the share
holders Irom the past Iigures
.. Earning Per Share Ratio (EPS)
This is a well known and widely used indicator oI proIitability
because it can -easily compare to the previous EPS Iigure and to the EPS
Iigure oI other companies. The earnings per share represent average
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amount oI net income earned by single equity share. This is calculated
as,
Earning per share (EPS) ProIit aIter Tax -PreIerence Dividend
No oI equity share
Table - l4
Earning Per Share Ratio
Year

Profit After Tax

No of Shares

Ratio

2005-2006

7,60,93,420.88

863650

88.0

2006-2007

3,96,00893.77

863650

45.85

2007-2008

1 1,60,77,899.35

863650

134.40

2008-2009

22,78,12,277.05

863650

263.77

2009-2010 11,21,44,940.91 863650 129.84

Chart - l4
Earning Per Share Ratio

Interpretation of Earning Per Share Ratio (EPS)
The earning per ratio shows that the earnings oI the share holders
are getting decreased Ior the last Iinancial year i.e. aIter 2008-2009. But
the other previous year`s ratio gives a green signal to the share holders to
retain their share holdings and an attraction Ior others to invest in the
company in Iuture.

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3 Years ALAACE SHEE1 from 31st MARCH 25 to 21
Particulars

2009-2010

2008-2009

2007-2008

Scheduled 1:share capital






/Authorized 10,00,000 BIS oI
Rs. 1000 each







Issued, subscribed& paid







8,63,650 oI Rs.1000 each and
Iully paid







Scheduled2:Reserve&
Surplus


112,144,940.91

227,812,277.05

1,160,770,899.35

a. Capital Reserve b. General
Reserve c. ProIit & Loss a/c







Balance c/d







Total Reserve &Surplus

112,144,940.91

227,812,277.05

1,160,770,899.35

Scheduled3:Secured Loan















Scheduled-!: Unsecured







Loan







Scheduled5:Fi'xed Assets
a. Gross Block Less.
Depreciation
2,015,135,680.05
(956,441,309.08)

1,977,859,644.44
(888,202,433.03)

1,957,845,738.5
(81,204,206.05)

TOTAL F.A 1,058,694,370.9

1,089,657,211.41

1,144,641,532.46

Scrreduled6:Capital Work in
Progress

a. Capital work in progress
b. Assets pending disposal
Scheduled7:investmenta.
Investment
39,339,684.91
16,321.39
39,376,369.69
37,651.39
44,929,687.77
46,305.39
45,500.00 45,500.00 45,500.00
Scrreduled8:current Assets
Loans & Advance

a. Store & spire sparts
b. Raw material
c. Furnished goods
d. Work in progress
47,673,630.42
10,954,374.47
88,385,177.00
4,486,925.00
61,598,167.77
61,23,881.96
52,984,207.66
1,286,337.15
52,873,656.33
1,937,420.68
129,131,400.80
746,388.24
1. Total Inventories 161,500,106.88 121,992,594.54 184,688,866.55
,2. Sundry debtors

31,721,992.20

2,581,122,15

40,91M91,24

3.Cash,cheque,stamps on
hand-Total

155,129.00

110,809.00


174,799.35

4.Balance with scheduled
bank

141,144,786.40

12,133,084.49

6,915,899.48

5. Secured Loan

7,1,076,877.04

61,982,333.78

49,963,938.14

6.Un secured Loan
Less: provision Ior doubtIul
Net un secured Loan -Totat

52,729,625.51
(1,867,901.54)

63,071,461.24
(1,825,966.54)

76,467,594.73
(1,825,966.54)



50,861,723.97

61,245,494,70

74,709141,19

TOTAL C.A

300,917,247.70

260,045,438.66

357,069,835.95

Scheduled9:Current

129,475,484.20
37,919,118.96
8,260,7888.99
11,714,516.99

139,767,764.80
27,373,566.91
11,176,658.00
16,899,479.81

.-230,497,696.39
31,830,439.40
8,192,367.00
14,493,746.12

Liabilities& Provision







A. Current Liabilities 1.
Sundry creditors 2. Advance
Irom customers 3. Deposit &
retention money 4. Other
Liabilities







TOTAL C.L

187,369,908.15

195,217,469.52

285,014,248.91

B. Provision

135,304,269.44

112,284,223.92

839,208,870.00

TOTAL CL & PROV

322,674,177,59

307,501,693,44

3,935,118,91

Inter Unit Adjustment
a. Mumbai A/C 955,277, 341.89 (838,380,632.84) 13,526,439.58
b. Alwaye A/C 8,513,467.82 (11,111,696.53)

11.342,267.61
c. Chavara A/C -
d. M. K A/C (27,936,515.87) (32,282,692.45) 41,498,202.68
e. OSCOM A/C 27,533,319,11

27,926,821.16

22,286,687.40
Total Inter Unit
Adjustment
964,194,006.47 853,848,200.66 17,027,343.31
Control Total
TOTAL ASSETS 434,1,11.0 3,313,0.4 1,,0,01.

TOTAL LIABILITIES 434,1,11.0 3,313,0.4 1,529,7,18.2

TOTAL SOURCE 11,144,40.1 ,1,.0 1,10,0,3.3

TOTAL APPLICATION 11,144,40.1 227,812,277.05 1,10,0,.3




Particulars

2006-2007

2005-2006



Scheduled 1 '.share capital







Authorized 10,00,000 E/S oI Rs.
1000 each







Issued. subscribed& paid







8,63,650 oI Rs.1000 each and
IuIIy paid







Scheduled2:Reserve&SurDl

39,600,893.77

76,093,420.88




Us
a. Capita/ Reserve b. General
Reserve c. ProIit&Loss a/c
Balance c/d







Total Reserve &Surplus

39,600,893.77

76,093,420.88



ScheduledS: Secured Loan















Scheduled4: Unsecured







Loan









ScheduIedS: Fixed Assets

1,555,602,002.07
(701,942,023.74)
i 1,243,359,577.67
t
a. Gross Block Less. Depreciation
* TOTAL F.A

(620,115,586.04)

853,659,978.33

623,243,991.04

Scheduled6:Capital Work in

317,450,940.74
38,805,39

204,225,969.45
326,641,98
Proaress

a. Capital work tn progress
b. Assets pending disposal

Scheduled? '.investment

45,500.00

45,500.00

a. Investment

Scheduled8:Current Assets.

48,044,905.37
5,023,314.25
20,140,144.39
39,530,49$,36

39,462,569.63
11,107,481.70
137,614,749.54
2Q,28,2bl,4

Loans & advance

a. Store& spire sprats b. Raw material
c. Furnished goods
d. Work in progress 1 .Total
inventories

112,738,862.97

190,213,002.8*

2. Sundry debtors

6,959,311.78

6,854,731.99

3.Cash,cheque,stamps on hand-Total

78,236.95


195,922.95

4.BaIance with scheduIed
bank

6,380,104,32

14,280,843.15
I
t



5. Secured Loan

50,315,559.19

49,256,716.08



6.Un secured Loan
Less: provision Ior doubtIul
Net un secured Loan -Total

5I,122,0I2.23
(1,758,453.54)

43, I 64, I 10.99
(1,770,726.23)





49,363,558.69

41,393,384.76



TOTAL C.A

225,835,723.90

90,630,100.84



ScheduIed9:Current

99,920,751.49
13,962,339.67
5,557,939.00
2,867,727.0

77,891,359,92
35,413,556.58
5,285,057.00
14,061,447.06
,



Liabilities& Provision







a. Current Liabilities 1.
Sundry creditors 2. Advance
Irom customers 3. Deposit &
retention money 4. Other
Lablte8







TOTAL C.L

1,22,308,757.19

132,651,420.56



5. Provision

997,815,122.76

847,973,267,76



TOTAL CL& PROV

1,120,123,879.95

1,017,997,457.32



Inter Unit Adjustment

(213,528,680)
(10,560,312.07)

(12,767,445.15)
(7,545,498.82)



f
, a. Mumbai A/C b. Alwaye
A/C
c. Ghavara A/C







11.0 FIINMNGS, SUGGESTIONS AND CONCLUSION
Findings:
The return on equity ratio shows the need to achieve more proIits
Ior the Iuture growth oI the company
The liquidity analysis carried out clearly indicates that the
liquidity oI the Iirm that is the level oI current assets relative to
current liabilities is satisIactory.
The debtors turnover ratio shows' the need no alert against their
credits, because we are holding monopolist situation.
The interest coverage ratio shows a steady increase, which means
that the Iirm maintains Iunds readily to pay their obligations'
regarding interest, to avoid pressures imposed by creditors.
The gross proIitability ratio, the net proIitability ratio and the
earnings per share ratio are showing a decline in the proIitability.
The increasing trend oI return on equity states that the Iirm is
using the owner's Iunds eIIiciently and eIIectively. Thus able to
IulIill the expectations oI shareholders who want their wealth to
get maximized.
The Iixed assets turn over are huge because oI the increasing sales
and the high demand Ior the Iirm's products.
Inventory turnover ratio is not up to mark because the Iirm relies
mainly on large lot sizes Ior replenishments rather than small lot
sizes.



Suggestions:
IREL should take advantage oI the growing demand Ior heavy
minerals by increasing the producton.
The management should sustain the- Iaith oI the local people by
constantly communicating and explaining the company8 polce8
to them.
The trust oI the local people can be ensured and sustained by
constant interaction; and communication with them. The company
can achieve this by undertaking more socially re8pon8ble
act;te8. Th8 may be n the form of medical Iacilities, running
schooIs, assistance at the time oI sea erosion and trawling ban.
They can also provide water and electricity supply to the local
people.
The company should Iormulate appropriate HR policies Ior
providing enough work to civil Iorum workers by disseminating,
them into other areas or by limiting their number by conducting
discussions with the labor union.
The company should try to minimize the external interventions oI
various political parties.
The company must take Iull use oI the Iavorable government
policies at present.
The company can go Ior more Iinancially proIitable areas oI
operations*.
The share value oI the company is getting decreased Ior the past
Iew years. Try to adopt measures to increase the share value m this
situation.
The company's advertising activities are less.
The cost involved in diIIerent operations is seen to be very huge. Take
measures to reduce it iI possible.
It is an appropriate time Ior the company to expand its activities to more
parts oI the country.

CONCLUSION

IREL, Chavara is the leading supplier oI beach sand minerals to
the nation. The company, in its search oI new heights, has reached a level
oI quality which is remarkable. The timeJy adaptation oI technological
innovations has been the hallmark oI IRE since its inception. The study
was descriptive and analytical in nature. All the Iunctional departments
were thoroughly studied and the strengths and weakness were Iound out.
It was Iound out that the employees were satisIied with the welIare
policies which are in practice and the scale oI pay at present. IREL,
Chavara is capable oI converting its threats into opportunities with the
guidance and control oI the top management whose leadership quality is
impeccab

1.0Bibliogranhv.
1, Management Accounting- Reddy and Moorthy 2*- Financial
Management-1M Pandey.
3. Research methodology- Umasekharan
4. Company Website- www.irel.gov.in
5. Company's annual records.
6. Company's Technical Library