A

PROJECT REPORT
ON

FIXED ASSET MANAGEMENT

OF

SOLVAY SPECIALITIES INDIA PRIVATE LTD.

(SUBMITTED IN INDIRA INSTITUTE OF MANAGEMENT,PUNE)

SUBMITTED BY:
VIVEK SAHANI
M.M.M(1 SEMIESTER)

UNDER THE GUIDANCE OF:

Prof. HETAL MACHHI

YEAR-2008-2010

CERTIFICATE

DECLARATION

I,Mr. VIVEK SAHANI , student of INDIRA INSTITUTE OF MANAGEMENT,PUNE, affiliated to

UNIVERSITY OF PUNE,PUNE hereby declare that this project report is a result of culmination of my
sincere efforts.

I declare that this submitted work is done solely by me and to the best of my knowledge no such work has
been submitted by any other person for the award of degree or diploma at any other institute or
organization.

Date:
Place:
VIVEK SAHANI

CERTIFICATE

This is to certify that Mr. VIVEK SAHANAI has satisfactorily completed the project work
Entitled Fixed asset management of Solvay Specialities India Private Ltd.. Based on that declaration
made by the candidate and my association as a guide for carrying out this work, I recommended this
project report for evaluation as a part of the MMM programme of UNIVERSITY OF PUNE.

Place:
Date:
HETAL MACHHI

ACKNOWLEDGEMENT

I would like to extend my heartfelt thanks to Prof. HETAL MACHHI, for her help in making this report
possible.
I would also like to thank Mr. Vinod Pathak, G.M of H.R department of Solvay Specialities India Private
Limited and Mr. Deepak Bhatt, Manager(H.R) for giving me the opportunity to get trained in their company
and preparing a live project.
I would like to personally thank Mr. Biswa Chatterjee, G.M of Finance department of Solvay
Specialities India Private Limited for sharing the transparencies of the company with me and guiding me
through out the project.
Lastly, I would also like to thank for the valuable help provided by all the staff members of Finance
department. Each and every person mentioned above has contributed their value and efforts in the report.
And I also thankful to my institute to gave me very useful learning in organization.

PREFACE

Summer training is a part of management course which is very helpful to bring practical knowledge in this
globalization world. Now a days only theoretical knowledge is not enough to succeed in life but most
important part is that we must also have practical knowledge. With the help of this training, I came to know
whatever we learn theoretically how its implied practically.

Main purpose of this training is to get knowledge of the industrial and to know about function of the specific
department.

I got an opportunity for conducting my summer training in Solvay Advanced Polymers.

I am lucky that I got a chance to do my training in such a reputed company. While on training my knowledge
got updated and now I can relate the theoretical knowledge with the practical world. Such practical aspect
of business world is really going to help me for my bright future in management.

Vivek Sahani

CONTENTS
6

SR NO

PARTICULARS

EXECUTIVE SUMMARY

GENERAL INFORMATION

10

HSE DEPARTMENT

20

SYSTEM / IT DEPARTMENT

24

PATENT DEPARTMENT

26

R & D DEPARTMENT

28

SCM DEPARTMENT

35

PRODUCTION DEPARTMENT

44

10

HR DEPARTMENT

56

11

FINANCE DEPARTMENT

61

12

SPECIALISATION STUDEY

67

13

ANNEXURE

EXECUTIVE SUMMARY
7

PAGE NO

This practical training in the MMMS programme of the GRIMS develops the feeling of awareness
among the students of management studies. Along with theoretical knowledge this training has
imparted the complete education of practical world, which is the value addition in our course.
I have tried my best to meet the requirement by producing report that is highly illustrative and clearly
explaining concepts that I have learnt during the training period. I have also paid enough attention to
revising Knowledge and experience from solvay people. During the period of project time I learn how
really organization work, and how our theoretical knowledge put in practice. The topic FIXED
ASSET MANAGMENT was given by company because they also require it ,for complited this
project I work hard and company employees are also very helpful in my work. This project really has
enhanced my practical knowledge of the different management areas, which will be very much
fruitful for me in future.

SOLVAY SPECIALITIES INDIA PRIVATE LIMITED (SSIPL)

Plot No. 3526-27, GIDC Estate, PANOLI, 394 116, Dist - Bharuch (Gujarat) INDIA

Tel

91-2646-272575, 272576

Fax

91-2646-272141

Contact

Vinod Pathak

Email

Vinod.Pathak@solvay.com

Website

www.solvayadvancedpolymers.com

The story of the Solvay group began on 15 April 1861, when Ernest Solvay patented a
revolutionary ammonia-soda process for producing sodium carbonate. - also known as
soda ash - using common salt, ammonia, carbon dioxide (CO2) and lime
10

 The Solvay group is present in more than 50 countries on every continent and employs over 30000
people.
Solvay has grown to become a global chemical and pharmaceutical group active in three
Sectors:
Pharmaceuticals
Chemicals
Plastics
Panoli plant was started on 10-05-2006, solvay acquired Gharda plant only peek plant
because at that time plastics sector are booming. the head office of Panoli plant in india in
Mumbai all transaction are done with the permission by head office.

Growth in Specialty Polymers

`Upgrade the existing product portfolio to meet growing demand and penetrate new markets : expansion.

11

 Fluorinated polymers (Algoflon and Hyflon)

PES/PPSU Radel
Polyvinyledene fluoride (PVDF)
Perfluoropolyether (PFPE) polymers
PVDC
Broaden

the

current

polymer

technology

portfolio

through

R&D

and

acquisitions

Mississippi Polymer Technologies (USA) : PrimoSpireTM

SolviCore (50/50 joint venture Solvay/Umicore) : R&D, production and sales of Membrane
Electrode Assemblies for application in Fuel Cells
Accelerate investments in fast growing markets :
Development center in China / strengthening of local marketing organization
Polymers Division of Gharda (India) : access to ultra high performance polymers, PEEK :
start up of an industrial-scale unit in India
Construction (by 2008) of a world-class plant for micronized polytetrafluoroethylene (PTFE)
powder in China
With the successful start-up of its 500 ton/year production unit in Panoli, India, Solvay now
delivers KetaSpire PEEK and AvaSpire modified PEEK two ultra polymers that offer
best-in-class chemical resistance and mechanical properties, plus ease of processing.

12

The Solvay groups general direction is expressed in its Mission, its Vision and its Values. The Mission
and Vision statements have recently been amended to explicitly express the Groups commitment to
Sustainable Development and Societal Responsibility.

MISSION:
Building on our scientific, technical and commercial expertise, and aware of our societal
responsibilities, we provide innovative products and services related to chemistry and
human health to create sustainable and ever- increasing value to our customers,
shareholders and employees.

VISION:

Solvay is an independent, ethical and responsible global industrial Group with a balanced
portfolio of sustainable, profitable and growing businesses, managed in accordance with
societal and environmental issues.
Amongst the world leaders in selected markets and products either alone or with sound
complementary business partners
Valued by its customers as a highly competent, reliable and competitive solution provider.
With a clear, motivating organization, through dialogue, developing and empowering people and
teams through rewarding and challenging jobs.
Acting as good corporate citizens, caring for the environment, health and safety of its employees
and of the community at large.
Open to the expectations of the outside world, and contributing to economic, social and
environmental progress.

13

 VALUES:We firmly believe in:

Ethical behaviors - A long-standing tradition of ethical behavior based on

principles of Honesty, Integrity and Trustworthiness.

Respect for people - Encouragement to exercise creativity and leadership, giving

opportunities for every individual to develop his/her full potential.

Customer care - Constant enhancement of the quality and added value of our
products and services through ongoing and cost effective innovation.

Empowerment - Fostering a culture that encourages delegation, risk taking, speed

of response, accountability and partnership in order to adapt effectively to an
uncertain and rapidly changing world.

Teamwork - Developing a learning organisation by building teamwork with open

communications across our organisation, sharing knowledge, technologies and best
practices.

GOAL:-

Knowledge Converted to products to Wealth for the

Good of Society

STRATEGIC PILLARS:-

Innovation :-innovation is the process by which an enterprise converts the creativity of

its employee and partners into added value faster and better then its competitors

Competitiveness :-continually identifying and seizing opportunities to improve ways of

doing things and implementing changes in work processes to ensure the most effective
and efficient performance

14

HEALTH AND SAFETY POLICY

Maintaining high standards of health & safety in working place prevent accident/incidents will
be our main objective.

Continues improvement of the work environment through assessing potential risk involved in
the activity & taking appropriate measured to curb them.

Providing information about the hazards involved in the processes to the employee & also to the
general public.

Providing training to the employee for making them understand the implication of the process,
which encourage the worker participation in the safety activity.

Companying with the relevant the legislation and code of practice as per the local government
regulation.

Developing operator friendly & eco friendly plant for better productivity & total loss control.
Providing safe & healthy environmental to the contract worker. We consider as on of our main
commitment.

15

QUALITY POLICY:-

To achieve and enhance customer satisfaction by providing quality product and services, in the field of
specialty plastic & Polymer on time.

To manufacture products through processes development using in-house research and development.

To employ qualified/skilled manpower and continuously train them to enhance their skills, knowledge
and effectiveness.

To continually evaluate and improve effectiveness of quality management system by establishing and
reviewing quality objectives.

16

CORPORATE SOCIAL RESPONSIBILITY

Is a voluntary business contribution to Sustainable Development integrating all stakeholders
expectations in order to optimize relationships as a basis for continuous improvement and innovation.
o Going beyond "corporate citizenship" the concept of Corporate Social Responsibility implies
that corporations voluntary commit to improving society, in the broadest sense of the term
protecting the environment. It means that, beyond obeying the national and international legal
obligations, enterprises pay greater attention to the human aspects of their activities and to the
new expectations of the various Human resources management (life long learning,
empowerment of employees, better balance between work, family and leisure, greater work
force diversity , employability, ..)
o Health and safety at work and for the end-user of our products
o Adaptation to change
o Managing the impact of production on the local environment and on the consumption of
natural resources
stakeholders in society, all this without detracting from the economic purpose of the enterprise or
impairing its competitiveness.
Corporate Social Responsibility covers various areas, among them:
Within the company:
Externally:
o Contribution to local communities (by providing jobs, vocational training places, child-care
facilities for employees, partnership with communities.)
o Working closely with business partners, suppliers, subcontractors and consumers (to reduce
complexity and costs and increase quality)
o Defending human rights (implementation and compliance with the Code of Conduct and
ongoing verification)
o Environmental concerns at a global level (for example, better environmental performance
throughout the supply chain)
Corporate Social Responsibility at Solvay is seen as:
o A long-term approach
o Linked with a Sustainable Development commitment
o A responsibility expressed in ethical practices, training of employees, health and safety at
work and environmental management
o A way to provide for the wellbeing and secure conditions for communities, protection for the
planet and sustainable success for the companys production activities.

17

STRATEGIC FRAMEWORK

The 5x5 matrix: the strategic framework of the Solvay group Policy & Strategy on Sustainable
Development, taking into account all stakeholders.
The 5x5 matrix defines the fields of action for each of the stakeholders with respect to the strategic
issues of Solvay.
This structuring framework is used to assess the risks associated with our activities and to identify
opportunities to create real new values for the enterprise and its stakeholders.
For each stakeholder, the 5x5 matrix allows to:
o identify the critical challenges and set up the priorities
o identify the opportunities of actions
o use performance indicators
The two dimensions of the 5x5 matrix are:
1. 5 major issues defined in the Group Vision Statement
o Acting as an ethical and good citizen company
o Applying efficient management methods
o Making products that are sustainable, profitable and with growth potential
o Implementing a worldwide industrial strategy
o Respecting mankind, the environment and the community
2. 5 stakeholders
o Investors
o Personnel and subcontractors
o Customers and suppliers
o Local communities
o ociety (NGOs, Governments, scientific world)`

18

 AWARDS WON BY THE COMPANY:

Solvay Specialities India Pvt. Ltd. has also won some awards such as:
1.
INDIAN
CHEMICALS
MANUFACTURERS
development of INDIGENOUS TECHNOLOGY.

ASSOCIATION

award

for

the

2. BPC (Baroda Productivity Council) award for GOOD HOUSE KEEPING.

3. Govt. of India Appreciation certificate for the contribution of revenues with the spirit of co-operation and
voluntary compliance with the laws during the year 2008-09.
4. Plast Icon award for the Innovative Products for the years 2006 and 2008.
5. ICMA award for the years- 2007-08.
6. FICCI annual award for Research in Science and Technology.
DEPARTMENTAL STUDY: HSE Department.
System/IT Department
Patent Department
QA Department
R&D Department.
Supply Chain Department.
Production Department
Human Resource Department.
Finance Department.
19

20

Safety means it is freedom from Danger, Hazard, Accident

Basic need for safety:

o Safety aspect.
o Humanity aspect.
o Legal aspect.
o Economic aspect.
o Productivity aspect.

Objective:o The desire to increase production as a mean to a higher standard of living.

o The desire to reduce cost.
o Reduce the shortage of skilled man power and the need to conserve and make the best use of man
power skills.
o The desire to reduce need less human sufferings on humanitarian motives.

Health safety Environment department are play very important role for the company. HSE department
give training to all company and contract employees on various safety topics & how to handle any
material in premises.
21

 Two type of safety they maintain

o On site emergency plan
o Off site plan
HSE department also look after the ETP plant, issue of vessel permit for any plant,

Equipments use for personal safety :

o Helmet
o Safety Shoes
o Safety Goggles
o Ear Muff
o Mask
o Rubber Gloves
o Apron

Activities:
HSE department done various activities for improve knowledge of there employee about safety and
environment
o Safety Education.
o Safety Award Scheme.
o Safety Competitions.
o Suggestion Scheme.
o Celebration of Events.
Currently they give Green tag & Gold card to all department to give more safety for their employee

22

 They provide medical service to all employee, for any type of accident accrue daily doctor available in
premises for hall day and two mail nurse are 24 hours in company. Any big accident accrue for that they
have ambulance service to take employee in nearest hospital.
Every end of month HSE held meeting with all department head and if they have any problem regarding
safety they try to solve it
Solvay think accident accurse two type of cost and its harm to image of company
i. Insurance cost:
o Employee liability.
o Public liability.
o Product liability.
ii.

Un insurance cost:
o Product time.
o Product damage.
o Legal cost.
o Fins.
o Bed publicity.

In Solvay Panoli plant 216 fire extinguisher available, each department cover from it.
Fire alarms are cheek every Monday, and all employees are well trained about siren sound and what they
do if they blow. They made two assembly points for gathers when any type of accident accurse.

23

24

 Systems department in Solvay Panoli plant are handling by Solvay information system (SIS). It generally
handles day to day maintenance related to hardware, software and configuration. SAP is being used from
1st April 2009.Befor the SAP start RAMCO SYSTEM was used.
All the transactions related to every department are recorded in SAP, like purchase requisition Purchase
order, Goods Inward is prepared using. Head office can know the working of the Panoli plant through its
online data on SAP.
Daily work of system department is to Data backup, maintain networking, and solve problem regarding
system.
There is a separate portal for Solvay known as AMIGO for which employees have separate email id. In
which Solvay employees can get their information and latest news about Solvay.
Sap is use globally and RAMCO used only for particular plant
SAP is very useful because we can show all process of work that is being done to the other departments
situated at the same place or at the other places connected to it. For that different types of modules are
used.
They introduce new model of SAP in 2010.

Hardware
o E-mail Server
o SAP server
o WAN connectivity server

Software
o SAP
o E-mail
o PSI (Chat)
25

o Office (MS/Open)
o Internet/intranet
o Miscellaneous
A team of efficient IT specialists maintains the SAP systems through which solvay has integrated all
its plants, regional offices, branches/depots all over world through satellite and microwave
connectivity.
In has created a team of experienced professionals who by their imaginative use of these
technologies have enhanced the reputation of solvay as a quality, time and cost conscious
organization manifold

26

 Patent department of Panoli plant are directly connected with head office, Belgium.
Solvay group are spread in 50 countries In three sector so for that they require all new information
about other company product and their patent.
Solvay specialties India ltd. at Panoli main product is different type of polymer & plastic grains so
they find information for it,
Work information are also given by head office and they directly report to them
At Panoli only two person work in patent department
Main work of patent department to follow the instruction of head office and finding new patent for
their product and also check patent they find does not exist in the market. or it existing then what are
the change we require in our product to take patent
Information given by varies plant it checks by expert in head office base on some criteria of the
company, their job is to analysis of all information and how to use it

27

28

The Quality department is responsible for the Process quality, Receipt Quality, feedback quality and product
development quality. Today for the survival in the market you have to be assure that the quality of your
product must be the best and time to time you have to improve the quality of your product. If you dont
improve the quality than too it will be the same as you are providing now. If the quality goes down than you
can be thrown out of the fast growing market.
Objective:
Reduce the non-performance and achieve best quality of product.
TIMELY feedback to operation department for batter achievement.
Function:
Monitoring.
Inspections of incoming material (R.M).
Inspection of in-process material & final product.
After analysis feedback to operation department, it helps to maintain process control.
Q.A also look after polymer lab in this they check final polymer for mechanical & thermal
polymer.

Technique & Equipment:

There are various technique
uses in Q.A lab for testing.

29

 High-performance liquid chromatography (HPLC).

Gas chromatography (G.C).
Gel permission chromatography
Titration
Spectroscopy
Tester & Stirrer.
Other equipment.
During processing, at each stage of production sample is sent to QA department and it is tested if it is
approved then it is passed for next stage of production Otherwise
Reprocessing :- The material is reprocessed if it is not according to the specification.
Blending :Blending of the material is done with the other material whose purity is more
than the required
Quality Department are joint with all the Department for example store dep, production dep, supply chain
dep, R&D dep, because without clearness of QA dep no raw material enter or no goods are exit
In solvay for QA department in SAP system different colour light indication is use for example,
Ok
In Process
Not Ok

30

31

 STRUCTURE OF R&D DEPARTMENT

32

DIRECTOR

SR. MANAGER

R&D

MANAGER

DY. MANAGER

EXECUTIVES

EXEUTIVES

OFFICERS

OFFICERS

33

OFFICERS

 Objective:
The main objective of R&D department is to develop new product and innovate existing product
as per the market requirement
In Solvay Panoli plant R&D department have three parts
a) Synthetics Lab.
b) Application Lab.
c) Green Chemistry Lab (karma lab).

Functions:
o Synthetics Lab:

Finding new monomer and polymer.

Plant support activities for existing monomer and polymer.

New raw material approval.

o Application Lab:

To explore new application for existing polymer.

To make polymer composite and find out their application.

Extrusion trial to support compounding plant.

o Green Chemistry Lab:

Work on removable resources.

34

 STRUCTUREC OF SCM DEPARTMENT

35

GENRAL MANAGER SCM

SR.MANAGER
STORE

SR. MANAGER

MANAGER

DY. MANAGERS

EXECUTIVES

OFFICERS

EXECUTIVES

OFFICERS

supply chain is the network of all parties that directly and indirectly deliver a finished product or
service to a customer.

SCM is about managing complex relationships and coordinating managerial processes within firms
(intra-organizational) and between firms (inter-organizational or cross-enterprise).

36

 In this company the Marketing department comes under the Supply Chain Management department.
There is no separate department for Marketing. Both of these departments are combined. The SCM
department works in the way as shown above in the chart. There are three main functions of the
SCM. They are customer facing, regulatory and internal facing. The first function i.e. the customer
facing has under it function as order to cash which further has four functions as product planning,
product scheduling, logistic & dispatch and the last one is cash generation. The second function i.e.
regulatory function looks after the legality of the various functions. The third function i.e. the
internal function looks after the procurement of the various materials needed for the production as
well as the engineering and different services needed for the smooth production work and also about
the storing of the finished products in the warehouse.

37

P
P
r
r
o
o
d
d
u
u
c
c
t
t
i
o
n

SCM include with different activity show in below chart.

M
a
F
r
i
k
n
e
a
t
n
i
c
n
e
g

G
S
l
C
o
M
b
a
l

ORDER TO CASH:-

Production Planning:
o Consider orders directly received for supply
o Consider Projections from customers approve from marketing department at
Bombay.

38

o Collect order detail & projection for next month production planning in last
week of particular month and confirm dispatch priority.
o Forward order +Projection list to particular production plant.
o Then production department gives date of availability of material.
o And last inform customer material available date.

Production Scheduling:
o For production scheduling PICASO software used by solvay group.
o Picoso communicate with sap, and directly make the order to particular plant.
o Then sap check the availability of raw material and if it sufficient then it issue
to plant from store, But if raw material stoke are not sufficient at that time sap
generate PR for the require material.

Logistics & Dispatch:

Purpose
o To review the dispatch requirement as per agreed customer orders and make
arrangement for dispatch.
o To dispatch the specified quality products, as per Customer requirements.
Activities
o To daily enter of RG1 (production, sales, export, excise duties &invoice) by
manually & through SAP
o Daily telephonic talk with Sales dept. (Mumbai) regarding export & local
dispatch
Sources of Dispatch
o
o
o
o

Trucks
Containers
Ship
Air craft

Document use
o Bill of leading
o Invoice
o Packing list
o Certificate of origin
o Other as per requirement.
Inco term

39

o For export business global languages are used its call Inco term. There are few
example are commonly use FOB,CSF,FRI,
Cash Generation:
o Receive daters due/over due file every week through e-mail from FICO.
o Customer service representative (csr) send reminder letter/e-mail to customer
with refrains to above file
o Csr receive payment detail from customer and send to FICO
o FICO does accounting

PROCURMENT(PURCHES):- Activities
o The main function of purchase Department is to provide raw material and
spare parts to the required department as and when needed.
o Purchase executive also plays bigger role in the decision of pricing by making
negotiations
o An executive of Purchase Department in co-ordination with Finance
Department makes the selection of vendors and suppliers.
o They also keep in touch with the suppliers regarding the date and time of the
delivery of the goods and also conditions if not supplied on time.
o Purchase department prepares purchase order and also release purchase order
o Purchase Department with Q.C. Department in order to check quality of
material and then purchase the qualified material.
o Purchase Department also prepares Receivable Notes
Raw Material:
o Purchase Department maintains minimum level of stock of each material they first
identify EOQ (Economic Order Quantity) of raw material. By considering the lead
time and re-order point the order gets placed
o For that they maintain minimum level & maximum level of all goods, if they
found minimum level at that time follow the above process to get raw material.
o Information of the minimum goods get easily by SAP.

Process structure of purchase

Purchase Requisition

Report for Quotation

40

Receipt
of Order
Other Statement
QuotationPurchase
Comparative
Negotiations

 Eng.Service:
Follow the same process for getting any engineering product by any department

Services:
In this procurement of services like labor, transport contract, canteen all type of services are
come in this part

STORE(WAREHOUSE)
Function:
o Issuing material.
o Material coding.
o Manage the goods register.
o Security of material.
o Handel material as per material safety data (MSDS) sheet.
Store Procedure
When the goods or material reaches to the company the security office checks physical
quantity and register the details of material. Then material reaches to Stores Department,
Store Executive records the entry of goods or material in the inward register. The
consignment is recorded in the goods receipt note before the Q.C. Department checks the
quality of the material. If the approval is done then only material gets stored at its place. If
material gets rejected then it gets deducted from GRM. Any part of the machines needs not to
be checked by Q.C. dept. and it directly comes to Stores Department. For the purpose of easy
and smooth transportation different type of racks are maintain for the various department.
41

o In Panoli plant two warehouse situated in near the main get so it easy for movement of
material coming & exit.
o Both building are joint with one big Shutter door. so if any work are require then they
easily communicate with each other.
o In Warehouse 1 raw material & engineering goods are stored, for that they distributed
their responsibility as per their work.
o In ware house 2 semi finished and finished goods are stored and when dispatch orders
come they dispatch the goods
Raw Material:
o For storing the raw material they use different type of stand, barrel, and bags.
o All raw material are stored as per the material safety data sheet.
Eng,Goods:

o Engineering goods are stored in warehouse as group wise like safety goods, plant goods,
production goods. For that different rack are uses in Panoli plant.
o And they release goods as per company requirement.
Semi finished &Finished Goods:

Finished goods are dispatch as per order come from the party. For that they us cardboard,
different box, and bags.

For semi finished they packed in different colour bag as per different plant, for example
PES plant yellow colour, PEEK plant white colour, DHDPS plant blue colour.

42

 Production department hierarchy

43

GENRAL MANAGER

TECH SERVICES

MANAGER

MANAGER

PROCESS MANAGER

DY.MANAGER

DY.MANAGER

PROCESS
DY.MANAGER

EXECUTIVE

OFFICERS

EXECUTIVE

OFFICERS

EXECUTIVE

OFFICERS

LIST OF DIFFERENT PLANT

PES PLANT
44

EXECUTIVE

OFFICERS

EXECUTIVE

 PEEK PLANT
DCDPS PLANT
DHDPS PLANT
COMPOUND PLANT

45

Brief Product Descriptions:

Spire ultra polymers:

o KetaSpire polyetheretherketone (PEEK) easy-to-mold ultra polymer offering
outstanding chemical resistance and mechanical performance up to 300C (570F)

46

o AvaSpire modified PEEK novel PEEK-based formulations with unique

advantages that bridge price and performance gaps
o PrimoSpire self-reinforced polyphenylene (SRP) worlds stiffest, strongest
unreinforced polymer with a remarkable combination of surface hardness, chemical
resistance and inherent flame-retardant properties
o EpiSpire high-temperature sulfone (HTS) Transparent amorphous polymer
with excellent creep resistance at temperatures up to 265C (510F)
o Amorphous sulfone polymers:
o Udel polysulfone (PSU) -- Tough, transparent plastic with exceptional chemical
resistance, good hydrolytic stability and an HDT of 345F (174C)
o Mindel modified polysulfone (PSU) Opaque, cost-effective PSU-alternative
offering specific advantages versus Udel, such as superior electrical properties
o Radel R polyphenylsulfone (PPSU) Super-tough transparent plastic with an
HDT of 405F (207C), excellent chemical resistance and the unique ability to be
steam sterilized without significant loss of properties.
o Radel A polyethersulfone (PESU) Transparent plastic with a high HDT of 400F
(204C) and better chemical resistance than Udel
o Acudel modified polyphenylsulfone (PPSU) Opaque PPSU-alternative offering
cost advantages where application requirements match the balance of properties.
Semi-crystalline semi-aromatic polyamides:
o Amodel polyphthalamide (PPA) high-temperature nylon with exceptional
mechanical properties, an HDT of 535F (280C), excellent chemical resistance and
low moisture uptake.
o Ixef polyarylamide (PARA) aesthetic, structural specialty nylon that combines
outstanding stiffness with exceptional surface appearance, plus low and slow water
uptake, and great flow properties.
Additional semi-crystalline polymers:
o Primef polyphenylene sulfide (PPS) high-flow, structural plastic with good
temperature and chemical resistance as well as inherent flame retardant properties.
o Xydar liquid crystal polymer (LCP) high-flow, high-temperature plastic with an
HDT of 570F (300C), and extremely high chemical resistance
For the production of above mention product it has to go through following stages in different
plant but mainly three main plant in Panoli are

I.

PES
47

INRODUCTION
PES is an amorphous engineering thermoplastic resin with good high temperature resistance. It has
excellent resistance to hydrolysis and repeated sterilization. Its outstanding rigidity and mechanical
properties are little affected even at a continuous use temperature of about 185C.
PES can be processed by all the common techniques adopted for thermoplastics like injection
molding, blow molding and extrusion. Resins and compounds can be recycled a number of times without
any significant loss in properties.
CHARACTERISTICS

Continuous use temperatures of 185C.

Very high rigidity

Good dielectric properties

High mechanical strength

Good dimensional stability

Good resistance to hydrolysis and sterilization

Good oxidative stability

Inherent flame retardance

GRADES

Unreinforced grades in power or granular form

3000 Ultra high viscosity grade for membranes.

3200 High viscosity grade for membrane and coating applications.

3300 Unreinforced high viscosity grade for injection molding, extrusion, blow molding, calendaring,
etc.

3400 Unreinforced medium flow granules for injections molding

3500 Easy flow unreinforced grade for injection molding of thin walled components.

3600 Very easy flow, low viscosity grade for injection molding and extrusion compounding.

APPLICATIONS
I. Medical gadgets

Catheters

Sterilizing Boxes
48

Blow moulded bottles

Parts for dialysers

Reusable hypodermic syringes

Surgical instruments and components

II. Electrical and Electronics

Printed circuit boards

Chip trays and carriers

Circuit breaker components

High temp. Electrical connectors

Coil formers and terminal blocks

Parts for power contactors and relays

III. Industrial applications

Oil level indicators

Blow moulded components

Heat exchanger parts

High temp. Lighting fixtures

Aircraft passenger cabin components

Components for absorption and distillation columns

IV. Automotive

Engine components

Automotive fuses

Headlamp reflectors

V. Household appliances

Microwave crockery

Pressure cooker parts

Hair dryers

VI. Ecological

Membrane for reverse osmosis

Ultra-filtration and gas separation

Filter housings
49

VII. Sanitary usages

Hot water meter components

Sanitary and pipe fittings

Pump rotors in heaters

II.

PEEK

INTRODUCTION
PEEK is a semi-crystalline high temperature specialty plastic with excellent chemical resistance,
hydrolytic stability and very low flammability. It has a continuous use temperature of 260c. it has the
ability to withstand high temperature and aggressive environments and hence can replace metals in
critical applications.
It can be molded by all conventional processing techniques like extrusion, injection molding etc.
CHARACTERISTICS

Outstanding chemical resistance.

Outstanding wear resistance.

Outstanding resistance to hydrolysis.

Excellent mechanical properties.

Outstanding thermal properties.

Very good dielectric strength, volume resistivity, tracking resistance.

Very good radiation resistance.

GRADES

5300P: High viscosity grade in grade in powder form for powder coating

5300: High viscosity grade extrusion and injection molding

5400: Medium viscosity grade for extrusion and injection molding

5600: Low visc. Grade for injection molding of thin sections & complex parts

Reinforced grades

GATONE PEEK grades with glass fiber and carbon fiber reinforcements ranging from 10- 40% are
available in natural or desired colors e.g. GATONE PEEK 5320GF is GATONEPEEK reinforced with
20 % glass fibers custom made grades can be developed to meet specific requirements.
50

Standard conditions: 400c, 2016kg, 6 mins

Standard : ASTM D 1183

APPLICATION
I. INDUSTRIAL APPLICATION

Scientific laboratory instruments

Ink jet printers

Heater housings

Pressure transducer housings

Rotation wear components in centrifugal pumps

High temp. Electrical connectors.

II. ELECTRICAL AND ELECTRONICS

Wire & cable insulation

High temp. Electrical connectors.

III. FLUID HANDLING

Water meter housings

Valve seats

Pump impellers

Miniature fluid control components

IV. MEDICAL

Blood dialysis machines

Anesthesia delivery systems

V. AUTOMOTIVE

Aero-engine for cars

Headlamp reflectors

Starting disks in bus gears

Transmission thrust washers in sports cars

VI. AVIATION

Jet engines

Sandwich panels in aircraft interiors

51

III.

Aerospace components

Airbus interior components.

COMPOUNDING PLANT

The PES powder obtained from the PES plant has solvent unit on account of mode of polymerization
this is extracted using de-volatilization extruder. PES from the silos is taken in the from of lots in a blender
to mix with additive to impart better heat stability and process ability to the polymer powder at the time of
processing and use. The blended powder is stored in storage hopper to avoid material shortage during the
run.

52

 BRIEF PROCESS DESCRIPTION

1. POLY ETHER SULFONE (PES):

PES is manufactured by reacting Dichloro Diphenyl sulfone (DCDPS) & Dihydroxy Diphenl sulfone
(DHDPS) in solution.
PES is manufactured by heating DCDPS mix in the presence of sodium carbonate. Reaction continues till
desired viscosity built-up takes place. Water, Carbon Dioxide & industrial salt are generated as by- products.
The PES is then precipitated in water to give PES powder. The solvent occluded in PES is removed by
repeated washings or by refluxing in water. PES is then filtered & dried. It can be packed as powder or can
be extruded into granules before packing. It can also be further compounded by adding glass fibers, mineral
fillers, colors or any other desired additives before selling.
2. POLY SULFONE (PSU):
Ploy Sulfone is manufactured by reacting Bis-Phenol A & DCDPS in solvent in presence of potassium
carbonate.
PS is manufactured by heating DCDPS plus Bis-Phenol A mix in solvent in the presence of Potassium
Carbonate. Reaction continues till desired viscosity built-up takes place. Water & carbon Dioxide &
Postassium Chloride are generated as by-products. The PSU is then precipitated in water to give PSU
powder. The solvent occluded in PSU is removed by repeated washings & by refluxing in water. PSU is then
filtered & dried. Adding glass fibers can also further compound it, mineral fillers, colors or any other desired
additives before selling.
3.PLOY PHENYLENE SULFONE (PPSU):
Poly Phenylene Sulfone is manufactured by reacting Biphenol & DCDPS in solvent in presence of
Potassium Chloride.
PPSU is manufactured by heating DCDPS plus Biphenol mix in solvent in the presence of Potassium
Carbonate. Reaction continues till desired viscosity built-up takes place. Water & carbon Dioxide &
Potassium Chloride are generated as by- products. The PPSU is then precipitated in water to give PPSU
powder. The solvent occluded in PPSU is removed by repeated washings & by refluxing in water. PPSU is
then filtered & dried. Adding glass fibers can also further compound it, mineral fillers, colors or any other
desired additives before selling.
4. ACRYLIC POLYMER (GADDS):
Methyl Methacrylate is emulsified in water with catalysts. After latex formation is completed latex is spray
dried to give powder for sale.
5. DICHLORO DIPHENYL SULFONE (DCDPS):
Mono Chloro Benzene (MCB) is chlorosulfonated using Sulfur Trioxide (SO3) & Chloro Sulfonic Acid
(CSA) to give MCB-Sulfonyl Chloride. MCB-SO2CL is then reacted further with MCB in the presence of
catalyst to give DCDPS. The crude DCDPS obtained is crystallized from its MCB solution, dried & sent for
PES manufacture. Spent Sulfuric Acid is recovered as a by-product.
53

6. POLY ETHER ETHER KETONE (PEEK):

Acid Solvents Anhydride (ASA) is prepared by reacting Acid Solvent with Thionyl Chloride. The SO2 &
HCL gases evolved during reaction are scrubbed in caustic soda solution. The intermediate thus produced is
distilled & used for polymerization.

In polymerization the PEEK acid is polymerized in presence of Acid solvent & ASA. The reaction mass after
polymerization is drowned in water, filtered, washed & extracted with Solvent 1. It is further washed with
water & finally dried.
The dried PEEK polymer is compounded with additives at elevated temperature to get granules of PEEK
Polymer as finished product.
7. DIHYDROXY DIPHENYL SULFONE (DHDPS):
DHDPS is manufactured by reacting Phenol with concentrated Sulfuric Acid, which yields crude DHDPS
along with water. Methanol, water & Carbon treatment is given to crude DHDPS, which yields pure DHDPS
after crystallization. It is dried & sent for PES manufacture.

WHY IT USE:
High-performance applications in industries such as aerospace, automotive, plumbing and healthcare have
historically relied on metals. Solvay gives you a variety of alternatives that provide greater design freedom.
Our polymers let you:

Design more complex shapes

Consolidate parts into fewer components

Simplify production

Produce transparent and colored components

Reduce part weight

Eliminate dents or corrosion

Reduce noise

54

55

 Objective:
To manage the current human resources in best possible manner

Function:
o HR planning
o Recruitment and selection
o Training and development
o Employee Welfare and Safety

HR PLANNIG:
In HR planning is based on man power planning for that they use
o Demand forecasting: for that they use historical evidence of past series of facts , events are
considering.
o Supply forecasting: it indicates from where the demand of man power is fulfilled , through
internally or externally.

RECRUITMENT:
It is the next step in the manpower selection. The company has two main source of
recruitment.
Internal source
o Promotion
o Transfer
o Employee reference
56

External source
o Former employee
o Unsolicited source
o Privet employment agency
o Campus
o Deputation

SELACTION PROCESS:

RECIEPT OF APPLICATION

PRELIMINARY INTERVIEW

APPLICATION BANK

INTERVIEW

REFERENCE CHECK

MEDICAL CHECK UP

OFFER FOR APPOINTMENT

PLACEMENT

INDUCTION

57

 TRAINIG AND DEVLOPMENT:

Training needs of all the employees are identified along with the performance appraisal.
o Providing training:
-

In house training by internal faculty

In house training by external faculty

In solvay provide two type of training

o On the job training
o Off the job training
They do various program for their employee development
o Get to gather
o Seminar
o Extra activities
Employee Benefits:

Transport services:
o The transport services are provided from Bharuch/Ankleshwar City/ Andada/ GIDC Ankleshwar.
The rate of employees contribution towards usage of transport services is Rs.200/-per month.
o The transport services are arranged at Bharuch & Ankleshwar in all shifts.

Cafeteria services:
o Cafeteria Services are made available in all shifts at subsidised rates.
o The rate of employees contribution towards Lunch/ Dinner at the Cafeteria Services for Cafeteria
members shall be at Rs.100/- per month

58

o The employees who intend to avail the same shall take snacks coupon from the contractor and
acknowledge the receipt. A fix amount Rs. 50/- per month for 26 coupons issued to a member
shall be deducted from the salary of members availing the facility. However, employees may take
additional benefit of the cafeteria facilities on to pay basis by making direct payment to the
canteen contractor.
o The tea will be served to employees @ 2 teas per day in the cafeteria at companys cost.

Welfare Items:
The following Items are distributed to Employees on non returnable basis
Sr

Particulars

Unit

Period

Due

Uniforms

3 Pairs

1st Year of Service

On Joining

2 Pairs

Every Year

August

Rainy Shoes

1 Pair

Once in two years

June

Rainy Suit

1 No.

Once in three years

June

Winter wear

1 No.

Once in five years

October

Towel & Napkins

1 No.

Once in a year

February

59

60

 STRECTURE OF FINANNCE DEPARTMENT

GENRAL MANAGER FINANCE

MANAGER ACCOUNT

EXECUTIVE

EXECUTIVE

MANAGER TAXATION

EXCUTIVE

Objective:
o FINANCIAL PLANNING
o ANALISING FUTURE GROTH PROSPECT

61

EXECUTIVE

o TO MANAGE WORKING CAPITAL

Function:
o This department examines the challan in respect of payment.
o This department handles the income tax and sales tax cases.
o This department collects the vouchers from the various departments.
o They note the entries in the sales return book on the basis of credit note & the entire of stock
register.
o This department makes casting and posting from sales return register to ledger.
o They fill up the sales and income tax return per month.
o They checked whether the income tax department has given a correct order for payment of tax in
advance.
o This department handles the all transaction with bank.
o They prepare the daybook, ledger, trial balance, manufacturing and profit & loss account and the
final balance sheet
o They collect the C Form from the customer this department also allocates the total salary to the
personnel department per month.
In solvay all work is done in SAP, I also learn how to do entry of bill, bank receipt, challan, seals tax, c
form issue, etc.
Finance department people are busy with their work but they have shared their valuable time with me
and give information what I need for my project.

Ratio Analysis:
Company provide me limited information about the finance and all the data are given globally so its
not easy to calculate all type of ratio.

1. PROFIT MARGIN: It is also called return on sales, which measures the amount of net profit earned by
each rupee of revenue.
62

Profit margin = Profit After Tax x 100

Sales
YEAR

2005

2006

2007

2008

PROFIT AFTER TAX

816

817

828

449

SALES

8562

9399

9572

9490

PROFIT MARGIN

9.530484

8.692414

8.65023

4.731296

GRAPH:1

PROFIT MARGIN
12
10
8
RATIO

6
4
2
0
2005

2006

2007

2008

YEAR

The profit margin for the year 2005 is 9.530484 which is not bad, but slowly it is decreasing in further
years as we can see that in the year 2006 it is 8.692414, in the year 2007 it is 8.65023 and in the year
2008 it is very low at 4.731296.In the year 2008 the profit margin is nearly half of what it was in the
previous year, which is very critical. Therefore reasons should be found out for such decreasing profit
margin and corrective actions should be taken to improve it.
2. ASSET TURNOVER: It is a measure of a firms efficiency in utilizing its assets. It indicates how many
times the assets were turned over in a period and thereby generated sales. If the assets turnover is high it
means the company is managing its assets efficiently and if it is low then it means that the company has
more assets than it really needs.
Asset turnover=

Sales
Average total assets

TABLE: 2
YEAR

2006

2007
63

2008

SALES

9399

9572

9490

AVG. TOTAL ASSETS

11170.5

11140.5

11722

ASSET TURNOVER

0.841413

0.859207

0.809589

GRAPH: 2
ASSET TURNOVER

RATIO

0.87
0.86
0.85
0.84
0.83
0.82
0.81
0.8
0.79
0.78
2006

2007

2008

YEAR

The asset turnover ratio for the year 2006 is 0.841413 which cannot be considered much good,
similar is the case with the asset turnover ratio of the further years as it is 0.859207 in 2007 and
0.809589 in 2008, so it can be said that the asset turnover of the company is low and the company is
having more assets than it really needs. So the company should pay some attention to it and should
either try to utilize its assets fully by increasing its sales or it should sell the assets that are in excess.

3. RETURN ON ASSETS: It is a measure of profitability from a given level of investment. It is an excellent

indicator of overall performance of a company.
Return on assets = Profit after tax x 100
Avg. total assets
TABLE: 3
YEAR

2006

2007

2008

PAT

817

828

449

Avg. Total Assets

11170.5

11140.5

11722

Return on Assets

7.313907

7.432341

3.830404

64

GRAPH:3

8
7
6
5
RATIO

4
RETURN ON ASSETS

3
2
1
0
2006

2007

2008

YEAR

The return on assets is 7.313907 for the year 2006, 7.432341 for 2007 and 3.830404 for 2008 which
shows that the profitability of the company is not much high and this is the reason for the lower
percentage of return on assets. Further the ratio has decreased tremendously in the year 2008 as
compared to the year 2007. So it is the point where some more efforts should be done to find out the
reasons for such a tremendous decrease. It is a point which attracts more attention. The management
should pay some attention and find out the reasons about the sudden deteriorating performance of the
company in the year 2008.

4 Current ratio: This is the ratio of current assets to current liabilities. It is a widely used indicator of a
companys ability to pay its debts in the short-term. It shows the amount of current assets a company has per
rupee of current liabilities.
Current ratio = Current Assets
Current Liabilities
TABLE: 5
YEAR

2005

2006

2007

2008

CURRENT ASSETS

4189

3825

4180

4513

CURRENT LIABILITIES

3824

2679

2758

3334

CURRENT RATIO

1.09545

1.427772

1.515591

1.353629

65

Table 2.1 Current Assets and Liabilities

GRAPH:

CURRENT RATIO

RATIO

1.6
1.4
1.2
1
0.8
0.6
0.4
0.2
0
2005

2006

2007

2008

YEAR

The current ratio is 1.09545 for the year 2005, 1.427772 for the year 2006, 1.515591 for the year 2007 and
1.353629 for the year 2008. It is generally believed that an ideal current ratio is 2:1. i.e. the Current assets
should be twice the Current liabilities. The ratio of 2 is considered to be safe due to the fact that if the
current assets are reduced to its half then also the creditors will be able to get their payment.

66

67

TOPIC :- FIXED ASSET MANAGMENT

Topic is given by company because they require the result in end of July for their head office in
Belgium.
OBJECTIVE OF THE STUDY:
The main objective of the study is to know
The number of asset really existing in the company which are show in asset list .
The asset s are working condition or not
Replace the assets which are not in working condition.

How to collect the data:

Observation of assets in company.
Verification with person who are working or using the asset.
Company asset list

Types of asset
There are various type of asset

Fixed asset

Current assets

Fictitious assets

Tangible assets

Intangible assets

Introduction
An important distinction is made in accounting between "current assets" and "fixed assets".
Current assets are those that form part of the circulating capital of a business. They are replaced frequently
or converted into cash during the course of trading. The most common current assets are stocks, trade
debtors, and cash.
Compare current assets with fixed assets. A fixed asset is an asset of a business intended for continuing
use, rather than a short-term, temporary asset such as stocks.
68

Fixed assets must be classified in a company's balance sheet as intangible, tangible, or investments.
Examples of intangible assets include goodwill, patents, and trademarks. Examples of tangible fixed assets
include land and buildings, plant and machinery, fixtures and fittings, motor vehicles and IT equipment
In any organization fixed assets is most important. It is permanent in the business. In modern time
allocation of capital is one of the most important functions of fixed assets. There should be proper and
appropriate provision for depreciation of these fixed assets.
Meaning: These are items of value which the organisation has bought and will use for an extended period of time;
fixed assets normally include items such as land and buildings, motor vehicles, furniture, office
equipment, computers
Fixed asset, also known as property, plant, and equipment (PP&E), is a term used in accountancy for
assets and property which cannot easily be converted into cash.

This can be compared with current assets such as cash or bank accounts, which are described as liquid
assets In most cases, only tangible assets are referred to as fixed., fixtures and fittings, and plant and
machinery

According to International Accounting Standard (IAS) 16, Fixed Assets are assets whose future
economic benefit is probable to flow into the entity, whose cost can be measured reliably.
The most commonly used assets are:

Office Equipment

Evidence

Medical Equipment

IT Equipment, for example laptops.

Vehicles

Files

Maintenance supplies

Educational materials

Software licenses

Videos

Etc.

Depreciating a Fixed Asset:

69

 Depreciation is usually spread over the economic useful life of an asset because it is regarded as the cost
of an asset absorbed over its useful life
In Solvay they calculate depreciatation two way first as per company act 1947,other as per income tax
rule
They calculate depreciation as per days basis, how many days asset was use on this particular year.
In solvay all department are given cost center number for easily handle the activity in SAP.
Depreciation is one type of cost for company so it goes to particular cost center decided by company.
Depreciation is usually spread over the economic useful life of an asset because it is regarded as the cost
of an asset absorbed over its useful life.
For calculating depreciation they use colander year (1/1 to 31/12)
Rate of depreciation are fixed as per company act 1947, schedule 14.in this different rate are given for
SLM &WDM.

Item

Rate

Plant
Item

&machinery/Ele 10.34
%

furniture &fixture

6.33
%

Building

3.34
%

Computer

16.21
%

A .C/water cooler

4.75
%

Item
sundry asset
Plant &machinery/Ele
Item
Vehicles
furniture &fixture

Rate
13.91
%
50%
9.50
%
10%

Building

25%

Computer

16%

A.C/water cooler

15%

Vehicles

15%

Rate of depreciation as per income tax act : According

to low there are two blocks, first block include asset which are
use more than 180 days, its get provision for 100%.and other
block include asset which are use less than 180 days, its
provision for 50%.

They also calculate depreciation as per income tax act

for getting benefit of tax.

70

 Calculate the depreciation charge for an accounting period, the following factors are relevant
1) What is the relevant cost of a fixed asset?
2) What is the Useful Life of a fixed asset?
What is the relevant cost of a fixed asset?
The cost of a fixed asset includes all amounts incurred to acquire the asset and any amounts that can be
directly attributable to bringing the asset into working condition.
Directly attributable costs may include:
o Delivery costs
o Costs associated with acquiring the asset such as stamp duty and import duties
o Costs of preparing the site for installation of the asset
o Professional fees, such as legal fees and architects' fees
The equation for cost basis is:
= Cost of the fixed asset + Sales tax + Shipping and delivery costs + Installation charges + Other costs [such
as commissions or finders fees]
Description:
o Cost of the fixed asset; is what you paid for that equipment, furniture, building, vehicle, or any
other asset you intend to use for more than 12 months
o Sales tax; is the actual taxes you were charged when purchasing that asset.
o Shipping and delivery; includes any charges that you paid to get that asset to your place of
business.
71

o Installation charges; include any charges you paid to get that asset working in your business.
That could include new electrical outlets, carpentry work, or any type of work that was needed to
install the new asset.
o Other costs include any other costs involved in the purchase of the asset. This can include
commissions or finder fees, as well as additional hardware such as wiring or monitors to put a
new piece of equipment into operation.
o
What is the Useful Life of a fixed asset?
o An asset may be seen as having a physical life and an economic life.
o Most fixed assets suffer physical deterioration through usage and the passage of time. Although care
and maintenance may succeed in extending the physical life of an asset, typically it will, eventually,
reach a condition where the benefits have been exhausted.
o However, a business may not wish to keep an asset until the end of its physical life. There may be a
point when it becomes uneconomic to continue to use the asset even though there is still some
physical life left.
o The economic life of the asset will be determined by such factors as technological progress and
changes in demand. For purposes of calculating depreciation, it is the estimated economic life rather
than the potential physical life of the fixed asset that is used.

Formu Asset
value
*DAYS/365
la=

*ROD

Date

Description

Accu.value

Dep.

Book val

Cost.cen

life

25.03.200
7

LIQUID CHROMATOGRAPH SYSTEM

460,772.70

-103,653.67

357,119.03

G01670000
0

10

01.03.200
7

AUTOTITRATOR

120,560.00

-29,810.79

90,749.21

G01670000
0

10

01.03.200
7

MAGNETIC
HOTPLATE

22,249.00

-5,501.55

16,747.45

G01670000
0

01.09.200
7

HALOGEN ANALYSER

1,649,948.08

-296,009.41

1,353,938.6
7

G01670000
0

01.02.200
7

DIGITAL MANOMETER

121,758.00

-37,305.96

84,452.04

G01670000
0

03.02.200
7

LIQUID
SYSTEM

520,760.00

-159,302.58

361,457.42

G01670000
0

27.02.200
7

RI DETECTOR

336,043.40

-100,821.07

235,222.33

G01670000
0

06.01.200
7

SCADA SOFTWARE

91,200.00

-28,796.12

62,403.88

G01670000
0

29.01.200
7

PARTICAL ANALYZER

1,613,198.42

-500,311.42

1,112,887.00

G01670000
0

STRIPPER

WITH

CHROMATOGRAPHY

72

03.08.200
7

MICRO ANALYTICAL BALANCE

141,110.00

-34,636.60

106,473.40

G01670000
0

31.12.200
7

PLATINUM CRUCIBLE 50 ML WITH

OUT LID

341,976.00

-68,065.59

273,910.41

G01670000
0

26.12.200
7

CONDUCTIVITY METER

31,200.00

-6,249.43

24,950.57

G01670000
0

This list show the QA department asset depreciation by strait line method .

Asset Register:

Solvay specialties India pvt.ltd is a part of solvay group. So they report to their head quarter for
their activity, finance department all works handle by USA. So they make two type of register
Both are different as per their requirement
o IGAP
o FASM

In solvay maintain both but in India only IGAP register is use, in this the rate of depreciation
,type ,writing style ,block are different from FASM.

How should the changing value of a fixed asset be reflected in a company's accounts?
o The benefits that a business obtains from a fixed asset extend over several years. For example, a
company may use the same piece of production machinery for many years, whereas a companyowned motor car used by a salesman probably has a shorter useful life.
o By accepting that the life of a fixed asset is limited, the accounts of a business need to recognize
the benefits of the fixed asset as it is "consumed" over several

Total asset value purchase in particular year

2006

2,497,616,927.0
0
73

2007

2008

32,410,582.0
0
796,497,278.0
0

In 2006 the value of asset is more because in this the values of acquisition of Gharda plant are included.

How to do Asset management:-

1) Physical Verification
2) Bar Code Interface
3) Warranty / AMC / Insurance
4) Asset Card
5) Replacement based on Life

Physical Verification:
During the verification of fixed asset I with the support of the other two employee of the
company verified that some of the asset acquired at the time of acquisition Gharda plant and
others were purchase in during three years.
We prepared a list of asset On the basis of information received from Gharda and the list
prepared by company.

SNo
.

The list included asset number, asset description, amount, supplier name, life year, location ,
condition are cover.

Asset tag Asset

no
description

Acquis.
value.

Cost
canter

74

Manufacturer
Location
of asset

Condition

 As per the information we started verification of asset in different cost center.

For example we verified O- item cost canter as per the following list.

ASSET LIST

SR.N
O

Asset Tag
Number

O85

O88

Description of the asset

Location

Condition

018/97;OT;COLUMNS
CUSTOM

Compounding
plant

OK/Not
OK

SPARES FOR EJECTOR

Compounding
plant

OK/Not
OK

Etp plant

OK/Not
OK

DHDPS Plant

OK/Not
OK

O90

SPARES FOR EJECTOR

O92

SPARES
SYSTEM

O93

LAB STARTER
CLAMPS

HEAD Compounding
plant

OK/Not
OK

LEAD

O94

HOMOGENOUS
BONDING

DHDPS Plant

OK/Not
OK

DHDPS Plant

OK/Not
OK

DHDPS Plant

OK/Not
OK

PEEK plant

OK/Not
OK
OK/Not
OK
OK/Not

O95

O96

O97

OF

EJECTOR

INDUSTRIAL LUMINAIRE

PUMP SPARES

BARREL PUMP

10

O99

PISTON PUMP

Compounding
plant

11

O127

SPARES FOR PUMP

Etp plant

75

OK

I asked about the condition of asset to the person who is working on the particular asset or
using the asset. And also cheek the location of the asset.
We found that there are some asset which were not present in the location so we mark those
item on list and submitted to finance department.
In this project we do verification of all department and verify all asset which are available in
company.

Bar Code Interface:

As per the list we sticked a bar code sticker on asset which were available in location and were
in working condition.
The stickers made by company were different according to cost center. For example
o QA- D301G167
o STORE-D513G192
o ENGG.-D1573G3278
o R&D-D11G161
o OITEM-D1009IN121
Bar code interface is necessary for providing the information about the availability of asset
and it is also useful during the audit.

Departme
Description
nt

cost center

productio
n

G03278720
0

M.S.TANK T-1303

76

productio
n

M. S. TANK.

G03230000
2

R &D

HEAT EXCHANGER

G03278720
0

productio
n

REACTOR R-1401

G03278820
0

peek

REACTOR R-1501

G03278820
0

productio
n

REACTOR R-1504

G03278820
0

QA

DIGITAL
MANOMETER

G01670000
0

QA

SCADA SOFTWARE

G01670000
0

QA

LAB STIRRER TYPE G01670000

LS-2
0

pes

BLIND FLANGES

G03278840
0

pes

FLANGES SLIPON

G03278840
0

compoun
ding

HEAVY DUTY MIXER G04000000

GRINDER
0

Warranty / Insurance:

Manufactures give warranty for Ele. Item, equipment, tank, vassal, computer, etc. Use in
company.
It is useful when any Equipment have found some problem. In the time of warranty period they
replace or repair the problem equipment.
Insurance are taken on the basis of the value of asset, and also the use of the asset.
For this purpose they are directly contact to insurance company .they provide vehicle
insurance such as Bajaj alliance.

77

 Warranty/insurance are recorded for generating alerts and reminders for efficient asset
maintenance.
We found so many item in warranty period which were not in working condition so we make
the list of item

Asset Card:

An asset card is a one page summary of complete asset details i.e. acquisition, addition, physical
Verification, Depreciation, Sale details etc.
It Is very useful to get all information about the any asset, and also time saver for auditer.
In Panoli they not give all asset card to all asset.

Replacement based on Life:

Based on the useful life entered in the acquisition screen, this report will show assets requiring
Replacement as on a given date.
After a life of asset over it is replace with new one. Following point are consider when asset are
replace.

What about the Residual Value of a fixed asset?

o At the end of the useful life of a fixed asset the business will dispose of it and any amounts received
from the disposal will represent its residual value. This, again, may be difficult to estimate in
practice. However, an estimate has to be made. If it is unlikely to be a significant amount, a residual
value of zero will be assumed.
o The cost of a fixed asset less its estimated residual value represents the total amount to be depreciated
over its estimated useful life.
o They check asset on the base of company rules and after that they sell it in as per their need.
o For that they decide their scrape price and sell it out.
o Below list show some asset replace in short time, because its use for checking the quality of raw
material &product. If it not change then reputation of company is down in market

List of asset replace in short time

78

Cap.date

pur.ye
Asset description
ar

Cost ctr

YEA
R

10.05.200
6

2003

DIGITAL MANOMETER

G016700000

10.05.200
6

2004

SCADA SOFTWARE

G016700000

10.05.200
6

2002

LAB STIRRER TYPE LS-2

G016700000

10.05.200
6

2005

LAB EQUIP. REMI MAKE STIRRER

G016700000

10.05.200
6

2004

LABORATORY OVEN

G016700000

10.05.200
6

2003

LAB
OVEN,MUFFLE
EQUIPMENT

G016700000

10.05.200
6

2004

LAB STIRRER TYPE LS-2 WIT

G016700000

10.05.200
6

2005

LAB STIRRER TYPE LS-2 WIT

G016700000

10.05.200
6

2002

LAB.OVEN 1NOS

G016700000

10.05.200
6

2003

Lab strirrer Type LS-5/600 with

chuck dr

G016700000

10.05.200
6

2003

COOLING TOWER

G032300002

10.05.200
6

2004

M.S.TANK T-1304,T-1305.

G032300002

10.05.200
6

2003

LEAD BONDING OF TANK T-12

G032787200

10.05.200
6

2003

M.S.TANK T-1312

G032787200

10.05.200
6

2001

LEAD BONDING OF TANK T-12

G032787200

10.05.200
6

2000

4000 LTR. TANK T-1215

G032787200

10.05.200
6

2000

M.S.TANK T-1303

G032787200

10.05.200
6

1999

M. S. TANK.

G032300002

10.05.2
006

2003

HEAT EXCHANGER

G032787200

10.05.200
6

2002

REACTOR R-1401

G032788200

FURNACE

79

4
5
5
5
3
5
5
5
6
5

10.05.200
6

2001

10.05.200
6

2002

REACTOR R-1501

G032788200

REACTOR R-1504

G032788200

5
5

Findings:
All asset show in list are available in company and also find out some new asset not include in
asset list. for that we make new list.
At the time of verification we show so many asset which not use from very long time and use as
scrap.
In plant many asset are not in working condition.
There are various number use in particular one asset so it create confuse ion for auditor and checker.

Suggestion:
Only single number should be given to asset & store in asset register so it easy and time saving.
Proper maintantion of assets should be done.
Maintain asset card for all asset.

Limitation
They not allowed me to enter in two production plant for verify asset, because its dingers for
health.
Getting list & data from department take so much time.

80

81

 BIBLIOGRAPHY:

Book :
1) SOLVAL LIFE NO 256 VOLUME PAGE NO-35

Websites :
www.solvay.com
www.google.com

82