A

TRAINING REPORT
ON
MANAGEMENT INFORMATION SYSTEM
AT
NATIONAL FERTILIZERS LIMITED
NANGAL UNIT, NAYA NANGAL

SUBMITTED IN THE PARTIAL FULFILLMENT OF THE

REQUIREMENT OF
MASTER OF BUSINESS ADMINISTRATION
(2003-2005)

ORGANIZATION:- N.F.L. NAYA NANGAL

SUBMITTED TO :- SHAHIBZADA INSTITUTE OF
INFORMATION & TECHNOLOGY,
PHASE-7 IND. AREA, MOHALI

SUBMITTED BY :- SHIVANI RANA

ROLL NO. 1407
MBA-3RD SEM.
 Contents

Title Page No.

PREFACE 2
ACKNOWLEDGEMENT 3

CHAPTER-1

NFL-A PROFILE 4
PLANTS OF NFL AND LOCATION 5

NFL – NANGAL UNIT 8

PRODUCTS OF NFL 15

CHAPTER-2

HISTORY OF THE COMPANY 17

RESEARCH METHODOLOGY WITHIN NFL 26

CHAPTER-3

INTRODUCTION TO MIS
REQUISITES OF AN EFFECTIVE INFO.SYSTEM

CHAPTER-4

MIS AT NFL NANGAL UNIT 48

MONTHLY RETURNS 51
QUARTERLY RETURN 59
HALF YEARLY RETURN 62
ANNUAL RETURN 66

LIMITATIONS OF MIS 86

BIBLIOGRAPHY 87
 Preface

In any organization, human resources plays the most

important basic function in any aspect of management.
Libralisation, deregulation and competition have irreversibly
altered the face of tradition area of personnel management. Once
relegated to the background as a stiff function, today Human
Resource Management is probably the most crucial step in
achange process. Libralisation and the resulting competitive
pressures have created huge demand for a skilled workforce and
competent managers. But more importantly, organisation changes
have themselves demanded transformations in the ways in which
people are selected, trained, evaluated and rewarded in
organisations. Most change efforts are unlikely to succeed unless
human resource practices create a supportive climate for change.

Why are human ressource practices crucial to

successful change? Jeffrey, a professor at the stanford graduate
school of business, argues that people are the principal source of
competitive advantage for organisations in the current
environment. This is because the traditional sources through
which business firms achieved a competitive advantage are less
important in the current dynamic environment. In past firms
achieved superiority over their rivals through product and process
technology, protected or regulated markets, access to financial
resources and economies of scale. These are less important now
compared to how an organisation manages its people.
 In the current scenario - productivity, efficiency and
profitability are the key words. As a result of incorporating
solutions like restructuring, downsizing, one factor gets effected
employee loyalty towards the organisation. When victims leave
organisation, challenge remains in handling those left behind the
survivors. One of the pressing problems today is to identify the
measures to keep the morale of the survivors high. Phychological
health of the employees should be taken care of to ensure future
productivity and success of the organisation. Opportunity for
handling various assignments, multi-skill would enable survivors
to work efficiently along with contributing to their own
development and future employability. Attitudinal reaction of
survivors is normally expected to take negative course but
survivors also enjoy their new position and look towards the
future.
Acknowledgement

In any undertaking there are many individuals

who help keep things on track. It would be impossible to
single out all the people who contributed so generously to this
project and with their comments and suggestions, and ideas.
Sincere thanks are due to the officers, Mr. S.K.KAUSHAL,
CHIEF MANAGER (HRD), Sh. RADHEY SHYAM,
TRAINING OFFICER and staff of Personnel Department Mr.
S.K. BHATT, DY. MANAGER (pers.), MR. TULSI DASS that
extended their wholehearted support in helping me to make my
project. I am grateful and convey my gratitude to
Mr.S.K.SHARMA, his thinking helped form may of my ideas
and his tireless efforts helped me focused on course. Their
insights and guidance talents are dearly appreciated.

I am indebted to all the other members of Personnel

Department, N.F.L. NAYA NANGAL whose timely incredible
support & co-operation went a long way in making it possible to
make an in-depth study the design of the project.

Finally, I thank my parents who have been the

source of Love and Support throughout the project. Without
them the project would never had happened.
Naveen Sharma
 CHAPTER-1

National Fertilizers Limited-A Profile

Introduction

National Fertilizers Limited (NFL)- a multi unit, multi product

company is one of India’s largest producers of Nitrogenous
fertilizers with a market share of (2003-04), NFL a schedule-A
and a Mini Ratna Category-1 company has the distinction of
being a profitable public sector undertaking.

Incorporated in 1974, to set up two fertilizer plants at bathinda

(Punjab) and panipat (Haryana), NFL has Emerged as an
industrial giant in the fertilizer sector. Over the years company
has expanded into a multi unit company with four manufacturing
units with varied technology. Three of these units are
strategically located in the high consumption areas of Punjab and
Haryana. The company has an installed capacity of 35.49 lack
Mts of Nitrogenous Fertilizers and has recorded an annual sales
turnover of During 2003-2004.
 At present, N.F.L. is operating at:

 Nangal (Punjab)
 Bathinda (Punjab)
 Panipat (Haryana)
 Vijaypur (Madhya Pradesh)

The plants at Nangal, Bathinda and Panipat are based on partial

oxidation of fuel oil/high petroleum stock, where as Vijaypur unit
is based on natural gas as feedstock/ raw material. All the plants
are running at more than their rated capacities.
 PLANTS OF NFL AND LOCATION
National Fertilizers
Limited,
Vijaypur,
Distt. Guan
Madhya Pradesh-
473111.
E-mail : cc@nfl.co.in
Fax : 07544 - 273089,
273109
Vijaipur Plant Tel. : 91- 7544 -
273101, 273090

National Fertilizers
Limited,
Goanna Road,
Panipat,
Haryana-132106.
E-
mail : nflpanipat@nfl.co.
in
Panipat Plant
Fax : 01742- 2652515
Tel. : 01742- 2652481
to 485, &
01742- 2655570
 National Fertilizers
Limited,
Sabina Road,
Bathinda,
Punjab-151003.
E-mail: nfladm@nfl.co.in
Fax : 0164- 2270463;

Bathinda Plant 0164- 2271270

Tel. : 0164-
2270220/2271200

National Fertilizers
Limited,
Naya Nangal,
Distt. Ropar,
Punjab-140126.
Email: nangal@nfl.co.in
Fax: 01887-220541
Nangal Expansion Plant
Tel. : 01887-220543
Strategically Located - Urea Plants

Leading Producer of Nitrogenous Fertilizers in the Country.

 FERTILIZERS, INDUSTRIAL PRODUCTS &
SPECIALISED SERVICES

Kisan Urea and Kisan Khad - NFL’s Popular Brands

are sold over a large marketing territory spanning the length and
breadth of the country. The Company also manufactures and
markets Bio-Fertilizers and a wide range of Industrial Products,
like Methanol, Nitric Acid, Sulfur, Liquid Oxygen, and Liquid
Nitrogen etc.

NFL has over the years developed a team of

dedicated professionals in the areas of production, maintenance,
Project management, safety and environment control. It’s
professionals are the most sought after in the industry for their
Specialized Services.

NFL is known in the industry for its work culture,

value added human resources, safe working environment,
concern for ecology and its commitment to social up-liftmen. All
NFL units have been certified for ISO-9002 for conforming
international quality standards, and certified as conforming to
international environmental standard i.e. ISO-14001.
NATIONAL FERTILIZERS LIMITED - NANGAL UNIT

As you cross the Sutlej barrages west end, you start

breathing a different air - an air of hope. Your eyes certainly
can’t miss a prosperous township on the right and a gigantic
fertilizer factory of National Fertilizer Limited on the left, which
are the sign of progress that India has achieved since
independence.

With coming up of Bhakra dam and surplus power

available from the project, it was decided by the government of
India to set up a fertilizer factory at Naya Nangal, which went
into production in 1961. The plant was envisaged to produce
calcium ammonium nitrate (CAN)- a nitrogenous fertilizer with
20.5% Nitrogen with 164 MW power consumption. This product
was subsequently upgraded to 25% nitrogen. Initially production
route was power intensive electrolysis process for the generation
of hydrogen followed by high-pressure ammonia synthesis.
Subsequently in 1978, went on stream, another Ammonia Plant
based on fuel oil gasification, which added urea - a nitrogenous
fertilizer with 46% nitrogen to its range of production. In 1984, a
Methanol plant with capacity of 50 MTPD was added, which was
later on raised to 67 MTPD. In 1990, Electrolysis plant was
replaced with Front-end Hydrogen Plant (NMP-1) based upon
reforming of naphtha for production of hydrogen thus reducing
the electrical power consumption.
NFL, Nangal Unit Installed Capacity
Calcium Ammonium Nitrate 3,18,160 MT
Urea 4,78,500 MT
Methanol 22,110 MT
Project Cost Area (including revamp) Rs. 283.11 Crores
Foreign Exchange Component Rs. 118.49 Crores
(Including revamp)
Commissioned (Urea Revamp) 1.2.2001
2001-02
Installed Capacity 2.20 lacks MT
Actual Production 2.11 lacks MT

Journey towards excellence

The Nangal unit of NFL acted as paragon of excellence in the

field of development of Fertilizers industry in India after being
commissioned in1961. The luxuriant growth of NFL Nangal Unit
begins with the commissioning of first fuel oil based fertilizer
plant in India with rated capacity of 900MTPD Ammonia &
1000MTPD urea. A unique synthesis of technologies from M/S
SHELL, M/S LURGI(Germany) & M/S TECHNIMONT (Italy)
give Nangal unit an edge over the contemporary technologies.
The adoption of versatile technologies and desire for related
diversification led to the manufacture of various industrial
products and byproducts like Nitric Acid, Ammonium Nitrate,
Liquid Nitrogen, Liquid Oxygen, Industrial gases etc.
 ENVIRONMENT

NFL has a long tradition of nurturing the

environment in and around its manufacturing Units. At NFL, we
believe in sustainable development without degrading the
environment and are fully committed to our responsibility to the
Society. In line with our commitment to this object, we have
installed with state of art effluent treatment facilities at all our
Units. At NFL Vijaypur the Company has adopted cleaner
technology to minimized generation of pollutants.

All the pollutants generated in the manufacturing

process are treated at source and pollution control schemes
have been incorporated at the
inception stage itself.

NFL meets the standards prescribed by the Central

and State Pollution Control boards and ensures that our Pollution
Control measures and upgraded from time to time. The major
facilities available at NFL's operating Units are:

a) Installation of NOX Abatement Scheme along with associated

sodium nitrite/nitrate plants for Nitric Acid Plant at Nangal.

b) Provision of Thermal Urea Hydrolyser at Nangal.

c) Facilities for cyanide and chromate treatment of effluent from
carbon recovery and cooling towers sections at Nangal.

d) Provision of acoustic granulators for reducing dust emissions

from periling towers at Panipat & Bathinda.

e) Provision of additional electrostatic precipitators on all the

coal
fired boilers at Panipat, Bathinda and Nangal.

The Company has also adopted an extensive Forestations

programmed and has planted more than 1.5 lakes trees of
different species. The once barren stretch of land around NFL
Vijaypur Unit in Madhya Pradesh is now a lush green belt with
about 1.5 lakes trees-which stands testimony to the Company's
Commitment to environment preservation.
 SALIENT FEATURES OF NANGAL UNIT

Nangal Fertilizer Factory, with the capacity to produce

3,18,160 tones of Calcium Ammonium Nitrate (CAN) per annum
is the second largest factory in the chain of fertilizers factories set
up by the government of India during the second decade of
planning. Fertilizers production committee in its report submitted
in 1954 recommended the location of this factory along with
heavy water plant at Nangal. The heavy water plant has been
presently dismantled and transferred to Kota in Rajyasthan
To administer this project a company known as Nangal Fertilizers
and Chemical Pvt. Ltd

PLANT AT NANGAL UNIT

There are two types of plants in the Nangal unit: -

• Unit Plants
• Expansion Plants

Unit Plants: -

Water Treatment Plant

NMP (Nangal Modernization Plant)
Ammonia – I
All these plants are under one head i.e. Deputy Manager.
Nitric Acid Plant
 CAN plant
Bagging plant
Heavy Water plant

Expansion Plant: -

Gradual reduction in the power supply to the

fertilizer plant badly effects the production, as also to augment
the fertilizer production at Nangal. The Govt. of India decided to
establish a new fertilizer plant, which came to be known as
Nangal expansion project with an additional annual Nitrogen
Capacity of 152000 tones by using fuel oil as a feedstock. This
plant not only increased the production capacity from to 232000
tones of nitrogen per annum, but also reduced the dependence on
bulk supply of electric power.

Steam Generation Plant

Ammonia – II

Urea Group of Plants

Urea Plant
BEW Plant
HWP
Hydrolyser Plant
Ammonia Storage
Chromate and HCN Treatment Plant
Cooling Towers
POLLUATION CONTROL

On environment and pollution control, NFL has

been taking adequate measure so as to control the emission level
within the standards prescribed by the State Governments and
Minimal National Standards (MINAS). Right from the
beginning, special care has been taken by the Nangal Unit in this
connection. The Unit has the following Affluent Treatments
Plants, the expenses of which are directly allocated to the cost
center:

HCN Chromate Treatment Plant

NOX Abatement Plant
Urea Hydrolyser Plant
Electrostatic Precipitator Plant
Affluent Plants.
Sulphur Recovery Plant.

The NOX emission from Nitric Acid Plant has been

controlled by setting of a small NOX Plant, which is not only
controlling the NOX emission to the atmosphere but also
providing Sodium Nitrate/ Nitrite products, which are the
valuable industrial Product.
MEN POWER IN NANGAL UNIT AS ON 31ST MAY, 2004

Category Men in
position
Officers 262
Workers 1366
Total 1628

Future expansion

To meet the challenges of the ensuing millennium,

the goal of achieving a group turnover of Rs. 10,000 crores from
diverse businesses and a net profit of Rs. 1200 crores has been
projected. NFL has revamped its Urea Plant at Nangal for raising
the annual with installed capacity from 330000 MT to 495000
MT per annum with the additional Capital cost of Rs. 167 crores.
Significant feature of this project would be towards optimum
utilization of Ammonia available within plants besides
enhancement in Product Quality & Environment improvement.
As Revamp of Nangal Urea Plant has already started and plans
are in the pipeline to revamp, replace the existing fuel oil based
plants with change in feedstock to LNG/Naphtha. To retain the
loyalty of the customers and to add value to their brand, NFL has
been planned to setup single window outlets for the farmers to
carry out one stop shopping for supply of total input to the
farmer.
National Fertilizers LimitedNangal Unit Production Records
Ever Best Production / Despatch Record
Ever Best Production Records

Period Production ( MT )
Ammonia Plant Urea Plant
Daily 1,045(7.01.2000) 1,654(8.11.2001)
Monthly 30,117(Dec`1998) 49171(Oct`2002)
Yearly 3,00,840(200304) 4,78,500( 2002-3)

Ever-Best Dispatch Records

Dispatch ( MT )
Period
UREA CAN

Daily 3,440.400( 13.11.1997) 2,364.700(31.01.1984)

Monthly 51,868.350(June`2002) 38364.250( Sep`1975)

Yearly 4,78,514( 2001-02 ) 3,33,147.055( 1976-77)

Nangal Unit awarded ISO-9001:2000 certification Nangal Unit

awarded ISO-9001:2000 certification Nangal Unit has been
accredited with ISO-9001:2000 the latest version of quality
certification by M/s. KPMG. NFL, Nangal Unit is the first
fertilizer plant in the country to be awarded ISO-9001:2000
certification
 PRODUCTS

Kisan Khad and Kisan Urea are two main brand products of
NFL

Kisan Khad is produced at the

Nangal Unit in Punjab, NFL's.
Kisan Khad is Calcium
Ammonia Nitrate (CAN)
Nitrogenous fertilizer, contains
25% nitrogen, half Zof that is
Ammonia form and half in
Nitrate form. Availability of
nitrogen in two forms in Kisan
Khad help crops to meet its
initial and long-term Nitrogen
requirements and is unique
feature.

NFL also produces and markets various products like Liquid

Oxygen, Liquid Nitrogen
Nitric Acid, Ammonium Nitrate, Methanol, industrial Sulphur,
Sodium Nitrate, Argon, carbon, Carbon dioxide and technical
Grade Urea (Prills). The company is also producing neem coated
urea:-
NFL DEVELOPS NEEM-COATED UREA

National Fertilizers Limited (NFL) has made strides in

developing a process for manufacture of Neem-Coated Urea on
commercial scale.

NFL has made efforts to harness unique properties of Neem is

regulating release of Nitrogen to crops when mixed into soil and
making available to farmers a more efficient Nitrogenous
fertilizers in the form of its Neem-coated urea primarily based
upon research work conducted by scientists of Indian
Agricultural Research Institute, New Delhi.

After carrying out extensive laboratory as well as field studies.

NFL has found out that Neem-Coated urea produced with a thin
film of Neem oil-water emulsion of specified concentration has
resulted in enhanced shelf life. Reducing caking of material
during storage and increased nitrogen availability to corps at the
time of their growth and hence significantly contributing towards
better crops yields. It has further been reported that the process
developed by NFL in producing Neem-coated urea involves
marginally higher cost.

Process of coating urea with neem

The process is based on the use of neem in the form of neem-oil
water emulsion, which is prepared in suit and used as such for
spraying over urea Prills
. Neem oil used in the preparation of emulsion is in very small
quantity. The coating of neem oil on the urea prills is in the ratio
of 500 ppm (0.5 Kg. Neem oil per 1000 Kgs. of urea prills i.e.
0.05%). The urea produced by this process has better shelf life in
respect of tendency to cake during storage. Thin layer of neem oil
formed on the urea prills imparts slow dissolution in water
properly. This makes neem-coated urea to release nitrogen to the
plants slowly and over longer period.

In order to test the efficiency of Neem-coated

urea so developed, under the field conditions. NFL has laid 50
field Demonstrations on paddy crop kharif – 2002 season,
covering extensive area spreading up to Panipat, Rothak and
Karnal in the state of Haryana, Meerut and Muzaffarnagar in U.P.
and Bathinda in Punjab. At Meerut / Muzaffarnagar, Panipat and
Bathinda demonstrations were laid under the expert guidance and
supervision of extension wing / KSKs of respective Agricultures
Universities. The results obtained under the general parameters,
including increase in yield, insect pest control and general crops
stand have been very encouraging with an average savings to the
farmers to the extent of around Rs. 700/- per Acre by way of
increased yields and reduction in expenses towards use of
insecticides in paddy crop.
 CHAPTER-2

HISTORY OF THE COMPANY

The idea of producing fertilizers was conceived at end of famine in

Bengal & Bihar in 1943 a committee was set under the
chairmanship of Mr.G.S.GOWING in 1944 to suggest a site for
setting up a fertilizer factory. This committee suggested place in
U.P. but this was not found suitable by the govt. Sindri was
finally selected as the site .

The main consideration regarding its location was as follows: -

-To increase the food production

-To raise the economic life of population by providing the decent
employment opportunities
-The basic raw material coke was available locally.

The paper work on the project was started in 1945. Construction

work, however, started in 1947. The factory was commissioned
into production 1951 & was able to attain its full production
capacity within three years. Originally it was started as a
departmental undertaking. In 1956, it was registered under the
companies act named Sindri fertilizer chemicals ltd. (SFCL)
In 1954, the Govt. of India appointed a committee called “The
fertilizer production committee” under the chairmanship of shri
 B.C.MUKHRJEE (FCI’Exchairman & Managing Director) to
suggest ways for further expansion of fertilizer production in
India. The govt. however simultaneously issued a directive to the
committee that one of the proposed fertilizer units should be
located near the Bhakra Dam.

The main consideration for setting up a plant in Nangal (PUNJAB)

was that there would not be enough demand for Bhakra Dam. As
such Nangal plant was electrolysis of water.
Heavy water, a bye product in this process could be produced for
the use in these atomic reactors as moderator.
On February 17, 1956 the proposed Nangal factory was
incorporated under the name of NANGAL (fertilizers &
chemicals ltd.)(NFCL) with its registered at Nangal having an
authorized of 31 corers. The name of (NFCL) was changed to
“Hindustan chemicals and fertilizers ltd.”(HFCL) with effect
from July 15,1959.
The FCL Ltd. Was incorporated on Jan 1st, 1961 by
proclamation of the fertilizers & chemicals companies
amalgamation order 1960, having a authorized capital of 75
corers.
With the re-organization fertilizers co-operation of India
with effect from 1st April 1978, The Nangal unit becomes a
constituent unit of the National Fert. Ltd., which has already two
units under it, located at Bathinda (PUNJAB) & Panipat
(HARYANA). 4th plant of national fertilizers ltd., at Vijaypur
(M.P. was commissioned in 1987).
 PLANT AT GLANCE

PLANT/PRODUCTS INSTALLED CAPACITY

NANGAL
AMMONIA (UNIT) 66000MT
AMMONIA (EXPN.) 297000MT
C.A.N.(25% NITROGEN) 318160MT
UREA (46% NITROGEN) 495000MT
BHATHINDA
AMMONIA 297000MT
UREA (46% NITROGEN) 511500MT
PANIPAT
AMMONIA 297000MT
UREA (46% NITROGEN) 11500MT
VIJAYPUR
AMMONIA 891000MT
UREA (46% NITROGEN) 1452000MT

CAPITAL COST

NANGAL (UNIT) Rs.98.26 CRORES

NANGAL EXPEN. Rs.302.50 CRORES
PANIPAT Rs.223.50 CRORES
BATHINDA Rs.239.30 CRORES
VIJAYPUR (UNIT + EXPN.) Rs.1520.00 CRORES
 SALIENT FEATURES OF THE COMPANY

The company has an excellent track record & high profits,

with highly motivated & dedicated Workers & officers- no
industrial relation problem.

N.F.L. was given the “Mini Ratna Category-1” by govt. of

India in 1998 based on the company’s overall performance
during the preceding years.

The company was ranked 27th in terms of sales according

to business indis super-100 in1998.

A panel of judges for economic times-Harvard Business

School Association of India. Corporate performance award has
selected NFL for 1994, among 213 public sector companies in
the country.

International Greenland society, Hyderabad awarded

N.F.L. “Best environment & ecological implementation award
for the year 1995-96”
 CORPORATE OBJECTIVES

N.F.L. is an instrument of society. It has been to serve the

needs of people with scope of its basic objectives.
To achieve this NFL must :
 Select capable people to improve their knowledge & skills on
organized basis.
 Motivate an enthuse the employees to achieve higher
productivity with team spirit.
 Lay down integrated objectives, define individual goals &
maintain an atmosphere conductive to achievement of these goals.

BASIC OBJECTIVES

In terms of memorandum of association, NFL was setup to

manufacture & market chemical fertilizers, other chemicals and
bye products as well as to provide the allied services. In order to
achieve & maintain a leading position in the production &
marketing of fertilizers, the following micro objectives have been
identified.
 MICRO OBJECTIVES

1) Productivity
To achieve the best possible levels of production &
economy in the use of inputs while ensuring safety & proper
maintenance of plant & machinery & pollution control. More
specifically to strive to raise the capacity utilization. To improve
upon consumption norms consistent

2) Research & development

To carry out R&D activities for:
 Increasing plant availability.
 Saving use of energy in different forms.
 Better recovery of salable products.
 Process improvements /development.
 Increasing utilization efficiency on sustained basis in the
application of chemical fertilizers in combination with other
agriculture inputs.

3) Profitability
To maintain the assets, man & material in most effective &
efficient manner, ensuring reasonable return on investment
commensurate with the principles laid down by the govt. from
time to time, & Generation of increasing internal resources.
 4) Marketing& consumption services
 To provide to the farmers high quality products in the right
time& in adequate quantities& with a package of modern agricultural.
 Practices at the same time maintaining reputation for fair
business practices.
 To further intensify promotional efforts for increased use of
fertilizer & to maximize distribution of company’s products within the
area covered by the company, consistent with govt. policy.

5) Organization
To develop & maintain an organizational environment &
group initiative, innovation & productivity also sustained fair
deal of & human approach.

6) Growth
To achieve reasonable & consistent growth in the business
of manufacturing & marketing of fertilizer & compatible with
needs of the market.

7) Obligation to society
To conduct the business of N.F.L. in accordance with
ethical & legal standards & to undertake socio – economic
activities, consistent with govt. policies in order to generate good
environment in which co. operates.
 INFORMATION TO BE PRECENTED

On the basis of nature of information to be presented before the

management the report can be divided into four groups:-

REPORTS TO PRODUCTION DIVISION

Statement showing actual output achieved against the standard out

put.

 Machine and lob our utilization report.

 Statement making a comparison of actual capacity worked
against budgeted capacity.
 Analysis of idle man-hours.
 Analysis of the lost machine hours.
 Report showing labor turnover and absenteeism.
 Effect on cost productivity of overtime and shift working.
 Analysis of cost variances.
 Cost of each department or product duly analyzed by component
of cost.
 Analysis of stock of raw materials, work in progress and finished
goods.
 Analysis maintenance cost.
 Analysis of power consumption and cost.
 Analysis of ratio of indirect labor cost direct labor cost.
 REPORTS TO SALES DIVISION

 Statement showing comparison actual sales against budgeted

sales.

 Analysis of order on hand, order received and orders executed.

 Product and area wise analysis of sales.
 Analysis of sales promotion campaigns.
 Analysis of outstanding debtors.
 Market survey report on sales trends and the expected demands
for the company’s products in future.
 Analysis of gross profit earned in each area on each product.
 Comparing actual selling and distribution expenses with the
budgeted expenses.

REPORTS ON FINANCE DIVISION

 Summary of cost receipt and payments are compared with the

cash budget.

 Analysis of capital expenditure.

 Analysis of working capital.
 Analysis of outstanding debtor and creditors.
 Statement showing actual profit against the standard profit.
 Cash flow statement and funds flow statement
 Statement of financial position.

REPORTS ON PURCHASE DIVISION

 Analysis of purchase expenses.

 Statements comparing actual purchases, consumption and
inventories with standards or budget.
 Change in material prices.
 Raw materials balances and information when minimum level or
maximum level reaches.
 Material price and usage variance reports.
 OBJECTIVE OF THIS REPORT

The main objective of this report is to set

the information about the management information system
(Marketing Research) of the NFL’S Manufacturing units through
which the urea is

Dispatched, sold & marketed to the

various states for the fulfillment of their requirements.

Secondly we will also see the market share

of NFL as compared to its competitors in states of Harayana,
Punjab, Himachal Parades, J&K& Union territory of Chandigarh.
 Research Methodology Within N.F.L.

Information gathered for the formulation of this project report is

mainly based on the secondary data. It is through discussions
with the different departments such logistics, personnel,
marketing research & others; various information about the
project is gathered. The various data regarding the sales made by
NFL &Urea manufacturing companies was also provided under
the supervision of the marketing department.

LEAD FERTILIZER SUPPLIERS SCHEME

 ROLE IN THE LIKELY CHANGED ENVIRONMENT

There is likely to be a situation of partial of

total de –control of fertilizer following with drawl of fertilizer
subsidy as is being discussed lately. Most probably the partial de-
control of prices may prevail for sometime because subsidy
cannot be eliminated entirely. Under the total or partial de-
control situation the L.F.S.may have to play a very vital role in
coordinating various activities of industry with the state
agriculture departments. In the likely changed scenario lead
fertilizer suppliers might be entrusted with the responsibility of
maintaining quality control of fertilizer. The govt. might delegate
 many of its functions to the lead fertilizer suppliers in future to
meet the challenging future task.
L.F.S. scheme will have to be strengthened by better infrastructure
facilities, resources& technology.
It will therefore, be appropriate that the lead
fertilizer supplier scheme should not be considered as an
obligatory organization to provide information to the state govt.
but also an important body with official status for coordinating
various functions in the fertilizer development programmers.

SALES PROCEDURE

 Introductory portion

National Fertilizers Limited, A Government of INDIA

undertaking, is regarded in the manufacturing & marketing of
fertilizers & various industrial products in the country. At present
it has operating units.

Marketing division of NFL was set up with the following

objectives

1) To arrange fertilizers at the right time, at the right place & at the
right price to the farmer.
2) To evolve modern technology for efficient & judicious use of
fertilizers.
3) To educate the farmers on efficient use of inputs particularly
fertilizers for increasing crop production.
4) To study the demand forecast & to provide after sales service.

THE MARKET

The state of Punjab, Haryana, Rajasthan, H.P., J&K, UP, MP&

union territories of Delhi & Chandigarh presently from the
marketing area of operation of the company.

Among the state of Punjab has the highest fertilizer consumption

of 170 kg per hectare. In view of the high rate of irrigation
coupled with progressive attitude of the farmers, the state still has
a large potential for fertilizer consumption.

The states of Haryana & U.P. also making

rapid development in agriculture. The state of Haryana is still at a
development stagehand it is expected the rate of fertilizer
consumption shall further increase of irrigation. The U.P. on the
other hand has a good potential for fertilizer consumption as
account of its witness.

The states of Rajasthan & M.P. though

geographically very large remained agriculturally backward due
to a variety of reasons. But the agricultural scene in these states is
fast changing especially with the launching of various minor
irrigation projects in both the states Minor irrigation Schemes
 will help in widening the base of fertilizer consumption & thus
the states will offer a great potential in fertilizer consumption
which will be in NFL’s interest in the long run.

The growth in fertilizer consumption in the

states of H.P.&J&K remained quite low owing to inadequate
infrastructure backwardness of the farmers, logistics problem etc.
Both the states have a temperate climate, which is conductive for
fruit crops.

MARKETING INFRASTRUCTURE

As per GOI’S directive 50% of the production is required to be

canalized through the cooperative institutional agencies as such it
was decided to have a twin channel of distribution viz.
1)co-operative /Institutional buyers
2)Private trade.
The cooperative channels comprise of the following agencies.

1) State Marketing federations

2) State agro industries co operations
3) State land development & reclamation cooperation
4) Local points
5) Khad udhyog etc.
The company also has a well knet private dealers network, which
comprise of the dealers appointed under dealer development
scheme.
NFL (Plants)

Cooperative/Institution Private dealers NFL Agro

Services
Buyers
Centers

Societies/Focal Retailers
Retailers
Points

Consumers
(Farmers)

Key Roles of NFL.

 Sales Procedure

Generally co-ordination with regard to procurement of orders from

the institutional Agencies Viz., Markfed, Agro etc. is being done
at the zonal officer but the execution of the DI’S procured is done
by the Field Officers. Suppliers to the institutional Agencies are
effected from all the 3 Sources viz., direct by Road from the
plants, from the rake points as also from the warehouses. So far
as suppliers direct by road from the plants are concerned, the
DI’S are placed with the concerned units for execution.

In certain cases even procurement of order is also being done by

the Field Officer’s from the respective district officers of the
concerned institutional Agencies, In the present day difficult
market situation, since the availability of fertilizers has out
stopped demand, a close liaison with the concerned institutional
Agency is required. This helps in effecting dispatches Smoothly.

 Sales to private trade

NFL has a well-knit dealer network & the

concerned field officer is required to have a proper liaison with
the dealers of his area. The field officer should make frequent
visits to the dealers for their development, which is important for
the company’s worth. As soon as a rake is placed for loading, the
concerned D & C Section at the unit is sending a telegram to the
concerned field officer regarding placement of the rake. It is the
 duty of the field officer to drawn up the dealer wise plan for
disposal of the rake so that the movement the rake arrives,
dispatches can be effected smoothly as per pre-arranged dispatch
plan.

 WORKING OF SALES SECTION

Sales section deals with imposing sales tax,

excise duty, freight etc. on the sale of: fertilizers ,industrial
products ,CAN & urea.
Through marketing department the co. get the demand for the
products &it sends DI to production department &the sales
section prepares the invoice for the sold products along with the
sales tax, excise, freight etc. At present excise duty is imposed
@16%. The rate of sales tax varies with the co.

 PROCEDURE OF SALES TAX

-FOR REGISTERED COMPANIES(outside Punjab)

If the co. is outside Punjab & is a private co.

then 4% sales tax is imposed & co. have to present C-FORM (it
is a document stating the concession in tax rate).But if it is a
govt. co. then the rate is same but D-FORM is to be given.

-FOR UNREGISTERED COMPANIES(outside Punjab)

 If the co. is unregistered then full sales tax is
imposed & the rate depends on the items it may be 10% or 12%.

-FOR REGISTERED COMPANIES (within Punjab)

If the co. is registered within Punjab then no

sales tax isimposed on the items sold to that co.

-FOR UNREGISTERED COMPANIES(within Punjab)

If the co. is unregistered & is within Punjab

then the tax rate differs depending upon the items to be sold
Generally the rate is 8.8% or 10%+surcharge

Industrial products - The marketing department is responsible for

the sale of the products of the co.& the accounting of sales is
done at the sales section .the co. at present is selling two main
industrial products i.e.sodium nitrite& sodium nitrate other
intermediate products such as lumps,methanol,urea &CAN are
also sold .
Three copies of gate pass are required to take the delivery of the
products from the plant
-Original copy& second copy are kept by the buyer
-Triplicate copy is kept by the company
The second copy is very important as it ensures the
convent
Finance department at Delhi fixes the prices of the products for
future on the basis of the record of the marketing department
&the checked consultations by the sales section.
Two types of rebates are given in prices i.e. distance rebate &
quantity rebate to attract the consumers at distant places.
The sales department checks the rates of sales tax ,excise
etc.before sending the information to marketing department
&finally the details of the data are send to Delhi.

UREA:

The same procedure is followed for urea but no sales tax or

excise is imposed on urea& the prices are determined by ministry
of fertilizers at delhi& the prices of urea are same everywhere.
The unit at Nangal is concerned with production of urea
&determination of cost of urea. The rate of urea is (RS 46.50
+RS150 dealer margin).
To cover the difference between cost price & market price subsidy
is provided by ministry of fertilizers.
Except urea all other industrial products are sold throughout the
country but urea can be produced & sold only in sorrounding
areas i.e. J& K, Himachal, Haryana, Punjab, U.P.,Rajasthan.

Organization Chart of Material Department NFL, Nangal Unit

 CHIEF MANAGER
(Material)

Sr. MANAGER
SR. MANAGER MANAGER
( (Stores) (Purchase)
(Purchase)

Asst.
Dy. MANAGER Asst. MANAGER Dy.MANAGER
MANAGER
(Stores) ( Stores) (Purchase)
(Purchase)

OFFICER EXECUTIVE
(Stores) Sr. OFFICER
Purchase)

Sr.OFFICER EXECUTIV EXECUTIVE OFFICER EXECUTIVE

(Stores) (Stores) (Purchase) (Purchase) (Purchase)

Organization Chart of Material Department NFL, Nangal Unit

 CHIEF MANAGER
(Material)

Sr. MANAGER
SR. MANAGER MANAGER
( (Stores) (Purchase)
(Purchase)

Asst.
Dy. MANAGER Asst. MANAGER Dy.MANAGER
MANAGER
(Stores) ( Stores) (Purchase)
(Purchase)

OFFICER EXECUTIVE
(Stores) Sr. OFFICER
Purchase)

Sr.OFFICER EXECUTIV EXECUTIVE OFFICER EXECUTIVE

(Stores) (Stores) (Purchase) (Purchase) (Purchase)

A
 TRAINING REPORT
ON
Evaluation of satisfaction level of employees with regard to
Personnel policies
AT
NATIONAL FERTILIZERS LIMITED
NANGAL UNIT, NAYA NANGAL

SUBMITTED IN THE PARTIAL FULFILLMENT OF THE

REQUIREMENT OF
MASTER OF BUSINESS ADMINISTRATION
(2003-2005)

ORGANIZATION: - N.F.L. NAYA NANGAL

SUBMITTED TO: - GURU NANAK INSTITUTE OF

MANAGEMENT & TECHNOLOGY,
MODEL TOWN, LUDHIANA

SUBMITTED BY: - Navneet Kaur

ROLL NO. 1403
MBA-3RD SEM.