A

PROJECT REPORT
ON
ORGANIZATION STRUCTURE TRAINING
IN
RASHTRIYA ISPAT NIGAM LIMITED {VISAKHAPATNAM STEEL
PLANT}

A project report
Submitted in partial fulfillment for the award of the degree
MASTER OF BUSINESS ADMINISTRATION
Submitted by
MEERA JOSHY

INSTITUTE OF MANAGEMENT,
KENGERI CAMPUS, KUMBALGODU
BANGALORE-560060
 CERTIFICATE

This is to certify that MEERA JOSHY has done her internship from 16-04-2019
to 18-05-2019 at Visakhapatnam Steel Plant and has successfully completed the
project under the title “ORGANIZATION STRUCTURE TRAINING” under
the guidance and supervision of Dr.O.R.M RAO.

During her tenure with us we found her sincere and hardworking. We wish her a
great success in future.
 A
PROJECT REPORT
ON
ORGANIZATION STRUCTURE TRAINING
IN
RASHTRIYA ISPAT NIGAM LIMITED {VISAKHAPATNAM STEEL
PLANT}

A project report
Submitted in partial fulfillment for the award of the degree
MASTER OF BUSINESS ADMINISTRATION
Submitted by
MEERA JOSHY

INSTITUTE OF MANAGEMENT,
KENGERI CAMPUS, KUMBALGODU
BANGALORE-560060
O.RAM MOHAN RAO
(Asst. General Manager)

DECLARATION

I hereby declare that the project report entitled “A STUDY ON

ORGANISATION STRUCTURE” with regard to Rashtriya Ispat Nigam
Limited,Visakhapatnam submitted by me under the guidance of O.RAM
MOHAN RAO (Asst.General Manager ),RINL , submitted by me is a project
work done by me and is not submitted to any other university or published any
time before.
This project work is in partial fulfillment of the required for the award of
degree of MASTER OF BUSINESS ADMINISTRATION by Christ
University, Bangalore for the year 2019-2020.

Place: Visakhapatnam
Date:

MEERA JOSHY
CHRIST UNIVERSITY
BANGALORE

ACKNOWLEDGEMENT

As a token of my feeling, I would like to acknowledge my sincere thanks to Mr.

O.RAM MOHAN RAO (Asst.General Manager), Visakhapatnam Steel Plant for
his guidance and support extended throughout the period of study.
I render my sincere thanks to O.RAM MOHAN RAO, Asst. General Manager
(HRD), and Visakhapatnam Steel Plant for accepting my request of doing the
project work in this esteemed organization.
I would like to acknowledge my sincere thanks to all the employees in the plant
and university authorities for their encouragement throughout the academic
period.

MEERA JOSHY
 STEEL INDUSTRY PROFILE
Global Steel Industry
The Global Economy has showed signs of recovery with Global Steel Capacity
utilization ratio showing improvement at 75.1 % in Dec ’09 (as compared to 58.1 % in Dec
’08). The financial crisis in the previous year has affected many Nations. However, the Indian
Economy showed tremendous resilience and withstood the global volatility by maintaining the
GDP Growth relatively at a higher level as compared to the earlier period. The Indian steel
industry has also shown signs of improvement everywhere by a positive growth of 2.7% over
the previous year, while other developed countries showed a negative growth.
The consumption of Steel continues to be a major growth driver. The consumption
growth projected at 7% based on GDP growth rate of 7% to 7.5% and production of 110 million
tonnes much earlier than 2019-20 was projected as objectives in the National Steel Policy.
Global Crude Steel production reached 1220 million tonnes. Further, consolidation
in the Industry has facilitated the growth and investor confidence. The international prices
have been high in the year helping the companies in India for improving their margins. The
World Steel Association forecasts an increase in the apparent use of Steel finished products
during 2010 and 2011 by 10.7% and 5.3% respectively. World Steel Association also expects
the apparent steel use for the year 2010 to reach 1.241 billion tonnes compared to 1.121 billion
tonnes for 2009 and this is expected to rise to 1.306 billion tonnes in 2011. It is also predicted
that Asia will lead in terms of Steel demand with a share of 66.2% of the World Steel demand
in 2010 and 65.5% in 2011. Emerging economies like India will drive the growth and this
augurs well for the industry.
Indian Steel Scenario
Iron & Steel making as craft has been known to India for a long time. However, its production
started only after 1900. In a short span of 3 decades or so that capacity was increased from 11
folds to about 16 Million tonnes by nineties. Progress in next 15 years was slow, just more than
double i.e. 34.821 million tonnes. China alone constitutes 25% of world steel production and
consumption. China has doubled its steel output from 90mt in 2000 to 320mt in year 2005. In
the first quarter of 2004 Indian steel export rose by 40% compared to last year. Presently India
consumes 85% of its production in the domestic market and exports the rest.
India has emerged as 5th largest producer and recorded a growth rate of 2.7% and emerged as
the largest sponge iron producer in the World. The Industry is looking forward for expansion
plans of the steel companies including PSUs and if implemented on schedule, India could
become the second largest crude steel producer in the world by the year 2016. The growth in
infrastructure and other developmental activities arising out of increased outlays in these
sectors by Government of India have rejuvenated the steel market in the country and the
building of capacities to cater to the diversified demands is the main thrust area now onwards.
For the purpose of comparing steel production in India the following table presented here.

COMPANY PROFILE

Rashtriya Ispat Nigam Limited, the corporate entity of Visakhapatnam Steel Plant is a
Navaratna PSE under the Ministry of Steel. Visakhapatnam Steel Plant fondly called Vizag
steel. It is the first shore based Integrated Steel Plant in the country and is known for its quality
products delighting the customers. It is a state -owned organisation, that is, a central
government organisation and public sector undertaking. It was formed on 18 February 1982
and its headquarters is located in Visakhapatnam, Andhra Pradesh. The present Chairman cum
managing director of RINL is Pardosh Kumar Rath. The main products of the company is wire
rods, TMT Re-bars, rounds, squares, flats, angles and channels. The main service of the
company is steel production. The company had a turnover of ₹20,844 crore (US$2.9 billion)
as per 2018-19 reports. The total assets of the company is ₹31,724 crore (US$4.4 billion). The
total equity of the company is ₹7,220 crore. The government of India is the owner of RINL.
The number of employees is 17617 excluding the 2018 outsource. The subsidiary companies
of the RINL is Eastern Investments Limited (EIL).The Orissa Minerals Development Company
Limited (OMDC) and The Bisra Stone Lime Company Limited (BSLC).

Major plant facilities:

The production facilities in the Visakhapatnam steel plant are most modern amongst the steel
industry in the country. The know-how and the technology have been acquired from different
parts of the world from the reputed and established sources. Some of the novelties of the
Visakhapatnam steel plant are:

• 7meter height coke ovens of VSP are the tallest so far built in the country. Dry quenching of
coke has been adopted which will not only improve the quality of coke and economics of coke
production, but also contribute significantly to the reduction of environmental pollution.

• Base mix yard for sinter plant introduced for the first time in the country helps in excellent
blending of the feed material to the sinter machine and production of consistent good quality
sinter.

• 3200 cubic meters two blast furnaces with bell less top charging equipment and 100% cast
house slag granulation. The granulation of the entire molten slag arising at the furnace cast
house avoids the need to transport molten slag and optimizes utilization of slag.

• 100% continuous casting of liquid steel into blooms result in less and better quality of blooms.

• The VSP have three sophisticated and large rolling mills with the latest features of automation
and optimization.

• The operations of blast furnace, steel melting shop and rolling mills have been entirely
computerized to ensure consistent quality and efficient performance.

The major production departments of Visakhapatnam steel plant are the raw materials handling
system, coke ovens, sinter plant, blast furnace, and steel melting
shop and rolling mills.

Extensive facilities have been provided for repair maintenance as well as manufacturing of
spare parts. There is a Central machine shop, Structural shop, forge shop, foundry, wood
working shop and loco repair shop. Visakhapatnam steel plant has got its own Air separation
plant for production of oxygen and acetylene plant for production of acetylene gas. A captive
power plant has also been provided for power generation with 4 Units, each of 60MW
generation capacity.

HISTORY OF THE ORGANISATION

On 17 April 1970, the Prime Minister of India, the Indira Gandhi, announced the government's
decision to establish a steel plant at Visakhapatnam. With the offer of assistance from the
government of the erstwhile USSR, a revised project evolved some years later. A detailed
project report for a plant with a capacity of 3.4 Mtpa was prepared in November 1980 and in
February 1981, a contract was signed with the USSR for the preparation of working drawings
of coke ovens, blast furnace and sinter plant. The blast furnace foundation was laid, with first
mass concreting, in January 1982. The construction of the local township was also started at
the same time.

In the 1970s, Kurupam Zamindars donated 6,000 acres of land for Vizag Steel Plant. A new
company Rashtriya Ispat Nigam Limited (RINL) was formed on 18 February 1982.
Visakhapatnam Steel Plant was separated from SAIL and RINL was made the corporate entity
of Visakhapatnam Steel Plant in April 1982.

Vizag Steel Plant is the only Indian shore-based steel plant and is situated on 33,000 acres
(13,000 ha ) and is poised to expand to produce up to 20 MT in a single campus. Turnover in
2011-2012 was Rs14,457 crores. On 20 May 2009, Prime Minister Manmohan Singh launched
the expansion project of Visakhapatnam Steel Plant from a capacity of 3.6 MT to 6.3 MT at a
cost of Rs8,692 crores. But the investment was revised to 14,489 crores with the following
classification:

 Expenditure for the financial year 2009-10 Rs1840 crores.

 Rs5883 crores since inception of the project.

 Total commitment, including enabling works, steel procurement, consultancy, spares,

etc. is Rs11591 crores as of 25 March 2010.

The expansion project is expected to become functional by 2012. Currently, the steel plant has
completed the expansion from 3.6 MT to 6.3 MT with a total investment of Rs12,300 crore.
The company has planned to expand its production capacity further by one more MT which
requires an investment of Rs4,500 crore.

PROFILE OF THE PRODUCTS AND BY-PRODUCTS

Products:
Production at VSP comprises mainly of long steel products, such as plain wire rods, rebars,
rounds and structurals, and semi-finished steel products, such as billets and blooms. The
products are made with 100percent virgin steel, and we have adopted modernized technology
to help improve product quality.
1. Blooms:
Blooms are semi-finished products used for the manufacturing of long steel products. VSP
produces blooms at the steel melt shop, which are then rolled to produce billets. Blooms not
used by VSP are sold to downstream steel producers, who further process them into steel
products that are utilized in a wide variety of construction and manufacturing sectors.
2. Billets:
Billets are one of the first steel products produced in the steel manufacturing chain. They are
semi-finished products used in the manufacturing of long steel products, such as bar products,
rods and wires. Billets can be used as feedstock for rolling mills for the production of long
products. Steel billets are also used extensively in forge shops and machine shops for the
production of engineering goods.
3. Plain Wire Rods:
Plain wire rods are a type of long steel product with a wide variety of functions such as making
wires for welded mesh, nails, hangers, screws, chain link fencing, wire nets and barbed wires.
Plain wire rods are produced both in the mild steel (a type of carbon steel) and value-added
steel categories. VSP sells plain wire rods to a broad range of large, medium and small-scale
users, who in turn use them for wire drawing, bright bar, fastener and construction purposes.
Plain wire rods are also used in the manufacturing industry.
4. Rebars:
Rebars are long steel products used for reinforcement in construction and infrastructure
projects. They provide tensile strength to concrete sections subject to a bending load, and they
normally have ribbed profiles on their surface to improve bonding with concrete. VSP have
adopted the quenching and self-tempering technology for making our thermo-mechanically
treated rebars, which are marketed under the registered trademark of “VIZAG TMT”. We
produce rebars in our Wire Rod Mill and Light and Medium Merchant Mill, depending on the
size of the rebar. Rebars are mainly sold to project users.
5. Structurals:
Structurals are long steel products that include angles, channels and beams. Like rebars,
structural products are mainly used in the construction and infrastructure sectors.
6. Rounds:
Rounds are a type of long steel bar product used mainly in the engineering and automobile
industries. VSP produce rounds in our Light and Medium Merchant Mill and Medium
Merchant and Structural Mill, depending on the size of the round. VSP sell rounds to a broad
range of large, medium and small -scale users, many of whom further reroll the rounds to their
desired sizes.
7. Squares:
Squares are a type of long steel product used for rerolling and forging. VSP produce squares in
our Medium Merchant and Structural Mill. Our Company sells squares to a broad range of
large, medium and small-scale users.
8. Pig Iron:
VSP produce hot metal from high grade iron ore and low ash coke. Surplus hot metal produced
from blast furnaces is cast into pig iron. Our Company sells pig iron to steel manufacturers as
well as foundries. Our installed production capacity for pig iron is 0.6 MTPA.

By-products:
 Nuts Coke
 HP Napthalene
 Benzene
 Anthracene Oil
 Toluene
 Granulated Slag
 Coke Dust
 Ammonium Sulphate
 Lime Fines
 Zylene
 Coal Tar
 Wash Oil

MISSION, OBJECTIVES AND STRATEGIES OF THE

ORGANISATION
Vision of RINL:
To be a continuously growing world class company we shall
• Harness our growth potential and sustain profitable growth.
• Deliver high quality and cost competitive products and be the first choice of customers.
• Create an inspiring work environment to unleash the creative energy of people.
• Be respected corporate citizen, ensure clean and green environment and develop vibrant
communities around us.
Mission of RINL:
To attain 16 million tonne (Mt) liquid steel capacity through technological up
gradation, operational efficiency and expansion; augmentation of assured supply of
raw materials; to produce steel at international Standards of Cost and Quality; and to
meet the aspirations of the stakeholders.
Objectives of RINL:
• Expand plant capacity to 6.3 million tonnes by 2011-12, with the mission to
expand further in subsequent phases as per the Corporate plan.
• Revamp existing blast furnaces to make them energy efficient to contemporary
levels, and in the process increase their capacity by 1.0 million tonnes, thus
total hot metal capacity to 7.5 million tonnes.
• Be amongst top five lowest cost liquid steel producers in the world.
• Achieve higher levels of customer satisfaction.
• Vibrant Work Culture in the organization.
• Be proactive in conserving environment, maintaining high levels of safety and
addressing social concerns.
Core values of RINL:
• Commitment.
• Customer Satisfaction.
• Continuous Improvement.
• Concern for environment.
• Creativity and Innovation.

ORGANISATION CHART -DESIGN AND STRUCTURE

ORGANISATION CHART
FUNCTIONAL DIRECTORS
Chairman-cum-Managing Director- Shri Pradosh Kumar Rath
Director (Commercial) - Shri P Raychaudhury
Director (Personnel) - Shri Kishore Chandra Das
Director (Finance) - Shri. V. V. Venu Gopal Rao
Director (Projects) – At present no one
GOVERNMENT DIRECTORS
SS&FA, Ministry of Steel - Shri Saraswati Prasad
Joint Secretary(STEEL), Ministry of Steel - Ms. Ruchika Chaudhry Govil
INDEPENDENT DIRECTORS
Independent Director, RINL - Shri Sunil Gupta
Independent Director, RINL - Shri S K Mishra
Independent Director, RINL - Shri. Ashwini Mehra
Company Secretary – Shri M Jagadeeshwara Rao
Executives
E9 Executive Director
E8 General Manager
E7 Deputy General Manager
E6 Assistant General Manager
E5 Senior Manager
E4 Manager
E3 Deputy Manager
E2 Assistant Manager
E1 Junior Manager
AE Assistant Executive (non - unionised supervisor)
JO Junior Officer (non - unionised supervisor)
Non Executives
Cluster C
S10 Senior Foreman
S9 Foremen
S8 Foreman
S7 Senior Chargeman
S6 Chargeman
Cluster B
S9 Senior Chargeman
S8 Senior Chargeman
S7 Chargeman
S6 Chargeman
S5 Master Technician
S4 Senior Technician
S3 Technician
Cluster A
S7 Additional Technician
S6 Joint Technician
S5 Deputy Technician
S4 Assistant Technician
S3 Junior Technician
S2 Senior Khalasi
S1 Khalasi

POLICIES AND PROCEDURES FOLLOWED

Code of business conduct policy:
The purpose of this code is to enhance ethical and transparent process in managing the affairs
of the company. This code was originally formed and come into force with effect from 13
november,2007 and subsequently revised in compliance to the Companies Act ,2013.The
code is further divided into two:
General moral imperatives
 Contribute to society and human well being
 Be trustworthy and practice integrity
 Be fair and take action not to discriminate
 Honour confidentiality
 Pledge and practice
Specific professional responsibilities
 Strive to achieve the highest quality, effectiveness and dignity in both the process
and products of professional work
 Acquire and maintain professional competence
 Compliance with laws
 Accept and provide appropriate professional review
 Manage personnel and resources to enhance the quality of working life
 Be upright and avoid any inducements
 Observe corporate discipline
 Conduct in a manner that reflects credit to a company
 Be accountable to company’s stakeholders
 Prevention of insider trading
 Identify, mitigate and manage business risks
  Protest properties of the company
Customer policy:
The main objective of customer policy is to be the best company to do business. The main
features of this policy are:
 To remain continuously committed to meet the needs and expectations of the
customers.
 To maintain transparency in all our dealings with customers.
 To continuously strive to improve the quality of products and services.
 To treat customers in our business and growth.
 To bring customers’ delight in supply of materials and meet the contingent
requirement of customers.
 To create a healthy business environment and work towards win-win situation with
customers.
 To strive for enhancing value for the money and value the relationship with complete
care and the concern.
HR POLICY
RINL is committed to attain optimum utilisation of human resources by unleashing the full
potential of employees. To accomplish this RINL shall
 Strive to be the employer of choice by attracting the best available talent and establish
a competitive workforce
 Promote a learning and development eco system
 Adapt a fair and transparent mechanism to ensure proper governance across the
organization
 Reinforce consistent efforts to enhance the motivational levels of all employees
 Kindle creativity and innovation by providing opportunities for achieving higher level
of excellence
 Lead to achieve high performance
 Enliven a healthy and safe work culture by following best.
POLICIES & RULES OF RINL/VSP
SUBJECT
I. Service Rules
 Service Rules for Executives
 Conduct, Discipline & Appeal Rules
 Leave Rules for Non -executive Employees
 Recruitment Policy
 Certified Standing Orders
II. Promotion Policy and Rules
  Promotion Policy and Rules for Executives
 System of Probation and Confirmation of Executives
 Policy for Promotion to Non-Unionised Supervisory Cadre & Executive Cadre
 Policy & Rules for Promotion of Non-Executives
 Procedure for Dealing with Promotion/Confirmation of Non-executives pending
Enquiry/Disciplinary Proceedings and thereafter.
 Performance Appraisal System for Executives
 Annual Confidential Report for Non-Executives
III. Wage Structure
 Executive Salary Structure, Non-Executive Salary Structure & Stipend rates for
Trainees
 Annual Increment Rules
IV. Allowances
 Travelling Allowance Rules
 City Compensatory Allowance
 Reimbursement of Local Travelling Expenses
 Grant of Conveyance Allowance to Blind and Orthopaedically Handicapped
Employees
 House Rent and House Rent Allowance
 Night Shift Allowance
 Split Duty Allowance
 Entertainment Allowance
 Magazine Allowance
V. Advances
 House Building Advance Rules (including Scheme of Interest Subsidy on House
Building Loans)
 Grant of Advance for Purchase of Motor Vehicle
 Grant of Advance for the Purchase of Bicycle
 Grant of Advance for Medical Attendance & Treatment
 Festival Advance
VI. Employees' Motivation & Welfare Scheme
 Incentive Scheme for acquiring Professional Qualifications
  Jawaharlal Nehru Award Scheme for Executives
 Jawaharlal Nehru Award Scheme for Non-Executives
 Incentive Scheme for promoting Small Family Norms among Employees
 Encashment of Leave
 Medical Benefits
 Grant of Assistance towards Funeral Expenses of Employees who die while in Service
 Family Benefit Scheme
 House Allotment Rules
 Forcible Leave Travel Concession
 Reimbursement of School Fees to Employees' Children
 Grant of Scholarships to the children of Employees
 Scheme for grant of Scholarships to the children of Employees belonging to
Scheduled Castes and Scheduled Tribes
 Scheme for grant of Scholarships to Physically Handicapped Children of Employees
VII. Retirement Benefits
 Provident Fund Rules
 Procedure for final Settlement of Dues of Retiring Employees
 RINL Superannuation Benefit Fund Scheme
 Employees' Family Benefit Scheme
 Scheme for farewell to Retiring Employees
VIII. Miscellaneous Rules
 Determination of Date of Birth
 Change of Name
 Appointment of deputationists in the Company
 Procedure for Leave Book and Leave Card System
 Foreign Travel
 Issue of Verification Certificate to Employees for obtaining Passport
 Forwarding Applications of Employees for Outside Employment
 Transfer Benefits to Executives joining VSP on appointment from Central Government
/ Public Sector Undertakings & vice - versa
 Executive Grievance Redressal Procedure
  Formal Grievance Procedure for Non - Executives Details on the above subjects can be
obtained from Personnel Manual available for reference in the Central Library,
Technical Training Institute, Visakhapatnam Steel Plant.
Quality policy:
•Supply quality goods and services to customers delight.
•Document, implement, maintain and periodically review the management systems including
the policy, objectives and targets.
•Focus on conversation of natural resources and energy with concern environment.
•Comply with relevant legal, regulatory and other requirements applicable to products,
activities and processes in respect of quality and safety and also ensure the by contractors.
•Use resources efficiently and reduce waste & prevent pollution.
•Continually improve quality, safety and occupational health environment performance.
•Encourage development and involvement of employees
•Maintain high level of quality, environment, occupational health and safety consciousness
amongst employees and contract workers by imparting educational & training.
Harassment against women at work place policy
Sexual harassment is a serious criminal offence which can destroy human dignity and freedom.
In an effort to promote the wellbeing of all women employees at the work place the following
code of conduct has been prescribed:
1. It shall be duly of the employer to prevent or deter the commission of any act of sexual
harassment at the work place.
2. Sexual harassment will include such unwelcome sexually determined behaviour by any
person either individually or in association with other persons or by any person in
authority whether directly or by implication such as:

i. Eve – teasing
ii. Unsavoury remarks
iii. Jokes causing or likely to cause awkwardness or embarrassment
iv. Innuendos and taunts
v. Gender based insults or sexiest remarks
vi. Unwelcome sexual overtone in any manner such as over telephone and the like
vii. Touching or brusing against any part of the body and the like
viii. Displaying pomographic or other offensive or derogatory pictures, cartoons,
pamphlets, or sayings
ix. Forcible physical touch or molestation
x. Physical confinement against one’s will and any other act likely to violate one
privacy and includes any act or conduct by a person in authority and belonging
to one sex which denies or would deny equal opportunity in pursuit of career
development or otherwise making the environment at the work place hostile or
intimidating to person belonging to the other sex, only on the ground of sex.
3. Eve – teasing
Eve – teasing will include any person wilfully and indecently exposing his person in
such a manner as to be seen by other employees or use indecent language or behave
indecently or in a disorderly manner in the workplace.
4. Sexual harassment of an employee means use of authority by any person in charge of
the management or any person employed by it to exploit the sexuality or sexual identity
of a subordinate employee to harass her in a manner.
5. It shall be the duty of the employer to prevent or deter the committing of any act of
sexual harassment at the work place.
6. All employees should take appropriate steps to prevent sexual harassment of any nature.
Express prohibition of sexual harassment should be notified at the workplace and also
published for the general information of the employees and evaluated in an appropriate
manner periodically.
7. Appropriate working conditions should be provided in respect of work, leisure, health
and hygiene to ensure that there is no hostile environment.
8. Women employees should not be treated as sex objects.
9. No male employee shall outrage or insult the modesty of a female employee at the
workplace.
10. No male employee shall make any type of sexual advances to women colleagues or
women subordinates.
11. The head of the organisation shall constitute a complaints committee as specified in the
judgement of the supreme court
12. The complaints committee shall take immediate necessary action to cause an enquiry
to be made discreetly or hold an enquiry, if necessary.
13. The complaints committee shall after examination of the complaint submit its
recommendations to the to the head of the organisation recommending the penalty to
be imposed.
14. The management of the organisation shall confirm with or without modification the
penalty recommended after duly following the prescribed procedures.
15. The head of the organisation upon receipt of the report from the complaints committee
shall after giving an opportunity of being heard to the person complained against submit
the case with the committee’s recommendations to the management.
16. The management of the organisation shall confirm with or without modification the
penalty recommended after duly following the prescribed procedure.
17. Disciplinary action:
Where the conduct of an employee amounts to misconduct in employment as defined
in the relevant service rules the employer should initiate appropriate disciplinary action
in accordance with the relevant rules.

FUNCTIONS OF VARIOUS DEPARTMENTS AND THEIR

MANAGERS
 SWOT ANALYSIS OF THE ORGANISATION
Strengths:
 Shore based location
 Well established marketing and customer network in India
 Availability of land
 Image as quality producer
 Committed and experienced manpower/managerial skills
 Strong environmental and social commitments
Weaknesses
 Lack of captive mines for iron ore and coal
 Single location company and only long products , exposed to cyclic markets
 High leveraged balance sheet
 Lack of investible surplus
Opportunities
 Export of products to developing economies
 Availability of new facilities
 Enhanced production potential
 Secondary metallurgy for high end value added steels
 Robust domestic economy
Threats
 Increased competition and predominant secondary sector in long products
 Volatility in supply and prices of cooking coal
 Excessive dependence single iron ore supplier
 KEY RESULT AREAS OF THE ORGANISATION
Key Result Areas refer to general areas of outputs for which the department’s role is
responsible. Key result areas (KRAs) capture about 80% of the department’s work role. The
remainders are usually devoted to areas of shared responsibility.
Various key result areas of Human Resource:
 Motivation tip
 Harmonious employee relations
 Counselling trouble makers
 Effective grievances handling
 Training and quality circle
 Performance appraisal
 Handle issues like staff, production &salary
Various key result areas of Marketing:
 Product promotion
 Sales
 Customer care
Various key result areas of Finance:
 Audit
 P&L statements
 Balance sheet
 Financial analysis
The key result areas of Production are:
 Manufacturing
 Quality control
 Purchase of raw material

SIGNIFICANT FACTORS FOR SUCCESS

In any organization to implement change is a very difficult process as it requires the
collaboration between various departments and persistence to drive the change initiative
forward. These change initiative within the organizations are more commonly known as
organization development (OD).
1.Thoughtful and workable strategy
2.Customer-centricity
3.Insightful talent management
4.Focus on innovation
5.Flexibility as an important value
6.Change leadership
7.Focus on High Performance Work System & people engagement
8.Alignment of all functional areas
9.Speed (That is higher than the speed of change in the business environment)
10.Planning
11.Skillful workers
12.Long term relationship with customers
13.Organization Widening
14.Increased organization health and effectiveness

System of accounting followed

Significant accounting policies:
General:
Financial statements are prepared under the historical cost convention in accordance with
fundamental accounting assumptions and generally accepted accounting principles (GAAP)
in India.
Fixed assets:
•Fixed assets are stated at historical cost less depreciation.
•Contributions made by the company towards the cost of fixed assets owned by the company.
•State / Central Government are grouped together with similar assets owned by the company
with appropriate disclosure thereof.
•Expenditure attributable / relating to construction, to the extent not directly identifiable to
any specific Plant Unit, is kept under ‘Expenditure During Construction’ for allocation to
Fixed Assets and is grouped under ‘Capital Work-in- Progress’.
Investments:
•Current investments are carried at lower of cost and fair value.
•Long term investments are carried at cost. Diminution in value, other than temporary, is
provided for.
Inventories:
•Inventories are valued at lower of cost and net realizable value.
•The basis of determining cost is:
Finished / Semi-finished goods - Weighted Average cost
Raw material, Stores & Spares, Loose Tools - Monthly weighted average cost and those in
transit at cost.
Revenue Recognition:
•Sales are recognized when all significant risks and rewards of ownership have been to the
buyer.
•Export incentives under various schemes are recognized as Income on certainty of
realisation.
CLAIMS:
Claims against outside agencies are accounted on certainty of realisation.
FOREIGN CURRENCY TRANSACTIONS:
•Foreign currency monetary items are recorded at the closing rate.
•Exchange differences arising on account of settlement / conversion of foreign currency.
•Monetary items are recognised as expense or income in the period in which they arise.
EMPLOYEE BENEFITS:
•Actuarial gains and losses on defined benefit plans are recognized during the year.
DEPRECIATION AND AMORTISATION:
•Depreciation is provided on straight line method (SLM), up to full value of the cost of asset
over the specified period derived in accordance with the provisions of Schedule
•XIV of the Companies Act, 1956, except the following:
i. Assets costing up to Rs.5000/- are fully depreciated in the year of capitalisation.
ii)Depreciation on the following categories of assets is provided up to full value of the cost of
asset on SLM over the period of their useful life based on the management’s estimate given
in brackets.
iii)Photo Copiers & Fax Machines, Telecom Equipment (5 years); Cranes, Slag Pot Carriers,
Audio & Visual Equipment (10 years); Other Office Equipment, Earth Moving Equipment,
iv)Forklift Trucks, Air Conditioners, Refrigerators, Water Coolers, air coolers, freezers (7
years); Cars (6 years); Safety Equipment, Other light vehicles (8 years); Computers
BORROWING COSTS:
•Borrowing costs incurred for obtaining assets which take more than 12 months to get ready
for its intended use are capitalised to the respective assets wherever the costs are directly
attributable to such assets and in other cases by applying weighted average cost of
borrowings to the expenditure on such assets.
•Other borrowing costs are treated as expense for the year.
PRIOR PERIOD ADJUSTMENTS:
•Items of Income / Expenditure which arise in the current period as a result of errors or
omissions in the preparation of Financial Statements of one or more prior periods.

PRODUCT PROMOTIONAL MEASURES

In order to increase the sales, the organization needs to promote the product at various places
and in various types.
Brand promotion
A brand promotion campaign has been launched by the company to increase consumption of
steel in the country. The Company has chosen to promote its brand image through renaming
of Hazrat Nizamuddin - Visakhapatnam Samta Express Train to Vizag Steel Samta Express
in collaboration with the Indian Railways. As the train is running through 5 states, the brand
is getting popularity in those places. The Company has roped in Ms PV Sindhu, the first
Indian Silver Medallist in Badminton in the Olympics, as the Brand Ambassador of Vizag
Steel. There are further advertisements being done in various print and electronic media are
being intensified to ensure enhanced awareness about its products. The Company is also
incentivizing rural marketing to increase the consumption of steel in rural areas.
Existing Marketing Network of RINL:
1)Currently, RINL has a network of 5 regional offices, 23 branch sales offices and22
stockyards spread across the country.
2)It also takes the help of Consignment Agents and Consignment Sales for the marketing of
their products.
3)The exports are carried out by the export wing of marketing division with the help of
different agencies.
4)The company is recognised as ‘Star Trading House’ by the director general of foreign
trade, ministry of commerce, government of India.
5)Regional mangers/ Branch managers meet at headquarters regularly to discuss the market
situation and market strategies.
6)RINL has appointed about 150 Retailers. These Retailers purchase and sell the RINL’S
products.

CAREER PLANNING AND PROMOTION POLICY OF EMPLOYEES

The Vizag steel plant is a huge platform to provide various career opportunities to fresh
talented people. It requires high qualifications from candidates who wish to make a career for
themselves in the executive staff. However, for the post of a non- executive staff a minimum
of ITI or diploma in engineering from any recognized college is required. For candidates
acquiring educational qualification of a lower level there is scope in the plant as workers.
The career planning process at steel plant is however an impressive one as the employees can
choose to uplift their career by possessing additional qualification with the help of the
organization and qualifying in the internal exams conducted every 7years by the organization.
It is a platform for developing skill and knowledge where merit is recognized and rewarded.
There are various policies for the support and growth of the employees
•The system indicates smooth change of the plant over the shifts and uninterrupted pace of
the operation of the plant during shifts.
•Free Medical facilities for the employee family.
•Performance based benefits scheme for all the employees.
•Retirement benefits for the employee.
•Leave Travel Concession (LTC) benefits for the employee and to his family.

TRAINING MEASURES
•The needs of induction training, skill up gradation, unit training, computer related training,
refresher training, foreign training, faculty development etc are attended by training and
development centre while management development and attitudinal development are taken
care at the centre for HRD.
•It is the initiative of the HRD group to provide In-house training programs.
•Employees are also sent to suppliers manufacturing units/training institutes to get specific
training in identified areas.
•In-plant training for management students
•It is the initiative of the HRD group to provide In-house training programs

HRD MEASURES
Employees are in a way an asset to RINL and for this reason they are made to realise full
potential thereby helping both the organization and the individual. The HRD involves
development of the employee in whole and following are the measures taken by the HRD for
development of the employees:
•In-house training programs
•Nomination to external training programs
•Organisational research, Employees, satisfaction surveys and voice of employees’ index
•Organizational development
•Membership with professional bodies
•In-plant training for management students
•Lectures by eminent personalities
•Corporate presentation
•Interaction with professionals’ academicians’ consultants
•Emancipation of women through WIPS, Women Development programs
•Thrust on “Samalochana”
•Sending employees to other steel plant for short duration to find issues facing the company.
•Employees are also sent to training institutes to get training in identified areas

WELFARE MEASURES
Human resources being the most important resources of all their development and welfare is
given utmost priority in overall policy of the Human Resource Management. The company is
implemented many statutory and non-statutory welfare schemes which shows how much the
company cares for its employees.
STATUTORY WELFARE MEASURES
•CANTEEN FACILITIES: The VSP has 17 canteens with 16 of them being inside the plant
and 1 outside the plant. These canteens provide breakfast, tea, lunch and evening snacks
which at fixed rates and have been in vogue since 01-12-1996.
•BABY CRECHE: A Baby Creche for infants of women employees is provided in the plant
which has some trained personnel to look after the needs of the baby.
•FIRST AID FACILITITES: There is a first aid cum occupational health centre in operation
in the plant and each first aid centre has an ambulance.
•WATER COOLERS: A total of 305 water coolers are provided in the plant for drinking
water.
•LEAVE: RINL provides 10 days of earned leave above the maximum ceiling prescribed
under factories act. Apart from earned leave the company also provides casual leaves,
quarantine leave, commuted leave, etc.
•MATERNITY LEAVE: 180 days of maternity leave is given to the women employees at the
time of conceiving.
•PROVISIONS: Rest rooms, sitting arrangement, safety officers, etc are provided as per
factories act.
•MINES ACT: By this act a consolidated law is provided relating to regulation and safety of
labour in mines.
•CONTRACT LABOUR WELFARE: The welfare facilities like canteen, urinals, creche, etc.
are also provided to contract labour.

PERFORMANCE APPRAISAL SYSTEM

Performance Appraisal System (PAS) was introduced in RINL in the early eighties and has
been modified as per need. Today RINL exists in a world that is substantially different from
what it used to be in eighties and nineties. In tune with the changing world, lessons learnt
from excellent companies all over the world, new opportunities and challenges of
globalization and the need to have a uniform approach for assessment of executives in the
CPSEs under the Ministry of Steel, it has been decided to review the appraisal system of
RINL.
POLICIES
SCOPE:
The Performance Appraisal System is aimed at performance and development planning and
assessing the performance, potential, competencies and values of all executives, including
supervisory cadres and deputationists up to E-7 grade. In respect of executives in E-8 and E-9
grades, the format as circulated by PESB will remain in vogue.
OBJECTIVES:
1)To enable employees to plan their work, utilize their capabilities and maximize their
contributions.
2)To create a performance culture through continuous performance improvements of
individual employees, teams and the organization.
3)To identify and develop leadership talent for future.

FINANCIAL HIGHLIGHTS OF VSP

2015-16 2016-17 2017-18
Operating results (Rs Crs)
Turnover 12271 12706 16618
Turnover (excl. trial run) 10059 12317 14460
Gross income 10482 12679 14872
Gross expenditure 11248 13602 15846
Gross profit (PBIIT) (766) (923) (973)
Profit before tax (1417) (1690) (1911)
Net profit after tax (1421) (1263) (1369)
Year-end financial position (Crs)
Share capital 4890 4890 4890
Reserves and surplus 4983 3680 2331
Capital employed 7575 6620 8687
Net worth 9866 8570 7221
Gross block 21152 22935 27110
Cumulative depreciation 9288 10007 10327
Net block 11864 12928 16783
Inventory 3908 2344 2411
Profitability & other ratios
1. Percentage of
Gross profit to sales (7.6) (7.5) (6.7)
Net profit to sales (14.1) (10.3) (9.5)
Gross profit to net profit (7.8) (10.8) (13.5)
Net profit to net worth (14.4) (14.7) (19.0)
Gross profit to capital employed (10.1) (13.9) (11.2)
Net profit to capital employed (18.8) (19.1) (15.8)
Gross profit to share capital (15.7) (18.9) (19.9)
Inventory sales 38.8 19.0 16.7
2. Ratio of
Current assets to current liabilities 0.6 0.5 0.5
Quick assets to current liabilities 0.3 0.2 0.1
Sales to capital employed 1.3 1.9 1.7

Advantages and drawbacks of the organization

Advantages:
1.Tall organisation structure helps in easy flow of command.
2.Authority and responsibility can be delegated easily as it is a simple Structure.
3.Chances of rumours is less as the organisational structure is straight.
Disadvantages
1.Flow of command is time consuming which can lead to delay in decision making.
2.Authority to take the decision is at a very high level.
3.Infrastructure need to be improved, increased and technology must be upgraded by times.

Recommendations to overcome the drawbacks

The following suggestions will improve the financial position of the VSP.
PRODUCTION:
1.Need for continuous upgradation of technology for speeding up and better process.
2.Effort must be done in cost saving, particularly in spare parts and electricity.
Finance:
Improve financial leverage ratio for better results.
Personnel:
1.Rationalization of existing man power for effective training for future expansion of plant.
2.Providing better motivation.
3.Improving efficiency through better HRD measures.
Marketing:
1.Continuously monitoring the indigenous sale, export sale ratio to capture the best of market.
2.Increasing the net realization by selling in most profitable region.
3.Identifying new markets and new application of the company product.
Improving realization by identifying value added products and providing feedback to
production management.