A Project Report On A STUDY OF FI MODULE OF S.A.

I would first like to thank the college to give me opportunity to work on our linking and had worked hard to make it our best and a successful one. My heartfelt gratitude towards the director of ............to provide the much needed guidance and support. I wish to express my sincere thanks towards my guides .............................for their continuous encouragement, support and guidance. I also thank them for their valuable contribution, and lastly I thanks and express gratitude towards the persons who provided their valuable support for the completion of project.

INDEX

SR. NO. 1 2 3 4 5 6 7 8

CHAPTER NAME TITLE PAGE ACKNOWLEDGEMENT INTRODUCTION CONTENT PAGE SUMMARY METHODOLOGY RESULTS CONCLUSIONS 2

INTRODUCTION OF COMPANY
JNIL GROUP OF INDUSTRIES

The flagship company of the Neco Group, Jayaswal Neco Industries Ltd, was promoted by Shri. B.L. Shaw is engaged primarily in ferrous foundries, manufacturing of pig iron, value added steel billets, Rolled products, sponge iron and captive power plants. It had its humble origin in a simple grey iron foundry established at Nagpur in 1976 and subsequently became one of the largest castings manufacturers in India. The foundry division manufactures castings of all specifications and types ranging from manhole cover, centrifugal cast pipes, fittings, automotive castings, engineering castings and construction castings. It then eventually progressed itself to set up an Integrated Steel Plant for the manufacture of pig Iron, billets and rolled products, Power at Raipur. The divisions catering to the castings business are collectively referred to as the FOUNDRY DIVISION, whereas the Integrated Steel Plant at Raipur is referred to as the STEEL DIVISION.

Main Divisions-

The Foundry Division is the single largest player in the private sector producing all types of Castings and catering to different segments, producing Centrifugally Cast Iron Pipes for drainage and is a leading supplier of construction castings in Maharashtra, Gujarat, and Madhya Pradesh & Uttar Pradesh. Its Present production is around 1,00,000 Tons per annum of Engineering castings, automotive castings, pipes, fittings, manhole covers, construction castings, heavy castings Grey CI etc.

I. Automotive Casting Division-I

Set-up in 1992 at 20 km South of Nagpur, It has 2 different Moulding systems Normal Jolt Squeeze Moulding and High Pressure Moulding.

Manufacturing range-

a) Cylinder Heads (both Diesel & Petrol) for Cars, Trucks and Tractors b) Cylinder Blocks for Cars / Trucks c) Gear Boxes, Differentials, Hydraulic Lifts etc., for LCV, Cars and Tractors d) Brake Drums, Crank Cases, Rotor Discs etc.

Cylinder Heads in particular are being exported to Europe and USA for AFTERMARKET applications and are being supplied in FULLY MACHINED and READY TO ASSEMBLE condition.

II. Automotive Casting Division-II

It entered into collaboration with Schubert & Salzer Eisenwerk Erla GmbH, Germany and has set up a High Pressure Moulding line for the manufacturing of Automobile Casting with an installed capacity of 20,000 TPA.

Product Range1) Cylinder Blocks for Stationary Engines for DG Sets with a weight range of up to 500 kg per pc. 2) Differential Housings for Tractors of 55 HP and higher range. III. Engineering Casting Division (Now Automotive Division)

It was commissioned in 1985 and has been the largest supplier of Railway Insert Castings, required for concrete sleepers in the country. Lately, the unit has emerged as a major supplier of Ductile Iron Casting, both for the domestic as well as export market. Exports include supply of Ductile Iron fittings for potable Water Supply systems, especially for South Africa and USA. It is also supplying Ductile Iron Components to the Automobile (Truck, Cars) and Tractors Industries.

IV. Centri Cast Division

It was commissioned in 1981 with an installed capacity of 53,200 MT per annum to manufacture CI Soil/Rain water pipes and fittings and Manhole Covers for public works and sleeper plates, bearing plates & brake blocks for Indian Railways. This division also specializes in the manufacture Municipal/ Public Works castings viz. Soil / Rain Water Pipes and Fittings, Manhole Covers etc.

V. Construction Casting Division

It is located at Bhilai and Anjora in the state of Chhattisgarh and it specializes in the manufacture of Railway Tracks material like Sleepers, Brake Blocks, Bearing Plates, other related casting for Indian Railways, Sockets, other castings for the P&T Department, Soil/Rain Water Pipes & Fittings, Manhole Covers for the Building & Construction Industry.

Salient Business Features Of the Foundries: -

All the foundry divisions of the company are ISO 9001-2000 certified and are controlled as per the stringent quality control requirements. The products also confirm to the BIS standards. The Automotive Foundries of the Company are TS certified whereby the products produced by the division are certified as approved for supply to the entire Europe as per their specifications and norms. The company also enjoys the cost advantage due to mass production. The production volumes achieved by the company helps the company in competitive pricing and also in quick delivery & dispatch of the goods. The Wide range of products available to the customers under one roof also gives a keen advantage to the company. The company has a strong and large marketing network all over the country and in the international market as well, which helps it in selling the products quickly as well as timely realization of the dues. The company has its own offices in all the major cities of the country and large numbers of executives covering the marketing network. The SG Iron products cater to the critical requirements of the major and reputed customers and the company serves as the OEM suppliers to these companies. The large box size for manufacture of axle housings is available with very few competitors and this act as a great advantage for the company. Its Integrated Steel Plant (ISP) at Raipur is established in collaboration with the China

Shougang International Trade & Engineering Corporation (Shougang), Beijing, China. The ISP has an installed capacity to produce 0.10 million tonnes of coke oven plant, 0.75 million tonnes of Pig Iron, 0.8 million tonnes of Sinter and 0.334 million tonnes of Steel Billets and 0.4 million tons of Wire Rod and Merchant Bar Mill and 42.5 MW Power Plant.

Facilities at Raipur (ISP)

Coke Oven Plant: The Steel Plant also has a state of art Coke Oven Plant of 0.10 million ton on Stamp Charging System. The Company was one of the first players in India to have commissioned its Coke Oven Plant on Stamp Charging Route. The company is also utilising on conversion basis coke oven facility of 0.10 Million TPA of Usha fules to manufacture coke.

Blast Furnace: The Blast Furnace has a capacity to produce to 0.75 million tons of Basic Grade as well as Foundry Grade high quality pig Iron.

Coal Dust Injection Plant: The Company has a highly efficient Coal Dust Injection, which injects the Coal Dust through tuyers into the Blast Furnace whereby the Low Ash Metallurgical Coke requirement is reduced by 75% of the Coal Dust Injected.

Sinter Plant: The Company has got a highly productive and Cost efficient process of Agglomeration of Fines where the Waste of Iron Ore and Coke Fines is recycled and charged as Raw Material into the Sinter Plant to produce high quality Baked Sinter of around 0.8 million tons which acts as a principal Raw Material in the Blast Furnace. The Sinter injection into the Furnace increases the Productivity of the Furnace and reduced the requirement of Costlier Iron Ore and Met Coke into the Furnace.

Steel Melt Shop: The Company about six years back successfully took a forward leap from being a Metallics Player to a Finished Steel Manufacturer by commissioning a 0.334 million tons p.a. Steel Melt Shop. It produces High Quality Value Added Steel Billets of Spring Steel, Carbon Steel, Alloy Steel, Free Cutting Steel and Commercial Steel types. It caters to the Industry requirements of Forgings, Fasteners, Bearings, Auto Component Manufacturers for Car and Truck manufacturers.

Sponge Iron Plant: The Company has got 0.255 million tons of Sponge Iron manufacturing facility. It has got the backward linkage of its Own Captive Coal Mines, which are operating since last four years. It gives a significant Cost advantage to the Company as it monetizes the Benefits of its Mines by producing Sponge Iron at highly Competitive Costs.

Captive Power Plants (CPP): The Company has got waste heat recovery based 15.5 MW Power Plant which uses the Blast Furnace Gas to generate Power. It reduces the requirement of Power Import significantly for the Company. The Company has got total 42.5 MW captive power plant in the campus itself. As a consequence, entire Power requirement of the Company is being met through internal sources only.

The Other major facilities of the ISP include about 1600 acres of Land, completely mechanized materials receiving and handling system with Railway sidings. The facilities also include slag granulation system, Pump House and Electrical Sub- Stations.

Rolling Mills: The Companys Rolling Mill- Bar Mill has been commissioned in September,08 and Wire Rod Mill has been commissioned in Oct, 09 end. The total Rolling capacity is 0.40 million TPA of Long products of High Alloy, Free Cutting, Carbon and Spring Steel. Products manufactured:

Integrated Steel Plant at Raipur:

The Integrated Steel Plant (ISP) at Raipur has the following Capacities:

Plant

Capacity 100000 TPA (additional capacity of 100000 TPA on conversion basis from usha fules)

Products/ Details Converting coal into coke. This project helps in reducing acquisition cost of coke whose prices are determined by international market and are volatile. First plant in India to be set up on Stamp Charging system.

Coke oven Plant

Blast Furnace Coal Dust Injection Plant

750000 TPA

Product: Pig Iron. Highest productive furnace in the country with productivity over 3. Reduces coke consumption. 100 kg/MT of Hot metal consumption. Coke replacement ratio is 75%. It is a waste recycling plant with process of agglomeration of fines. Iron Ore fines, Coke Fines and other wastes are charged as Raw Material into the Sinter Plant to produce Sinter which is used as Raw Material in the Blast Furnace. It increases the Productivity of the Furnace and reduces the requirement of costlier Iron Ore and Met Coke into the Furnace. --do-Based on waste heat recovery/Dolachar based Power Plant. Further WHRB 6 MW Power is under construction. Produces High Quality Value Added Steel Billets of Spring Steel, Carbon Steel, Alloy Steel, Free Cutting Steel and Commercial Steel/ Mild Steel types. It caters to the Industry requirements of Forgings, Fasteners, Bearings, Auto Component Manufacturers for Car and Truck manufacturers. It has got the backward linkage of its Own Captive Coal Mines which are operating since last four years. The company has commenced open cast Coal Mining from July, 2006 and underground mining from November 2008. It gives a significant cost advantage to the Company as against the market prices of coal, sponge iron at highly competitive costs. Produces Flats , Rounds, Wire Rod, Bars etc.

--

Sinter Plant-I 400000 TPA

Sinter Plant-II Captive Plant Power

400000 TPA

42.5 MW

Steel Melt Shop 332640 TPA

Sponge Iron Plant

255000 TPA

Merchant Bar Mill and Wire Rod Mill

400000 TPA

Foundry Division: The Foundry Division is the single largest player in the private sector producing all types of Castings and catering to different segments, automotive, producing Centrifugally Cast Iron Pipes for drainage and is a leading supplier of construction castings in Maharashtra, Gujarat, Madhya Pradesh & Uttar Pradesh.
8

Plant Automotive Casting Division

Capacity

Products/ Details Mfg automotive parts like Brake drums, Clutch housing, Dead axle, Cylinder heads, Block, Gear Box housing, Transmission case, Cast pipes, Inserts etc The largest supplier of Railway Insert Castings, required for concrete sleepers in the country, the unit has emerged as a major supplier of Ductile Iron Casting, both for the domestic as well as export market. Manhole covers, sand cast pipes, centrifugal cast pipes Located at Bhilai and Anjora in the state of Madhya Pradesh ,it specializes in the manufacture of Railway Tracks material like Sleepers, Brake Blocks, Bearing Plates, other related casting for Indian Railways, Sockets, other castings for the P&T Department, Soil/Rain Water Pipes & Fittings, Manhole Covers for the Building & Construction Industry.

61200 TPA

Engineering Casting Division

7500 TPA

Centricast Division

53200 TPA

Construction Casting Division

25000 TPA

Apart from the above facilities, the company is having following iron ore and coal mines in the state of Chhattisgarh, Maharashtra and Jharkhand.

Details of Coal Mines and Iron Ore Mines:

Mines: The Company is in possession of the following iron ore and coal mines in the state of Chhattisgarh, Maharashtra and Jharkhand.

Coal Mines:

Name of the mines

Area in Hectares

Gare Block IV/4Raigarh, Chhattisgarh

885

Geological Reserve ( Million MT) 38.84

Status

In Operation Under Ground Mining From November, 2008 and Open Cast Mining from July, 2006. Expected to Start Commercial production in FY 2011-12. Expected to Start Commercial production on Achieving COD for the Current Mines Development Project.

Gare Block IV/8Raigarh, Chhattisgarh Moitra Coal Block in Jharkhand (Including open and underground mining reserve)

491

107

293

215

1669

360.84

Iron Ore Mines: Name of the mines

Area in Hectares

Dhobitola, Tehsil Amgaon District Gondia, Maharashtra Manegaon, Tehsil Amgaon District Gondia, Maharashtra Metabodeli, District Bastar Chhattisgarh Chotedongar, Narayanpur, Chhattisgarh Laindongri, Chhattisgarh Sonadehi, District Kanker, Chhattisgarh District

2.61

Estimated Reserves (Million MT) 2.50

Status

Mining Lease development

Granted-Mines

under

37.34

3.00

Mining Lease development

Granted-Mines

under

75.00

15.60

All Clearance obtained and the mines are expected to be operational in FY 11-12 All Clearance obtained and the mines are expected to be operational in FY 2011-12

192.25

220.00

14.40

2.50

Production expected to commence from April,2011 Prospecting License is expected to be granted shortly

250.00

6.00

10

Devpura, Gandai District, Rajnandgaon, Chhattisgarh

76.00

10.00

Prospecting License has been granted. Mines under development, expected to commence operations by FY-12.

647.60

259.60

JNIL - Achievement / Strengths

Features among the top 500 Companies in India consecutively for three years in a row. Largest supplier of Pig Iron in the Indian market o By virtue of its size, plays vital role in the pricing of pig iron in the Indian market One of the largest supplier of ferrous castings in India and the largest supplier of machined cylinder head to the Indian automotive industry producing castings weighing up to 800 kg per piece One of the largest manufacturer of sanitary casting Indias first non recovery type coke oven plant with stamp charging system Sole manufacturer of single piece cast axle beam (Axle beam is a rod that connects a set of wheels in an automobile) on high pressure molding line in India Castings are ISO-9001 and TS 16949 certified for whole Europe Engaged in manufacturing of sand cast iron pipes and fitting as per ISO-9001 and Automotive Castings as per TS-16949 certification Blast furnace from Showgang International, China one of Indias highest productivity blast furnace with productivity of over 3 times (on usable volume) Castings main production facilities include state of art High Pressure Moulding Machine, Automatic Pin Lift Jolt Squeeze Machine and CNC based Machine Shops which enable the supply of fully machined and ready to assemble component to the customer Own Iron Ore and Coal Mines. Coal Mines are operational since last four years. Iron Ore mines are expected to be operational by FY12. OEM supplier to leading automobile manufacturers in India such as Tata Motors, Mahindra and Mahindra, Jone Deere, Eicher, Tafe Dana, Spicer, Carraro, Man Force, Simpson, etc.

11

What is SAP?
SAP stands for Systems, Applications and Products in Data Processing. It was founded by five German Engineers in 1972. SAP is a software which large organizations use to manage their business. SAP has several modules each of which represent a business-process. Modules are usually abbreviated for the business process they represent. For instance, HR is Human Resources, FI is Financial Accounting, SD is Sales & Distribution and so on. All together there are some nineteen modules. These modules are highly integrated in real time, which means that if information is shared between modules then the data is entered only once. This reduces the chances of error arising from repetitive entry and also reduces the man-hours.

IN NECO COMPANYHOST SYSTEM- Linux SAP-ECC-06.0 (ECC: ENTERPRISE CORE COMPONENT) FISCAL YEAR- 31st March to 1st April DATABASE- Oracle RELEASE- 10.2.05.0

MODULES IN SAP FI Financial Accounting AM Asset Management CO Controlling HR Human Resources IS Industry Specific Solutions PM Plant Maintenance PP Production Planning PS Project System QM Quality Management SD Sales and Distribution MM Materials Management WF Business Work Flow

12

3-TIER SRTUCTURE IN S.A.P.

FI MODULE IN S.A.P.

S.A.P. FI is the Financial module in S.A.P. It is one of the important module since it covers all the accounting side of the company and all the reports produced by this module plays a vital role to the management. FI covers all the financials part ie all the expenses incurred and revenues generated.

13

SUB MODULES OF FI General Ledger Accounts Receivable Accounts Payable Asset Accounting Cash / Bank Accounting

FI-GL Integrated with other application modules and FI sub-modules Financial Data Entry User-defined balance sheet / profit and loss statement versions FI-AR Real-time integration with the General Ledger Integration with Sales and Distribution (SD) and Materials Management (MM) as a part of the Sales Cycle Incoming Payment Processing

FI-AP Real-time integration with General Ledger Integration with Materials Management as a part of the Procurement Cycle Outgoing Payment Program

14

COMPANY CODE-

A company code is an independent accounting entity (the smallest organizational element for which a complete self-contained set of accounts can be drawn up). The general ledger is kept at the company code level and is used to create the legally required balance sheets and profit and loss statements. NECOs company code - ncl (NECO Casting Limited) nssl(NECO Schubert and Salzer Limited )

PROFIT CENTRE A profit centre is a section of a company treated as a separate business. Thus profits or losses for a profit center are calculated separately. Business organizations may be organized in terms of profit centers where the profit center's revenues and expenses are held separate from the main company's in order to determine their profitability. Usually different profit centers are separated for accounting purposes so that the management can follow how much profit each center makes and compare their relative efficiency and profit. Examples of typical profit centers are a store, a sales organization and a consulting organization whose profitability can be measured. In NECO Under NCL-2000,2001,2002,2003 Under NSSL-3000,3001,3003,3004,3011,3021

15

(Considered as a plant in a company)

CHART OF ACCOUNT
POSTING KEYS DEBIT-40 CREDIT-50

BUSINESS AREA Business area is a separate area of operation or the responsibilities within an organization. (Mat be area wise like city to city)

For each company code, you have to specify one chart of accounts for the general ledger. This chart of accounts is assigned to the company code. A chart of accounts can be used by multiple company codes.

16

SCREENSHOTS
MIRO(SUPPLIER BILL PASSING)

Doc. No.: in this document no should be mentioned in which date the document received.
17

Posting date : in this at what date the entry should be posted in general ledger should be mentioned. Period: at which month the entry should be done ,Reference: it includes the specific cheque number which is to be surrendered by an employee.

18

19

F-28 (CUSTOMER INCOMING AG bill)

20

With the name of the bank it is also must to mentioned the a/c number of that bank and the company too. The bank is giving amount from the employee so the bank is going to debited.

Amount: the amount which is debited to the account should be mentioned with the current currency rate

21

Here if there will be any partial payment again bill,it will be recorded using Tcode F-28.

22

F-29 CUSTOMER DOWN PAYMENT (ADV RECEIPT)

23

If company needs to take some amount in advance i.e. down payment from the customer,then this entry will be recorded using Tcode F-29

24

SUPPLIER PAYMENT (AG PO /DOWN PAYMENT)

Here if company is paying some amount to its vendor then this entry will be recorded using Tcode F-48 Doc. No.: in this document no should be mentioned in which date the document received. Posting date : In this at what date the entry should be posted in general ledger should be mentioned. Period: at which month the entry should be done. Reference: it includes the specific cheque number which is to be surrendered by an employee. Text: text include to whom the cheque will surrendered by an employee.

25

VENDORS OF NECO COMPANYDomestic Foreign vendor Employee Vendor under same company Vendor for transport

26

27

journal entry

It is the very important and mostly used Tcode in FI module at the entry level. It is used to post the entries in specific GL account. Posting date : In this at what date the entry should be posted in general ledger should be mentioned.

28

29

this must entered in staff welfare a/c. there are special a/c for all staff. while entering info. about staff expenses we have to put an a/c no that should be assigned to that specific a/c.(e.g.739003 i.e. staff welfare expenses) Here it is mentioned that there is a debit entry done under the code 40. Amount: amo. mentioned in Indian currency

Cost center: it is belongs to the one which is cost is allocated. Account: here the no. of that a/c is mentioned which is to be credited.

30

Withholding tax in india is known as TDS or Tax Deducted at source. AS per the indian incometax act 1961, whenever a payment in excess of a specified amount is made, the payer is responsible to deduct tax before making the payment the deducted portion of tax or payment is to be deposited with the Government (Ex-chequer) within stipulated time and a copy confirmation of the same called as TDS certificate is to be send to the payee.

31

32

33

Receipt wise ageing is exactly opposite of Vendor Agening Zfivagening.

34

35

36

This report gives us the balance of the specifed GL accounts or entire trial balance the Trial Balance is the report which ensures the Arithmatecial accuracy of the books of accounts

37

ZFI0031 is a customized TCODE used to see records in the specific general legder account of FI module and also trial balance of the company till date.

38

ZFIVAAGENING Z FI VA Ageing

Customized Financial Vendor Agening

This report gives us the agening of our vendor it helps us understand the interval of days after which the amount is payable the typical claasification is 30, 60, 90, 365 and 999 days we can have the report run on the basis of posting date or document date

Zmm30

Z stands for Customized Report MM 30 This report gives the details for GR ( Goods Receipt) Liability Details In other words, the Outstanding or payable for the goods bought by us. The various details of the report are Plant at which plant were the goods received Vendor from which vendor where they purchased Material which material was bought GL AC the GL ac which was debit GR Posting Date The posting date for this transaction the MIRO MIRO pass Date pass date

39

Zmm0036

Z - Stands for customized development MM for Material Management 36 is some number assigned to it, based on a logic This report is used by the Material / Purchase Department This report is a stock report of Materials This report gives the record of materials in hand.

The various other details which this report generates are: Plant Material No. Material Group Material Type Posting Dtae Storage Location

for which plant it is used or stored the no. used to identify the material the Broader group used to identify the material the nature of Material the date it came to the plant / storage location the place where it is stored

40

ZSD0013,This is the Tcode used in SD module in SAP to view the record of all the finished good of a particular material or material type.

41

FI-MM: The integration between FI-MM happens in T-code OBYC.

1. When PO is created : ---- No Entry ----2. When GR is posted Inventory Account dr 3. When Invoice is posted GRIR account Dr. Vendor account Cr. 4. Payment made to Vendor Vendor A/c Dr To Bank Clearing A/c Cr.

42

SUMMARY

Research work and study of FI Module in NECO Group of Industries gave me a close view of the SAP as a system and various processes, functions of the industry. This project provided me opportunity to demonstrate my ability in applying theory to practical situations. The study undertaken by me is FI Module. A study has been done on FI Module provided by NECO Group of Industries. In this I have tried to perform best & express my appreciation in fulfilment of this project. My role in this training cum internship was to study & understand various customized T-codes along with standard ones and to make a document for the company for legacy system users to understand the basics of SAP & SAP FI Module.In this project, i have studied various entry level codes and report codes which are customized as per the company requirement.

43

METHODOLOGY
Research methodology is a way to systematically solve the research problem. It may be understood as a science of studying now research is done systematically. In that various steps, those are generally adopted by a researcher in studying his problem along with the logic behind them.Data collection is important step in any project and success of any project will be largely depend upon now much accurate you will be able to collect and how much time, money and effort will be required to collect that necessary data, this is also important step. Data collection plays an important role in research work. Without proper data available for analysis you cannot do the research work accurately. There are two types of data collection methods available. 1. PRIMARY DATA COLLECTION TECHNIQUES:
The information about the Company is gathered from the discussion with the guide / staff and also referred some textbooks.

2. SECONDARY DATA COLLECTION TECHNIQUES: The methodology of this study has been adopted on the following basis: Study of various Journals, Notes & reference books. Collection of Primary & Secondary data records of the organization. Study of the collected data

1. PRIMARY SOURCES: A) Interview: This method is mostly used to collect the primary data, it is a method of data collection in which a formal conversation takes place between the interviewer and the respondent. For the interview, the questionnaires and guidelines were prepared. Interviews were conducted to 5 staff of the organization including top managers.

44

B) Observation:A more direct way of gathering information is to observe events, activities and operations as they occur with regards to cause and effect. It has the advantage of putting research into firsthand contact with reality. C) Informal Discussions: Informal discussions were done with the concerned persons to obtain information that may be relevant and valuable for the study. Similarly, Q&A sessions were conducted with the top-level executives to gather in depth knowledge about the study related matters. 2. SECONDARY SOURCES: A) Library Search:The official documents which they kept for records were also searched for information. B) Website: The website of www.necoindia.com, www.google.com. were also surfed for additional information like photos ,charts etc.

45