Sunday, 13 January 2019

Overview of Finance & Accounts Department of RDCIS

Overview of Finance & Accounts Department
The Finance & Accounts Department plays a pivotal role in any organization, and is generally considered to be the nerve center of all activities, as all activities have a commercial implication. The activities of the department can be broadly classified into the following categories:

1.      Finance functions - dealing with the sourcing, control of funds and finances as   well as concurrence of proposals
2.      Accounts function - dealing with the preparation of financial statements.
3.      Legal function - compliance and adherence of various laws.
4.      Audit functions - compliance with company rules & regulations.
5.      MIS functions - providing the management with data for decision making.

The major function performed by this department is the arrangement of the working capital for the RDCIS, MTI, SSO, CET, which are the units of SAIL located in Ranchi itself. So the cash division of the RDCIS looks after the working capital requirements of the other three units also. Working capital management means the arrangement of funds and the proper utilization of the funds. Here at RDCIS there is no permanent source of revenue generation. The research activities carried on here results in benefits generation but not in the revenue generation. However the technologies once marketed and the testing and lab facilities rendered here lead to a minimal revenue generation for the organization. Thus the revenue generation here at RDCIS takes place by the following:-
·          As a fee charged for rendering testing facilities at the chemical and the pollution lab
·          Transfer of technical know-how by signing memorandum of understanding with institutes like IITs and IISC.
·          Sale proceeds from scrap.

RDCIS is dependent fully on the corporate office for its funds The corporate office on the receipt of the requirement sheet from the cash section of the RDCIS allocates the amount it finds suitable to the cash credit account of the RDCIS, The cash credit account for the organization is maintained at the SBI, Doranda .The amount allocated by the corporate office is not credited at one go but is credited according to the requirement schedule provided. The general procedure followed is:-
Ever month the requirements for the funds is collected by the cash section from all the four units of the SAIL located here at Ranchi. The requirement form has a specific format and the requirement are mentioned under the following headings:

EMPLOYEE RELATED: - for eg: Salary and wages
STATUTORY PAYMENTS for eg: income tax and PF payments
ADVANCES (Employee related) eg : vehicles, furniture)
OTHER PAYMENTS for eg capital payments, supplier bills, telephone bills.
All the information collected is the consolidated and sent to the corporate office in the specified formats every fortnight.

The corporate office allocates the funds which may be either equal or less than the requirements posed by the department and the sends a copy of the allocations to the bank in which the RDCIS holds its cash credit account so that the part of the monitoring of the utilization of the allocated funds can be done both by the organization itself and also by the bank.

Once the allocated funds are received by the cash department, it is also responsible to give time to time regarding the utilization of the allocated funds to the bank.In case it exceeds the allocated amount then for such an action the prior approval from an competent authority is required.

Monitoring of the funds is also done by the cash department. Data regarding the payments made till date and the bills pending is sent to the corporate office.For this purpose an utilization certificate is prepared and the operation remittal form is also duly filed by the department which gives detais about the payments made on a datewise basis.Using the above given inputs and utilization report is the prepared which has the following headings :-

LOCAL COLLECTIONS – (C ) The net funds utilization is = [A+B- C]
The cash section is also entitled with responsibility of the preparation of the cash budget at the beginning of the financial year. The budget is prepared on the basis of the past records.

Distribution of the budget circular among the various departments of RDCIS.
A budget circular is an order that defines the formats and the outlays in which the various departments need to submit their planned outlay or the capital expenditure for the financial year.
It clearly mentions the date schedules of the submission of the budget plan by each individual department.
It mentions the corporate plan whitin whose guideline the outlay needes to be prepared.
The time overrun of the projects and the stipulated time of completion of the project need to be clearly mentioned stating the reason for the deviations.
The number of projects proposed to be sanctioned in the remainig part of the financial year as per the ongoing annual plan and the corporate plan also need to be mentioned.
 Details of the AMR schemes both sanctioned and unsanctioned is ought to be given separately as per the annexure mentioned.
In case of the completed projects the proposed outlay shall be restricted based on realistic assessment of actual liability.
The convertibility rates for Indian currencies into foreign currencies is also mentioned clearly.
Description of the formats is given differentiating the projects on the basis of outlay involved in it.
For ex: the projects costing less than 2 crore are given as per the annexures 1 where as as those wit planned expenditure greater than 2 crore are given as per the annexure 2 and 3.
Ø    Submission of the statements of capital expenditure by each individual department as per the formats and schedule mentioned in the budget circular.
Ø    Consolidation of the statements submitted by the finance department as per the format mentioned in the ongoing scheme (11th five year plan).
Ø    Submission of the draft budget proposals in the prescribed formats (volume 1 and 2).
Ø    Preparation of statement and consolidation at the corporate office.
Ø    Discussion with the Bhilai and Rourkela steel plants by corporate office.
Ø    Discussion with RMD, Bokaro, Durgapur, Iisco, Salem, Asp, Visl, co and Melsteel plants by corporate office.
Ø    Submission of final budget to corporate office in (floppy and hard copy).
Ø    Submission of the budget for the approval of the board of directors.
Ø    Submission of the budget proposal to the ministry of steel.
Ø    Discussion with the ministry of steel if required.
Ø    Submission to ministry of steel of final budget proposalfor the submission to the planning commission.
Ø    Reporting and monitoring of the accepted budget plan by the finance department of the RDCIS.

The payments made here at the Paybill section are of two types one are the employee related and the other type of payment are the non employee related payments which are made to the suppliers
As decided by the Government of INDIA and the board of directors of SAIL
The employee related payments made are
The basic salary
The dearness allowance.
Incentive bonus
Yearly profit sharing
The retirement benefits ,leave encashment, gratuity

Deductions and the voluntary recoveries are calculated and deducted from the salary of the employees and filed with the respective departments.

Sunday, 6 January 2019



The technological services extended by RDCIS to SAIL plants and units are mainly in the mode of R&D projects. The spectrum of R&D projects pursued by RDCIS, both at plants/ units as well as in-house, can be categorised as follows: Plant performance Improvement; Investigation and Consultancy Assignment; Basic and Scientific Research; Equipment & Instrument Development. The projects so identified, have well defined objectives, approaches and activities to accomplish the goal. Projects are identified after joint discussion between plant and RDCIS personnel to provide solutions to identified problems. Work is carried out after project is approved by the competent authority in the SAIL plant as well as RDCIS. Monitoring and review of the projects is done at different levels and mid course corrections, if any, are also suggested. At the end of the project, the outcome of the work is well documented after concurrence from the customer who is also partner in the innovation. The implementation of the innovations is also pursued.

RDCIS is a knowledge-based organisation and therefore, human resource is its prime resource. Development of adequate and appropriate human resource is a constant endeavour in the organisation. The selection of personnel aims at achieving a right mix in terms of expertise, specialisation and experience.

Since RDCIS provides solutions in all aspects of iron and steel technology, the Centre has developed a full fledged laboratory with state-of-art equipment starting from raw material characterisation to finished product evaluation. The Centre strives to constantly modernise its facilities and infrastructure that will provide a cutting edge to its research capabilities.

RDCIS organises Technology Awareness Programmes to enhance the knowledge base and potential of SAIL engineers and technologists, especially those working on the shop floor, by sharpening their skill to enhance, analyse and solve technological problems. These programmes cover a wide range of topics dealing with different technology areas in the steel plants.

One of the prime focus area at RDCIS involves development of new products with special quality attributes. These products are developed in SAIL plants with existing facilities and subsequently promoted and commercialised through product application and marketing efforts. The thrust on product development enables the Company to achieve greater market penetration and share.

RDCIS offers technological services to various organisations in the form of Know-how transfer of technologies developed by RDCIS, consultancy services, specialised testing services, and contract research. This helps to establish credibility of the Centre as a knowledge centre besides generating revenue through external earnings.


In the current competitive market scenario, it has become important to protect the innovations resulting from R&D pursuits. This is being accomplished at RDCIS by filing patents and copyrights under Intellectual Property Rights Act. Enlargement of intellectual capital base is constantly encouraged in the Centre.

·        Expertise across the total spectrum of technology areas in the steel making process from Raw materials to Finishing, under one roof.
·        Multidisciplinary application experience on various plants and processes with quantification of benefits.
·        Modelling based on Lab. Work and simulation.
·        Application of theoretical knowledge and, experience of processes, to day to day operations.
·        Product development
·        Infrastructure – Analytical & diagnostic facilities for investigations. Modelling & Simulation facilities and pilot plants.
·        Knowledge and expertise pool in research manpower.
Ø  Adverse age-mix.
Ø  Depleting Technical Knowledge Base.
Ø   Manpower attrition and knowledge/skill gaps at the Technician level in the Lab. Side.
Ø  Pressures for growth to the executive cadre from a large, eligible non technical population.
Ø  Usage of low grade iron ore and Iron ore beneficiation.
Ø  The Centre has expertise in coal characterisation, blending studies and coke making. More expertise needs to be developed in coal preparation.
Ø  Inadequate exposure to latest developments in technology.

·           The Modernisation programme – exposure to new technologies and development of the Technology Management role.
·           The decision role in selection of technology will demand great skills at the Assimilation phase to integrate the new technologies. Opportunity for increasing credibility in customer’s eyes through effective Assimilation and Adaptation of the new technologies.
·           Leveraging Infrastructure and knowledge pool for external earnings.
·           The objective of making SAIL a globally competitive company. 
Ø  Most technology is being imported and there is greater stress on the role of selection of technology and less on R&D
Ø  Development of technology hampered by lack of connectivity with Engineering companies to facilitate pilot scale development from scratch.
Ø  Optimal utilisation of non technical non executive manpower.

Friday, 4 January 2019



The Research & Development Centre for Iron & Steel (RDCIS) is corporate R&D unit of Steel Authority of India Limited (SAIL). It is India’s premier research organization in the field of ferrous metallurgy. The main Centre, located at Ranchi, was established in 1972 and its modern Laboratory Complex started functioning from 1986.
The main objectives are to pursue basic research programs to innovate new processes and develop new products. RDCIS also facilitate SAIL plants to improve key performance indices related to quality, productivity, yield through diagnostic and research approach. Equipped with more than 350 advanced diagnostic equipment and 5 pilot facilities under 15 major laboratories, RDCIS undertakes research projects encompassing the entire spectrum of iron and steel -starting from raw materials to finished products. The Centre is continuously engaged in improving the process parameters, development of value added products, energy conservation, improvement in product quality, up-gradation of existing technologies and introduction of newtechnologies in the plants and units of SAIL. The Centre has acquired several patents and copyrights during the last few years.
While making significant contributions to the overall performance of SAIL, RDCIS has developed and introduced innovative systems and procedures which have enabled quantification of inputs, outputs and measurement of the performance. Highest priority and attention is accorded to the customer needs and the Centre delivers the technological services to the full satisfaction of the customers. RDCIS enters into collaboration agreements with leading research and academic institutes, from time to time, both from India and abroad. Some of the leading collaborating institutes from abroad have been TSNIICHERMET from Russia, National Science Foundation of USA etc. The Centre collaborates with the IITs, IISc, CSIR laboratories and other reputed organizations of India.
 While catering primarily to the needs of the SAIL plants and units, RDCIS has opened its doors for other public and private sector organizations in India and abroad. RDCIS can transfer some of its proven technologies to other organizations, provide technical consultancy, render specialized testing services, undertake contract research and conduct training program. RDCIS has consistently enhanced its capabilities over the years. This has been possible due to the highly dedicated team of technical and scientific personnel, possessing high level of expertise and wealth of experience matching the best available elsewhere . RDCIS has developed a broad spectrum of expertise which can readily be utilized for solving complex problems in numerous technological disciplines. Major activities of the Centre extend from developing new products processes to guiding contract research program for specific needs of the steel industry. In addition, the Centre also imparts training on multifaceted technology of iron and steel production. RDCIS is accredited with ISO – 9001: 2000 Certification which was awarded by M/s. Lloyds Register of Quality Assurance (LRQA ), UK. To obtain ISO – 9001 certification, RDCIS had to resolve the innate conflict between standardization and creativity. These two aspects have been stimulating and reinforcing each other to propel RDCIS to achieve new peaks of excellence in its performance. RDCIS takes customer as a partner in its innovations and is prepared to meet the challenges ahead.
Major Research Facilities
The research facilities comprise of 15 major laboratories encompassing 6 pilot facilities and 350 equipment and advanced diagnostic facilities. The pilot facilities and major Major Research Facilities The research facilities comprise of 15 major laboratories encompassing 6 pilot facilities and 350 equipment and advanced diagnostic facilities. The pilot facilities and major laboratories are listed below;
  1. Pilot Plants & Simulation facilities
  2. Pilot Coke Oven
  3. Pot Sintering
  4. Experimental Hot / Cold Rolling Mill
  5. Combustion Research Unit for design & testing of burners
  6. Thermo-mechanical simulator (Gleeble system)
  7. Hot dip process simulator for coated products
 Major Laboratories
  1. Coal Carbonization Laboratory
  2. Mineral Beneficiation
  3. Sintering and Agglomeration
  4. High temperature reduction
  5. Melting and Solidification
  6. PLC and Software development
  7. Physical metallurgy
  8. Mechanical Testing
  9. Chemical analysis and corrosion engineering
  10. Refractory
  11. Tribology
  12. Environment
  13. Computational laboratory

Vision of RDCIS
“Achieve excellence in technological expertise and to fulfil the needs of the steel plants and customers”

Goals  of   RDCIS
  1. Obtain 75% of its annual budget from the SAIL plants through pursuit of plant based on R&D projects and the balance 25% from SAIL corporate office.
  2. Develop market specific products in line with changing consumption pattern of steel and exports plant of SAIL.
  3. Develop competence of an international level in specific technological area.
  4. File every year an average of 4 international and 10 national patents and publish 25 papers in journals of internationally excellent standards.
The salient features of the Mission of RDCIS entail the following:
  1. Promote originality, foster creativity and expand knowledge base through the pursuit of carefully selected R&D programme.
  2. Develop RDCIS’s human resources and facilities to achieve and sustain technological excellence.
  3. Complement SAIL plant’s efforts to continuously enhance Customer Satisfaction, Quality, Productivity, Profitability and Marketability of their products
 Quality Policy of RDCIS
  1. RDCIS shall continuously strive to satisfy both its internal and external customers and establish itself as a peer among the R&D organization of internal repute by; Implementing quality assurance system in all its activities.
  2. Generating reliable data and analyzing them to provide innovative solutions to customer’s technological problems.
  3. Pursuing R&D programmes to enlarge its knowledge an intellectual capital. Developing human resource to achieve technological excellence.

Thursday, 3 January 2019


Formation of Hindustan Steel Limited
When the Government of India decided to enter into the field of Iron and Steel Production, it broadly envisaged not to run the firm as a departmental undertaking. Although initially steel project administration was directly under a Ministry of the Central Government, Hindustan Steel was formed as a Limited Company, with President of India owning the shares on behalf of the people of India. Thus Hindustan Steel Limited was set up on January 19, 1954.
Growth of Hindustan Steel Limited (1959-1973)
To start with, Hindustan Steel was designed to manage with only one plant that was coming up at Rourkela. For Bhilai & Durgapur plants, the preliminary work was done by officials in Iron & Steel Ministry. From April 1957, the supervision and control of the Bhilai & Durgapur Plants were also transferred to Hindustan Steel. The registered office was originally in New Delhi, moved to Calcutta in July 1956 and ultimately shifted to Ranchi in December 1959. Initially Bokaro Project was also under HSL. A new steel company Bokaro Steel Limited was incorporated in January 1964 to construct and operate the steel plant at Bokaro.
Formation of Steel Authority of India Limited (SAIL)
The Committee of Public Undertaking of the Fifth Lok Sabha was the first Parliamentary Committee to undertake a significant review of the question of setting up a Holding Company for steel. 
In this context, it was recognized that the Public Sector had to be made more efficient in order that it might be able to contribute far more than it had to the common pool of investible surplus in the economy. Further, such a holding company could perform a number of other important functions like coordination and control of constituent units, planning long term programmes, introduction of necessary technological changes, setting up of an R & D organisation and training of managerial personnel for the Public Sector as a whole. Based on the above considerations, the proposal to set up a holding company for Steel and associated input industries was approved by the Government in January 1972. Accordingly, the formation of Steel Authority of India Limited was approved by the Government in December, 1972. The company was incorporated on January 24, 1973 with an authorised capital of Rs.2,000 crores. In 1978 SAIL was restructured as an operating company.
Present Status of SAIL
Steel Authority of India Limited (SAIL) through its five integrated steel plants at Bhilai, Bokaro, Burnpur, Durgapur and Rourkela accounts for major steel production capacity of India. Three special steel plants at Bhadravati, Durgapur and Salem produce a wide range of special steels, special alloy steels and stainless steel. MEL, Chandrapur, a subsidiary company, is one of the largest producers of bulk Ferro Alloys in the country. There is a proposal to merge it with SAIL. Today, SAIL is one of the largest corporate entities. Its innate strength lies in its technologists and professionals and a trained manpower of over 1.34 Lakh including subsidiary. It had a sales turnover of over Rs. 45,555 cores during 2008-09.
Steel Authority of India Limited – the largest steel producer in India, owns and operates eight plants – five integrated steel units and three alloy/special steel & stainless steel plants.  It also owns and operates the second largest iron ore mines network in the country, for its captive use.  With a turnover of US $ 10 billion, it directly employs 120,000 employees.

Major Units
There are five Integrated Steel Plants: -
 Bhilai Steel Plant at Bhilai (BSP) (Chhattisgarh)
 Bokaro Steel Plant at Bokaro (BSL) (Jharkhand)
Rourkela Steel Plant at Rourkela (RSP)       (Orissa)
Durgapur Steel Plant at Durgapur (DSP)    (W.B)
 IISCO Steel Plant at Burnpur (ISP)               (W.B)  
There are three Special Steel Plants:-
Alloy Steel Plant at Durgapur (ASP)                        (W.B)
 Salem Steel Plant at Salem (SSP)                (Tamil Nadu)
Visveswaraiya Iron & Steel plant at Bhadravati (VISP)     (Karnataka)

Subsidiary Plants
Maharashtra Elektrosmelt Ltd. At Chandrapur (MEL) (Maharashtra)
a.      SAIL Consultancy Division (SAILCON),New Delhi
b.      Research & Development Centre for Iron and Steel ,Ranchi
c.       Management Training Institute (MTI),Ranchi
d.      Centre for Engineering and Technology (CET)  Ranchi
e.      SAIL Safety Organization (SSO),Ranchi
f.        Central Coal Supply Organization (CCSO),Dhanbad
g.      Raw Material Division (RMD),Kolkata
h.      Environment Management Division (EMD),Kolkata

Hot metal steel
Crude liquid steel
Saleable steel

i)Semi for sale


ii)Finished steel

1)flat products

Wide heavy plates

HR sheets,coils,plates




CR coils,sheets,strips




Electronic tin plates

Galvanised steel coils


Silicon steels

Spiral welded pipes



Merchant products
Wire rods


Wheels and axles

Special sections


Table: product mix of SAIL