An Internship Report on Financial Activities of

Saint Gobain Glass India Private Limited

Submitted by

Nethra M

Reg No. 02191047955

Submitted in partial fulfillment of CMA(Final)

Institute of Cost and Management Work of Accountants of India.

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 ACKNOWLEDGEMENT

The satisfaction of completion of any successful task is incomplete without mentioning

the name of the people who made it encouragement crowned our efforts with success.

I have a pleasure in submitting the project report & take this opportunity to express
my sincere gratitude to all those who has helped me in this completion of the project

I am extremely grateful to Ms. Shahul Rahima-HR of our Organization for giving me

this opportunity to work on the project. I am extremely grateful to Mr. Bijay Sahoo
&Mr. Gandhi BSS- Finance Head for giving me this opportunity and constant support
& guidance. I express my gratitude to my team members for guiding and providing me
all the facilities required in completion of this project.

My heartfelt gratitude to all those who have directly and indirectly given
assistance in making this project easier & possible.

Nethra M
02191047955

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INTRODUCTION

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COMPANY PROFILE

Saint gobain entered India in 1996 by acquiring a majority stake of Grindwell

Norton. It has achieved strong and profitable growth since then. Today it is a leader
of all its major business, has 22 manufacturing sites and more than 13700 permanent
and temporary employees in India. Saint-Gobain develops relationships and
partnerships with scientific and academic institutions around the world, as well as with
startups. In order to better collaborate with them and connect them to the Group’s
resources and experience, Saint-Gobain created the NOVA structure in 2006, which
has already concluded 150 partnerships on strategic and multi-disciplinary themes
such as the digital customer experience, circular economy and life sciences.

Later in 2000 it started its own glass manufacturing unit at Sriperumbudur. At

present Saint Gobain has two large entities, Grindwell Norton a publicly traded
company, and Saint Gobain India Pvt Ltd(SGI) house in India. It has regional business
of Glass and Glass solutions, Gyproc Plasterboard and Plaster, Weber and Global
business of High performance solutions such as Abrasives and Ceramic materials and
performance plastics.

Saint-Gobain Glass commissioned its first float line and a dolomite processing
facility in Sriperumbudur and sand beneficiation plant in Tada, Andhra Pradesh. In
2005 it launched its second float line in Sriperumbudur and extended its float plant in
Jagadia, Gujarat and Bhiwadi, Rajasthan. In 2019, launched its fifth float along with
Glass solution line of business. The group also emphasis in ensuring that its business
practices meet the highest standards of corporate governance and ethics. In 2020,
Saint-Gobain registered a sales of INR 62.985billion with a huge opportunity for
growth.
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HISTORY

Saint Gobain was founded in the year 1665 for royal manufactory of Mirror glass
in France. Soon Mirror benefitted not only for royal order but it also opened door for
expansion of business soaring popularity among general public.

With the emergence of strong international competition Saint Gobain expanded

its business outside France. The 20th century was one of the diversification; after
focusing almost exclusively on manufacturing mirror glass since it was founded, Saint-
Gobain now became interested in all types of glass products. Glass was becoming a
construction material in its own right with the growth of architecture combining steel
and glass for larger public buildings such as railway station, exhibition centers, green
house, indoor food markets, covered walkways and department stores.

Saint Gobain designs, manufactures and distributes materials and solutions that
improve the comfort of each of us and the future of all. The products are found
everywhere in our daily lives, from the home to the office, in cars and infrastructure,
and high-performance materials for health and many industrial applications. The
group aims to meet today’s individual requirements for comfort, performance, safety
and aesthetics.

Saint Gobain comprises several brands including Saint-Gobain Glass, Saint-

Gobain Performance Plastics, Weber, British Gypsum, Glass solutions, Gyproc, Artex
etc., Over years, Saint Gobain expands its operation and operates in 70countries with
more than 167000 employees with overall sales of €38.1 billion in the year 2020. It has
made a number of recent acquisitions in the past several years, it extended its business
in Middle east trading as Gyproc in 2005 and Saint Gobain Glass business in Chennai
in 1996.
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MISSION

Design, Manufacture and distribute materials and solutions which are key
ingredients in the well-being of each of us and the future of all.

VISION

To be the leader in sustainable construction, improving everyday life through

high-performance solutions.

PURPOSE

Together with our customers, we design, manufacture and distribute materials

and solutions that have a positive impact on everyone’s life and promote well-being,
quality of life and performance, while caring for the planet. This is profound ambition
of our purpose: Making the World a Better Home.

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FINANCE DEPARTMENT IN SAINT GOBAIN

For an organization to be successful, it must have a good decision making policy.

The decision making policy enables management to anticipate a future problem and
difficulties through the use of accounting information as well as employing corrective
measures at early stages.

In Saint Gobain, Finance function work closely with production personnel to

measure and report manufacturing cost. Major function performed by finance team is
mainly on estimating the cost of the product, variance analysis, Capital budgeting and
other Cost controlling activities. They works more on costing rather than accounting.
They help the management in deciding whether the product manufactured is
profitable by estimating the cost of new products. The report developed my finance
team helps to forecast cash and working capital requirement. This department
maintains adequate labour for legal and cost analysis purpose. They estimate cost,
competition, supply, demand and environmental influences to determine the sale of
the product. They are also responsible for maintaining separately the entries in respect
of wages paid to direct and indirect labours. They issue report regarding any loss of
labor time, wastage and inefficiency in Labour management It also assists the
management to make informed decisions so as to enable the organization to operate
more effectively and efficiently.

Hence this study has been made to evaluate how Saint Gobain glass India is
employing financing system for business. Depending on the data provided by the
accountants’ management takes critical business decision.

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OBJECTIVES OF THE STUDY

Broad Objective

To understand the functional activities of how the Finance department conducts

within the organization which change the work activities and success of the academic
work and their achievement for the Organization.

Specific Objective

 To get better understanding of financial activities carried out by the finance

department.
 To under the functions of Finance Department of Saint Gobain Glass India.
 To gain good understanding about cash management policies of the
organization
 To get better understanding on minimizing cost of manufacturing industry.
 To understand the techniques of cost control and budgetary control.
 To know about the operating procedures of different departments in general.
 To help to develop managerial skills within ourselves to be a successful manager
in future.

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Limitations of the study

This study has been prepared based on the basis of observation and experience
gained during Internship period. It is confined only in Finance Department. The
following are the limitations of study

 The Organization policies on keeping some matters confidential prevented me

from analyzing different activities.
 The interpretation and conclusion were drawn within the limitation of individual
knowledge and judgmental abilities and on the basis of data provided. So it may
lack professional and expert touch.
 This study takes into consideration only general activities and does not include
all minor details about each and every activity performed in the plant due to
time constraint.
 Working in a practical environment is different compared to academic
knowledge.
 At the beginning of internship, it was difficult for me to understand the work
environment because of Covid lockdown.
 Due to Lockdown and working from home made it difficult to understand the
concepts as it became hard to get in touch with team members.

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ACTIVITIES PERFORMED DURING THE PERIOD OF
INTERNSHIP

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AUTOMATION OF COP

First, I was assigned a to report Finance head Mr. Bijay Sahoo in the project
“Automation of COP”. In which I closely worked for 3 months with all five float cost i.e,
3float in Sriperumbudur, Chennai and flaot3 in Bhiwadi and float4 in Jagadia. For first
few weeks I had brief meeting with head in which I get to know about the company
process and an overview of glass manufacturing and also got a clear view of finance
department contribution. Then I started my work to prepare a consolidated cost sheet
for all the float for the period of 2018-June2021.

At first collected previous year COP from all plants and worked majorly in excel
sheet. I was given a total cost of each plant, segregated each cost accordingly to find
the cost of different glass as each plant produce clear and tinted glass except Jagadia
which produce only clear glass. Prepared variance and made apportionment of cost
on the basis number of glass production happened. I had faced some difficulty working
on electricity cost which as to be converted to MMBtu in previous data as i couldn’t
match total cost after apportioning on the basis of production and other importance.
With the help of team members and weekly review meeting with other plant head
sorted out issue with the help of updated information.

All through the process I was constantly guided by Mr. Bijay Sahoo as it is my
first internship he made it comfortable and helped me to learn analytical concepts.
Once I consolidated all cost of all plants with its requirement, I worked with jedox team
to update the same to get the outcome as expected. Along with it also did other
preliminary works as grouping the cost to find the difference between budget and
actual and also worked in Finesse team updated version of excel which help the
organization to fetch past data without having to spend much time, it gives easy access
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to filter required data. In which presented all data accordingly to the requirement of
that application to get an outcome as expected.

VENDOR EVALUTION

Vendor evaluation is an approval process which help the organization to

determine if the prospective supplier or vendor can meet their Organizational
standards and obligation once under contract. It also helps to issue credit ranking
based on the analysis made. The end goal is to secure a low-risk, best in class vendor
and supplier portfolio.

I worked in this project to evaluate the vendor using performance analysis and
financial ratios. I made detailed working of Asahi India Glass ltd(AIS), in which I got a
clear understanding of the vendor with the help of Annual reports of AIS. It showed a
good rating as there is a slight increase in operating profit in admist of lockdown and
slow-down of sales, also a good liquidity position.

Saint gobain India invest major part of its investment in service provided by
outside organization with the support of which organization runs efficiently, so it is
important to evaluate the past and current status of the service provider to investment
most efficiently in upcoming years, if there is any setback or material loss in faced by
service provider we could easily figure out and swap to other contract to minimize the
loss faced by us.

Along with it, worked the same for different vendor to provide rating and to find
the slow-paced companies taking into account liquidity position, turnover ratios to
find whether the vendor is financially stable, can meet out its debts and make payment
promptly, can provide service demanded on time and not met any financial or material

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losses or to evaluate that he has any major dealing or commitments in any near future
so that as a buyer we won’t get affected. Here I have learned to apply ratios and
performance analysis practically and to find the profit and loss from the balance sheet
of the different organization is a real time learning which helped me to understand
more clearly about what I have been going through theoretically all these years.

C00605- Utilities

Here I have analyzed last two years’ data of utilities cost in which plant spent around
Rs.18million every year. I understood it covers most of the cost under two heads
Annual maintenance cost (AMC) and Original Manufacturing Maintenance.

It covers expenses incurred in supporting manpower and other technical maintenance

work such as mechanical and electrical work, coater plant purifier maintenance, Plant
demineralization and other common cost. Major expense incurred by utilities are by
Sodexo India private limited and Tann utilities who provide most of the supporting
manpower.

GL Analysis of FGU FCA cost

General ledger analysis provides a means to distribute transacted values to ledger

accounts for certain categories of expenses such as employee transport, general
expenses etc.,

Here I analyzed few Gl of FGU FCA cost which contains details of all general cost,

I analyzed consultancy, employee transportation, outsourcing and few other GLs.

I understood that most of the consultancy expenses covers audit fee paid to the
financial service provider once in a year, and it has some recurring expenses to incur

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MEIS license for which service charge has to be paid monthly after realization of
export. And analyzed transportation expenses of employees which is major expenses
in FGU FCA cost, which covers around Rs.20million every year not only regular office
bus transport but it also benefits employees by providing shift car and pool car
facilities also spends on Ambulance Maintenance and most of the transportation
expenses are recurring in nature. And also analyzed housekeeping and rent gls which
covered hotel stay of employees due to covid-19 lockdown.

Staffing Report

Staffing report is maintained by an organization to keep check on manpower. it is

maintained by different sites(users) in the plant every day to keep track on man-days
each site has incurring. Being in finance team, my duty is to ensure whether the user
as updated man-days or not, from the dump from capex has to check. If adherence is
not updated has to send a follow-up mail to update the same every week to ensure an
efficient flow of manpower in the plant and to keep check on manpower used. We use
more number of manpower in warehouse and dispatch department has handling glass
material and loading in a truck requires more manpower support.

OSSP and MHE Cost

I was assigned to update OSSP (outsourcing manpower) cost and MHE(Material

Handling Equipment) cost tracker monthly on the basis of man-days used by the site
i.e., raw material, stores, despatch area etc., I learnt how to take invoices from SAP
using tcodes to check the man-days on the basis of manpower used by the sites to
arrive at the cost, and to ensure whether the bills are booked or not and to check the
accuracy of the cost incurred.

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mostly despatch and warehouse site uses more manpower as material handling
activities are higher to load the truck according to the orders received.

In MHE, most of the equipment cost are fixed which includes forklift, cranes, pay
loader etc., except TVS forklift which is mostly used in dispatch and warehouse
department cost varies according to the type and number of forklift used.

CANTEEN COST

I worked in canteen cost tracker to update monthly expenses incurred by the plant in
providing food to office employees and OSSP workers. Worked in swift to get details
of total quantity of food provided in the month to get the breakup of breakfast, lunch,
dinner, snacks to arrive at the cost based on the rate fixed. Canteen cost incurred by
OSSP employees is reimbursed by the management in OSSP man-day cost due to
12hour shift which incurred around Rs.54lakhs till date. Office employees has a
concession in canteen of half the rate, but due to covid lockdown for few months,
plant provided free food due to which plant incurred a huge expense.

Overhead

Overhead cost is generally operating cost which helps to run the organization
efficiently, it has to be reviewed regularly in order to increase the profitability of the
organization.

I worked in overhead tracker to update last five year cost for all five plants from
production and maintenance consumable file and maintenance service files. I analyzed
that in the year 2020 overhead cost has reduced 33% compared with the cost incurred
in 2019. In 2021, there is huge fluctuation in hot end-1 cost which is due to revamping

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of furnace in Float-1 around Rs.7.8million and utilities cover the major cost around
Rs.40lakhs incurs regularly to meet the Government related payments.

IMH analysis

Input Material Handling cost covers mostly raw material handling manpower and
warehouse and dispatch department handling equipment cost. Here I analyzed last
two years’ data to find the regular expenses which are likely to occur, it majorly overs
manpower for raw material handling Naveen Kumar management service provides
manpower regularly and TVS supply chain is one of the regular service provider who
provides equipment to support the production activities in the plant. Most of the cost
are incurred monthly and quarterly.

Learnings and Contribution

 I got to know about cost center and GL codes, how it works in the organization
and how costs are put together in different codes.
 I learnt to use SAP, got introduced to tcodes and now able to fetch the required
data from SAP application without requiring support.
 Worked on impetus to validate the cost savings of different plants.
 Understood the concept of creating provisions for upcoming months and to
check whether the bills are booked.
 Helped in maintaining IEX power cost monthly and to ensure the accuracy of
cost.
 Understanding new term and terminologies by discussing with the team
 Helped the team in maintaining the monthly records systematically without any
pending.

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CONCLUSION

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SELF ASSESSMENT AS FUTURE PROFESSIONAL

In modern education system Internship plays a crucial role as the act of

mediator for the students to connect the theoretical knowledge with practical working
environment. Exact to the motive of Internship program I got an opportunity
theoretical knowledge into a real working environment. As an Intern, I was involved in
various activities like preparing staffing report, maintaining man-days, analyzing
General ledger, working on outsourcing cost etc.,

Although a period of 6month internship period was not full enough to

understand all the production process and its cost as whole, but still the period has
proved to be very valuable in understanding the practical implications of various
knowledge. As a self-assessment, the achievements I gained through the internship
are:

a. Teaches us the importance of time and how important it is in the professional

world to follow it.
b. Gained practical knowledge on importance of team work and coordination
c. Developing the capability to handle the work pressure was one of the most
important skill learned while working.
d. Confidence level to communicate and coordinate with other department has
gradually increased while working in this organization
e. Developed interpersonal skill which enhanced interaction ability.
f. Developed problem solving skill and handling of computer application and other
devices enhanced practical skill.

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 In order to survive in a professional world, both theory as well as practical learning
is very important. Theoretical knowledge provides basic information where practical
learning provides better understanding on the subject through practical experience.

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THANK YOU

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