Professional Documents
Culture Documents
1
INTRODUCTION
2
1.1 INDUSTRY PROFILE
The petroleum industry in India is a classic example of the strides made by the
1947, the industry was controlled by international companies. Today, a little over 50
years later, the industry is largely in the public domain with skills and technical know-
how comparable to the highest international standards. The testimony of its success in the
past five decades is the significant increase in crude oil production from 0.25 to 33
million tons per annum (MMTPA). The consumption of petroleum products has grown
30 times in the last 50 years from 3 million tons during 1948-49 to about 91 million tons
in 1998-99. A vast network of over 29,000 dealership and distributors has developed and
backed by over 400 storage points over the years to serve the people even in the remote
the refining facilities and increase in the number of refineries from one to seventeen now.
During the first decade of Independence (1947-57) three coastal refineries were
established by multinational oil companies operating in India at that time. They were
Burma shell, Esso Stanvac and Caltex; the first two at Mumbai and the third at
Visakhapatnam.
The second decade (1957-67) witnessed the setting up of Indian Refineries Ltd in
1958, a wholly-owned public sector Government company. Under its banner three
3
refineries were set up at Guwahati (Assam), Bahraini (Bihar) and Koyali (Gujarat)
essentially to process the indigenous crude discovered in Assam and Gujarat. Also, one
joint sector refinery was set up with the participation of an American company at Cochin
The next ten year period (1967-77) witnessed the establishment of two refineries,
one with equity participation from American and Iranian companies at Chennai and
Two more refineries in the public sector have been commenced in the period
1977-87. The refinery at Bongaigon was the first experiment in having an integrated
1982. Major expansions of the coastal refineries at Mumbai, Cochin, Chennai and
Nagappatinam was built in TamilNadu. In 1996, at three MMTPA refineries built in the
joint sector at Mangalore HPCL and India Rayon. This decade also saw significant
expansions of the capacities of the existing refineries, thereby the refining capacity to
about 62 MMTPA.
4
1.3 COMPANY PROFILE
1.3.1 HISTORY
Refineries Limited (MRL) was formed as a joint venture in 1965 between the
Government of India (GOI), AMOCO and National Iranian Oil Company (NIOC) having
a share holding in the ratio 74%: 13%: 13% respectively. Originally ,CPCL Refinery was
set up with an installed capacity of 2.5 Million Tonnes Per Annum (MMTPA) in a record
time of 27 months at a cost of Rs. 43 crore without any time or cost over run.
of GOI and NIOC stood revised at 84.62% and 15.38% respectively. Later GOI
disinvested 16.92% of the paid up capital in favor of Unit Trust of India, Mutual Funds,
Insurance Companies and Banks on 19 th May 1992, thereby reducing its holding to 67.7
%. The public issue of CPCL shares at a premium of Rs. 70 (Rs. 90 to FIIs) in 1994 was
IndianOil acquired equity from GOI in 2000-01. In July 2003, NIOC transferred their
entire shareholding to Naftiran Intertrade Company Limited, an affiliate, in line with the
5
CPCL has two refineries with a combined refining capacity of 10.5 Million
Tonnes Per Annum (MMTPA). The Manali Refinery has a capacity of 9.5 MMTPA and
is one of the most complex refineries in India with Fuel, Lube, Wax and Petrochemical
Nagapattinam. This unit was set up in Nagapattinam with a capacity of 0.5 MMTPA in
The main products of the company are LPG, Motor Spirit, Superior Kerosene,
Aviation Turbine Fuel, High Speed Diesel, Naphtha, Bitumen, Lube Base Stocks,
Paraffin Wax, Fuel Oil, Hexane and Petrochemical feed stocks. The Wax Plant at CPCL
has an installed capacity of 30,000 tonnes per annum, which is designed to produce
paraffin wax for manufacture of candle wax, waterproof formulations and match wax. A
Propylene Plant with a capacity of 17,000 tonnes per annum was commissioned in 1988
revamped to enhance the propylene production capacity to 30,000 tonnes per annum in
2004. CPCL also supplies LABFS to a downstream unit for manufacture of Liner Alkyl
Benzene.
The crude throughput for the year 2008-09 was 10.12 million metric tonnes
(MMT). The company’s turnover for the year 2008-09 was Rs 36489.67 crores and the
The Company has not declared any dividend for the year 2008-09 in view of the
6
1.3.2 PRODUCTS AND SERVICES
LPG
Motor Spirit
Superior Kerosene
Naphtha
Bitumen
Paraffin Wax
Fuel Oil
Hexane
7
1.3.3 COMPETITORS
The Refinery at Mumbai came into stream in January, 1955 under the ownership
Shell, name of the Refinery was changed to Bharat Refineries Limited on 11.2.1976. In
August, 1977, the Company was given its permanent name, viz. Bharat Petroleum
Corporation Ltd. The installed capacity of 5.25 MMTPA was increased to 6 MMTPA in
2005, the current refining capacity stands at 12.00 MMTPA. The Refinery uses latest
microprocessor based Digital Distributed Control System (DDCS) and has been
accredited with ISO 9002 (Quality Management System), the refinery has also been
accredited with the unique distinction of a quality certification from NABL for “Quality
Assurance Laboratory. BPCL Mumbai refinery is the first Indian work site to achieve a
Level 8 rating on the International Safety Rating System (ISRS), ISRS is a tool owned by
certifications has also been conferred to the refinery for effective deployment of
8
Mumbai Refinery (Maharashtra) – Hindustan Petroleum Corporation Limited
(HPCL)
Mumbai Refinery was commissioned in 1954 under the ownership of ESSO and
Limited (HPCL) was formed on 15 th July 1974 after the merger of these companies. The
capacity of Mumbai Refinery was 3.5 MMTPA which was increased to 5.5 MMTPA
1969 as a joint venture between Esso and Government of India with a capacity of 165
TMT per annum of LOBS. In the year 1974, Lube India Ltd was fully taken over by
Government of India and it was merged with HPCL. In the year 1983 Lube refinery units
were debottlenecked and capacity increased to 225 TMT per annum. In the year 1995,
Lube Refinery was further expanded by adding a new units and capacity increased to 335
TMT per annum of LOBS which is the largest in India even today.
In order to meet the Euro II/III specification of diesel, new project ‘Diesel Hydro
quality from Euro-II to Euro-III & Euro-IV, Green Fuels & Emission Control Project
9
Reliance Petroleum Limited (RPL) (Private Sector), JAMNAGAR
(GUJARAT)
Reliance Industries Limited (RIL) has two refineries. The present capacity of the
with RIL, RPL refinery (a unit in Jamnagar SEZ) has become the second refinery of RIL.
date being 1st April, 2008. The capacity of the second refinery (SEZ) is 29 MMTPA /
Day.
1.3.6 BANKERS
10
CHAPTER - II
11
METHODOLOGY
12
2.1 Objective of the study:
To study the organization and to know about the policies, functions of finance
Time period of the study taken was about thirty working days.
Information are gathered through discussion with higher officials and also by self
observation.
Importance of the study is to learn the organization and its environment and how
one could able to complete the allotted work in perfect time schedules. To experience the
working environment and to gain benefits from that for the future career.
13
14
CHAPTER - III
15
FUNTIONS OF THE DEPARTMENT
16
Description of the Functions of the Department:
Sales section.
The sales section is looked after by a manager, who is assisted by a senior officer,
The crude purchase and insurance section is looked after by a deputy manager, who
is assisted by an accountant.
The cost cell and product pricing section is looked after by a manager, who is
17
PERSONNEL ENTITLEMENT SECTION:
The pay roll and PF section is headed by a senior manager, who is assisted by five
The medical and housing section is headed by a deputy manager, who is assisted by
18
MATERIALS AND WORKS SECTION
The materials and works section is primarily intended to look the work connected
with receipt, verification and passing of bills in respect of purchases, contracts and
Work bills
Miscellaneous bills
Stores accounting
The materials and works section is headed by senior manager, who is assisted by
two managers, deputy manager, one senior officer, one officer, five accountants and four
industrial trainees.
19
The cash and bank section takes care of receipt of cash/ cheques, preparation and
investment of surplus funds, borrowable of funds for working capital requirements and
This section is headed by a senior manager, who is assisted by one officer and
The project finance section looks after all capital jobs covered under plan and
Non-plan schemes.
For effective discharge of its responsibility, the section is divided into two
subsections namely,
The main function of each sub-section, namely, plan projects section and non
20
Vetting of capital budget proposals as to its financial viability before placing
Filing returns
21
The section comprises two sub-sections
Corporate accounts
The corporate accounts, direct taxation and MIS section is under the direct of the
senior Manager, who is assisted by a senior officer, two accountants and one industrial
trainee.
takes care of all finance activities at CBR. The areas of finance are almost the same as in
CPCL, Manali.
officer, two accountants, three assistant accountants and two commercial apprentices.
22
The following finance work is handled at CBR.
Personnel entitlement
Project finance
23
CHAPTER - IV
24
CONCLUSION
25
CONCLUSION:
Corporation. During the internship process not only I gained knowledge about the
functions of the department but also working in the bill processing section gave me some
organization. This period of study gave some confident for my future career
development.
26