LCM Summer Training Project Cost Control Lafarge Bilaspur.ppt

ASUMMER TRAINING REPORT

PRESENTATION ON

(COST CONTROL)At

Lafarge Bilaspur

PREPARED BY :SAPNA DUBEY

COMPANY PROFILE

The Lafarge group is a world leader in construction material and holds leading positioning in each of its four-core business area viz. Cement, Aggregates and Concretes, Gypsum and Roofing.

It operates in 79 countries and globally employs over 84000 people and generated annual sale of Rs 9372 million in the year 2007.

LAFARGE IN INDIA

Lafarge India Pvt Ltd commenced operation in India by acquisition of TISCO’s cement plants in 1999, and later in January 2001 further acquired cement business of Raymond Limited. Now the Lafarge India CEO, Uday Khanna .The eastern India operation center is in Kolkata while head office in Mumbai.

ARASMETA CEMENT PLANT

Arasmeta cement plant is one of the units established by Lafarge group in India. The Arasmeta cement unit is both Clinkerisation and grinding unit.

History

The taking over of the Raymond Cement Plant by the Lafarge Group formed the Arasmeta Cement Plant. The Arasmeta Cement plant came into existence in the Year 12th Jan 2001. The Arasmenta Cement is working since then. Arasmeta Cement Plant today is one of the profit-earning units of the Lafarge Group.

INTRODUCTION

COST ACCOUNTING

“A good cost accounting system serves as a means of control over expenditure and helps to secure economy in management”

“Costing is the classifying, recording, and appropriate allocation of expenditure for the determination of the cost of the products or services”

PURPOSE OR OBJECTIVE OF COST ACCOUNTING

• Ascertainment of costs• Analyzing the costs• Controlling the cost• Determination of sales price• Providing basis for policy determination• Determining the profitability of various activities• Holding comparisons.• Preparation of budget.

Data Analysis

P/V Ratio Calculation

P/V Ratio = Change in Profit Change in Sales

Break Even Calculation

BEP =Fixed Cost

P/V Ratio

Margin of Safety

MOS = Sales – B.E.P

Cost AnalysisParticulars 2006 2007 2008 2009Sales 9372 11694 13424 16700

Fixed Cost 2425 2502 3890 4768

Contribution 4179 5016 9061 5193Var. Cost 5230 6678 4984 4613

Profit 1517 2514 4500 5519

P/V Ratio 44.60% 42.90% 67.50% 61.10%BEP 5486 5860 6184 8959

MOS 3886 5834 7240 7741

P-V-C Analysis

The Data Shows that the Lafarge had increased is Profitability by decreasing is Variable Cost

Findings

The data for present study were mainly collected from the annual reports and accounts and other related publications of Lafarge India Pvt. Ltd, which has been obtain from their respective offices.

In addition some executive playing key roles of the company were interviewed from time to time to obtain detail information & clarification. The period covered extend over few years. The figures contained in the annual report of Lafarge India Pvt. Ltd.

Limitation

If you cannot purchase in a bulk quantity of a raw material only we can use so, that quantity we can purchase. So, in these things that controls the cost.

If we can use new- new technology not use old machine because it’s maintenance charge is increased so, it is also loss bear by a company. So, we can use new technology and reduce the cost and control the cost.

In a transportation facilities not consumed extra goods only order basis raw material consumed. So, in these way to reduce the cost and control the cost.

It is most important thing that to control the cost of raw material. We can store in a limited quantity.

Recommendation

I can concluded that in these process apply in these cement industry to control the cost and maximize the profit earn as well as compare to other cement company.

CONCLUSION

Thank!!!!! You!!!!