A PROJECT REPORT ON FINANCIAL MANAGEMENT SYSTEM

Under the guidance of

Ms. Partha Das

SUBMITTED TO.

Submitted by. Ankit Kumar Verma

Maharishi Arvind Institute Science and Management Ambabari circle Ambabari Jaipur

PREFACE

A management student has to incorporate many theoretical concepts. But these concepts are useless until, student mix them with practical concepts to prepare concepts a blend of knowledge and judgment .This project report is that practical aspect which is full fill the gap between abstract theory and practical .This helps the students to be familiar with actual business practices, behavior & conditions. Project Report which is an important as well as obligatory requirement for the award of Post graduate Diploma in Management, has been taken INDIAN OIL CORPORATION LIMITED (PANIPAT REFINERY). In this report an endeavor has been made to throw a light on the broad functions and procedures involved in the management of Financial System in Panipat Refinery.

The entire projects work has been divided into following sections Purchase and store accounting Concurrence Works Employee welfare Payroll Bank & Miscellaneous Main Section

INDEX

SR.No. 1.

CONTENTS
INTRODUCTION HISTORY COMPANY PROFILE OVERVIEW OF PANIPAT FEFINERY

2.

BASIC FRAMEWORK OBJECTIVE OF THE STUDY RESEARCH METHODLOGY PURCHASE & STORE ACCOUNTING CONCURRENCE WORK SECTION EMPLOYEE WELFARE PAYROLL SECTION BANK & MISCELLANEOUS MAIN SECTION FINDING AND RECOMMENDATIONS BIBLIOGRAPHY ANNEXURES

3 4 5 6 7 8 9 10 11 12.

INDIAN OIL CORPORATION LIMITED

Indian Oil Corporation Limited is the largest commercial undertaking in India and the only Indian Company in fortune `s Global 500listing of the world `s largest industrial and service companies with a ranking 226 for fiscal 2003. The company was ranked 20th among petroleum companies in terms of sales and profits. THE HISTORY The journey of Indian Oil Corporation ltd. Began in 1959 the year Indian Oil Company was incorporated. In 1964,it became a corporation with the merging of Indian Refineries Ltd. with the company .The refineries and pipeline division of the present company is the successor of Indian Refineries Ltd. The current pipeline division came into effect from February 1968. THE COMPANY STRUCTURE Indian Oil Corporation Ltd. is a wholly Government owed private limited company registered and The Companies Act ,1956 and it managed by a Board of Directors who are appointed by the President of India . The Memorandum Of Article and association of the company are started in the Ministry of Finance. Company law Board Order No.81/64 CL.III dated 31.August 1964 and amended from time to time .The activities of the company are divided at present into five divisions i.e, 1. 2. 3. 4. 5. Marketing Division Refinery Division Pipeline Division Research and Development (R&D) Assam Oil Division

The Refinery and pipeline Division is the successor to the rest while Indian Refineries Limited, a Government of India Undertaking, which was incorporated on 22.8.1958 as a private limited company. Later on, it was amalgamated with Indian Oil Company limited vide amalgamation Order No. 8/1/4-CL,III dated 31.8.1964 .A Pipeline Division was created out the rest while Indian Refineries Limited and it came into being with effect from 11.3.1965 .With the completion of the construction of pipeline projects in hand , the pipeline division was abolish with effect from 23.12.1968 vide government of India, letter no.25(3)/66-OR-IOC dated 16.12.1968 .Since then the pipelines wing forms part of the Refineries and Pipeline Division of the Corporation .

The five division of the corporation is managed separately and a Director (in charge) of the Divisional Heads each Division. List of Directors . Location Panipat Refinery Digboi Refinery Guhawati Refinery Haldia Refinery Barauni Refinery Mathura Refinery Gujarat Refinery Bongaigaon Refinery Para dip Refinery Name of directors

THE EXCUTIVE STRUCTURE The three division of the corporation is being managed separately. A Director (in charge) heads each division. Further the Board of Directors ten Directors includes Directors from different functional areas of the corporation. the current Board of Directors include the Chairperson and Directors from the following Division- Pipelines ,Human Resources , Finance ,Marketing ,Personal, Refineries and R&D center have their departments reporting to their respective Director (in charge) and prepare their budget ,accounts and operational programs . Separate Balance Sheet and Profit and Loss Account are prepared by Refineries and pipelines wings of R&P division, Assam oil Division and R&D center and are presented to the Board of Directors each Year

CHARIMAN OFFICE REGISTERED OFFICE The Registered Office of the company is at: G-9, Western Express Highway Ali Yavar Jung Marg, Bandra (East) Mumbai -400051

CORPORATE OFFICE FUNCTIONAL HEAD OFFICE The Functional head office for Refineries is at: SCOPE COMPLEX Core II,7-Institutional Area Lodhi Road ,New Delhi-110003 REFINERIES DIVISION HEAD OFFICE The corporate office is housed at the same address The Head office of the Pipelines Division is at; A-1 ,Udyog Marg ,Noida(U.P) The Head office for the Marketing Division is housed at the same address as the Registered Office .The R&D office center is at: Sector---13, Faridabad -120,002 Haryana-

THE BANKERS AND STOCK EXCHANGES IN WHICH THE COMPANY IS LISTED The principal Bankers of the company are: i. ii. State Bank of India and its subsidiary banks Union bank of India

The Company is listed the Mumbai, Delhi, Kolkata ,as well as company registrar and transfer agents are: Karvy Consultants Limited 21,Road No-1,Banjara hills Hydra bad-500034 THE PHYSICAL ASSETS AND ACHIEVEMENTS PHYSICAL ASSETS Indian Oil owns and operates seven of the country `s fifteen refineries namely at: DIGBOI, GUWAHATI, GUJARAT, BARAUNI, HALDIA, MATHURA, PANIPAT, PARADIP, BONGAIGAON. Which refines 35.1 million metric tons per annum,which are about 41% share of total refining . Indian Oil has 5,762network of pipelines and meets 55% of the petroleum products consumption in India. Its extensive network of nearly 1800+ sale points covers the entire country is backed for suppliers by 82 aviation turbine stations.

QUALITY CONTROL MEASURES AND ACHIEVEMETS

Quality control laboratories of the company are all metros have been provided with computer-aided equipment for the quick and high precision testing .A customer service laboratory with state of the art computerized equipment is operational at Banglore for the testing lube oil samples .Automatic testing equipment has also been developed for lube packaging quality control. A quality control laboratory for L.P.G

Is also Kandla import terminal. Indian Oil is the only oil company is the country with ISO9001/9002 accreditation for over 50 units which includes refineries, pipelines, aviation turbine stations, lube grease plants, quality control laboratories, LPG bottling plant and the Indian oil Institute of Petroleum Management (IIPM). At the end of the 1997-1998 fiscal all the seven refineries were accredited with ISO 14001 certification for environmental management system. The Mathura Refinery has also received the Golden Peacock National Quality award for the Year 1996-97 and 1997-98.

JOINT VENTURS WITH FOREIGN COMPANIES Indian Oils joint venture s Indo- Mobil and Avi Oil India in association with Mobil, USA and Nyco SA France respectively ,offer premium and specialty, Lubricants. Indian Oil tanking in association with Oil tanking with Gmb ,Germany and IBP Co. is developing tank age infrastructure. A strategic alliance exists with Air BP in the area of Aviation fuel services. Memoranda have been signed with PETRONAS of Malaysia .Marubeni of Japan, Petrotin and National Petroleum Marketing Company of Trinidad and Tobago and Emirates National Oil Company for collaborative venture in both upstream and downstream areas, including Training and consultancy. EXPORT EARNINGS Foreign exchange are earned largely from the supply of aviation fuel to International airlines, Bunker Fuel and Marine Lubricants. A certain fraction of it is also earned from SERVO Brand of Lubricants, which is

sold in the neighboring markets as well as in the markets in the Middle East. Indian Oils comprehensive, ISO-9001 certified R&D center as done pioneering work I lubricants, refinery processes and pipeline transportation .The center has developed over developed over the 1880 lubricant for emulations and obtained approvals from national and international equipment builders. A wholly owned subsidiary Indian oil Blending limited manufactures over 450 graded of the countrys leading SERVO brand lubricants and grease.

MARKETING HIGHLIGHTS While Indian Oil is already managing an Oil Terminals Zambia, its premium range of SERVO lubricants is being marketed in Nepal and UAE with other markets to follow soon. Vision 2000 Indian Oil s retailer visual indentify programs as its petrol/diesel stations have been implemented successfully . As a part from the Indian Oil Citibank co branded credit card that has been launched ,the New Look retail outlets have a convenio shopping centre ,snap services ,quick lube oil change ,automatic car wash and at a place unmanned card operates pumps and round the clock ATM s . The oil industry in India its undergoing transformation in phases from a controlled and regulated system to a deregulated industry. The administered pricing mechanism (APM) for the refining sector has been dismantled with effect from the year 1998, unhearing in a market determined pricing mechanism.

PANIPAT REFINERY
Panipat Refinery is the 7th refinery of Indian Oil. Referred to as the country s most modern refinery , it is situated 100 kms .off Delhi ,a midst lush of green