SUMMER INTERNSHIP PROJECT

REPORT( 15th may to 30th june )

On Training Undertaken at

HINDUSTAN ZINC LTD.

Project Title: “COMPARATIVE ANALYSIS OF PERFORMANCE OF HZL BEFORE AND AFTER

PRIVATISATION”

Submitted in partial fulfillment for the award of degree ofMaster of Business Administration

FMS- The IIS University

Submitted by:-Student’s NameRoll No.

Submitted to:-Faculty NameDesignation

1

INDEX

Acknowledgement

1 Executive Summary 2 A Glance at the Vedanta Group3 Location of Vedanta Mine on the Word Map

4 Vedanta Resources5 HZL at a Glance6 Introduction of Hindustan Zinc Limited7 HZL Milestones at a Glance 8 Introduction of Rampura Agucha Mine9 Ranking of HZL Company and R A Mine10 Management11 Rampura Agucha Mine Location12 Analysis and Interpretation

Parameters13 Introduction of Modern Techniques of Analysis of Financial

Review of Literature Types of Analysis

14 BSE Stock Price Data15 Balance Sheet as at March 31, 200716 Profit and Loss Account 17 Five Year Financial Highlights18 Research Methodology19 Questionnaire for staff member20 Conclusion21 Bibliography

2

EXECUTIVE SUMMARY

The Summer Training being undertaking for the purpose of

“COMPARITIVE ANALYSIS OF PERFORMANCE OF HZL BEFORE AND AFTER PRIVATISATION”

Where I come to realize various financial aspects such as performance reviews, financial growth

and impact, annual report and matter related to corporate governance. The study involved

analysis of the financial impact of the company internally as well as externally. I also intend to

find out about how the leading brand image of “Hindustan Zinc Limited” In MINE sector has

been performed by deeply undertaken their rations as schedule affixed as annexure to the end of

the summer training report.

Trainee Name: BARKHA CHOUDHARYTitle of the Project: “COMPARITIVE ANALYSIS OF PERFORMANCE

OF HZL BEFORE AND AFTER PRIVATISATION”

Project Done Under: Mr. KARTIKEYA SHARMA (Executive Finance)

Project Duration: 45 Days

College: International school of informatics & management

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ACKNOWLEDGEMENT

I express my sincere thanks to my project guide, Mr. KARTIKEYA SHARMA (Executive

Finance) for guiding me right from the inception till the successful completion of the project. I

sincerely acknowledge him for extending his valuable guidance, support for literature, critical

reviews of project and the report and above all the moral he had provided to me with all stages of

this project. Pay my sincere thanks and gratitude to management of Hindustan Zinc Limited

(H.Z.L) - Rampura Agucha Mine, Mr. S. M. SHARMA ( Head- Finance) who allowed to

complete my summer training in HZL.

BARKHA CHOUDHARY

4

A GLANCE AT THE VEDENTA GROUP

Vedanta is a FTSE 100 metals & mining company. Its principal operations are located throughout INDIA, with additional operation in Zambia, Australia, and Armani etc.

The major metals produced are Aluminum, Zinc, Lead, and Gold & Copper.

It is the 1st Indian company listed on the LONDON STOCK EXCHANGE in December 2003 at a market capitalization of ~$1.9 billion.

It is one of the largest non-ferrous industries in the world. It owns about 28 industries all over the world.

VISION:

The vision is to become million-ton producer at the lowest deciles costs in each of its metals,

thereby consolidating India’s position on the global metals & mining map.

MISSION:

The mission is to create a world-class metals & mining group & generate strong financial

returns.

5

6

7

VEDANTA RESOURCES Pvt.

LIMITED

KONKOLA COPPER

MINES PLC51%

STERLITE INDUSTRIES (INDIA) LTD.

80%

MADRAS ALUMINIUM

COMPANY LTD.80%

Vedanta Alumina Ltd.

94%

Hindustan Zinc Ltd.67%

Bharat Aluminum

Company Ltd.49%

INTRODUCTION OF HINDUSTAN ZINC LIMITED

Hindustan Zinc Ltd (HZL) is India's leading zinc producer. As a part of Vedanta Resources, a

London listed metals and mining major with Aluminum, Copper and Zinc operations in UK,

India and Australia, HZL takes advantage of its mineral resources and related core competencies

and believes it has growth opportunities for increasing products and improving returns

The Zinc business of Vedanta is managed within Hindustan Zinc Limited.  HZL is India’s only

integrated Zinc Company, operating from mine to finished metal and supplied around 73% of

India’s zinc requirements in 2005-06. At the base of the company is the Rampura Agucha mine

with its low cost and consistently high grade ore.

 

In 2005-06, HZL produced 283,698 tonnes of zinc as a result of recent expansions of the

Rampura Agucha mine and at the nearby Chanderiya facility.

The ore produced at the mines contains lead, which is smelted alongside the zinc.   In 2005-06

HZL produced around 23,636 tonnes of lead. The commissioning of a new Ausmelt

TM smelter at Chanderiya in February 2006 has increased capacity to 85,000 tpa of lead.

Zinc is used mainly in galvanizing steel to improve its durability.  HZL plays a role in developing

the market for the end product. We believe the capacity for galvanized steel in India is increasing

significantly, due to the demand for the product in infrastructure and construction work.

Rampura Agucha Mine is one of the units of Hindustan Zinc Limited, a Sterlite group company.

It is an open pit mine having 40.2 Million tons reserve. It ranks 5th globally in terms of grade. It

is in operation since 1991, presently having a capacity of 3.8 million tones of ore treatment per

year and additional 1.2 million ton is going to be added in the year 2007-08.Its method of mining

is mechanized open cast excavators and dumpers. The extracted ore consists of 2.01% lead &

13.53% zinc.

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HZL Milestones & Projects at a glance

FY2012 Rampura Agucha Mine expansion from 5.00 million tonnes per annum to 6.00 million tonnes per annum, increasing the total ore production capacity of the Company to 8.60 million tonnes per annum.

FY2010 Commissioned the 210,000 tonnes per annum Hydrometallurgical Zinc Smelter at Dariba Smelting Complex, increasing the Zinc & Lead metal production capacity to 964,000 tonnes per annum (879,000 tonnes of Zinc and 85,000 tonnes of Lead)

FY2009 Rampura Agucha Mine expansion from 3.75 million tonnes per annum to 5.00 million tonnes per annum, increasing the total mining capacity of the Company to 7.40 million tonnes per annum

FY2009 88,000 tonnes per annum zinc debottlenecking completed at Chanderiya Smelting Complex & Debari Zinc Smelter making the total metal production capacity to 754,000 tonnes per annum

FY2009 Commissioned 80 MW Captive Power Plant at Zawar MinesFY2009 Commissioned 34.4 MW Wind Energy Farms making the Company's total Wind

Energy capacity to 123.2 MW.FY2008 Commissioned 170,000 tonnes per annum of Hydrometallurgical Zinc Smelter

(Hydro II) in a benchmark time of 20 months at Chanderiya Smelting ComplexFY2008 Commissioned 80 MW Captive Power Plant at Chanderiya Smelting ComplexFY2008 5,000 tonnes of zinc debottlenecking completed at Debari Zinc SmelterFY2008 Commissioned 50.4 MW of Wind Energy Farms at GujaratFY2007 Sindesar Khurd Mine began production with an initial production capacity of 0.3

million tonnes per annumFY2007 Commissioned 38.4 MW of Wind Energy Farms at GujaratFY2006 Commissioned 170,000 tonnes per annum of Hydrometallurgical Zinc Smelter

(Hydro I) at Chanderiya Smelting ComplexFY2006 Commissioned 2 X 77 MW Captive Power Plant at Chanderiya Smelting ComplexFY2006 Commissioned 50,000 tonnes per annum of Ausmelt Lead Smelter at Chanderiya

Smelting ComplexFY2005 Rampura Agucha Mine expansion from 2.30 million tonnes per annum to 3.75

million tonnes per annumFY2004 Sterlite acquires additional shares of 18.92% from Government of India under call

option.FY2004 35,000 tonnes of zinc debottlenecking completed at Chanderiya Smelting ComplexFY2003 32,000 tonnes of zinc debottlenecking completed at Debari Zinc Smelter and Vizag

Zinc SmelterFY2003 Debottlenecking of Rampura Agucha Mine from 1.37 million tonnes per annum to

2.30 million tonnes per annumFY2003 Sterlite acquires 26% and management control in HZL from the Government of

India in privatization. A further 20% is bought from market through open offer.

9

FY1991 Commissioned 70,000 tonnes per annum of zinc and 35,000 tonnes per annum of lead Pyro metallurgical Lead-Zinc Smelter at Chanderiya

FY1991 Rampura Agucha Mine began production with an initial production capacity of 0.9 million tonnes per annum

1983 Rajpura Dariba Mine starts production.1977 Vizag zinc smelter and second set of Zawar mine facilities commissioned.1971 First expansion of Zawar mine commissioned.1968 Debari smelter commissioned.1942 Commencement of mining at Zawar.

In Rajasthan there are three Mines and four Smelters of HZL

1) Rampura Agucha Mine (World’s 3rd Largest Mine)

2) Rajpura Dariba Mine

3) Zawar Mine (The oldest mine)

The three smelters are:

1) Zinc Smelter Debari: It is the oldest smelter of HZL & situated 20 km from Udaipur.

2) Chandaria Lead Zinc Smelter (Rajasthan)

3) VZS Zinc Smelter (Andrapradesh)

4) Dariba Super Smelter (Rajasthan)

10

INTRODUCTION OF RAMPURA AGUCHA MINE

Rampura Agucha Mine, located 225 km north-northeast of Udaipur, Rajasthan, is the largest &

richest Lead Zinc deposit in the country containing 63.6 million tonnes ore with in-situ grade of

13.54% zinc & 1.97% lead. 49.903 million Tonnes of ore are amenable for mining by open pit

method, up to the depth of 250 Mts. The open cast mine has capacity of 4500 tpd ore and

matching state-of-the-art beneficiation plant and other infrastructure facilities. It is proposed to

enhance the capacity to 11400 TPD ore production and treatment in year 2005.

Rampura Agucha is no exception to the Indian heritage in the lead zinc mining & smelting with

its extensive, well planned mine workings, remains of smelting (silver) residuals, slag & artifacts

spread in & around the area. The radio-carbon dating of these ancient mine wooden-log supports

& arte facts have dated the activities to be 2900 years old, during the Maurya period.

The mine has acquired ISO 9001, quality assurance certification, ISO 14001, OHSAS 18001,

Environment, Health & Safety Management System certification for open cast mining &

beneficiation of ore for production of concentrates.

RAMPURA AGUCHA MINE

Commissioned 1991Location 225 km north of Udaipur, Rajasthan, IndiaCapacity 3.7 Mtpa oreDetails An open cast mine and good mineralogy leading to higher recovery and

overall low cost of production. Onsite concentrator to produce zinc concentrate.

Certifications ISO 9001:2000, ISO 14001:1996, OHSAS 18001:1996

Vision

Be a world-class zinc company, creating value, leveraging mineral resources and related core competencies.

Mission

Be a lowest cost Zinc producer on a global scale, maintaining market leadership

Be innovative, customer oriented and eco-friendly, maximizing stake-holder value

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RANKING OF HZL COMPANY AND RAMPURA AGUCHA MINE IN THE WORLD

  By Minekt Zn (%)     By Company

kt Zn (%)

1 Red Dog 563 4.8 1 Xstrata AG 962 8.22 Century 510 4.4 2 Teck Cominco Limited 697 6.03 Rampura-Agucha 420 3.6   3 Glencore 654 5.64 Antamina 350 3.0 4 Zinifex 595 5.15 Brunswick 283 2.4 5 Hindustan Zinc 513 4.46 Mount Isa Pb/Zn 265 2.3 6 Anglo American plc 381 3.37 Tara 218 1.9 7 New Boliden 331 2.88 Zyryanovsk 190 1.6 8 Minera Volcan 288 2.59 Iscaycruz 175 1.5 9 Votorantim 224 1.9

10 Lisheen 175 1.5 10 Industrias Penoles 205 1.8

11 Skorpion 171 1.5 11Lundin Mining Corporation 195 1.7

12 McArthur River 155 1.3 12 BHP Billiton 193 1.713 Vazante (CMM) 147 1.3 13 Breakwater Resources 165 1.4

14Golden Grove (Scuddles) 144 1.2 14 Kazakhmys 159 1.4

15 Lamping 135 1.2 15 Oxiana Resources NL 144 1.2

Corporate Information

Board of Directors

Shri Agnivesh Agarwal – Chairman

Smt Ajita Bajpai Pande – Director

Shri SK Mittal – Director

Shri Bhupal Nanda – Director

Shri Navin Agarwal – Director

Shri MS Mehta – Whole-time Director

Shri AR Narayanaswamy – Director

Shri Akhilesh Joshi – COO & Whole-time Director

Chief Financial Officer Shri SL Bajaj

Company Secretary Shri Rajendra Pandwal

Statutory Auditors M/s. Deloitte Haskins & Sells

12

VEDANTA STRATEGIESOur goal is to generate strong financial returns and create a world-class metals and mining group. Our Strategy, to set out at listing,  is

13

Recognition during the years

Quality2009 IMC Ramakrishna Bajaj National Quality Award - ‘Performance Excellence

Trophy’ (RBNQA- 2009) - Chanderiya Smelting Complex.

2008 IMC Ramkrishna Bajaj National Quality Certificate of Merit (RBNQA-2008) - Chanderiya Smelter Complex

2008 Golden Peacock National Quality Award (GPNQA-2008) - Chanderiya Smelter Complex

2008 9th Annual Excellence Award in the Best manufacturing process improvement by International Quality and Productivity Centre, London - Chanderiya Smelter Complex

2007 Five-S Workplace Management System - Certificate by Quality Circle Forum of India (Valid till 31 July 2010) - Rampura Agucha Mine

2006 Best4 Integrated Management System Certification - Debari Zinc Smelter2006 Best4 Integrated Management System Certification - Vizag Zinc Smelter

CSR2009 State Population Stabilization Certificate to Chanderiya by Govt. of Rajasthan2009 State Bhamashah Award 2009 to Rampura Agucha by Govt. of Rajasthan2008 Gold Pegasus Corporate Social Responsibility Award2008 FICCI Annual Awards 2007-08 in the category of "Rural & Community

Development"2008 Asian Corporate Social Responsibility Award2007 Golden Peacock Award for Corporate Social Responsibility2007 TERI Corporate Social Responsibility Award2007 Silver Pegasus Corporate Social Responsibility Award 2007 constituted by

Reader's Digest and the India Today Group.

2007 FIMI Social Awareness Award2007 State Population Stabilisation Award - Chanderiya Smelter Complex2006 FICCI-SEDF Corporate Social Responsibility Award2005 Overall Best Performance Shield and 10 Prozes in Community Development -

Zawar Mines

HSE2009 CII-ITC Sustainability Award (Commendation for Strong Commitment towards

sustainability) - Hindustan Zinc Ltd.

2009 Golden Peacock Occupational Health & Safety Award- Debari Zinc Smelter.2009 CII- National Award for Excellence in water Management- Rampura Agucha

Mine.2009 CII-Leadership & Excellence Award in Environment, Health & Safety- Vizag

Zinc Smelter.2009 Stars of the Industries Awards in Green Manufacturers category- Debari Zinc

Smelter.2009 Safety Innovation award by Institution of Engineering - Debari Zinc Smelter.2009 International Safety Award 2008 from the British Safety Council - Debari Zinc

14

Smelter.2009 RoSPA gold award 2009 from Royal Society for Prevention of Accidents, UK -

Debari Zinc Smelter

2009 Golden Peacock Environment Management Award 2009 from World Environment Foundation (WEF), in association with Institute of Directors - Rampura Agucha Mine

2008 RoSPA gold award 2008 from Royal Society for Prevention of Accidents, UK -Debari Zinc Smelter

2008 FIMI's Environment, Social Awareness and Excellence Award from Federation of Indian Mineral Industries - Rampura Agucha Mine

2008 National Energy Conservation Award 2008 from the Govt. of India - Rajpura Dariba Mine

2008 CII- National Water Management Excellent Award-2008 - Chanderiya Smelter2008 CII National Energy Management Award - Vizag Zinc Smelter2008 Excellence in Environmental Management and Excellence in Workers Welfare

awards from the Federation of Andhra Pradesh Chamber of Commerce & Industry - Vizag Zinc Smelter

2007 4 Star Rating BSC Safety Mg System by British Safety Council, UK – RAM2007 RoSPA gold award 2007 from the Royal Society for the Prevention of

Accidents, UK - Debari Zinc Smelter

2007 Best Asian power plant and Best Emissions Reduction Project in Asia Award for the year 2007- CLZS CPP

2007 Golden Peacock Occupational Health & Safety Award - Chanderiya Smelter Complex

2007 Two Awards from the Confederation of Indian Industry (CII), Hyderabad (i) Water Efficient Unit Award (ii) Innovative Case Study Award - Chanderiya Smelter Complex

2007 Safety Innovation Award 2007 instituted from the Institution of Engineers (India) - Chanderiya Smelter Complex & Debari Zinc Smelter

2007 Leadership and Excellence Award in Environment, Health and Safety (EHS) from Confederation of Indian Industry - Vizag Zinc Smelter.

2007 Greentech Environment Excellence Award 2007 in metal & mining sector - Vizag Zinc Smelter (Silver), Chanderiya Smelter Complex (Gold), Debari Zinc Smelter (Silver)& Rampura Agucha Mine (Gold)

2007 18th Mine Environment & Mineral Conservation Week under the aegis of Indian Bureau of Mines, Ajmer Region: Got First Position in:

(i) Overall Performance (ii) Waste Dump Management (iii) Water Pollution Control (iv) Documentation on Mineral Conservation - Rampura Agucha Mine

2006 National energy conservation award from Ministry of Power, GoI -Rajpura Dariba Mines

2006 Gem Granite Environment Award in the mechanized category of mines. - Rampura Agucha Mine

2006 Greentech Safety Platinum Award - Vizag Zinc Smelter2006 Greentech Safety Gold Award in Metal Sector - Chanderiya Lead Zinc Smelter

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2006 Greentech Environment Excellence Gold Award in Metal Sector - Chanderiya Lead Zinc Smelter

2006 Greentech Environment Excellence Gold Award in Metal Sector - Chanderiya Lead Zinc Smelter

2006 Greentech Environment Excellence Gold Award in Metal Sector - Zawar Mines2006 Greentech Environment Excellence Gold Award in Metal Sector - Vizag Zinc

Smelter2006 Golden Peacock Environment Management Award - Vizag Zinc Smelter2006 Greentech Safety Appreciation Certificate in Metal Sector - Zawar Mines2006 Overall Best Team in First Aid and Best Team Member Award - Rajpura

Dariba Mines2006 Greentech Safety Silver Award in Metal Sector - Rampura Agucha Mine2006 Greentech Environment Excellence Silver Award in Metal Sector - Rampura

Agucha Mine2005 National Energy Conservation Award 2005 in Mining Sector - Rampura

Agucha Mine2005 Greentech Gold Award for Environmental Excellence in the metal sector from

Greentech Foundation for 2005-06 - Vizag Smelter

2005 Greentech Bronze award for safety performance during the year 2005-06 - Chanderiya Lead and Zinc Smelter

2005 Greentech Environment Excellence Silver Award in Metal Sector - Vizag Zinc Smelter

2005 Greentech Silver Award for Environmental Excellence in the metal sector from Greentech Foundation for 2005-06 - Rampura Agucha Mine

2005 Best Safety practices Award from Director General of Mines Safety during the year 2005-06 - Rampura Agucha Mine.

2004 British Safety Council's National Award - Chanderiya Lead Zinc Smelter2004 National Safety Council Award - Chanderiya Lead Zinc Smelter2004 OHSAS-18001 Certification - Vizag Zinc Smelter2004 Greentech Safety Silver Award in Metal Sector - Chanderiya Lead Zinc

Smelter2004 Greentech Environment Excellence Silver Award in Metal Sector - Zawar

Mines2004 First Prize in afforestation/ waste dump management - Rajpura Dariba Mines

HR2009 Amongst the top 25 Companies declared as Hewitt Best Employers in Asia in

20092009 Ranked # 2 in the top 25 Companies declared as Hewitt Best Employers in

India in 20092006 Golden Peacock National Training Award

Others2008 Rampura Agucha Mine - Certified for SA-8000: 20012008 Zawar Mines - Certified for SA-8000: 20012008 Dun & Bradstreet Rolta - Corporate Award 2008 under Non-Ferrous Metals

Sector.2007 Dun & Bradstreet American Express Corporate Award 2007 in Non-Ferrous

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Sector.2007 Asian Power Award 2007 in the category:

(a) Asian Power Plant of the Year -2007 (b) Best Emissions Reduction Project in Asia. Hosted by Asian Power, Charlton Media Group, Singapore - Chanderiya Captive Power Plant

2007 Golden Peacock Award for Excellence in Corporate Governance-2007 by the Institute of Directors

2007 Bhamashah Award by Department of Education, Govt. of Rajasthan for outstanding contribution in the development of educational facilities in surrounding areas - Chanderiya Smelter Complex & Debari Zinc Smelter

2006 Federation of Andhra Pradesh Chambers of Commerce & Industry (FAPCCI) - The Amancherla Ramamurthy Silver Rolling Trophy - for Excellence in All Round Performance in industrial activity

2006 Golden Peacock National Training Award2006 SA 8000 Certification - Debari Zinc Smelter2006 SA 8000 Certification - Vizag Zinc Smelter2005 Best Non-Ferrous Metals Company Award2005 Best Management Award - Vizag Zinc Smelter2005 Placed Overall First in Underground Mine in the Udaipur region - Zawar Mines2005 Best Team Award on Recovery - Rajpura Dariba Mines2005 Placed Overall Second in Underground Mine in the Udaipur region - Rajpura

Dariba Mines2005 Excellence Award in the Open Cast Mechanised Mines Category - Rampura

Agucha Mine2005 Overall First in Mechanised Open Cast Mines category in the Ajmer region -

Rampura Agucha Mine

2005 Recognition as a R&D Unit

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MINING

The deposit is being mined with opencast method with heavy earth moving machines like 100 &

85-ton capacity dumpers, 9 & 15 cubic meter bucket capacity shovels, 165 mm diameter drill

machines, dozer, grader, water sprinkler, rock breaker & various other service equipments.

Advanced computer technology including Data Mine is being used for mine planning and

designing, day to day grade control, production & equipment scheduling. Overall stripping ratio for

the mine is 1:4.14. The individual bench slope is worked for 70 degree with the bench height of 10

Mts. Ultimate pit is worked with two ramps, one each in H/W & F/W of width 25 Mts. & gradient

1 in 16. It will be changed to 1 in 12, subject to approval of DGMS. The waste generated is

dumped at pre-decided sites.

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ORE BENEFICIATION : Beneficiation plant comprises of crushing, grinding &

classification, differential floatation, concentrate dewatering & tailing disposal.

PLANT OVERVIEW: A plant overview HMI screen is provided to give rapid access to any

plant section from a single screen; it is readily available from anywhere in the system.

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Crushing

PRIMARY CRUSHING PLANT:

After the mining stage is over ore is brought to the ore beneficiation plant where it is first

processed in the primary crushing plant comprised of Gyrator crusher, big blocks of ore

material is crushed to a particle size of (-200mm) and from there the crushed ore is stored at

the coarse ore stockpile (old & new) which has the capacity of 4500 tones each.

FIG:-UNLOADING OF ORE AT PRIMARY CRUSHER

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PROCESS FLOW

The ore processed in the Gyrator of primary Crusher (U-3) house is then forwarded to apron

feeder (U-5) with the help of crushed ore hopper (U-4), apron feeder passes crushed ore to coarse

ore storage (U-16) though product conveyor (U-9), BH conveyor (U-11) and tripper belt

conveyor (U-13).

Primary Crusher

Apron Feeder

Flap Gate System for Diversion to COSP for Stream 2

Flow sheet of Future Primary Crusher House

U-9 Conveyor

U-11 conveyor

C-2 Tripper Conv

U-13 Tripper Conv

C-1 conveyor

New Primary Crusher

New Apron Feeder

U-9 Conveyor U-9 Conveyor

New Tripper Conv CV 04

Flap Gate System for Diversion to COSP for Stream 2

New Transfer Conv CV02

New Transfer Conv CV12

New Transfer Conv CV01

New Coarse Ore Stockpile No 3

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SECONDARY/TERTIARY CRUSHING HOUSE

PROCESS FLOW: Crushed ore of size (-150mm)from primary crusher coarse ore storage (U-16)

is feeded into 5nos. reciprocating feeder (U33A-U33E),through crushed feed conveyor (U-35)

the material is brought to D.D.VIBRATING SCREEN.

The underflow of the D.D.V SCREEN is passed to FINE ORE CONVEYOR (U-71) and

overflow material from first screen of D.D.V SCREEN is passed to SECONDARY CONE

CRUSHER (U-54) and from there it is transferred to CRUSHER PRODUCT CONVEYOR (U-

56)while the overflow form the second screen of D.D.V. SCREEN is passed to CRUSHER

PRODUCT CONVEYOR (U-56).

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The material from U-56 is stored in TERTIARY CRUSHER BIN U-62 A, B, C through a flap

gate mechanism & TERTIARY BIN CONVEYOR (U-58) & CRUSHER BIN FEED

CONVEYOR (U-60), and through belt feeders the material is transferred to 3nos.. VIBRATING

SCREEN and U/F is transferred to TERTIARY CRUSHERS (U-69 A, B, C) while the O/F goes

to FINE ORE BIN CONVEYOR (U-71) after through FINE ORE TRANSFER CONVEYOR

(U-73) and by there WAY GATE MECHNAISM A1, B1, C1 it is transferred to FINE ORE BIN

NEW or OLD through FOB TRIPPER CONVEYOR (U-75A, B) respectively .The ore particle

size of after sec. Crusher is of size (-50mm) and that from TERTIARY CRUSHER is (-19mm).

SecondaryCrusher

U-35

Flow sheet of Existing Secondary & Tertiary Crusher House

Tertiary A Tertiary B Tertiary C

U-56

U-58

U-60

U-71

U-73

U-75A U-75B

Old FOB New FOB

Flap Gate System for Diversion to Old FOB & New FOB

Tertiary Surge Bin

D D Vib Screen

S D Vib Screen+50

-50+19-19

+19 +19+19

-19-19

-19

All dimensions are in mm unless otherwise mentioned

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GRINDING AREA

Process Flow:

Grinding Area basically has three circuits of Rod Mill & Ball Mill, which are feeded as follows:

The crushed ore from FOB’S (Old) Chute is routed through conveyors 94A,B & C. The material

From 94A goes to Rod Mill I through 96A and that of 94B goes to Rod Mill II through 96B also

some material from 94C goes to Rod Mill II and major portion of material from conveyor 94C

goes to Rod Mill III through 95C & 96C, Rod Mill III is also feeded through New FOB’S Chute

which comes from conveyor 94D & 94E and then trough 95B to 96C.

The feeding of material to different Rod Mills depend upon the Weight Controller closed loop

system placed on these conveyors.

The three circuits of Ball Mill & Rod Mill are similar in structure and function. So in short we

can say that Close circuit wet grinding is arranged in three parallel circuits of rod & ball mill

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combination of 1500 TPD for flexibility in operation and maintenance. The mill discharge goes

to hydro cyclones for classification. The pulp of 80% minus 63 microns goes to the lead

conditioners.

System Applications & Products – SAP

Introduction to SAP

SAP was founded in 1972 in Walldorf, Germany. It stands for Systems, Applications and

Products in Data Processing. Over the years, it has grown and evolved to become the world

premier provider of client/server business solutions for which it is so well known today. The SAP

R/3 enterprise application suite for open client/server systems has established a new standard for

providing business information management solutions.

The main advantage of using SAP as your company ERP system is that SAP have a very high

level of integration among its individual applications which guarantee consistency of data

throughout the system and the company itself.

In a standard SAP project system, it is divided into three environments, Development, Quality

Assurance and Production.

The development system is where most of the implementation work takes place. The quality

assurance system is where all the final testing is conducted before moving the transports to the

production environment.  The production system is where all the daily business activities occur. 

It is also the client that all the end users use to perform their daily job functions. To all company,

the production system should only contain transports that have passed all the tests.

SAP is table drive customization software.  It allows businesses to make rapid changes in their

business requirements with a common set of programs.  User-exits are provided for business to

add in additional source code.  Tools such as screen variants are provided to let you set fields

attributes whether to hide, display and make them mandatory fields.

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INTRODUCTION:

The Financial Accounting (FI) application component fulfils all the

international requirements that must be met by the financial accounting

department of an organization. It provides the following features:

Management and representation of all accounting data: All business transactions are

recorded according to the document principle, which provides an unbroken audit trail

from the financial statements to the individual documents.

Open and integrated data flow: Data is available in real time within Financial Accounting.

Postings made in the sub ledgers always generate a corresponding posting in the general

ledger.

Preparation of operational information to assist strategic decision-making within the

organisation.

Integration of Financial Accounting with other components.

All accounting-relevant transactions made in Logistics (LO) are posted real-time to

Financial Accounting by means of automatic account determination. This data can also be

passed on to Controlling (CO). This ensures that logistical goods movements (such as

goods receipts and goods issues) are exactly reflected in the value-based updates in

accounting.

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The below diagram presents an overview how the data flows from various processes into Financial accounting.

The Financial Accounting Module will cover the following business processes

of HZL:

Cash Accounting :- Receipts of Cash (withdrawals from Bank or refund of advances from employees etc), payments to employees for Expenses like travel expenses, reimbursement of conveyance expenses, advances etc.,

Bank Accounting:- Accounting of Collections, payments made to Vendors with respect to Invoices and Advance Payments to Vendors, Direct Expense Payments, Bank Reconciliation, Bank Transfers etc.,

Customer Accounting:– Accounting of Advances / collections, Cheque reversals, Debit & Credit Notes and maintenance of Customer Accounts.

Vendor Accounting:– Accounting of Purchases, Invoice Booking (foreign / local), TDS deductions for the vendors, making advances / payments and analysis of vendor accounts.

Accounting of TDS :- Deductions, making payments to Tax Authorities, Issue of Certificates and preparation of Annual Returns.

27

Monthly Closing operations :- Booking of provisional entries, Monthly depreciation posting,

SWOT ANALYSIS

STRENGHT :-- 1. Biggest mining company in the world for Zinc

2. It has centralized processes which saves time & resources

3. Follows a 5S practice and hence improves processes and becomes more efficient

4. 6 sigma and quality management by self managed teams

5. Providing economic plans to the customers as well as believes in cost reduction methods

WEAKNESS :--

1. The systems used by them are outdated

2. The processes are still manual

3. The company faces a lot of problems due to union as all the decisions are influenced by union.

4. A lot of auditors come every time which increases cost.

OPPORTUNITY :--

1. Has a global presence and can still acquire other companies.

2. Provides a lot of vacancies for the staff every year.

3. An also venture into resources like copper and aluminum by acquiring Hindustan Coppers in Rajasthan.

THREATS :-

1. The other major competitor’s world wide

2. Depleting ore resources

3. Reduction in the no. of costumers

28

ANALYSIS

AND

INTERPRETATION

29

PARAMETERS

30

SHAREHOLDERS FUNDS

UNSECURED

LOANS

INVESTMENTS

HINDUSTAN ZINC

LIMITED

CURRENT ASSETS,LOAN

S & ADVANCES

CURRENT LIABILITIES

&PROVISIONS

NET CURRENT

ASSETS

FIXED ASSETS

INCOME EXPENDITURE

PROFITS

SHAREHOLDERS FUNDSMILLION( Rs.)

TABLE 1 TABLE 2PERCENTAGE CHANGE IN SHAREHOLDERS FUNDS EVERY FINANCIAL YEAR AS COMPARED TO THE PREVIOUS FINANCIAL YEAR.

PERCENTAGE CHANGE IN SHAREHOLDERS FUNDS EVERY YEAR AFTER PRIVATIZATION AS COMPARED TO BEFORE PRIVATIZATION.

YEARS EFFECT CHANGE(%) YEARS EFFECT CHANGE(%)2001-2002 DECREASE 8.01 2001-2002 DECREASE 8.012002-2003 INCREASE 9.60 2002-2003 INCREASE 15.902003-2004 INCREASE 28.82 2003-2004 INCREASE 141.182004-2005 INCREASE 37.88 2004-2005 INCREASE 194.672005-2006 INCREASE 65.07 2005-2006 INCREASE 321.362006-2007 INCREASE 122.37 2006-2007 INCREASE 714.632007-2008 INCREASE 75.76 2007-2008 INCREASE 1110.13

2008-2009  INCREASE 21.17 2008-2009  INCREASE 1345.26

2009-2010 INCREASE 26.23  2009-2010  INCREASE 1698.16

2010-2011 INCREASE 5.23 2010-2011 INCREASE 1782.00

2011-2012 INCREASE 7.85 2011-2012 INCREASE 1921.25

2012-2013 INCREASE 9.25 2012-2013 INCREASE 2098.85

31

ANALYSIS

The shareholders fund contributes of share capital and reserves & surplus.

The shareholders fund increased by 30% in financial year 2003-2004, by 79% in financial

year 2004-2005 and by 204% in financial year 2005-2006 after privatization as compared

to that of financial year 2001-2002 i.e before privatization.

In year 2004 reserves & surplus increased to Rs. 10834.42 million i.e an increase of Rs.

3462.6 from year 2001.

In year 2005 reserves & surplus increased to Rs.16552.11 million i.e an increase of Rs.

9174.85 from year 2001.

In year 2006 reserves & surplus increased to Rs. 30072.5 million i.e an increase of 204%

from year 2001.

In year 2007 reserves & surplus increased to Rs 72045.3 million i.e an increase of

557%from year 2001.

In year 2008 reserves & surplus increased to Rs 114256.6 million i.e an increase of927%

from year 2001.

In year 2008-2009 (14357.58)shareholder fund will be increase as compare to year 2007-

08 (11848.19)

In year 2009-10 (18123.97) shareholder fund will be increase as compare to year 2008-09

(14357.58)

32

UNSECURED LOANS

TABLE 3 TABLE 4PERCENTAGE CHANGE IN UNSECURED LOAN EVERY FINANCIAL YEAR AS COMPARED TO THE PREVIOUS FINANCIAL YEAR

PERCENTAGE CHANGE IN UNSECURED LOANS EVERY YEAR AFTER PRIVATIZATION AS COMPARED TO THE PREVIOUS FINANCIAL YEAR

YEARS EFFECT CHANGE(%) YEARS EFFECT CHANGE(%)2001-2002 DECREASE 33.50 2001-2002 DECREASE 33.502002-2003 DECREASE 97.34 2002-2003 DECREASE 20.142003-2004 DECREASE 39.82 2003-2004 DECREASE 10.82004-2005 DECREASE 3.92 2004-2005 DECREASE 932005-2006 DECREASE 2.32 2005-2006 DECREASE 1.412006-2007 DECREASE 99.93 2006-2007 DECREASE 93.112007-2008 CONSTANT  0.39 2007-2008 DECREASE 93.112008-2009 CONSTANT 0.39 2008-2009  DECREASE  10.392009-2010  INCREASE  60.47 2009-2010  INCREASE  16112010-2011 DECREASE 52 2010-2011 DECREASE 102011-2012 DECREASE 43 2011-2012 DECREASE 12

33

The unsecured loans has shown a minor decrease after privatization.It decreased up to

the extent of 1.41% as compared to financial year 2001-2002.

The unsecured loan amount was Rs. 56.62 million in year 2001 and it decreased to Rs.

55.80 million in year 2006.

The company raised unsecured loans through banks in the year 2005 and 2006 to the

extent of Rs. 3.92 million and Rs. 55.80 million respectively.

34

ANALYSIS

TABLE 5 TABLE 6PERCENTAGE CHANGE IN FIXED ASSETS EVERY FINANCIAL YEAR AS COMPARED TO TO THE PREVIOUS FINANCIAL YEAR.

PERCENTAGE CHANGE IN FIXED ASSETS EVERY YEAR AFTER PRIVATIZATION AS COMPARED TO BEFORE PRIVATIZATION.

YEARS EFFECT CHANGE(%) YEARS EFFECT CHANGE(%)2001-2002 DECREASE 8.29 2001-2002 DECREASE 8.292002-2003 DECREASE 4.63 2002-2003 DECREASE 108.362003-2004 INCREASE 35.10 2003-2004 INCREASE 146.402004-2005 INCREASE 106.77 2004-2005 INCREASE 302.732005-2006 INCREASE 4.01 2005-2006 INCREASE 314.872006-2007 INCREASE 49.65 2006-2007 INCREASE 471.232007-2008 INCREASE 45.00 2007-2008 INCREASE 683.332008-2009  INCREASE 25.24 2008-2009  INCREASE  855.812009-2010  INCREASE 39.58 2009-2010  INCREASE  1194.602010-2011 INCREASE 45-58 2011-2012 INCREASE 22012-2013 INCREASE 60-62 2012-2013 INCREASE 3

35

FIXED ASSETS

CRORE (Rs.)

ANALYSIS

Financial year 2004-2005 showed an increase of 188.34% in fixed assets as compared to

financial year 2005-2006.

This increase was mainly because after privatization the company’s major profit seeking

unit

Agucha mines went into expansion. Previously it was operating with only one production

line, but from Jan 2005 it introduced stream 2 production line with an expenditure of Rs.

200 crore.

The asset value in 2001 was Rs. 6642.43 million and it increased to Rs.19181 million in

year 2006.

Financial year 2006-2007 showed an increase of 332.16% in fixed assets as compared to

Financial year 2007-2008

IN year 2009-10 (7277.05)fixed assets will be increase as compared to year

2008-09(5213.31)

36

TABLE 7 TABLE 8PERCENTAGE CHANGE IN INVESTMENT EVERY FINANCIAL YEAR AS COMPARED TO PREVIOUS FINANCIAL YEAR

PERCENTAGE CHANGE EVERY IN INVESTMENT YEAR AFTER PRIVATIZATION AS COMPARED TO BEFORE PRIVATIZATION.

YEARS EFFECT CHANGE(%) YEARS EFFECT CHANGE(%)2001-2002 NO

CHANGE_ 2001-2002 NO CHANGE _

2002-2003 NO CHANGE

_ 2002-2003 NO CHANGE _

2003-2004 INCREASE 645.78 2003-2004 INCREASE 645.782004-2005 INCREASE 11.06 2004-2005 INCREASE 828.342005-2006 INCREASE 133.30 2005-2006 INCREASE 1936.272006-2007 INCREASE 174.37 2006-2007 INCREASE 5302.622007-2008 INCREASE 43.81 2007-2008 INCREASE 7625.782008-2009 INCREASE  9.41 2008-2009  INCREASE  8344.012009-2010  INCREASE  58 .02 2009-2010  INCREASE 13185.412010-2011 DECREASE -5 2010-2011 DECRESAE 93342011-12 INCREASE 10 2012-2013 DECREASE

37

CRORE (Rs.)

INVESTMENT

Investments grew by133.30% in financial year 2005-2006 and by 2209.7% in financial

Year 2005-2006 as compared to financial year 2001-2002.

In financial year 2001-2002, investments was made in Andhra Pradesh Gas Corp. Ltd.

But after privatization the company invested in mutual funds.The major being Birla Sun

Life, ICICI Prudential, Reliance, SBI Magnum fund, UTI, HSBC, etc.

In year 2002-03 the investment will be constant

In year 2003-04(619.32) investment will be increase as compare to the year 2002-03

In year 2004-05 (687.87) investment will be increase as compare to the year 2003-04

In year 2005-06 to year 2007-08 investment will be increase continous

In year 2008-09 (6928.87) investment will be increase as compare to the year 2007-08

In year 2009-2010 (10949.17) investment will be increase

2010-2011 (12225.17)

38

ANALYSIS

CURRENT ASSETS, LOANS ANDADVANCES

TABLE 9 TABLE 10PERCENTAGE CHANGE IN CURRENT ASSETS,LOANS AND ADVANCES EVERY FINANCIAL YEAR AS COMPARED TO PREVIOUS FINANCIAL YEAR

PERCENTAGE CHANGE IN CURRENT ASSETS, LOANS AND ADVANCES EVERY YEAR AFTER PRIVATIZATION AS COMPARED TO BEFORE PRIVATIZATION.

YEARS EFFECT YEARS EFFECT2001-2002 DECREASE 2001-2002 DECREASE2002-2003 INCREASE 2002-2003 INCREASE2003-2004 INCREASE 2003-2004 INCREASE2004-2005 DECREASE 2004-2005 DECREASE2005-2006 INCREASE 2005-2006 INCREASE2006-2007 INCREASE 2006-2007 INCREASE2007-2008 INCREASE 2007-2008 INCREASE2008-2009 INCREASE 2008-2009  INCREASE2009-2010 DECREASE 2009-2010  DECREASE2010-2011 INCREASE 2010-2011 INCREASE2011-2012 INCREASE 2011-2012 INCREASE2012-2013 INCREASE 2012-2013 INCREASE

39

CRORE (Rs.)

PARAMETERS

ANALYSIS

There is an increase in current assets to the extent of 94.26% in financial year 2007-2008

from financial year 2001-2002 due to increase in debtors,cash & bank balances

However this increase was followed by a decrease of 3.68% in financial year 2004-2005 as

compared to financial year 2001-2002.

40

CURRENT ASSETS

LOANS &ADVANCES

INVENTORIES

SUNDRY

DEBTORS

CASH AND

BANK BALANC

ES

LOANS AND

ADVANCES

OTHER CURRE

NT ASSETS

CURRENT LIABILITIES AND PROVISIONS

TABLE 11 TABLE 12PERCENTAGE CHANGE IN CURRENT LIABILITIES AND PROVISIONS EVERY FNANCIAL YEAR AS COMPARED TO PREVIOUS FINANCIAL. YEAR

PERCENTAGE CHANGE IN CURRENT LIABILITIES AND PROVISIONS EVERY YEAR AFTER PRIVATIZATION AS COMPARED TO BEFORE PRIVATIZATION

YEARS EFFECT CHANGE(%) YEARS EFFECT CHANGE(%)2001-2002 DECREASE 14.98 2001-2002 DECREASE 14.982002-2003 INCREASE 1.63 2002-2003 INCREASE 101.632003-2004 INCREASE 49.24 2003-2004 INCREASE 151.722004-2005 INCREASE 20.16 2004-2005 INCREASE 173.732005-2006 INCREASE 17.87 2005-2006 INCREASE 204.782006-2007 INCREASE 37.06 2006-2007 INCREASE 280.692007-2008 INCREASE 8.66 2007-2008 INCREASE 305.032008-2009 INCREASE 11.40 2008-2009  INCREASE  339.832009-2010  INCREASE 32.45 2009-2010  INCREASE  450.122010-2011 INCREASE 10.00 2010-2011 INCREASE 470.202011-2012 INCREASE 12.00 2011-2012 INCREASE 495.002012-2013 INCREASE 15 2012-2013 INCREASE 525.00

ANALYSIS

41

MILLION (Rs.)

The current liabilities has increased by 204.78% in financial year 2005-2006 as compared

to financial year 2001-2002 i.e before privatization.

This increase was mainly due to increase in provisions & current liabilities of the company.

In year 2002-03 (299.35crore ) current liabilities and provision will be increase as

compared to the previous year 2001-02 (294.54 crore)

As compared to 2001 -02 current liabilities& provisions will be increase continuous

because increase in the provision &current liabilities

In year 2008-09 (1000.95) current liabilities & provision will be increase as compared to

the previous year

In year 2009-2010 (1325.80) current liabilities &provision will be increases as compared to

the previous year.

In year 2010-2011 (1959) current liabilities &provision will be increases as compared to

the previous year.

In year 2011-2012 (2118.60) current liabilities &provision will be increases as compared to

the previous year.

In year 2012-2013 (2364) current liabilities &provision will be increases as compared to

the previous year.

42

TABLE 15 TABLE 16Percentage Change In Income Every Financial Year As Compared To Previous Financial Year

Percentage Change In Income Every Year After Privatization As Compared To Before Privatization

YEARS EFFECT CHANGE(%) YEARS EFFECT CHANGE(%)2001-2002 DECREASE 8.60 2001-2002 DECREASE 8.602002-2003 INCREASE 9.17 2002-2003 INCREASE 92.22003-2004 INCREASE 30.17 2003-2004 INCREASE 126.632004-2005 INCREASE 20.7 2004-2005 INCREASE 152.882005-2006 INCREASE 70.83 2005-2006 INCREASE 261.182006-2007 INCREASE 119.45 2006-2007 INCREASE 575.082007-2008 DECREASE 0.70 2007-2008 DECREASE 571.012008-2009 DECREASE 24.26 2008-2009  DECREASE   432.482009-2010.  INCREASE 32.18  2009-2010  INCREASE   548.102010-20112011-20122012-2013

INCREASE INCREASE INCREASE

20.0010.00

19

2010-20112011-20122012-2013

INCREASE INCREASE INCREASE

570585602

43

INCOME CRORE (Rs.)

ANALYSIS

There is an increase of 15.7% in financial year 2003-2004 as compared to financial year

2001-2002.This increase is mainly because of the increase in sales by Rs. 3706 million.

There is an increase of 39.7% in financial year 2004-2005 i.e increase of Rs. 6644.5

million from financial year 2001-2002.

There is an increase of 138% in financial year 2005-2006 i.e increase of Rs. 23202.5

million from financial year 2001-2002

There is an increase of 20% in financial year 2010-2011 i.e increase of Rs. 10489 CR

from financial year 2010-2011

There is an increase of 00% in financial year 2011-2012 i.e increase of Rs. 12061 CR

from financial year 2011-2012

There is an increase of 18% in financial year 2012-2013 i.e increase of Rs. 14731 CR

from financial year 2012-2013

44

EXPINDITURE CRORE (RS)

TABLE 17 TABLE 18PERCENTAGE CHANGE IN EXPENDITURE EVERY FINANCIAL YEAR AS COMPARED TO PREVIOUS FINANCIAL YEAR

PERCENTAGE CHANGE IN EXPENDITURE EVERY YEAR AFTER PRIVATIZATION AS COMPARED TO BEFORE PRIVATIZATION.

YEARS EFFECT CHANGE(%) YEARS EFFECT CHANGE(%)2001-2002 INCREASE 2.51 2001-2002 DECREASE 20512002-2003 DECREASE 1.04 2002-2003 DECREASE 82.532003-2004 DECREASE 8.91 2003-2004 DECREASE 80.052004-2005 INCREASE 23.68 2004-2005 INCREASE 99.002005-2006 INCREASE 25.02 2005-2006 INCREASE 123.782006-2007 INCREASE 31.59 2006-2007 INCREASE 164.122007-2008 INCREASE 17.37 2007-2008 INCREASE 192.642008-2009 INCREASE 18.55 2008-2009  INCREASE  228.392009-2010  INCREASE 14.50  2009-2010  INCREASE  261.512010-2011 INCREASE 10.00 2010-2011 INCREASE 272.582011-2012 INCREASE 11.25 2011-2012 INCREASE 285.452012-2013 INCREASE 13.25 2012-2013 INCREASE 301.25

45

ANALYSIS

After privatization in the financial year 2003-2004 there is a decrease in expenditure up

to 18% as compared to financial year 2001-2002.

However there is a slight increase in expenditure in the financial year 2004-2005 as

mining expenses and depreciation increased up to Rs. 2612 million and Rs. 286.25

million respectively.

There is a huge increase of 30% in expenditure in the financial year 2005-2006 as interest

and depreciation increased up to Rs. 4452 million and Rs. 832.6 million respectively

There is a increase of 10% in expenditure in the financial year 2010-2011 as interest and

depreciation increased up to Rs. 4422 cr. in respectively

There is a huge increase of 11.25% in expenditure in the financial year 2011-2012 as

interest and depreciation.

There is a huge increase of 13.25% in expenditure in the financial year 2012-2013

46

NET PROFIT

TABLE 19 TABLE 20PERCENTAGE CHANGE IN NET PROFITS EVERY FINANCIAL YEAR AS COMPARED TO PREVIOUS FINANCIAL YEAR

PERCENTAGE CHANGE IN NET PROFIT EVERY YEAR AFTER PRIVATIZATION AS COMPARED TO BEFORE PRIVATIZATION

YEARS EFFECT CHANGE(%) YEARS EFFECT CHANGE(%)2001-2002 DECREASE 59.83 2001-2002 DECREASE 59.832002-2003 DECREASE 109.16 2002-2003 DECREASE 209.162003-2004 DECREASE 184.61 2003-2004 DECREASE 59532004-2005 INCREASE 61.97 2004-2005 INCREASE 964.22005-2006 INCREASE 124.6 2005-2006 INCREASE 2104.72006-2007 INCREASE 201.6 2006-2007 INCREASE 6535.92007-2008 DECREASE 1.03 2007-2008 DECREASE 6468.62008-2009 INCREASE 37.96 2008-2009  INCREASE  4013.122009-2010 INCREASE 48.16 2009-2010  INCREASE  5946.142010-2011 INCREASE 16.00 2010-2011 INCREASE 53422011-20122012-2013

INCREASEINCREASE

19.0021.00

2011-20122012-2013

INCREASEINCREASE

66678513

47

MILLION (Rs.)

ANALYSIS

48

After privatization in April 2002 the profits of the

company in the consecutive four financial years were:

Increase of 139% in financial year 2003-2004

Increase of 287% in financial year 2004-2005

Increase of 780% in financial year 2005-2006

Increase of 2525% in financial year 2006-2007

Profits in 2002-2003 was 109% of the previous year

2001- 2002.

Profits in 2003-2004 was 184% of the previous year

2002- 2003.

Profits in 2004-2005 was 62% of the previous year

2003-2004.

The profit % decreased in financial year 2004-2005

as heavy investment was made in introducing stream

II production line in Rampura Agucha mines.

Profits in 2006-2007 were 202% of the previous year 2005-2006.

Profits in 2010-2011 is 4902

Profits in 2011-2012 is 4632

Profits in 2012-2013 is 6927

TURNOVERMILLIONS(RS)

TABLE 21

TABLE 21TABLE 22

PERCENTAGE CHANGE IN TURNOVER EVERY FINANCIAL YEAR AS COMPARED TO PREVIOUS FINANCIAL YEAR.

PERCENTAGE CHANGE IN TURNOVER EVERY YEAR AFTER PRIVATIZATION AS COMPARED TO BEFORE PRIVATIZATION

YEARS EFFECT CHANGE(%) YEARS EFFECT CHANGE(%)2001-2002 DECREASE 6.56 2001-2002 DECREASE 6.562002-2003 INCREASE 16.29 2002-2003 INCREASE 112.172003-2004 INCREASE 30.48 2003-2004 INCREASE 125.232004-2005 INCREASE 18.75 2004-2005 INCREASE 148.712005-2006 INCREASE 76.05 2005-2006 INCREASE 263.652006-2007 INCREASE 120.04 2006-2007 INCREASE 582.132007-2008  DECREASE 7.97  2007-2008  DECREASE 535.122008-2009 DECREASE 27.89 2008-2009  DECREASE 386.282009-2010  INCREASE 41.13  2009-2010  INCREASE   545.192010-2011 INCREASE 10 2010-2011 INCREASE 6002011-2012 INCREASE 16 2011-2012 INCREASE 615

2012-2013 INCREASE 14 2012-2013 INCREASE 650

49

EARNING PER SHARE

TABLE 23 TABLE 24PERCENTAGE CHANGE IN EPS EVERY FINANCIAL YEAR AS COMPARED TO PREVIOUS FINANCIAL YEAR.

PERCENTAGE CHANGE IN EPS EVERY YEAR AFTER PRIVATIZATION AS COMPARED TO BEFORE PRIVATIZATION.

YEARS EFFECT CHANGE(%) YEARS EFFECT CHANGE(%)2001-2002 DECREASE 59.84 2001-2002 DECREASE 59.842002-2003 INCREASE 109.20 2002-2003 DECREASE 209.202003-2004 INCREASE 184.00 2003-2004 INCREASE 595.462004-2005 INCREASE 61.97 2004-2005 INCREASE 964.492005-2006 INCREASE 124.69 2005-2006 INCREASE 2168.712006-2007 INCREASE 201.66 2006-2007 INCREASE 6537.562007-2008 DECREASE 1.02 2007-2008 DECREASE 6470.212008-2009 DECREASE 37.95 2008-2009  DECREASE  4014.552009-2010  INCREASE 48.16 2009-2010  INCREASE  5948.192010-2011 DECREASE -800 2010-2011 DECREASE 1000.002011-2012 INCREASE 10 2011-2012 INCREASE 1025.002012-2013 INCREASE 18 2012-2013 INCREASE 1060

50

MILLION (Rs.)

ANALYSIS

There has been a tremendous increase in EPS after privatization.

In 2003-2004 EPS was Rs. 95.75

In 2004-2005 EPS was Rs. 155.09

In 2005-2006 EPS was Rs. 348.73

In 2006-2007 EPS was Rs.1051.24

IN 2007-2008 EPS was RS 104O.41

IN 2008-2009 EPS was Rs 645.54

IN 2009-2010 EPS was Rs 956.47

EPS IN 2001-2002 WILL BE DECREASE

IN 2007-2008 &2008-2009 EPS ALSO DECREASE

51

5’SMODULESORT : clearly distinguish SYSTAMATIC: keep needed items from unneeded needed items in correct items & eliminate the later place &sequence to use to allow for easy &quick retrieval

STANDARIZE: set easy to follow SHINE: clean it so Standards & develop a structure defects are easy to to support the first three pillars spot & eliminate.

STANDARIZE SHINE IT (STANDARDIZE CLEANUP) (CLEANLINESS)

52

SUSTAIN:self discipline _educate people so that 5S expands beyond initial limits & turns into naturalstandard behaviour

INTRODUCTION

OF

MODERN TECHNIQUES OF

ANALYSIS

OF

FINANCIAL STATEMENT

53

MEANING AND DEFINITIONS

“Analysing Financial Statements is a process of evaluating the relationship between component

parts of a financial statement to obtain a better understanding of a firm’s position and

performance.”

Metcaff and Titard

“The Analysing interpretation of the Financial Statements results in the presentation of

information that will be aid in decision-making by business mangers, investors and creditors as

well as other group who are interested in the financial status and operating results of a business.”

Kennedy and McMullen

“Financial Statement Analysis is largely a study of relationship among the various financial

factors in a business, as disclosed by a single set of statements and a study of the trends of these

factors, as shown in a series of statements.”

John N. Myer

“Interpretation of accounts may be defined as the art and science of translating the figures in such

a way as to reveal the financial strength and weakness of a business and the causes which have

contributed therein.”

Spicer and Pegler

54

TECHNIQUES OF THE FINANCIAL STATEMENT ANALYSIS

The analytical tools or techniques of financial statement analysis are used to ascertain or measure the relationship among the financial statement items of a single set of statement along with the change that have taken place in these items in successive year. The following are the more commonly used techniques in the analyzing financial statements.

1. Ratio Analysis2. Trend Analysis3. Funds Flow Analysis4. Common-size statements analysis5. Other techniques of Analysis

A detailed description of the above-cited techniques is given below

1. Ratio Analysis:-

Alexander wall is said to have been the founder of the ratio analysis. In 1909 he put forth a detailed article on ratio analysis in which he said that analysis could be made easier by establishing a quantitative relationship between the various items contained in financial statement.

‘Ratio Analysis’ is the primary technique used in judging the condition as portrayed by the financial statements. In certain situations the ratios can be used to study financial growth, development and the existing condition of an enterprise.

“A ratio is simply one number expressed in terms of another. It is calculated by dividing one number- the base, by the other. A percentage is one kind of ratio in which the base is taken as equaling 100 and the quotient is expressed as ‘per hundred’ of the base.”

The analyst and interpreter must draw inferences before arriving at any conclusion regarding the financial position of an enterprise, within the established criteria. Thus, the ratios are not conclusive and final in themselves. “It should be remembered that ratios are only guides in the analysis of financial statements, and not conductive ends in themselves.” Stressing the importance of ratios, Korn S. Winton has observed “ If a ratio is to be important, it must not only represent a true relationship, but must also aid the analyst in making his immediate decision.”

The ratio used in financial statement analysis may be classified as under : -

a) Balance Sheet Ratiob) Profit and Loss Account Ratiosc) Combined or Inter-statement Ratios

The details of the above are as follows:

55

a) Balance Sheet Ratio - Balance Sheet Ratio are the ratio are the ratios which express the relationship between two items or groups of items appearing in the balance sheet, such as Current Ratios, Acid Test Ratio, Debt-Equity Ratios etc.

b) Profit and Loss Account Ratios – These are ratios by which a relationship is established between two items or groups of item appearing in the Profit and Loss Account, such as profit margin, inventory ratio, operating ratio, etc.

c) Combined or Inter-statement Ratios – The third type of ratios express the relationship of figures between two items or group of items-one appearing in the balance sheet and the other in the Profit and Loss Account, such as net Profit to Net Profit to Net Worth Ratio, Sales to Working Capital Ratio, Return on Share-holder’s fund Ratio, etc.

The other way of classifying the ratio is according to the nature and object of calculating ratio. The classification may be as given below:

a) Liquidity Ratiosb) Profitability Ratiosc) Leverage Ratiosd) Activity Ratio

A brief description of the above classification is as following:a) Liquidity Ratios - The ratios which measure the working capital position and the

enterprise’s ability to make payment of short-term obligations are called liquidity ratios for example, Current Ratio, Quick Ratio, Inventory to working Capital Ratio, etc.

b) Profitability Ratios - These ratios which X-Ray the profit making ability of the enterprise and the management’s efficiency in operating the business activities, like Net Profit to Net Worth Ratio, Return on Capital Employed, Operating Profit Ratios, etc.

c) Leverage Ratios - These ratio measure the extent to which the enterprise has been financed by own funds or debts such as Debt Equity Ratio, Capital Gearing Ratio, Propriety Ratio, etc.

d) Activity Ratio- These are designed to measure whether the enterprises is using resources, skillfully and effectively as Turnover of Fixed Assets, Turnover of Working Capital, etc.

2. Trend AnalysisTrend Analysis depicts the changes in an item is an item or a group of item of financial statement over a period of time. Trend figures are index numbers giving a bird’s eye-view over a period of time. A normal year is chosen as the base year and the figures of that year are taken equal to a hundred and index Number of the remaining years under study of that particular item are calculated. It is a dynamic and horizontal type of analysis indicating whether the enterprise’s direction of trend is upward or downward. Based on the past trend a forecast can be made above the future.

3. Fund Flow AnalysisBalance sheet reveals the financial position of an enterprise at a given moment of time while the dynamic business operating involves a regular and smooth flow of funds affecting there by in some way or the other the preceding financial position The inflow and outflow of funds constitutes the core of the enterprise and provides a basis for analyzing the financial position the funds flow statement shows the sources and uses – from where funds were obtained and the used to which these funds were put-in during a period of time the sources may due to an increase in capital and loan by sale of fixed assets and investments and because of operating profits the uses

56

may be the consequence of a decrease in capital and loans by purchase of fixed assets and investments and on account suffering of operating losses. 4. Common- size statement Analysis

The comparative financial statements and the ratios as tools of analysis have one common shortcoming- the analyst can’t comprehend the changes that have taken place in relation to total assets in case of balance sheet and net sales in case of profit and loss account.

The common-size statement analysis is a technique of analyzing financial statement in which the total of assets or liabilities and net sales with reference to balance sheet and profit and loss account respectively are taken equal to a hundred and the percentage of each items is calculated accordingly. The technique is “useful when we wish to compare one company with the other for presentation of the data in the percentage from, eliminates problems relating to differences in organization size.” R.D. Kennedy and McMullen observed that, “The common-size statement are most valuable to the analyst in studying current financial position and operating result of a business and especially in making comparisons between companies in the same industry and with the industry standards.”

5. Comparative Financial Statements Analysis

Comparative Financial Statements refers to various financial statement of an enterprise, which are prepared in such a way so as to provide a relative picture of the various elements embodies in such statements. These statements mainly include two types of analytical statement viz-comparative balance sheets and comparative income statements, which facilitate comparison between two or more similar enterprises in the same industry and two or more periods for the same enterprise. The committee of accounting procedure of the AICPA commented for Comparative Financial Statements “the presentation of Comparative Financial Statements in annual and other reports enhances the usefulness of such reports and brings out more clearly the nature and trends of current changes affecting the enterprise. Such presentation emphasizes the fact that statement for a series of periods are far more significant than those for a single period.”The comparative statements indicate the (a) absolute date in money value, (b) increase or decrease in absolute data in term of money value, and (c) increase or decrease in absolute data in terms of percentage.

6. Other Techniques for the Analysis

There are so many other techniques, besides those enumerated above, applying in analyzing financial statements. The help of several statistical tools in financial statement analysis in sought. These include index numbers, standard deviation, Coefficient of standard deviation, correlation regression, Chi-square, F-Test etc.

The use of diagrams and graphs is also common for making financial statement analysis, providing a vived picture of trends and relationships. Sometimes the techniques of break-even analysis and cash flow analysis are also used.

57

TYPE OF ANALYSIS

CLASSIFICATION ACCORDING TO MATERIAL USED

Internal Analysis

External Analysis

CLASSIFICATION ACCORDING TO PROCESS OF ANALYSIS

Dynamic or Horizontal Analysis

Static or Vertical Analysis

PROCESS OF FINANCIAL ANALYSIS

1. Study of Financial Statements

2. Rearrangement of Financial Information

3. Approximation

4. Establishing the Relationship among elements

5. Knowledge of the Trend

6. Deep Study of Trend

7. Conclusions and Advice

MERITS OF ANALYSIS

MANAGER’S OBJECTIVES

Efficiency

Decision Making

Control

Valuation

LENDER’S OBJECTIVES

Liquidity

Safety

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Credit

Repayment Capacity

Earning Capacity

INVESTOR’S OBJECTIVES

Managerial Efficiency

Earning Capacity or Profitability

Safety

Market Situation

OWNER’S OBJECTIVES

GOVERNMENT’S OBJECTIVES

LABOURER’S OBJECTIVES

MISCELLANEOUS PARTIES OBJECTIVES

FUNCTIONAL IMPORTANCE

Disclosure of Information

Decision Making

Work Operation

Coordination

Control

Planning

Comparative Study

Availability of Necessary Information to Related Parties

DEMERITS OF ANALYSIS

ONLY CURRENT YEAR’S DATA ARE INSUFFICIENT

PAST DATA ARE NOT RELIABLE

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QUICK CHANGES IN PRICE LEVEL

RESULTS OF FINANCIAL ANALYSIS AND FACTS

Balance Sheet

Particulars Mar'13 Mar'12 Mar'11 Mar'10 Mar'09

Liabilities12 Months 12 Months 12 Months 12 Months 12 Months

Share Capital 845.06 845.06 845.06 422.53 422.53

Reserves & Surplus 31430.68 26036.20 21688.13 17701.44 13935.05

Net Worth 32275.74 26881.26 22533.19 18123.97 14357.58

Secured Loan .00 .00 .00 .00 8.30

Unsecured Loan .39 .39 .39 60.47 .39

TOTAL LIABILITIES 32276.13 26881.65 22533.58 18184.44 14366.27

Assets

Gross Block 12264.80 11657.90 9802.33 8240.66 5855.51

(-) Acc. Depreciation 3781.06 3145.08 2548.12 2076.57 1750.59

Net Block 8483.74 8512.82 7254.21 6164.09 4104.92

Capital Work in Progress 1081.85 604.94 875.23 1112.96 1108.39

Investments 14539.88 12694.85 9334.59 10949.17 6928.87

Inventories 1111.09 797.94 762.38 451.74 545.66

Sundry Debtors 402.87 332.45 208.89 151.83 164.94

Cash and Bank 6942.10 5255.32 5632.91 927.53 2719.15

Loans and Advances 2903.88 1243.90 991.82 466.64 366.67

Total Current Assets 11359.94 7629.61 7596.00 1997.74 3796.42

Current Liabilities 2364.41 2118.60 1959.37 1699.98 1374.20

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Provisions 824.87 441.97 567.08 339.54 198.13

Total Current Liabilities 3189.28 2560.57 2526.45 2039.52 1572.33

NET CURRENT ASSETS 8170.66 5069.04 5069.55 -41.78 2224.09

Misc. Expenses .00 .00 .00 .00 .00

TOTAL ASSETS(A+B+C+D+E) 32276.13 26881.65 22533.58 18184.44 14366.27

Profit and Loss Account

  Mar'13 Mar'12 Mar'11 Mar'10 Mar'09

  12Months 12Months 12Months 12Months 12Months

INCOME:

Sales Turnover 13658.14 12061.09 10489.82 8437.87 6141.47

Excise Duty 958.30 648.70 581.89 414.71 452.96

NET SALES 12699.84 11412.39 9907.93 8023.16 5688.51

Other Income 0 0 0 0 0

TOTAL INCOME 14731.99 12009.96 10857.81 8690.62 6520.54

EXPENDITURE:

Manufacturing Expenses 1736.78 2890.89 2459.33 1879.46 1588.80

Material Consumed 1855.59 1472.18 1032.76 662.93 652.58

Personal Expenses 649.91 534.64 510.78 457.36 379.00

Selling Expenses .00 179.99 174.13 172.89 176.02

Administrative Expenses 1975.92 265.23 259.08 193.47 178.89

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Expenses Capitalised .00 .00 -14.05 -13.33 -20.94

Provisions Made .00 .00 .00 .00 .00

TOTAL EXPENDITURE 6218.20 5342.93 4422.03 3352.78 2954.35

Operating Profit 6481.64 6069.46 5485.90 4670.38 2734.16

EBITDA 8513.79 6667.03 6435.78 5337.84 3566.19

Depreciation 647.04 610.67 474.74 334.25 285.27

Other Write-offs .00 .00 .00 .00 .00

EBIT 7866.75 6056.36 5961.04 5003.59 3280.92

Interest 29.10 13.95 18.28 40.75 21.88

EBT 7837.65 6042.41 5942.76 4962.84 3259.04

Taxes 910.07 1410.21 1040.76 972.89 663.05

Profit and Loss for the Year 6927.58 4632.20 4902.00 3989.95 2595.99

Non Recurring Items -17.53 902.13 14.77 43.81 91.05

Other Non Cash Adjustments -10.57 -8.29 -16.28 7.65 40.57

Other Adjustments .00 .00 .00 .00 .00

REPORTED PAT 6899.48 5526.04 4900.49 4041.41 2727.61

KEY ITEMS

Preference Dividend .00 .00 .00 .00 .00

Equity Dividend 1309.85 1014.08 422.53 253.52 169.01

Equity Dividend (%) 155.00 120.00 50.00 60.00 39.99

Shares in Issue (Lakhs) 42253.19 42253.19 42253.19 4225.32 4225.32

EPS - Annualised (Rs) 16.33 13.08 11.60 95.65 64.55

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RESEARCH METHODOLOGY

Research is common parlance to refer to a search for knowledge. We can also define research as

“Scientific ad systematic search for pertinent information on a specific topic” Research is careful

investigation or inquiries for new facts in any branch of knowledge. Researches are basically

systematic inquiry with customer’s critical examination with objectives to search new facts or

interpret know facts in new light.

Research methodology is a way to systematically solve the research problems. It may

be understood as a science of studying how research is done scientifically. We study

the various steps that are generally adopted by a researcher in studying his research

problem along with the logic behind them.

It is necessary for the researcher to know not only need to know how to develop certain

indices or tests, how to calculate the mean, the mode, the median, standard deviation

and chi – square, how to apply the particular research techniques, are relevant and

which are not and what would they mean and indicate and why?

Researchers also need to understand the assumptions underlying various techniques

and they need to know the criteria by which they can decide that certain techniques and

procedures will be applicable to certain problems and others will not.

Two type of research design was used?

Exploratory Research Design

Descriptive Research Design

Exploratory Research

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Exploratory research is a type of research conducted because a problem has not been

clearly defined. Exploratory research helps determine the best research design, data

collection method and selection of subjects. Given its fundamental nature, exploratory

research often concludes that a perceived problem does not actually exist.

Exploratory research often relies on secondary research such as reviewing available

literature and/or data, or qualitative approaches such as informal discussions with

consumers, employees, management or competitors, and more formal approaches

through in-depth interviews, focus groups, projective methods, case studies or pilot

studies. The Internet allows for research methods that are more interactive in nature:

E.g., RSS feeds efficiently supply researchers with up-to-date information; major search

engine search results may be sent by email to researchers by services such as Google

Alerts; comprehensive search results are tracked over lengthy periods of time by

services such as Google Trends; and Web sites may be created to attract worldwide

feedback on any subject.

The results of exploratory research are not usually useful for decision-making by

themselves, but they can provide significant insight into a given situation. Although the

results of qualitative research can give some indication as to the "why", "how" and

"when" something occurs, it cannot tell us "how often" or "how many."Exploratory

research is not typically generalizable to the population at large.

Descriptive Research

Descriptive research is also known as statistical research, describes as data and

characteristics about the population or phenomenon being studied. Descriptive research

answers the questions who, what, where, when and how.

Although the data description is factual accurate and systematic, the research

cannot describe what caused a situation. Thus, descriptive research cannot be used to

create a casual relationship, where one variable affects another. In other words,

descriptive research can be said to have a low requirement for internal validity.

The description is used for frequencies, averages and other statistical calculations.

Often the best approach, prior to writing descriptive research, is to conduct a survey

investigation. Qualitative research often has the aim of description and research may

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follow-up with examinations of why the observations exist and what the implications of

the findings are.

In short, descriptive research deals with everything that can be counted and

studied. However, there are always restrictions to that. Your research must have an

impact to the lives of the people around you. For example, finding the most frequent

disease that affects the children of a town. The reader of the research will know what to

do to prevent that disease thus; more people will live a healthy life.

The main goal of this type of research is to describe the data and characteristics

about what is being studied. The idea behind this type of research is to study

frequencies, averages, and other statistical calculations. Although this research is highly

accurate, it does not gather the causes behind a situation.

Descriptive research is mainly done when a researcher wants to gain a better

understanding of a topic for example; a frozen ready meals company learns that there is

a grown demand for fresh ready meals but does not know much about the area of fresh

food and so has to carry out research in order to gain a better understanding. It is

quantitative and uses surveys and the use of probability sampling.

Descriptive research is the exploration of the existing certain phenomena. The

details of the facts would not be known. The persons know the existing phenomena’s

facts.

We use the Descriptive research for the study which is explore the existing

certain phenomena.

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What data collection methods were used?

Primary Data Collection Methods:

In primary data collection, you collect the data yourself using methods such as

interviews and questionnaires. The key point here is that the data you collect is unique

to you and your research and, until you publish, no one else has access to it. There are

many methods of collecting primary data and the main methods include:

Questionnaires

Interviews

Secondary Data Collection Methods:

Secondary data is the data which is available in readymade form and which is already

used by people for some purposes. There may be various sources of secondary data

such as-newspapers, magazines, journals, books, reports, documents and other

published information.

Objective of Research

The main objective of study is to analyses the working capital management of

Hindustan Zinc Limited.

Working capital management is very important in modern business. When we analyze

and interpret the financial statement analysis of working capital is very useful for

short term management of funds.

Working involves investment of funds of the company.

To make the analysis of elements or components of working capital to identify

the items responsible for changes in working capital.

To study the liquidity position of the company.

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RESEARCH PLAN

Data source Secondary data Different form as hand books, reports, magazines, websites etc.

Research design Analytical research

Scope of data For ratio analysis i got only five years data (2001-02 & 2005-06) through companies’ booklet

Research tool Trend analysisCompounded annual growth rateLine chart, pie chart

CONCLUSION

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Ratio analysis is a very useful tool investigates, analyze & forecast the managerial issues.

Ratio analysis is a process of identifying the financial strengths & weakness of the

company. Liquidity ratios measure the firm’s ability to meet current obligation. Liquidity

plays a very momentous role in business management or to run the business.

Current ratio is a test of quality. It does not measure the quality of assets. Liabilities are

not subject to any fall in value of current ratio; it is very beneficial for the company to

increase the confidence level of creditors.

Quick ratio of the company is also crossed the satisfactory level of quick ratio. Thus, if

HZl do not sale their inventory & it has to pay all its current liabilities, it may not face

any difficulty to meet its obligation because its quick assets are 1.53 times of current

liabilities.

Proportion of net working capital over the current liabilities is positive; it shows that

company having good liquidity & is in sound condition.

1942

- A small lead smelting pilot plant was set up at Tundoo near Dhanbadin Bihar.

1944

- Metal Corporation of India (MCI) was formed and all the assets of theCompany were

transferred to MCI.

1945

- The Government of India surrendered the mining rights over Zawar toMewar durbar and MCI

obtained the prospecting licence for 2 years andin 1950 obtained a mining lease.

1960

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- MCI obtained licence for production of 9 000 tpa of lead and 5 40 000Ozs of silver p.a.

1966

- The company was Incorporated 10th January in Rajasthan. The Companyis a producers of Zinc

and lead from the Company's Mines and Smelters.

1990

- Facilities for production of cobalt and indigenous lead-zinc oreswere commissioned during the

year. In-house technology for therecovery of cobalt was made possible through R&D and

Cooperation withBARC.

1993

- The application for prospecting licence for gold for Bhukia JagpuraBanswara District and

Dungarpur District Rajasthan was subletted toRajasthan Government.

1994

- 40 37 31 900 shares disinvested in favour of Mutual Funds andFinancial Institutions. The

Company allotted 188 00 000 shares to thePresident of India in 1992.

1996

- The Company entered into a MOU with BHP minerals Ltd. Australia forjoint venture project

for exploration of base precious minerals inRajasthan. Another MOU was entered into with

Vigego Vietnam andLa-Sarce France for a joint venture project for exploration at Pac-LangGold

prospect in Vietnam.

1997

- The Company decided to develop Sindesar Khurd Lead-Zinc Silverdeposit in Rajsamand

Rajasthan as a replacement mine to Rajpura-Daribawith a capacity to produce 1000 tpd Ore. The

Company closed its DeganaTungstan Mine in Rajasthan as its operations became uneconomical.

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- Hindustan Zinc Ltd and Rajasthan State Mines and Minerals Ltd (RSMML)signed a

memorandum of understanding of set up a Rs.3 300 crore powerproject near Udaipur in

Rajasthan.

- Hindustan Zinc Ltd (HZL) has entered into a memorandum of understanding for 1997-98 with

the Government of India.

- Public sector Hindustan Zinc has entered into three separate agreements with international

mining majors for diversification intomining and prospecting of previous minerals in India and

abroad.

- The company has formed a joint venture with BRMG of France and Vietnam Rare & Precious

Minerals Corporation (VMC) to explore anddevelop gold mines in the Southeast Asian country.

- The company's second joint venture is with Nuigini Mining forexploration of gold in Andhra

Pradesh Uttar Pradesh Madhya Pradeshand Karnataka.

- The company's third joint venture is with the Australian major Broken Hill Proprietaries for

prospecting of non-ferrous metals likezinc lead copper as well as gold in Rajasthan.

- Hindustan Zinc Ltd (HZL) a public sector enterprise under theMinistry of Mines has entered

into a memorandum of understanding (MoU)with BHPM Australia for grassroot exploration of

zinc and lead alongwith other precious minerals in Rajasthan.

- HZL has also entered into a MoU with CSIR for setting up a nickeltechnology proving plant

(TPP) for extraction of nickel from overburdenof chromite at Sukhinda mines in Orissa.

- HZL is likely to install a new zinc smelter with a capacity of around60 000 to 1 00 000 tonnes

work for which will be initiated in 1998-99 and the plant is likely to be commissioned by the end

of the Ninth Planor early Tenth Plan.

- HZL is also negotiating with another Australian company Pasminco forgrassroot exploration of

Ajmer district in Rajasthan.

- HZL has signed MoUs with three foreign companies - BHP Mining and Nuigini Mining (NML)

for exploration and exploitation of base andprecious metals in India and BRGM/VMC for gold

prospecting in Vietnam.

70

- The Rampura-Agucha mines of Hindustan Zinc Limited (HZL) has beenawarded ISO 9002

certificate for quality management system by SGSYarsley International Certificate Services

Limited.

1998

- Crisil has assigned a P1+ rating to the Rs.10-crore short-termdeposit programme of Hindustan

Zinc.

- The Foreign Investment Promotion Board (FIPB) has approved a jointventure proposal of

Australian mining giant BHP and the State ownedHindustan Zinc Ltd (HZL) to mine base metals

in Rajasthan.

- The power plant is being set up in joint venture with the state-owned Rajasthan State Mines and

Minerals Ltd.

- Public sector Hindustan Zinc Limited (HZL) will set-up a 100 megawatt (mw) captive power

plant in Rajasthan to meet its power requirement for existing mines in the region.

1999

- Rashtriya Chemicals & Fertilisers (RCF) Hindustan Zinc (HZL) andRajasthan State Mines &

Minerals (RSMML) have signed a memorandum ofunderstanding for a Rs 300-crore

diammonium phosphate (DAP) project inRajasthan.)

- Public sector Hindustan Zinc has commenced closure of loss-makingunits as part of its strategy

for improving valuation of the companyprior to its privatisation.

2002

-The US$1.3 billion Sterlite Group (Sterlite) announces that it has been declared the successful

bidder for the acquisition of a 26% equity stake in Hindustan Zinc Ltd (HZL) for Rs 4450 million

($91.30 m) through Sterlite Opportunities and Ventures Ltd a Special Purpose Vehicle set up for

the same.

71

-Sterlite Industries India Ltd has informed that US $ 1.3 billion Sterlite Group on April 11 2002

made payment of Rs 4450 million to the Govt. of India and completed the acquisition of 26%

stake in Hindustan Zinc Ltd.

-Hindustan Zinc Ltd has the following changes in management structure:

-Directors ceased Mr B N Mittal Chairman-MD Mr A N Mittal Director Dr Vinayahil Gautam

Director Dr S K Gupta Director.

-Directors nominated on behalf of strategic partner ie Sterlite opportunities and ventures Ltd w e

f April 11 2002. Mr K K Kaura Managing Director Mr Anil Agarwal Additional DirectorMr

Navin Agarwal Additional Director Mr Tarun Jain Additional Director Mr C V Krishnan

Additional Director Mr C A Sundaram Additional Director.

-Govt. Nominee Directors w e f April 11 2002;Dr A K Kundra Chairman Mr A C Wadhawan

Director Mr Nand Kishore Shukla Director.

- Mr C Sankaran Company Secretary & GM has been nominated as Compliance Officer by the

Board.

-Govt of India has disinvested 26% of the paid up capital of theHindustan Zinc Ltd ie 109858294

number of shares along with management control in favour of Sterlite Opportunities and

Ventures Ltd (SOVL).

2003

-HZL's Zinc Smelter Vishakapatnam is accredited with ISO 9000:2000 certificationfor its quality

management system for manufacturing primary zinc cadmium metalsand sulphuric acid through

hydro metallurgical process.

-Hindustan Zinc Ltd registered a 113.58% growth in its net profit.

-HZL a part of Sterile Group has raised $12 million worth of ECBs for its ambitiousCapacity

Expansion (Capex) programme.

-Hindustan Zinc Ltd has informed that Mr Aditya Narayan has jointed the Sterlite Group and will

take responsibility as Managing Director of the Company from Mr K K Kaura CEO Sterlite

72

2005

-Hindustan Zinc Ltd informes the inauguration of the Company's New Zinc Smelter at

Chanderiya in Rajasthan with a production capacity of 170000 Tons Per Annum and 154 MW

Captive Power Plant

-Hindustan Zinc Ltd has given Greentech Environment Excellence Silver Award for 2004-2005

in metal sector for its environment management

2006

-HZL picks up `Golden Peacock' award

2007

-Hindustan Zinc Ltd has appointed Shri. Sanjiv Kumar Mittal Joint Secretary & Financial

Adviser Ministry of Mines as Government Nominee Director on the Board of the Company with

immediate effect in place of Shri. Sujit Gulati.

- Hindustan Zinc Ltd has informed that the President of India vide letter dated November 28

2007 appointed Shri. A K Singh Director Ministry of Mines as Government Nominee Director on

the Board of the Company with immediate effect.

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BIBLIOGRAPHY

Following Sources have been referred in the completion of Summer Training:

BOOKS:

1. Khan M Y & Jain P K (2007) , Financial Management, new delhi: tata mcgraw hill.

2. Agarwal N.P. , Indian Corporate Sector.

3. Kothari C.R. , Research Methodology.

WEBSITES:

1. www.hzlindia.com2. www.vedantaresource.com3. www.google.com

NEWSPAPER:

1. Economic Times

2. Times of India

MAGAZINES:

1. INDIA TODAY

2. BUSSINESS TODAY

3. ANNUAL REPORT OF HZL(2006-2007)

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Thank You

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