1

Contents
RCF OVERVIEW ............................................................................................................................. 2
OVERVIEW OF TROMBAY UNIT.................................................................................................... 9
OVERVIEW OF THAL UNIT .......................................................................................................... 12
FINANCE DEPARTMENT .............................................................................................................. 15
FINANCE DEPARTMENT IN RCF .................................................................................................. 17
FUNCTIONS OF FINANCE IN RCF LTD. ........................................................................................ 18
 FINANCIAL CONCURRENCE .............................................................................................. 18
 GOOD RECEIPT NOTE (GRN) : ........................................................................................... 23
 PURCHASE / SALES / WORK ORDER RELEASE:................................................................... 24
 BILLS : .............................................................................................................................. 26
 BANK GUARANTEE: .......................................................................................................... 28
SAP S/4 HANA:............................................................................................................................ 29
DATA ANALYSIS .......................................................................................................................... 30
OPEARTIONAL PROFIT ............................................................................................................ 30
SHARE-HOLDING PATTERN AS ON 31.03.2024 ...................................................................... 31
STUDY OF NET PROFIT ............................................................................................................ 33
BALANCE SHEET AS ON 31.03.2024 ....................................................................................... 34
CONCLUSION: ............................................................................................................................. 36
REFERENCE:................................................................................................................................. 37
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RCF OVERVIEW
INTRODUCTION
Rashtriya Chemicals & Fertilizers Ltd. (RCF) is an Indian central public sector
undertaking which produces chemical and fertilizers. It is under the ownership
of Government of India and administrative control of Ministry of Chemicals and
Fertilizers. RCF is fourth largest government owned-fertilizer-producer in India.
Company has portfolio of products which includes Neem Urea, Complex
Fertilizers, Bio-Fertilizers, Micro Nutrients, 100% Water soluble fertilizers. RCF
has also pioneered the manufacture of basic Chemicals like Ammonia, Methanol,
Methylamine, Ammonium Nitrate, Ammonium Bicarbonate, Dilute and
Concentrated Nitric Acid, Sulphuric Acid, Sodium Nitrate, Sodium Nitrite,
Dimethyl Formamide, Dimethyl Actamide, Formic Acid, Argon etc. The
“Ujjwala(Urea) and “Suphala”( Complex fertilizer) brands of fertilizers
manufactured by RCF carry high brand equity and are recognized brands all over
the country.

HISTORY :
Rashtriya Chemicals and Fertilizers Limited, was established in 1978 consequent
to the reorganisation of Fertilizer Corporation of India. RCF manufactures Urea
and Complex fertilizers (NPK) along with a wide range of Industrial Chemicals.

The Government of India (through the President of India) holds 75% of the share
capital of the Company as of December 2018.
 3

MISSION OF THE COMPANY :

Exponential growth through business excellence with focus on maximising
stakeholder value by manufacturing and selling fertilizers and chemicals in a
reliable, ethical and socially responsible manner.

VISION OF THE COMPANY :

To be a world class corporate in the field of fertilizers and chemicals with
dominant position in Indian market, ensuring optimal utilisation of resources,
taking due care of environment and maximising value of stake holders.

VALUE STATEMENT :
RCF shall deal in all aspects of Business with integrity, honesty, transparency and
with utmost respect to the stakeholders, by honouring our commitments,
providing results and striving for highest quality.
 4

OBJECTIVES OF THE COMPANY:

 To produce and market fertilizers and chemicals efficiently, economically
and in an environmentally friendly manner.
 To maintain optimum levels of efficiency in the use of resources for
maximizing return on investment
 To take up and implement modernization and energy saving schemes like
Thal Urea revamp and Trombay Urea-V waste section modification.
 To continuously upgrade the quality of human resource and promote
organizational and management development.
 To care for and protect the environment by minimizing the emissions
including greenhouse gases and also improving on the standards laid down
by Pollution Control Authorities and taking action to meet the
requirements of ISO-14001 standards.
 To increase customer satisfaction by providing quality products and
services
 To ensure corporate growth by expansion as well as diversification
 To impart training and education to farmers.
 5

MANUFACTURING UNIT :
Company operates two units viz. one at Trombay (Mumbai) and the other one
at Thal, Raigad district

1. Trombay Unit: Multiproduct integrated fertilizers & process chemicals

factory in Mumbai spread across 800 acres (including township) ISO
14001,ISO-50001, OHSAS- 18001 & ISO- 9001 accredited, Manufactures
Ammonia, Urea, Suphala, ANP, Methanol, Nitric Acid, Sulphuric Acid,
Phosphoric acid etc.
2. Thal Unit: Large producer of Urea along with Industrial Chemicals located
100 km south of Mumbai spread across 1200 acres (including township)
ISO 14001, OHSAS- 18001 & ISO- 9001 accredited Manufactures
Ammonia, Urea, Methylamines, Formic Acid etc.
 6

HIGHLIGHTS :
Rashtriya Chemicals and Fertilizers Limited (RCFL) is a leading fertilizers and
chemicals manufacturing company with about 75% of its equity held by the
Government of India. Company has been accorded the coveted “Navratna” status
in August 2023.

RCF manufactures Urea, Complex Fertilizers, Bio-fertilizers, Micro-nutrients, 100

per cent water soluble fertilizers, soil conditioners and a wide range of Industrial
Chemicals.

The “Ujjwala (Urea) and “Suphala”( Complex fertilizer) brands of fertilizers

manufactured by RCF carry high brand equity and are recognized brands all over
the country. These products are taken to the farthest corner of the country by
extensive RCF dealers network spread throughout the country.

Besides fertilizer products, RCF also produces a large number of industrial

chemicals that are important for the manufacture of dyes, solvents, leather,
pharmaceuticals and a host of other industrial products.

Both the manufacturing units of RCF are accredited with ISO 9001 (Quality
Management System), ISO 14001 (Environmental Management System), ISO
45001 (Occupational Health and Safety), ISO 50001: 2011 (Energy Management
System) and ISO 27001 (Information Security Management).

RCF is operating a two Sewage Treatment Plants (STP) at Trombay unit. Both
plants put together has a capacity to treat of 45.50 MLD (Million Litres per Day)
of Municipal sewage and produce 30 MLD (Million Litres per Day) of treated
water for our industrial use. RCF and BPCL have entered into MOU to supply
around 40% of the treated water to BPCL. The plant serves a dual purpose. Firstly,
it solves the issue of treatment and disposal of sewage. Secondly, it relieves
BMC’s from the obligation of supply of 30 MLD of drinking water, thereby making
equivalent amount of water available for the community.
 7

RCF has set up GT HRSG (Gas turbine with Heat Recovery Steam Generation)
plants both at Trombay and at Thal units. With this process, RCF generates power
required to meet its captive requirement.

In order to augment the domestic urea capacity and achieve self-sufficiency in

line with the ‘Make in India’ mission, GoI has undertaken revival of five closed
urea plants. RCF has been nominated by GoI as a partner in two revival projects,
viz, FCIL Talcher and BVFCL Namrup. At FCIL Talcher, RCF in association with
GAIL, CIL and FCIL is setting up Urea plant of 1.27 million MT per annum capacity
based on Coal gasification route. In order to utilize country's huge coal reserves,
Talcher Fertilizers project will be a game changer for India in terms of opening a
new avenue in coal gasification and shall reduce dependency on Natural Gas for
Urea manufacturing. At BVFCL Namrup, RCF along with NFL, OIL, Govt. of Assam
and BVFCL is exploring the viability of setting a Urea plant with an annual capacity
of 1.27 Million MT.
 8

MANPOWER WELFARE:
RCF believes that its employees are its most important asset. The company
has built its entire management philosophy on this belief.
As a model employer, company offers its employees the very best; in
working environment, carrer opportunities and benefits. A well laid out
township has been provided with well equipped hospitals, sports
complexes and schools. Innovative social welfare schemes are made
available to employees for house building, medical, career development
etc. RCF is also undertaking community services for weaker section of
society like village adoption to give financial and technical assistance to
improve agriculture and other trades, Greening the city, Botanical Garden,
Free farmers training, free soil testing, publicity of “ShetiPatrika” etc.

FARMERS TRAINING:
Maximum farmer satisfaction and an integrated network of factory-to-
farm services is the backbone of RCF’s marketing strategy. The company
provides full range marketing services, including sales, fertilizer
promotion, agriculture research and free agronomical services through its
Farmers Training Institute.

RCF’S SUCCESS LIES IN:

 Sound financial position
 Consistent and stable production
 Skilled and experienced manpower
 Technology absorption and Transfer Capacity
 Plant commissioning expertise
 Strong and committed environment and safety policy
 R&D Human Resource Development
 9

OVERVIEW OF TROMBAY UNIT

INTRODUCTION
In 1950, the GOI decided to set up a fertilizer factory at Trombay based partly
on waste refinery gas from the existing refineries and partly on petroleum naptha
for the manufacture Urea & Complex fertilizers.

The Trombay unit of RCF produces Urea, Complex Fertilizers, Bio-

fertilizers, 100% water soluble fertilizer and variety of industrial chemicals such
as Ammonia, Methanol, dilute Nitric Acid, Concentrated Nitric Acid, Sodium
Nitrite/ Nitrate, Ammonium Bi-carbonate, Sulphuric acid, Ammonium Nitrate,
Argon etc.

Trombay – I

The first phase of the project work of the Trombay Unit, know us trombay
– l started in 1961. An aid of 30 million dollars was secured from the US for this
purpose. Orders were placed for the supply of plant and machinery for Ammonia,
Urea, Suphuric acid and Nitric acid plants with M/s Chemo of US and for the Nitro
phosphate plant with M/s Chemo and Industrial corporation of US.

All these plants were commissioned during 1965. As the Nitro phosphate
plant could not be stabilized at rated copacity, the process was changed over
from carbonitric and sulphonitric though indigenously developed process.

Trombay – II

In 1961, a study was made on the economics of Methanol production Later

when national emergency was declared, the questions of Methanol production
was taken up to on crash basis to meet mainly defense requirements. A contract
for 100tones per day Methanol plant was awarded to M/s Girdler Corporation,
 10

Us on turn key basis in early 1964. This phase of diversification is known as

Tombay-II.

Trombay – III

There was a proposal to expand the Trombay Unit in1967 for the sitting
up to Ammonia, Urea and Complex Fertiizers plants of the following capacities.

1 Ammonia 330000 Tones/annum

2 Urea Plant 390000 Tones/annum
3 Complex Fertilizers 270000 Tones/annum

Trombay – IV

The project envisaged to produce 1200 MT/day of Ammonium Nitro

Phosphate Complex Fertilizer of 60% water soluble P2O5 to meet growing
demand of the country. Hence, an Ammonium Nitro Phosphate plant of this
capacity was set up with know – how from M/s Friodrich Uhde Gmbh, west
Germany.

Trombay – V

Under this expansion programmed a 900 MT/ day Ammonia plant and a 1000
MT/ day Urea plant with Associated Gas From Bombay High as feed stock were
set up with technology from M/s Halder Topes (Denmark) and from M/s sanm
progtti of ltaly respectively. The planning was done in such a way that out of 900
MT/day of Ammonia produced, 600 Tones will be utilized by urea plant and 300
Tones diverted to the existing plants as import substitution. Other utility plants
such as water treatment plant, steam.

Generation, Turbo Generation set and a Bagging plant were set up as a part of
the Trombay – V expansion programmed.
 11

The Trombay Plants at a Glance with Capacity.

Sr. No. Name of Plants Capacity

1 Ammonia-1 300 MTPT
2 Ammonia S.T ( 2 Nos) 10000 MT
3 Ammonia-V (After Revamp) 1045 MTPD
4 PGR 14.50 MTPD
5 Methanol (After Revamp) 240 MTPD
6 M.A. Plant 12 MTPD
7 MPNA 720 MTPD
8 HPNA 352 MTPD
9 SNN 616 MTPD
10 Urea 1000 MTPD
11 ABC 52 MTPD
12 Suphala 1100 MTPD
13 Coating Agent Plant 3 MTPD
14 Sap 330 MTPD
15 Bagging Plants -
16 Biola 150 MTPA
17 ETP 120 M3/Hr
18 STP 5 MGPD
19 WTP 50/200/350 M3/Hr
20 SGP 510 MT/Hr
21 Microla 1 Lakh litre/A
22 Defoamer Plant 2.6 MT/Batch
23 Sujala (19:19:19) 10 MTPD
 12

OVERVIEW OF THAL UNIT

INTRODUCTION

RCF’s super fertilizer unit is located at Thal in Alibag which is in Raigad district of
state of Maharashtra. Thal is 5 Km away from Alibag and 114 km from Mumbai.
This complex is spread over 1500 acres. It has an investment of about Rs. 917/-
crores.

This project was started in 15th January, 1987. With the first prills of Urea making
their debut on actomber 7, 1984, the plant went into commercial production in
full swing from March, 1985 onwards.

The selection of Thal area was done on the basis of basis raw materials i.e.
Associated Gas & Water. The process plant uses Associated Gas from Bombay
High offshore gas field as feed stock and fuel. The Associated gas is coming up to
Mandawa from Uran in th under sea pipeline and the underground pipeline from
mandawa to Thal.

The water required in plants is obtained from rivers Amba & Kundalika. The need
of water is fulfilled by Amba River which is 45 km away from the factory side. It
is brought in 4 feet kal Dam, Constructed on Kundalika River as supplementary
water resource.

A special Railway line is laid up to Thal for transporting fertilizers from

side.Ammonia plant is amongst the largest in steam reforming in India & the
production of 1.7 Million Tones of Urea annually makes it one of the largest
source of Urea from any single location in India.
 13

Technology :-

The Thal plant consist the new generally of low energy plant, equipped with the,
most sophisticated instrumentation & process Controls. The Digital Control
system (DCs) in the Ammonia Urea plants are network of Microprocessor based
Rent – Time Monitoring & Control system. Computers, centrally located
overlooking the plants are used for data logging, generating graphics, displaying
static & dynamic parameters & to preserve historic data. The provision is also
made for automatic supervisory control of the process. A computerized power
Management system-programmable logic control system (PLC) are being used
first time by fertilizer plant in the country.

The Unit comprises of two Ammonia plants, three urea plant, three steam
Generation plants (with one Stanly.) Heavy water plant, two captive power
plants, one Dimethyl form amide plant, one dimethyl Ace amide plant, two
methyl Amine plants, one Effluent Treatment plant, one product Handling
(Bagging) plant, one carbon Monoxide plant, One formic acid plant, two water
Treatment plants.

Area Covered :-

For Plant : 820 acres

For Town shops : 300 acres

For railway siding : 250acres

Basic raw material requirements :

Contractual Gas requirement : 315 Million Nm3/day

Power requirement : 25 Mw from MSFB

Water : 56000 Cubic meter/day from MIDC

 14

The Fertilizers plant at Glance

Sr. Plants in
Plants Capacity
No. No.s
1 Ammonia 2 3500 MTPD
2 Urea 3 6100 MTPD
3 Steam Generation (SGP) 2 550 TPH
4 Steam Generation standby 1 275 TPH
5 Heavy water (HWP) 2 110 TPA
6 Capative Power (T.G.set) 2 30 MW
7 Water Treatment (WTP) 2 900 M3/hr
8 Dimethyl Form ide (DMF) 1 2500 MTPA
9 Methyl Amine (MAP-old) 1 5000 MTPA
10 Methyl Amine (MAP-new) 1 6400 MTPA
11 Dimethyl Ace amide (DMAC) 1 5000 MTPA
12 Carbon Monoxide (co plant) 1 1200 NM3/HR
13 Formic Acid (FAP) 1 10000 MTPA
14 Effluent Treatment (ETP) 1 1500m3/hr
15 Product Handling (PHp)/ Bagging 1 4500 MTPD
16 Ammonia Storage Tanks 2 25000 MT
17 Urea Storage soils 2 90000 MT
 15

FINANCE DEPARTMENT
Introduction

Finance department is a part of an organization that manages its money. The

Business functions of a finance department typically include planning, organizing,
auditing, accounting for controlling company’s finance. The finance department
also usually produced the company’s financial statements. The importance of
finance department lies in its ability to make sure that cash is available for
company operations and that your business is managing its money effectively
enough to meet its financial obligations.

Finance may be defined as the art and science of managing money it includes
financial services and financial instrument. Finance is also referred as the
provision of money at the time when it is needed. Finance function is the
procurement of funds and their effective utilization in business concern.

The concept of finance include capital, funds, money, and amount.

“Finance is the art and science of managing money.”

Functions and Responsibilities :-

1. Payment :-

Major functions of finance department to make payment to the different

parties who supplies materials or give services to RCF Ltd. Payment can be
two type.
a. Revenue expenditure
b. Capital expenditure
 16

a. Revenue expenditure :-
Its payments arte day to day expenses.
b. Capital expenditure :-
Its payment are pay for purchasing assets.

2. Costing :-

We have cost sheet to compute cost of production and get selling price of
product profitability report, in payment, of assets fortnightly

3. Concurrence :-

We have concern to proposals builds as summited by parties we have

concurred to tender guidance and day delegation of power.

4. Internal Audit :-

It is check internal control or activities running the RCF ltd., weather the
technical and finance department.

5. Cash/Bank Payment :-

Cash payment in case of emergencies and in case of giving advance top

employees.
Most the cases we do bank payments, RTGS, NEFT.

6. Taxation :-

We have to pay tax to government, Income Tax, Service Tax, Excise, File
Return also and we have summate corporate government report.

7. Miscellaneous Income/ Expenses :-

a. Income :-
 Rent form the flats and RCF Colony.
 17

b. Expensess :-
 Security expenses
 Electricity charges
 Advertisement
 Promotions and Publicity

FINANCE DEPARTMENT IN RCF

List of Employees Working in Finance Department :

sr.no Name Designation

1 A.k.Sahoo Chief Manager (Finance)

2 A.K.Pattanaik Chief Manager (Finance))
3 Sundeep . S. Satpute Manager (Finance)
4 prashant .S. Mhatre Manager (Finance)
5 Jaideep . H. koli Manager (Finance)
6 Amit kumar Manager (Finance)
7 Vihar .y. powar Manager (Finance)
8 Rajkumar .R. Shaw Dy.Manager (Finance)
9 Sanjay .D. Shelke Senior Officer(Finance)
10 Ravindra . S. Rajake Senior Officer(Finance)
11 Kunal .P. More Senior Officer(Finance)
12 Mayur kale Officer(Finance)
13 Sunil Kumar Senior Officer(Finance)
14 Ashish Kasera Senior Officer(Finance)
15 S.p.padte Senior Officer(Finance)
16 Nikant .D. Gharat Officer(Finance)
17 Niketa Raut Officer(Finance)
18 Rohit .D. Borse Officer(Finance)
19 Amit Patil Officer(Finance)
 18

FUNCTIONS OF FINANCE IN RCF LTD.

 FINANCIAL CONCURRENCE

To examine the proposal from the financial point of view. Financial concurrence
is done by keeping in mind the cannons of financial proprietary.

If the Finance department does not agree or is not in concurrence with any
proposal received from any department, it specifies the reasons thereof and if it
agrees, it puts the comments along with the suggestions to be followed by the
concerned executing department.

Functions of Financial Concurrence

 To ensure the compliance to systems, procedures, envisaged in the

contract/procurement policy.
 To strictly adhere to delegation of power of the company
 To see financial correctness
 To see any impropriety in the proposal

FCD Does not put any break in the working of organization, rather suggest for
smooth working and proper compliance in case of any deviations. Sometimes,
the finance concurrence is correlated with internal audit or government audit.

But it may be noted that the functions are not exactly the same for all these
departments. There may be a few similarities in the functions but the activities
as well as objectives of all these departments are different and independent.
 19

Procedure for Concurrence/Evaluation of Purchase Files

Step-1 Identification of Requirement of product from user department.

Step-2 3 Budgetory Offers.
Step-3 Average of the Budgetory.
Step-4 Indent Preparation by user department.
Step-5 Approved Indent sent to Purchase Section.
Step-6 Purchase Section will make the pre-qualification Criteria for requisite product.
Step-7 Government e-market place (GEM).
Step-8 Offered received in GEM on due date.
Step-9 Offer Scrutiny by Technical Section/User Section.
Step-10 Offer Scrutiny by Purchase Section (Commercial Scrutiny)
Step-11 Approval note for recommendation of price bid of qualified Bidders.
Step-12 Offer Scrutiny by Finance Section (Technical/ Commercial Scrutiny)
Step-13 Final note for recommendation of price bid of Qualified Bidders.
Step-14 Price Bid opening of qualified Bidders.
Step-15 Approval note for placement of purchase order for L1 Bidder.
Step-16 Approval note signed and recommended from all concerned section.
 20

Following matters Requiring Financial concurrence

 Price Bid Opening (PBO) :

In cases where the purchaser wants to purchase items where either the
purchase value is high or the product/services to be procured is
complex/critical; the method followed is Two Stage Bidding. In this process
the qualification/capabilities of the suppliers are ensured at stage-1. This
stage is also known as Technical round. In lay mans language it acts as first
level filter.

There may be different criterion for selecting the bidders. Few examples are:

a) Only those who obtain predefined marks say 30 (out of 100) will be treated
as qualified.

b) Top 5

c) Only Pass/Fail method:

In this case the thresholds for each QC is defined separately and bidders are
evaluated whether they meet that criterion or not. Example: Minimum
Turnover should be say USD 1 Million or minimum experience should be 5 yrs
etc.

In the second stage the offer of only those bidders are opened who have
passed the first stage (the Qualification Round/Technical Round).

And this is known as- “ Price Bid Opening”

 Financial Bid Evaluation (NIT) :

1. The pre-qualified bidder firms would be informed regarding the date, time
and place of opening of financial bids and can remain present at the time of
opening of financial bids.
 21

2. After evaluation of technical bids as above, the financial bids of only pre-
qualified bidder firms would be opened.

3. The lowest bidder firm would be given 50 points / marks and the next
higher bidder would be given proportionate points / marks out of total 50
points / marks.

 Award of Assignment / Contract (AOC) :

The contract shall be awarded to the P1 bidder firm as determined The

combined score of technical bid (out of 50) and financial bid (out of 50) would
determine the ranking of bidders for this audit. The bidder scoring the highest
combined score would be considered as the Most Preferred bidder (P1) for
this audit. The bidder having next highest combined score with respect to this
audit would be considered as Second Preferred bidder (P2) and so on.

In case of any tie within the bidders, preference would be given to the bidder
firm that has scored more points / marks out of total 50 in Technical Bid
evaluation.

 Capital Budget:

An introduction to Capital budgeting involves choosing project that add value

to a company. The Capital Budgeting process can involve almost anything
including acquiring and/or purchasing fixed assets like a new truck or
machinery. Corporation any typically required or at least recommended to
undertake those projects which will increase profitability and thus enhance
shareholders.

Financial concept & Capital Budgeting: When a firm is presented with a Capital
Budgeting decision, one of its first task is to determine whether or not the
project will prove to be profitable.
 22

Capital Budgeting is a technique of taking long term investment decision,

Capital Budgeting is generally used to decide about the investment in fixed
assets, benefit of fixed assets is accrued in future and future is very uncertain,
lot of risk factors are involved in purchase of the fixed assets, hence for
reducing losses and risks for maximization of the profit, Capital Budgeting can
be used. Capital Budgeting is the process of analyzing a company’s investment
decisions such as investing in a new Equipment, Machinery, Plants, Projects
and Products. This process involves the estimation of the expected cash flows.

 Placement of Work /Purchase/ Sales Order :

1. Evaluation of works/Purchase.
2. Evaluation and acceptance of tenders including commercial terms &
conditions.
3. Issue of works/Purchase orders.
4. Negotiation with tenders regarding price and / or the terms and
conditions of the contract.

 General :
1. Expenditure or publicity schemes.
2. Contribution to external agencies.
3. Hiring of office accommodation, plant & machinery etc.
4. Advance payment to outsiders with or without security.
5. Disposal of materials – surplus or otherwise.
 23

 GOOD RECEIPT NOTE (GRN) :

Goods received note is a document that acknowledges the delivery of goods to a

customer by a supplier. A GRN consists of a record of goods that the buyer has
received. This record helps the customer compare the goods delivered against
the goods ordered.

When the buyer receives the goods, the store’s department will inspect them
against the purchase order and examine their physical condition. Once they
ascertain that all goods are received in perfect physical condition, the
department issues the GRN. In cases where the goods received do not match the
specifications of the purchase order, the buyer may reject these goods. The buyer
issues the GRN only for approved goods and executes a fresh purchase order for
the rejected batch.

The responsibility of issuing GRN is on the store’s department. It is prepared in

several copies, each for the supplier, procurement department, accounts
department, and store’s department retention.

Format of goods received note

A GRN must consist of the following features to depict complete information of

the delivery:

 Name of supplier

 Time and date of the delivery

 Details of products received include name, quantity, type, etc.

 Signature of stores manager

 Signature of supplier/representative of the supplier

 24

 PURCHASE / SALES / WORK ORDER RELEASE:

 WORK ORDER :

Work orders are documents that summarize the details of a particular task
that must be done. Work orders include the person requesting the work,
management authorization, the technician completing the work, and the
deadline. They should detail the location of the work, instructions for the task,
and the parts and tools required .

The information that appears on a work order includes:

 Description of the task or needed work

 Name of requesting department or individual

 Estimated completion date or deadline requirement

 Name of person, team, or contractor to complete the task

 Detailed location of where work is to be done

 List of parts, tools, or documentation needed to perform tasks

 PURCHASE ORDER :

Purchase orders provide the documentation that authorizes a company to

buy goods and services from third-party vendors. It summarizes all the details
about the purchase to help ensure both the business and supplier are in
agreement about items purchased and payment terms.

Purchase orders include the name, quantity, and price of the items or services
ordered. Specials, discounts, or other agreements should be outlined as well.
Finally, a purchase order should specify the payment terms as well as
expected delivery dates.
 25

By assigning a unique PO number, a company can better track, manage and

analyze its purchases over time. This data can help in negotiating better or
different purchasing agreements with current or new vendors.

The information that appears on a purchase order includes:

 Name of product or service

 Order quantity

 Item price

 Discount, sale, or backorder information

 PO number

 Delivery schedule

 Payment terms
 26

 BILLS :

An invoice or bill is an important written document that indicates the sale or

supply by one business to another business or consumer. It contains
information about the particular sale transaction, such as buyer’s details,
quantity, value, tax, and payment terms. In India, the Goods and Services Tax
(GST) law has elaborate laws on invoicing format and issue of invoice or bill.

Invoice can be defined as “a list of goods sent or services provided, with a

statement of the sum due for these; a bill.”

Types of Invoices or Bills Received in Finance Department:

 Standard Invoice :

A standard invoice is the most common form of invoice used mainly in most
industries and billing cycles. It will include a description of the product or
service, the pricing, payment methods accepted, and an invoice due date.

 Credit Notes & Debit Notes:

It is also known by names such as credit memo and debit memo. Credit and
debit notes are used for decreasing value and increasing values of previously
raised invoices, respectively.

For instance, credit notes are used while the business wants to pass on a
discount or provide a refund to its customers or buyers. On the other hand,
debit notes are used to increase the quantity or value of the original invoice.

 EMD & Security Deposit :

Security deposit in tender is one of the payments to be made as a part of the

tender process. This is different from Earnest Money Deposit or EMD in
tender. Security deposit is demanded by the tender issuing authority to get
an assurance from the company that all contractual obligations will be
 27

fulfilled. Security deposit in tender is paid by the winning bidder. Once a

company is selected for the tender, it will be required to pay a deposit, a
percentage of the total value of the project under the tender contract.

Earnest money and security deposit in the tender are both financial
guarantees provided by the tenderer protecting the tenderee against losses.

Earnest Money Deposit or EMD in tender means the amount that is given as
a deposit to the company/government department that issued the tender. An
EMD tender fee is generally 2% to 5% of the estimated value of a tender
contract and will be mentioned in the tender notice.

It is the deposit paid by the sellers/tender applicants to the buyer while they
bid for the tender. The EMD amount will be refunded to you whether you win
the tender or not. The EMD of an unsuccessful bidder is refunded after the
finalisation of the tender contract.

 Demurrage / Late Fee Payment :

Demurrage is charged when a company delivering containers does not unload

or move them expeditiously. Demurrage can be considered a penalty for
slowing down the ebb and flow of that port or railyard's business operations.
It is a strong deterrent and keeps those responsible for their containers
moving at a reasonable, agreed-upon pace.

Demurrage charges are enacted by the authority owning the land or space
where the containers are being stored. The owner of the containers, who is
usually the shipper, is the one who is responsible for demurrage charges.
 28

 BANK GUARANTEE:

A guarantee means giving something as security. A bank guarantee is when a

bank offers surety and guarantees for different business obligation on behalf
of their customers within certain regulations. The lending institutions provide
a bank guarantee which acts as a promises to cover the loss of the customer
if he/she defaults on a loan. It is an assurance to a beneficiary that the
financial institution will uphold the contract between the customer and third
party if the customer is unable to do so.

Bank Guarantee a promise made by the bank to any third person to undertake
the payment risk on behalf of its customers. Bank guarantee is given on a
contractual obligation between the bank and its customers. Such guarantees
are widely used in business and personal transactions to protect the third
party from financial losses. This guarantee helps a company to purchase
things that it ordinarily could not, thus helping business grow and promoting
entrepreneurial activity.
 29

SAP S/4 HANA:

SAP S/4HANA Finance is SAP’s flagship financials solution and successor to
SAP ERP Financials. First released in 2014, it boasts many process
improvements for the financials world, including the introduction of a single
source of financial truth, real-time financial close, and predictive accounting.
It was developed to run off the SAP HANA platform and primarily utilizes
the SAP Fiori user interface.

Originally termed SAP Simple Finance, the solution was launched at the 2014
SAPPHIRE NOW technology conference in Orlando, Florida. Nine months
later, it would undergo a name change to SAP S/4HANA Finance when SAP
announced its new SAP S/4HANA enterprise resource planning platform,
broken down into lines of business such as finance, supply chain, sales, and
more.

Innovative features of the first release of SAP S/4HANA Finance included the
Universal Journal that provided a single place to store both financial and
management accounting documents with relevant details. This led to better
reporting, easier access to KPIs utilized by managers, and cockpits tailored to
specific end users to help them make more informed decisions.

Since then, SAP has continuously built upon the foundation of SAP S/4HANA
Finance. Major yearly releases have added new, innovative functionality to
the solution, and as of 2019, SAP S/4HANA’s latest features include improved
financial closing capability, centralized payables and receivables, predictive
accounting, and more embedded analytics.
 30

DATA ANALYSIS
OPEARTIONAL PROFIT
OPERATIONAL PROFIT, PBT AND PAT (RS. CRORE)

1600
1,504.37

1400
1,273.14

1200 1125.72

943.91 966.31
1000

800
704.36

600

400 321.84 301.17

225.28
200

0
2021-22 2022-23 2023-24

OPERATIONAL PROFIT PROFIT BEFORE TAX NET PROFIT AFTER TAX

Interpretation:

Operating profit of R.C.F. Ltd has decreased from the year 2022-23 to 2023-
24 in sum of ₹.1,183.04 Crore, which is huge difference in around 1 year. Profit
Before Tax is heavily affected during the year 2022-23 to 2023-24 in total ₹.
301.17 Cr. Which indicates the decreasing profit of R.C.F. Ltd. Net Profit is
highly affected from Profit Before Tax start from the year 2022-23 Net profit,
major decrease between the year 2022-23 to 2023-24 is total ₹. 741.03 Cr.
 31

SHARE-HOLDING PATTERN AS ON 31.03.2024

Share-Holding Pattern 31.03.2024

Public Shareholding Promoters

Public Share Hodling:

Resident Individuals holding nominal

15.38% 8,48,25,592.00
share capital up to Rs. 2 lakhs

Resident Individuals holding nominal

3.62% 1,99,50,092.00
share capital in excess of Rs. 2 lakhs

Foreign Portfolio Investors Category I 2.33% 1,28,69,664.00

Any Others (Specify) 1.18% 65,02,845.00

Bodies Corporate 1.16% 63,85,261.00

Non Resident Indians (NRIs) 0.71% 39,18,016.00

Foreign Portfolio Investors Category II 0.25% 13,61,099.00

Insurance Companies 0.20% 11,24,460.00

 32

Alternate Investment Funds 0.09% 4,95,000.00

Mutual Funds 0.05% 3,00,137.00

Investor Education and Protection Fund

0.03% 1,84,895.00
(IEPF)

NBFCs registered with RBI 0.00% 1,456.00

Promoters :

Central Government/ State

75.00% 41,37,69,483.00
Government(s)
 33

STUDY OF NET PROFIT

Years 2021-22 2022-23 2023-24
Net Profit 702.39 966.31 225.28

crore

Net Profit
1200

1000

800

600

400

200

0
2021-22 2022-23 2023-24

Net Profit
 34

BALANCE SHEET AS ON 31.03.2024

AS AT AS AT
Particulars
31.03.2024 31.03.2023
ASSETS
1. NON CURRENT ASSETS
(a) Property, Plant and Equipment 2540.38 2522.18
(b) Capital Work in Progress 431.25 211.48
(e) Right of Use Assets 12.14 15.02
(d) Investment Property 5.37 4.99
(e) Intangible Assets 0.03 0.43
(f) Financial Assets
(i) Investments 991.51 994.19
(ii) Trade Receivables
(iii) Loans 5.1
(iv) Others
(g) Other Non·Current Assets 418.45 304.62
4399.13 4058.01
2. CURRENT ASSETS
(a) Inventories 2582.24 2585.41
(b) Financial Assets
(i) Trade Receivables 3549.67 2608.82
(ii) Cash and Cash Equivalents 156.49 1130
(iii) Bank Balances other than (ii) abnve 196.45 53.23
(iv) Loans 5.11 5.13
(v) Others 266.4 147. 18
(c) Other Current Assets 300.23 3554
TOTAL ASSETS 11455.72 9704.62
 35

EQUITY AND LIABILITIES

A. EQUITY
(a) Equity Share Capital 551.69 551.69
(b) Other Equity 4054.05 4038.43
4605.74 4590.12
B. LIABILITIES
1. NON·CURRENT LIABILITIES
(a) Financial Liabilities
(i) Borrowings 940.39 1034.98
(ii) Lease Liabilities 8.05 9.25
(iii) Other Financial Liabilities 42.77 33.98
(b) Provisions 209.24 191.08
(c) Deferred Tax Liabilities(Net) 305.73 236.9
(d) Other Non-Current Liabilities 23.73 27.78
2. CURRENT LIABILITIES 1529.91 1533.97
(a) Financial Liabilities
(i) Borrowings 2342.86 827.67
(ii) Lease Liabilities 5.34 4.71
(iii) Trade Payables
(A) Total Outstanding Dues of Micro 55.46 57.13
Enterprises and Small Enterprises.
(B) Total Outstanding Dues of Creditors Other 1880.13 1954.16
than Micro Enterprises and Small Enterprises
(iv) Other Financial Liabilities 616.85 446.05
(b) Other Current Liabilities 264.5 119.09
(c) Provisions 154.93 171.72
5320.07 3580.53
TOTAL EQUITY AND LIABILITIES 11455.72 9704.62
 36

CONCLUSION:
R.C.F is one of the leading manufacturers of chemicals and fertilizers, it has
received many subsides by the government regarding giving Fertilizers to farmers
at lower price. RCF has huge capacity to produce Urea and Ammonia in their
respective plants. Whereas compare to other fertilizer companies like Deepak,
Bharat, Chambal fertilizers; RCF Ltd has successfully improved and carried out its
operation efficiently and effectively by increasing capacity and optimum use of
resources.

Finance department plans and manages company money, making sure a

business can access cash in sustainable ways. This department can be as
simple as a few people managing invoices or as complex as a team of
hundreds with multiple levels of management.
 37

REFERENCE:
https://www.rcfltd.com/

https://www.fert.nic.in/psu/rashtriya-chemicals-and-fertilizers-limited-rcf

https://www.moneycontrol.com/india/stockpricequote/fertilisers/rashtriy
achemicalsfertilisers/RCF01

https://en.wikipedia.org/wiki/Rashtriya_Chemicals_%26_Fertilizers