{ To Study the structure and function of HR policy in HCL/ICC, { To compare the HR policy of HCL/ICC with other companies of similar profile { To find out the key techniques that makes The HR Policy effective and valuable in HCL/ICC and in other organizations.

1. HR POLICIES IN
Hindustan Copper Limited/Indian Copper
Complex
A Summer Internship report Presented to the Faculty of the MBA Program
New Delhi Institute of Management
In (Partial) Fulfilment
of the Requirements for the Degree
Post Graduate Diploma in Management (2010-2012)
By
Maharani Monika Kumari
Roll No: 141
50 (B & ) , 60, Tughlakabad Institutional Area , New Delhi-110062, e-mail
:info@ndimdelhi.org. website : https://www.ndimdelhi.org
pg. 1

2. Summer Internship Report
HR POLICIES AT
HINDUSTAN COPPER LIMITED (A Government of India Enterprise)
at
Indian Copper Complex (ICC) at Ghatsila, Jharkhand
SUBMITTED BY
Monika Kumari (Roll no.-141)
New Delhi Institute of Management
PGDM (2010-2012)
INTERNAL MENTOR INDUSTRY MENTOR
Mr. B.K.Dhup Mr. M.R.Barik
(HR Faculty,NDIM) (Sr.Manager HR,HCL/ICC)
REGISTERED OFFICE PLANT ADDRESS
‗Tamra Bhavan‘ Indian Copper Complex
1 Ashutosh Chowdhury Avenue P.O. Ghatsila
Kolkata-700 019, India Dist. – Singhbhum(E)
Tel No. 91 33 22832224, 91 33 22832226 Jharkhand
Fax No. : 91 33 22832478, 91 33 22832640 Phone – (06585) 225-768/492/873/869 400
Website : www.hindustancopper.com Fax – (06585) 225-806
pg. 2

3. DECLARATION
I , Monika Kumari, a student of New Delhi of Institute of
Management (2010-2011) declare that every of the Project Report of
(HR Policies in Hindustan Copper Ltd./ Indian Copper Complex) that I
have submitted is original.
I was in regular touch with the nominated guide and contacted
him
for discussing the project.
Date of project submission: _______________________
Signature of the student: _________________________
Faculty Comments: _____________________________
Signature of faculty guide:_________________________
pg. 3

4. ACKNOWLEDGEMENT
I am deeply indebted to Mr.M.R.Barik ,Manager (HR-Executive cell) and Mr. B.K.
Dhup (Internal Mentor) for the precious time he devoted to the project and also the trust
he showed in me. This project report would not have been prepared so well without his
help and support and also the providing me with the relevant material and information. I
am specially thankful to Mr. R.Prasad (HR-Works ) for his Guidance and continuous
support. I am indebted to Mr.Y.V.Chndrashekhar (HR-Admin) for giving his invaluable time
and learning about the subject in making my project and grateful to Mr.A.S.Verma (Sr.
Executive HR) and Mr.H.Singh (HR-Works) for their kind co-operation and sharing their
extensive knowledge and experience.
Thanks to the staff members of Personnel Department for their time and support
which helped me to study such an extensive subject. I am also thankful to my fellow
summer trainees who helped me throughout the project and their suggestion becomes of
my great importance.
I am really thankful to my family and specially my mother-in-law who encouraged
me and acted as pillars of strength. Without whose blessings this project could not have
been completed in time.
Place: Signature:
Dated:
pg. 4

5. CONTENTS
Study Declaration……………………………………………………………………..i
Certificate of Originality………………………………………………………………ii
Acknowledgement……………………………………………………………………iii
Student Profile………………………………………………………………………..iv
1. INTRODUCTION ……………………………………………… 13
A. Objective of the study
B. Scope
C. Methodology
1. Company Profile …………………………………………………..………..18
I. An Introduction to HCL
II. Plant locations
III. Growth since inception
IV. Productivity n Profitability
V. The Management
VI. Organizational Structure
VII. Employee engagement
VIII. Trade Union
IX. Strategy
X. Research and Development/technology absorption
XI. Quality Assurance
XII. Mile stone achieved
pg. 5

6. XIII. Financial Analysis
XIV. Annual Report
XV. Peer Companies
XVI. Social Responsibility (HCl/ICC)
1.1. ICC Ghatshila ,Jharkhand ……………….……………………….…..48
1.2. The Product-Copper…………………………………………….……..50
I. Strategic Role of Copper
II. Copper Consumption
III. Stages of Copper Production
IV. Saleable Products
V. Copper by-Product recovery
VI. Global Copper market
VII. Indian Copper Market
2. HR POLICIES IN HCL/ICC…………………………………..63
2.1. Introduction……………………………………………………………....64
2.2. Recruitment and Selection policy……………………………………65
2.3. Recruitment And Establishment
I. Notification
II. Employment Category
III. Source of Recruitment
a. External And Internal
b. Advertisement
c. Management Institute Recommendation
d. Deputation personnel
pg. 6

7. 2.4. Selection Procedure……………………………………………………67
I. Job Analysis
II. Initial Screening
III. Test
IV. Interview
V. Medical Fitness
VI. Offer Letter
VII. Verification
2.5. Probation Policy………………………………………………………..69
2.6. Training and development policy…………………….……………..70
I. Induction
II. Conduct needs Assessment
a. Organizational analyses
b. Task analysis
c. Person analysis
III. Training Methods Implemented
a. Lecture
b. Simulations
IV. Training Evaluation
2.7. Health and Safety policy………………………………………….…..73
I. Internet use policy
II. Smoking policy
III. Visitor policy
IV. Corporate security policy
V. Alcohol and drug policy
2.8. Working time Policy……………………………………….…………78
pg. 7

8. I. Shift Timing Weekly hours
II. Daily hours
III. Intervals for rest
IV. Spread over
V. Prohibition of overlapping shifts
VI. Register of workers
VII. Notice of periods of work
VIII. Night shifts
2.9. Conduct and Disciplines policy………………………………………..80
I. Conduct
II. Codes of conducts
III. Misconduct
IV. Disciplinary procedure
V. Disciplinary authority
2.10. Compensation and Benefits policy ………………………..….90
I. Allowance
II. Holidays And Leaves
III. Leave Encashment
IV. Expense Policy
V. Concessions
2.11. Promotions and Incentives policy……………………………106
I. Incentive Schemes
II. Performance Appraisal System
III. Promotion Policy
IV. Annual Assessment
pg. 8

9. V. SLAS
VI. Inter-Unit award scheme
VII. Other Benefits
2.12. Payment and Deductions policy………………………….118
I. Pay scale
II. Social Security Schemes
III. Retirement Policy …………………………………………………………119
a. Provident fund
b. Gratuity
c. Half-pay leave
d. Voluntary retirement benefits
IV. Death benefits
2.13. Employee Relation Policy ………………………………….125
I. Communication policy
II. Conflicts of interest policy
III. Conflict resolution
IV. Grievance Redressal
3. SWOT ANALYSIS …………………………………………….44
4. COMPARISON AND ANALYSIS OF POLICIES FOLLOWED
BY HCL/ICC ………………………………………………………..135
5. SUGGESTION AND CONCLUSION ………………………..137
6. MY EXPERIENCE AND LEARNING………………………...139
7. EMPLOYEE SATISFACTION QUESTIONNAIRE AND RESULT……. Annexture
(142)
pg. 9

10. STUDENT‘S PROFILE
NAME : MONIKA KUMARI
ROLL NO. : 141
NAME OF THE INSTITUTION : New Delhi Institute of Management
STREAM : Human Resource management
NAME OF THE ORGANIZATION : Hindustan Copper Ltd./ Indian Copper Complex
PROJECT TITLE : HR Policy in HCL/Indian Copper Complex
TRAINING DURATION : 60 Days (2nd of May to 30th of June)
EXTERNAL GUIDE : Mr.M.R.Barik(Sr. manager HR,HCL/ICC)
INTERNAL GUIDE :Mr.B.K.Bhup (HR Faculty ,NDIM)
pg. 10

11. “A creative man is motivated by the desire to
achieve, not by the desire to beat others. “
“Whatever their future, at the dawn of their lives,
men seeks a noble vision of man’s nature and of life’s
potential.”
- Ayn Rand
pg. 11

12. SUMMER INTERNSHIP
INTRODUCTION
A. Objective of The Study
B. Scope
C. Methodology
pg. 12

13. INTRODUCTION
Summer Internship forms a part of the curriculum of the PGDM,
At NDIM , New Delhi . It gives us an insight into the working of real
corporate world. It equips us with the practical knowledge of the
working of the organization and various aspects of the organization
during short time like culture followed by functional aspect.
The main objective of the summer internship is to experience the
various concepts that have been learnt during the first year of
management course as learning the concepts is very different from
experiencing them at a concrete level. We also learn that in a given
particular situation all the functional aspects are interrelated. One
functional aspects cannot be isolated from the organization. Here we
learn to be more confident by judging the various situation base on our
reasoning and by the application of our knowledge in these situations
and while doing summer internship, it is expected that we should not
hesitate in doing some basic clerical job so that we get in touch with
the organizational realities.
pg. 13

14. OBJECTIVE OF THE STUDY
The objective of the summer internship is:
I. To learn about an industry and to build a relationship with a
prospective employer as well as gives us a chance to simply hone our
skills.
II. To equips us with experience and learning about how we can apply
our classroom knowledge in reality. As learning the concept is very
different from experiencing them at a concrete level.
III. To know about the various situations by establishing relationship
between real and significant factors in a situation.
IV. In addition to learning valuable new skills and getting the practical
experience that employers want to see on our resume, you are also
given an opportunity to explore our field of interest before ―officially
entering‖ it.
pg. 14

15. SUB-OBJECTIVE:
I. To Study the structure and function of HR policy in HCL/ICC,Ghatshila.
II. To compare the HR policy of HCL/ICC with other companies of similar
profile.
III. To find out the key techniques that makes The HR Policy effective and
valuable in HCL/ICC and in other organizations.
pg. 15

16. SCOPE
The Scope of the study is:
I. It can be extremely beneficial to students pursuing PGDM looking for
hands-on expertise.
II. It is a great way to jump starts a career, especially for career
switchers.
III. It is often referred to as the ―weeks of interview‖ and has the potential
of leading to a full time job in the future.
IV. As an intern, we can develop knowledge, competencies, and
experience related directly to our career goal.
pg. 16

17. METHODOLOGY
The methodology of the study has been summarized in to the following
two steps:
a) Selection of the Topic:
The topic HR Policy was chosen after considering its wide scope
importance in the organization and cyber era.
b) Research Design
It includes
A. Collection of Data from various.
1. Primary Data-data collected through questionnaire was mailed to few
companies to know their HR Policy.
2. Secondary source of data-official records, registers, websites of
HCL/ICC.
3. HCL journals & Magazines.
4. The data of existing HR policies
B. Data Analysis
Analysis of the Data‘s made through the response of different
department of HCL/ICC(Ghatshila).
pg. 17

18. COMPANY PROFILE
An Introduction to HCL
―Our Core is Ore”
pg. 18

19. An Introduction to HCL
Hindustan Copper Limited (HCL), a public sector
undertaking under the administrative control of the Ministry of Mines,
was incorporated on 9th November 1967. It has the distinction of being
the nation‘s only vertically integrated copper producing company as it
manufactures copper right from the stage of mining to beneficiation,
smelting, refining and casting of refined copper metal into downstream
saleable products. It‘s a Low cost, Efficient and Environmentally
Friendly Mining Company.
Hindustan Copper Ltd is the only company which
has rights to mine copper ore. The company converts copper ore to
cathodes, which is further upgraded to bars and rods.
This is the only operating copper ore producing
mining company in India. This is also the only vertically integrated
producer of primary refined copper in India (Source: Annual Report
(2009-10), Ministry of Mines (MoM), Government of India (GoI). Its
principal activities include mining of copper ore, concentration of
copper ore into copper concentrate through a beneficiation process
and also smelting, refining and extruding of the copper concentrate
into refined copper in downstream saleable products.
pg. 19

20. Other than selling refined copper products
principally in the form of continuous cast wire rods, wire bars and
copper cathodes, company also sell surplus copper concentrate.
The Company markets copper cathodes,
copper wire bar, continuous cast copper rod and by-products, such as
anode slime (containing gold, silver, etc.), copper sulphate and
sulphuric acid. More than 90% of the sales revenue is from cathode
and continuous cast copper rods. In concluded financial year 2006-07,
as per provisional estimates, the Company has earned a all-time
highest net profit of Rs. 331 crore (~USD 75 million ) against a sales
turnover of Rs. 1800 crore (~ USD 420 million).
pg. 20

21. VISION AND MISSION
Vision
―Vision of the company is to maximize shareholder value through
sustainable mining and value added products.‖
Mission
I. More than three times increase in ore production in a decade.
II. Continuous improvement in productivity and energy efficiency to bring
it at par with the best internationally.
III. Acquiring and developing new resources of copper domestically and
internationally.
IV. To rigidly follow framework for sustainable development of mine and
ensure corporate social responsibility.
V. To be one of the most profitable Nav Ratna* Companies.
*NOTE:- There are total 5 Maharatna,19 Nav Ratna companies , and
63 Mini Ratna companies.
pg. 21

22. PLANT LOCACTIONS
HCL‘s mines and plants are spread across four
operating Units, one each in the States of Rajasthan, Madhya
Pradesh, Jharkhand and Maharashtra as named below:
I. Khetri Copper Complex (KCC) at Khetrinagar, Rajasthan
II. Indian Copper Complex (ICC) at Ghatsila, Jharkhand
III. Malanjkhand Copper Project (MCP) at Malanjkhand, Madhya Pradesh
IV. Taloja Copper Project (TCP) at Taloja, Maharashtra
The largest resources of copper ore are
located in the state of Rajasthan with 668.5 million tonnes (47.9%)
followed by Madhya Pradesh with 404.3 million tonnes (29%) and
Jharkhand with 226 million tonnes (16.2%).Copper resources in
Andhra Pradesh, Gujarat, Haryana, Karnataka, Maharashtra,
Meghalaya, Orissa, Sikkim,Tamil Nadu, Uttarakhand and West Bengal
accounted for about 7% of the total of all Indian estimated resources.
pg. 22

23. GROWTH SINCE INCEPTION
A look at the change in the company since inception:
November Incorporated to take over from National
1967 Mineral Development Corporation Ltd.
March M/S Indian Copper Corporation Limited,
1972 Private Sector Company, located at
Ghatsila, Jharkhand with Smelter and
Refinery was Nationalized and made part of
HCL
February Fully integrated Copper complex from
1975 mining to refining came on stream at
Khetri ( capacity 31,000 tonnes of refined
copper)
November The largest hard rock open pit mine in the
1982 country came into stream at
Malanjkhand in Madhya Pradesh of
capacity 2 million tonnes ore.
December Continuous Cast Wire Rod plant of South
1989 Wire Technology of capacity 60,000 MT
was commissioned at Taloja in
Maharashtra.
1992 Modernization of concentrator plant at KCC
: Installation of larger capacity flotation cells
and online stream analyzer has been
completed.
1997 Hindustan Copper Ltd. and the Ministry of
pg. 23

24. Mines have signed a memorandum of
understanding (MoU) for 1997-98.
1998 Expansion of Khetri Smelter and Refinery :
Company is proposing expansion of Khetri
Smelter and Refinery capacity from present
31000 to 100000 TPA partly based on
imported concentrate. Government
approval has already been received for
stage-I clearance.
Industry Structure and development
Till 1997, State owned Hindustan Copper Limited
(HCL) was the only Company producing primary refined copper in the
country meeting about 25-30% of the countries refined copper
requirement, the balance being imported. Presently, four major players
with total installed production capacity of around ten lakh tonnes of
refined copper dominate the Indian copper industry. However, HCL
with production capacity of 49,500 tonnes per annum continues to be
the only vertically integrated primary copper producer having its own
captive mines. The captive mines used to meet about 60% of
Companies requirement for concentrate, the rest being imported. The
two private sector companies, viz. M/s.Hindalco Industries Ltd. (Unit:
Birla Copper) and M/s.Sterlite Industries (I) Ltd., with production
capacities of 5,00,000 tonnes and 4,00,000 tonnes per annum
pg. 24

25. respectively, have set up shore-based smelters relying on imported
concentrate. The fourth player, M/sJhagadia Copper Ltd. With plant
capacity of 50,000 tonnes per annum produces refined copper through
the secondary route (using copper scrap). While the private
Companies have the benefits of high scale of operation along with
location advantage ,HCL has a competitive advantage by virtue of
ownership of mines .There has been a paradigm shift in the Indian
copper industry where India has now become a net exporter of copper
from the earlier position.
Industrial Relations
Industrial Relations in the Company remained
peaceful and harmonious. Various bi-partite foray with representatives
of the Management and the Unions at the Apex, Unit and Shop floor
levels functioned well. An MoU was reached with the recognized Trade
Unions after protracted discussions on Workmen‘s Wage Revision
effective from 01/11/2007 which has since been implemented. The
Company also implemented Executive Pay Revision with effect from
01/01/2007 as per Government guidelines.
Product and Profitability
HCL is the only operating copper ore producing
mining company in India. This is also the only vertically integrated
producer of primary refined copper in India (Source: Annual Report
(2009-10), Ministry of Mines(―MoM), Government of India (―GoI).
India has a large imbalance between its copper smelting/refining
pg. 25

26. capacity and its copper ore mining capacity. The refined copper
production capacity in India for fiscal 2010 was more than 1 million
tonnes of copper, requiring approximately 100 million tonnes of copper
ore (assuming a copper content of 1%). The copper ore production in
India for fiscal 2010 was approximately 3.21 million tonnes. As HCL
the only operating copper ore producing mining company in India and
have access to over two-thirds of India‗s copper ore reserves, this
presents an attractive growth opportunity for us.
Principal activities include mining of copper
ore, concentration of copper ore into copper concentrate through a
beneficiation process and also smelting, refining and extruding of the
copper concentrate into refined copper in downstream saleable
products. Other than selling refined copper products principally in the
form of continuous cast wire rods, wire bars and copper cathodes, we
also sell surplus copper concentrate. In addition ,It sell by-products
generated through the copper manufacturing process including anode
slime containing gold and silver and sulphuric acid.
The majority of HCL‘s sales of refined copper
products and copper concentrate are made to customers in the
domestic market in India. For fiscal 2010, we generated approximately
75% of its revenue from sales of refined copper in the domestic market
and 22% of its revenue from sales of copper concentrate in the
domestic market. Refined copper products prices in India are
benchmarked to the LME copper price.
pg. 26

27. Set forth below is a chart of our Company‗s
key production and sales volumes for each of the last three fiscal
years and the three month period ended June 30, 2010.
For fiscal 2010, and the three month period
ended June 30, 2010, sales of refined copper products accounted for
approximately 75% and 58% of our revenue, respectively, whereas
sale of copper concentrate accounted for approximately 22% and 33%
of our revenue, respectively. For fiscal 2010, and the three month
period ended June 30, 2010, we had consolidated total revenues of
Rs.13,807.0 million and Rs.2,469.1 million, profit before tax of
Rs.2,158.4 million and Rs.439.5 million and profit after tax of
Rs.1,546.8 million and Rs.262.0 million, respectively.
During the year 2009-10, the Company
earned foreign exchange of Rs 36.10 crore through exports of anode
slime, as against Rs 75.22 crore earned in 2008-09.
pg. 27

28. Improve production and productivity through participation of
employees
Quality Circle
One of the Quality Circles of the Company,
viz., Pragati of ICC was rated Excellent based upon their Case Study
presentation at the National Convention of Quality Circles-2009 at
Bengaluru (18-21 December, 2009). There is sustained focus on
furthering the Quality Circle movement in the Company to improve
production and productivity through participation of employees.
pg. 28

29. The Management
Subject to the provisions of the
Companies Act, 1956 & the directives/Instructions issued by the
Government from time to time and the provisions contained in the
Memorandum & Articles of Association of the Company, the
business of the Company is being managed by the Board of
Directors of the Company, who issues guide lines & formulate
policies for smooth functioning of the business. All the powers are
vested with and exercised by the Board excepting those which are
specifically to be exercised by the share holders of the Company in
General Body meetings. However, for day-to-day operations, the C
M D / Functional Directors are delegated with adequate powers.
The functional Directors are, in-turn, supported by professional
executives and Chiefs of Operating Units in discharging
responsibilities of their respective functional Area.
Name Designation
A K Sarmah Independent Director
Anjali Anand Srivastava Part Time Official Director
Anupam Anand Director (Personnel)
Avijit Ghosh Director
C S Singhi Co. Secretary & Compl. Officer
C S Singhi Secretary
G Srinivas Part Time Official Director
K D Diwan Director (Operations)
K K Saberwal Director (Finance)
R Gossain Independent Director
Shakeel Ahmed CEO
Shakeel Ahmed Chairman and Managing director pg. 29

30. Employees
HCL has an experienced and qualified management
and technical team to operate and implement copper mines and
expansion projects. Company management team includes
professionals with an average of over 30 years of experience in copper
mining and refining.
All of permanent employees are unionized. HCL
relations with our employees and unions are generally good, although
they have in the past and may in the future experience industrial
actions or disputes .Company has entered into wage and benefits
agreements dated January 6, 2010 with recognized unions, further to
which it revised pay scales and the terms of certain benefits, for a
period of five years with effect from November 1, 2007.Union wage
and benefits agreements are due for revision in November 2012.
Registered Office is located in Kolkata. As on
September 1, 2010, Company had 5,229 permanent employees as
follows:
pg. 30

31. Strategy
 Increase Focus on Copper Mining and Expansion of Our Mining
Capacity
 Continue to Develop Long-Term Growth Prospects through Brownfield
and Greenfield Exploration.
 Increase the Amount of Outsourcing Utilized for Our Mining Operations
by utilizing third-party contractors.
 Continue to be a Low Cost, Efficient and Environmentally Friendly
Mining Company.
 Seek Additional Sources of Income by commercializing waste
materials generated by our production processes.
 Explore Acquisition of Mining Companies and Mines Within and
Outside of India
pg. 31

32. TECHNOLOGICAL INNOVATION
Hindustan Copper Limited has to its credit some major contributions
towards technological improvements in mining, beneficiation,
smelting, hydrometallurgy and by-product recovery. Some of the
areas where Hindustan Copper Limited has introduced new
technology are
MINING
Trackless Mining
Trackless mining has helped in rapid development of mines enabling
higher levels of production and productivity comparable to
international standards.
Drop Raising
Raising is one of the most difficult of mining operation, HCL has
developed and perfected the concept of drop raising over 60m
intervals. This has resulted in increased-safety and higher progress.
A pattern of five 6‖ diameter holes has been standardized for the
crater method of blasting the raises sequentially.
pg. 32

33. Large Diameter Blast Hole Stoping
HCL has developed single sub-level method of stoping using large
diameter (162 mm) blast holes over level intervals of 50 to 60 meters.
Need to have intermediate sub-level for drilling has been eliminated
in this method. Excellent fragmentation has been achieved. Benefits
of new stoping method compared with the conventional sub-level
stoping methods are:
• Reduction in quantum of developments, drilling cost and
explosive cos
• Overall reduction in the cost of mining
• Reduction of manpower and
• Reduction in stopes preparation time. The new method of
stopping has revolutionized mining technology.
Rock Bolting
For mining flat dipping ore bodies, timber support was common in
early days. With the need to mine over a large width. HCL developed
very simple but effective methods of rock bolting using cement
grouted steel rods. This has resulted in the improvement of ground
conditions ensuring higher safety standards.
Post Pillar Stopping
HCL has developed the post-pillar method of mining for adoption in
flatly dipping wide ore bodies in ICC group of mines. This mining
method has enabled the production rates to go up as compared to
room and pillar stopes. Electrically operated LHD 's have been
pg. 33

34. introduced at ICC for operating in these stopes. The output per man
shift has increased and the stoping cost has come down
substantially. Hydraulic filling of stopes with classified mill tailings has
been established as a standard practice at the ICC resulting in
regional improvement in ground conditions.
SMELTING
Oxygen Enrichment
HCL has also taken the lead in introducing oxygen enrichment in the
converters at KCC and ICC resulting in effective control of
accumulation of secondary products in smelting. HCL has also
introduced oxygen enrichment in process air in flash furnace to
effectively increase the capacity of the existing smelters for meeting
increased production commitments.
Hydro-Metallurgy
Occurrences of large quantities of oxidized ore and lean grade
sulphide ore at Malajkhand has impelled the company to extract
copper values in the ore by dump leaching otherwise uneconomical
by conventional methods. The dump is sprayed with dilute acidified
solutions to dissolve copper minerals. The end product of this
leaching operation is a pregnant liquor of copper sulphate. The
leached liquor is then treated to recover copper metal.
pg. 34

35. By-Product Recovery
HCL has established well equipped R&D facility at KCC and ICC. The
R&D section is fully responsible for improvement in quality of the
products, control of quality of raw materials, improvement of
recoveries and for maximizing the recovery of by-products, HCL has
developed its own Precious Metal Recovery plant which is now
operating at ICC successfully. A Tellurium Recovery Plant has also
been developed by R&D Wing. Extensively trails are going on for
recovering cobalt, nickel and copper powder from converter slag.
Attempts are also being made for reducing the losses from slag.
Quality Assurance
High quality of product and associated
customer satisfaction is of supreme importance in HCL‘s operations.
All actions are directed to produce a quality which not only satisfies the
customers but prove to be a ―CUSTOMERS‘ DELIGHT‖. In order to
achieve this the Company has accredited itself with ISO 9002
certification for all its products viz. Copper Cathode and Copper CC
Wire rods. Cathodes produced at Khetri Copper Complex, Rajasthan
and Indian Copper Complex, Bihar are ISO 9002 accredited .HCL is
the FIRST ISO accredited Company in India in copper production
field.
All the units of HCL have adequate
modern controls, test and analysis facilities to ensure proper quality
pg. 35

36. at all stages of operation. The raw material input checks , in process
controls and final testing of the product are all carried out as per laid
down procedures . The final product of copper cathode are sampled
batch wise and analyzed by sophisticated instruments like direct
reading Emission Spectrometer, Atomic Absorption Spectro
Photometers and LECO Oxygen Analyzer.
At Taloja (C C Rod plant) cathodes are
received along with their analysis certificates and finally Wire rods are
produced by the South wire Technology. To ensure quality of the
product following in-process checks and controls are routinely
exercised as per a laid down procedure.
a. Monitoring and control of metal temperature and oxygen content at the
cast wheel
b. Molten metal oxygen control by built in CO Analyzer
c. Control of alcohol content and pH of pickling solution and mill coolant
d. Monitoring and control of hardness of cooling water.
e. Monitoring and control of soundness of cast bar.
f. In line detection of flaws by eddy current flaw detector (Defectomat)
Final CC rods are subjected to the following qualifying tests
before the rods are marketed.
a. Diameter and ovality checks.
b. Oxygen content analysis by LECO Analyzer.
c. Reverse twist to failure (RTF) tests.
d. 10 x 10 surface twist test.
e. Percentage Elongation and Tensile Strength tests.
pg. 36

37. f. Conductivity tests.
g. Depth of surface oxide tests.
h. Spiral Elongation Number (SEN) tests.
Mile Stones Achieved
1967 Incorporation of HCL and assets at Khetri, Rajasthan
transferred to HCL from National Mineral
Development Corporation Limited.
1972 Indian Copper Corporation Limited at Ghatsila,
Jharkhand, nationalized by the GoI and handed over
to the Company
1975 Smelter plant at KCC commissioned with capacity of
31,000 TPA
1982 MCP commenced at Madhya Pradesh
1989 CC Rod plant at TCP commissioned with installed
capacity 60,000 TPA, using south wire SCR- 2000
technology and natural gas as fuel
1994 Equity Shares of the Company listed on the BSE
1999 First restructuring of the Company approved by the
GoI
2002 Second restructuring of the Company approved by the
GoI
2008 The Company was granted ―Miniratna-Category
I‖status.
2008 Smelter plant at KCC commissioned with capacity of
31,000 TPA
2010 Awarded ISO 9001:2008 standard dated May 22,
2010 by the Bureau Veritas Certification (India)
pg. 37

38. Private Limited
certifying that the management system of this
Company at TCP (in relation to manufacture of CC
Rods in diameters of 8mm, 13 mm and 16 mm) has
been audited and is in accordance with the
requirements of the standard.
pg. 38

39. Financial Analysis
10 Years at a glance
YEAR 2008-09 2007-08 2006-07 2005-06 2004-05 2003-04 2002-03 2001-02 1999-01 1998-99
FOR THE YEAR
1349.1 1839.7 1799.6
Turnover 1053.76 559.11 518.87 505.68 604.98 945.58 479.49
0 9 4
Gross (116.61 (121.33
12.30 330.51 366.68 138.75 95.05 3.46 (88.13) (80.32)
Profit/(Loss) ) )
Amortisatio
73.72 81.89 89.45 58.37 55.75 59.05 57.71 58.12 90.19 59.25
n
Net (147.70 (184.04 (196.44 (172.01
(10.31) 246.46 313.94 105.88 55.98 (56.16)
Profit/(Loss) ) ) ) )
Value Added 402.06 726.12 781.08 385..39 328.53 212.30 147.37 153.09 335.91 167.24
Value of 1344.2 1991.2 1909.1
1053.34 631.24 534.43 501.53 586.66 1001.66 513.47
production 8 4 8
AT THE YEAR END
Share
462.61 462.61 977.45 948.95 948.95 908.95 795.11 710.11 543.61 536.61
Capital
Internal 1026.9 1015.8 (110.57 (298.85 (350.30 (310.39 (169.45
195.60 (0.49) 190.97
Resources 5 8 ) ) ) ) )
Term Loans - 112.50 212.50 287.50 232.96 299.12 316.32 326.84 681.05 372.36
Cash credit
2.30 0.98 3.98 4.81 118.23 76.11 139.49 122.04 122.70 84.16
from banks
Capital
1110.8 1037.0
expenditure 993.99 977.89 967.71 995.10 1007.10 1024.77 1060.76 1066.21
5 6
gross
Working
361.16 492.06 328.62 62.78 33.94 (1.02) (25.95) 7.51 25.95 6.49
Capital
Capital
570.86 657.48 504.62 247.47 234.55 215.28 203.89 249.29 291.03 298.71
employed
Manpower
5440 5405 5451 5583 5665 5995 7865 9502 12043 15271
(No.)
pg. 39

40. Annual Report
The financial performance for 2009-10 vis-a-Vis 2008-09 is
summarized below :
(Rs in crore)
Particulars 2009-10 2008-09
a. Sales 1429.85 1349.10
b. Net of Extraordinary
Income/(Expenses) (46.11) (30.80)
c. Value of Production 1506.04 1344.27
d. Cost of production excluding depreciation,
provisions, write-off
and interest 1217.21 1278.20
e. Profit before depreciation,
provisions,
write-off and interest 242.72 35.27
f. Depreciation, provisions
and write-off 23.39 22.97
g. Interest 3.19 6.82
h. Profit/ (Loss) before tax 215.84 5.48
i. Provision for taxation
- Current 64.77 5.98
- Fringe Benefit - 0.55
- Deferred (3.61) 9.26
j. Profit/ (Loss) after tax 154.68 (10.31)
k. Cash Profit 174.46 21.92
pg. 40

41. PEER COMPANIES
Mkt
Net
Cap Last EPS Income
Company P/E profit
(Rs (Rs) (Rs) (Rs cr)
(Rs cr)
cr)
Hind.Zinc 54,971 130.10 11.42 11.39 11,624.67 4,900.49
Sterlite Inds. 52,334 155.70 15.13 10.29 24,856.55 4,960.72
Hindalco Inds. 32,210 168.25 12.83 13.11 65,121.25 4,351.85
Natl. Aluminium 21,391 83.00 4.15 20.00 5,774.14 814.22
Ess Dee 1,144 357.00 36.82 9.70 631.25 193.28
Alumin.
Hind.Copper 23,727 256.45 2.42 105.97 1,508.11 154.68
Social Commitment
Hindustan Copper Ltd., since its inception, has made
significant contribution for the upliftment of living conditions of the
people of the areas where it had established its production units and
mines. These areas were in Rajasthan, Bihar, Madhya Pradesh and
Maharashtra and were comparatively rural and backward. HCL, has
undertaken the following social activities under its rural development.
pg. 41

42. Clean Drinking Water:
To provide clean drinking water to the people in surrounding
areas of the units deep tube wells were provided on selected basis.
Idea was to provide maximum benefit to villagers. Especially in
Rajasthan, were water is always scarcity all time open water
connections were provided to all the villages from Khetrinagar to
Chaowra – a stretch of 50 Kilometers.
Adult Education Classes :
To spread literacy amongst Adivasis adult literacy classes were
taken to the doorsteps of the villagers. These classes with special
emphasis on rural and Adivasi Women were conducted in different
villages. Rural lady teachers were appointed who had to complete the
basic course on 3 R‘s, conduct tests and provide certificates.
Rural Medical Camps :
Apart from providing medical facilities to the deserving local
population at project Hospitals. HCL also organized medical camps in
rural areas, where team of qualified doctors diagnosed and provided
free medicines to the villagers.
pg. 42

43. Vocational Centres :
HCL‘s units located in different areas had training centres, who
in turn organized training camps for women belonging to economically
weaker sections of the society. Training in basket weaving, caning of
chairs, stitching of hand gloves used in the plants are some of the
occupations which became popular in rural areas. Besides this, Eye
Relief Camps, Family Planning Camps, Ayurvedic Camps for villagers,
are permanent feature in the Units of HCL.
Abatement of Pollution :
Hindustan Copper Limited is fully committed to the concept of
operating in an Environmental friendly atmosphere. In addition to the
environmental protection measures that were in-built with the original
project, additional steps have been taken to conform to all the
regulatory standards prescribed by Pollution Control authorities.
For this purpose, De-sulphurisation schemes have been successfully
implemented both at KCC and ICC Smelters at an approx. cost of Rs.
113 crore using state of the art technologies to control Air Pollution
due to Sulphur dioxide gas which emits out through Smelter off gases.
Similarly full-fledged liquid Effluent treatment plants have been
installed at all units of HCL to treat the water effluents and
simultaneously to reuse the treated water in the process plants. Thus
HCL has already achieved zero water Pollution.
To make the environments pollution free, all the Units of HCL organize
mass plantation campaigns every year. Special emphasis is laid on
plants survival. This is being looked after by the horticulture
Departments of all the Units.
pg. 43

44. SWOT Analysis
_______________________________________STRENGTHS
I. Only Operating Producer of Copper Ore in India with Substantial
Reserves.
II. It has First Mover‗s Advantage with Significant Mining Complexes.
III. Indian Copper Ore Gives a Pricing Advantage in India.
IV. Vertically Integrated Operations Gives Us More Business Certainty
and Flexibility.
V. Ability to Capitalize on India‗s Growth and Resource Potential.
VI. Experienced Management Team with a Track Record of Project
Execution.
VII. Good quality of copper cathode (99.99%)
VIII. Well recognized client and customers across the globe.
______________________________________WEAKNESSES
I. Ability to raise foreign capital may be constrained by Indian law.
II. The limitations on foreign debt may have an adverse effect on its
business growth, financial condition and results of operations.
III. Performance is linked to the stability of policies, including taxation
policy, and the political situation in India.
IV. Stringent labor laws in India have adverse effect on profitability.
pg. 44

45. V. Insurance does not cover all of the risks its face, and the occurrence of
events that are not covered by our insurance could cause losses.
VI. not be able to pass the resulting increased costs to its customers.
VII. economic growth in India will be detrimental to results of operations.
VIII. Depend on the experience and skills of management and certain key
employees. Any loss of such persons or failure to timely replace such
persons could adversely affect business.
IX. Old machinery
X. Weak financial condition.
XI. Less no. of skilled employees.
_____________________________________OPPORTUNITIES
I. In India, there is under-capacity at the mining stage vis-a-vis the
demand. HCL is the only fully integrated copper producing Company in
the country holding all operating mining leases.
II. Out of 370 million tonnes of copper ore reserves in the country, HCLs
lease rights cover more than 280 million tonnes.
III. The Company has adequate opportunity to augment its mining
capacity by increasing production from the existing mines and by
developing new mines besides reopening some of the mines that were
closed in the past.
IV. HCL has reoriented its business strategy to take advantage of the
situation and has planned to take the mine production level from the
existing 3.15 million tonnes to a level of 12 million tonnes within next 5-
7 years.
pg. 45

46. ___________________________________________THREATS
The threat perception for the Company includes
I. Great volatility of world copper prices.
II. Increasing cost of inputs
III. HCL may also witness threat to its market share on account of intense
competition from imports and other domestic manufacturers.
IV. Main business risks faced by HCL continue to be the volatility of LME
price of copper and the hardening of rupee against US$ as these two
factors determine the selling price of copper.
V. As the capacity of the private players is far in excess of countries
demand, the excess of production is normally exported by them.
VI. With the economic downturn in the export market, there is a risk that
these players would push their material in the local market bringing the
price further down.
VII. New event competitors
VIII. Weak right setting of manpower.
pg. 46

47. SWOT Analysis
By: Monika
pg. 47

48. About HCL/ICC Ghatshila
Based in The Singhbhum district of Jharkhand, The main mines
of this complex in Eastern sector are located at Mousabani, Surda,
Pathrgora, and Kendadih. The heart of complex is a 1.3 million tpy
concentrator, a 16,500 tpy smelter and a refinery of 8400 tpy.
Concentrates from the ore mined at the Rakha copper project
are taken to Moubhandar works of the ICC for further processing.ICC
also has a Kainite Mine in the Singhbhum district in Jharkhand.
In keeping with the company‘s plan to boost power generating
capacity ,a 4.4 MW Turbo Generating set has been installed to bring
up captive power supply to the large extent.
Apart from reaching new heights of Productivity from the mines
,this complex has achieved notable success in the recovery of by-
products. these include Nickel Sulphate ,Selenium ,tellurium ,Gold
,and Silver. Plans are afoot for the extraction of other trace metals like
Cobalt,Palladium,etc.
Facilities for its personnel such as Housing,Education ,Social
,and recreational needs ,which were lacking during the time of
takeover by the HCL ,are being improved upon to bring them at par
with the other units of the company.
pg. 48

49. Employees at HCL/ICC
GRADES NO. OF EMPLOYEES
Class I (Skilled) 150
Class II (Semi-Skilled) 5
Class III (clerical) 794
Class IV (Unskilled) 186
Total no. of workmen 1,135
NO. OF EMPLOYEES
Class IV Class I
(Unskilled) (Skilled)
13% Class II (Semi-
16%
Skilled)
1%
Class III
(clerical)
70%
pg. 49

50. The Product - COPPER
The strategic role of Copper in the entire
development process ,is increasingly vital to ensure self-reliance in
this metal ,which touches many key sectors of the economy.
Copper and its alloy are indispensible especially to
the electrical industry ,the transportation sector ,the general
engineering industry ,in the manufacture of commercial and consumer
goods ,in building construction and hardware and of course to the
defence sector.
Today Copper is a vital ingredient of the space
age and is used in many areas including printed circuits. Copper is a
non-magnetic metal with high conductivity, tensile strength and
resistance to corrosion. On average, the Earth‗s crust contains only
0.0058% copper, making it a scarce metal as compared with 8%
aluminum and 5.8% iron. Most commercial copper ore deposits
contain 0.5-0.6% (ore in India has an average copper content of 1.2-
1.3%).
Copper production in India, which has grown
steadily over the years, is entirely done by Hindustan Copper Ltd. In
an urgent Endeavour to improve productivity, the company has
embarked on various technological innovations and expansion plans
and, is now poised to take the nation towards higher level of self-
reliance. In addition, copper has several non-electrical applications
such as tubes for air conditioners and refrigerators, foils for printed
pg. 50

51. circuit boards and other industrial and consumer applications. Copper
is also used in a number of alloys, including brass (copper and zinc),
bronze (copper andtin), nickel silver, phosphor bronze and aluminium
bronze.
*Source: CRU statistics; Ministry of Mines, Annual Report 2010
Copper Consumption
From 2000 to 2009, global copper
consumption is estimated to have grown at an average rate of 2% per
annum .Robust growth in Asia ,led by China, has resulted in significant
changes to global consumption patterns during the last decade.
Europe and North America, which used to consume over 50% of the
world‗s refined copper during the 1990‗s, accounted for only 32% in
2009. Asia, on the other hand, has emerged as the world‗s most
important copper market, growing at a CAGR of 7% between 2000 and
2009. In 2009, Asia consumed more than half of the world‗s refined
pg. 51

52. copper, with China alone accounting for nearly 40% of global
consumption.
Global consumption growth
slowed in 2008 during the global financial crisis, contracting by 1% in
2008 to just above 18 million tonnes, largely due to falling consumption
in the world‗s mature economies. The contraction was followed by
modest growth of 1% in 2009.
Source: CRU, Analysis Copper Quarterly Industry and Market Outlook July 2010
The above graph illustrates the growth of refined copper consumption at present
and in future in India for the periods indicated.
pg. 52

53. World Copper Consumption
pg. 53

54. Copper Production
Primary copper production starts with the
extraction of copper ores. There are basically four stages of copper
production, which are both independent and complementary of one
another. Each of the stages of production can be done by independent
companies, as each has a distinct application. Additionally, the
different stages of production complement each other as they can be
used in combination to produce the highest quality copper.
The stages include mining, smelting, refining and leaching.
The companies in the copper industry can be divided
into three broad sectors:
 copper miners which mine ore to produce copper concentrate;
 copper custom smelters which smelt and refine copper from the
concentrate obtained from copper mines to produce refined copper;
 integrated copper producers which undertake mining, smelting and
refining or leaching to produce refined copper products.
Alternatively, copper ore can be concentrated and
refined using a hydrometallurgical process. The crushed ore is
percolated in water or an acidic chemical solution to dissolve and
separate the minerals. The copper is recovered from the resulting
solution either through SX-EW or chemical precipitation.
Hydrometallurgical processing is typically used for low grade oxide
ores and some sulphide ores. The end product is the same as through
the smelting and electrolytic refining process described above —
refined copper cathodes. ICSG estimates that in 2009, refined copper
pg. 54

55. production from SX-EW represented 18% of total global refined copper
production.
Depending on the copper minerals and the
types of equipment available, the subsequent pyrometallurgical
treatment of the copper concentrate by smelters may take as many as
three steps: roasting, smelting and converting. Roasting dries, heats
and partially removes sulphur from the concentrate to facilitate
smelting. The copper concentrate is then smelted to further remove
wasten products and produce a liquid copper matte that is 35-75%
copper. After smelting, the molten matte is processed in a converter to
create blister copper that is 98.5-99.5% copper. The molten blister is
fire refined to further remove waste products and then poured into
moulds.
pg. 55

56. The cooled copper is called anode copper. In the final stage of
purification, the anode copper is refined by an electrolytic process to
obtain copper cathodes, which have a metal content of 99.99%
copper. Copper cathodes are melted and cast into wire bars or
continuous bar stock for wire manufacture, into slabs for mechanical
use or into ingots for alloying.
Saleable Products
Products and Application
The principal products in HCL copper refining business is copper cathode
and continuous cast rods. It also produce sulphuric acid, copper
sulphate, nickel sulphate and anode slime containing gold and silver,
which are by-products of the copper smelting process.
Copper Cathode
HCL‘s copper cathodes are square shaped with purity levels of 99.99%.
The cathode production processes at ICC smelting and refining plants
are accredited with ISO 9001:2008 certification. The major uses of
copper cathode are in the manufacture of copper rods for the wire and
cable industry and copper tubes for consumer durable goods. Copper
cathode is also used for making alloys such as brass, bronze and
alloy steel, with applications in the defense, minting and construction
industries.
pg. 56

57. Continuous Cast Copper Wire Rods
Its cast rods have a homogenous structure and very fine
grain size and can be drawn into ultra fine wires. HCL‘s continuous
cast rods are used for power and communication cables, strips for
power and distribution transformers and magnet wires as well as other
products. large diameter continuous cast rods (11.0 mm,12.5 mm and
16.0 mm) are utilized for production of profiles and bus bars.
The continuous cast rods can also be used as the basic raw material
for the manufacture of wire and cable, including winding wire,
telephone cables, power cables, wiring harnesses, house wiring
cables and instrumentation and control cables.
Precious Metals
HCl has a precious metal recovery plant located at ICC. Precious
metals, such as gold and silver, are found in certain quantities in
copper concentrate. Gold and silver rates are based on the
prevailing international bullion market price of the metals. These
metals are extracted after copper refining to produce 99.95% pure
gold and silver, as well as selenium and tellurium. The residue after
extraction of gold and silver contains traces of platinum and
palladium which can be sold as platinum group metal mix, commonly
known as PGM.
pg. 57

58. HCL suspended the operations of the ICC precious metal recovery
plant in 2007 as founded it more economical to sell anode slime
containing gold and silver rather than refine the precious metals itself.
Accordingly, it sells anode slime containing gold and silver as a by-
product in the export market.
By-Product
Company has a sulphuric acid plant located at ICC. The sulphur
dioxide gas generated from the flash furnace and converter is treated
in the sulphuric acid plant to produce sulphuric acid and sells
sulphuric acid, copper slag and copper sulphate crystals, which are
by-products of company refined copper production processes, in the
domestic and export markets.
Main Saleable Product:
 Wire Bar
 Cathode
 Brass-Sheets
 Silver
 Gold
 Tellurium
 Nickel Sulphate
 Sulphuric Acid
pg. 58

59. Products 2005-2006 2006-2007 2007- 2008- 2009-
2008 2009 2010
Blister 2697 14449 15568 160331 16904
copper
Total 3529 17330 19297 18975 20042
anode
Cathode 3295 12511 15750 14266 10848
Acid 1097 12606 13453 12101 6750
Selenium 2357 - 7718.519 1078.294 -
Gold 320.696 - 166.07 126.82 -
kg kg kg
silver 195.21 - 3353.6 1178.241 -
kg kg kg
Global Copper Market
Globally, copper products are generally
consumed in five broad sectors: construction, electric and electronic
products, industrial machinery and equipment, transportation
equipment and consumer and general products.
Of these, construction is the largest
sector for consuming copper, accounting for 37% of total world copper
consumption in 2009. The main copper products consumed in the
construction industry include building wire ,power cable, copper
plumbing and air conditioning tube, copper sheet and alloy products.
pg. 59

60. Other copper and copper alloy
products consumed by the construction sector include copper sheet,
strip, rods, bars and sections plus brass products. Copper sheet is
used for roofing, eaves, gutters, drain pipes for rainwater and lining for
facades, while rods, bars and sections, along with brass products, are
used for building fixtures and fittings.
In hospitals, brass
doorknobs and push plates are widely used because it has been
proven that they help to reduce cross contamination.
Electrical and electronic
products are copper‗s second largest consuming sector, accounting for
26% of total world copper consumption in 2009. Copper containing
electrical and electronic products include telecommunication cable,
power cable, transformer windings, semiconductors and motors for
heavy appliances.
WORLD COPPER CONSUMPTION
pg. 60

61. Indian Copper Market
The total resources of India‗s copper ore as
on April 2005 (classified under the United Nations Framework
Classification system) were estimated at 1.4 billion tonnes. Of these,
369.5 million tonnes (26.5%) fall under ―reserves‖(proved and probable
categories) while the remaining 1.02 billion tonnes (73.5%) are
―remaining resources‖(under feasibility, pre-feasibility, measured,
indicated and inferred categories).
The largest resources of copper ore are
located in the state of Rajasthan with 668.5 million tonnes (47.9%)
followed by Madhya Pradesh with 404.3 million tonnes (29%) and
Jharkhand with 226 million tonnes (16.2%). Copper resources in
Andhra Pradesh, Gujarat, Haryana, Karnataka, Maharashtra,
Meghalaya, Orissa, Sikkim,Tamil Nadu, Uttarakhand and West Bengal
accounted for about 7% of the total of all Indian estimated resources.
Including HCL, refined copper
production in India is currently dominated by four major producers.
Jhagadia is currently focused on producing refined copper from
recycled copper scrap with a total refined capacity of 50,000 tonnes
per annum in 2009. At present, Sterlite‗s copper business is principally
one of custom smelting. As on 2009, Sterlite‗s refined copper capacity
was approximately 400,000 tonnes per annum. Hindalco is also
primarily a custom smelter with a total refined copper capacity of
500,000 tonnes per annum in 2009. As Hindalco and Sterlite rely on
overseas markets for almost their entire requirement of copper
concentrate.Refined copper production in India has more than doubled
from a modest 260,000 tonnes in 2000 to 715,000 tonnes in 2009. In
pg. 61

62. fiscal 2010, India‗s copper capacity was more than 1 million tonnes of
copper, requiring approximately 100 million tonnes of copper ore.
pg. 62

63. HR POLICIES IN HCL/ICC
2.1. Introduction
2.2.Recruitment and Selection policy
2.3.Recruitment And Establishment
2.4.Selection Procedure
2.5.Probation Policy
2.6.Training and development policy
2.7.Health and Safety policy
2.8.Working time Policy
2.9.Conduct and Disciplines policy
2.10.Compensation and Benefits policy
2.11. Promotions and Incentives policy
2.12. Payment and Deductions policy
2.13. Employee Relation Policy
pg. 63

64. Introduction
Human resource is most important asset
in any business or for any organization. It also plays a major role in
speedy growth and maintaining stability of any organization. HR
Policies and Procedures are important for legal compliance and
effective management. Human resources is term which in many
organizations describes the combination of traditionally administrative
personnel functions with performance management, employee
relations, and resource planning.
Human resource management
(HRM) is the strategic and coherent approach to the management of
an organization‘s most valued assets – the people working there who
individually and collectively contribute to the achievement of the
objectives of the business. Human Resource management is evolving
rapidly. Human resource management is both an academic theory and
a business practice that addresses the theoretical and practical
techniques of managing a workforce.
Human Resources are
Personnel pool available to an organization. The most important
resources in any organization are its human resources. Appropriate
human resources assure an organization that the right number and
kind of people are available at the right time and place so that
organizational needs can be met.
Successful human resource
planning should identify human resource needs. Once we know these
needs, we will want to do something about meeting them.
pg. 64

65. Recruitment and Establishment
In HCL/ICC there is an altogether different
department for the process of recruitment and selection which is called
as recruitment and selection department.
Recruitment is the discovering of potential
applicants for actual or anticipated organizational vacancies.
CERTAIN INFLUENCE CONSTRAINT MANAGER IN DETERMINING
RECRUITING SOURCES:-
I. Image of the organization
II. Attractiveness of the job
III. Internal policies
IV. Union requirement
SOURCE OF RECRUITMENT:
I. External
II. Internal
EXTERNAL INCLUDES
I. Employment exchange
II. Advertisement
III. Management institute
IV. Management consultant
INTERNAL SOURCE INCLUDES
I. Promotion
pg. 65

66. II. Transfer
III. Retired manager
IV. Recall from long leave
V. Deputation personnel
VI. Recommendations
VII. Internal job posting
DIFFERENT STEPS INCLUDED IN RECRUITMENT
Notification:-First of all the company notify to the Employee
Exchange for new posts. Notification gets send to the exchange
explaining all the detail which includes:
I. Nature of vacancy.
II. Number of vacancies.
III. Pay and allowance.
IV. Place of work.
V. Important dates for filling up the form.
VI. Particulars regarding interview/test.(eg. date/time of interview ,place of
interview ,where and whom to report).
VII. Preferences and obligation.
VIII. Any other relevant information.
CERTAIN INFLUENCE CONSTRAINT MANAGER IN DETERMINING
RECRUITING SOURCES
I. Image of the organization.
II. Attractiveness of the job.
III. Internal policies.
IV. Union requirement.
pg. 66

67. Selection Process
Selection is defined as the process of differentiating between
applicants in order to identify (and hire) those with a greater likelihood
of success in a job .Selection is basically picking an applicant from
(a pool of applicants) who has the appropriate qualification and
competency to do the job.
ROLE OF SELECTION
Selection is crucial for the organizations effectiveness for two
reasons:
1) Work performance: Performance of the organization is very
important to the success of the company. So the organization always
employs people who are well qualified and competent.
2) Cost incurred: cost incurred while selection process also plays
an important role .This can be explained with an example:
Pepsi went on a crash recruitment drive. Six people from the
company took over Oberoi business center for six days. 3000 people
who had responded to the advertisements earlier issued were
scanned: people were asked to respond within 100hrs by fax. People
selected forth interview were flown into the city.
This eg just shows how expensive selection can be. Hence cost
incurred is very important forth success of the selection process.
The difference between recruitment and selection:
pg. 67

68. Recruitment is identifying n encouraging prospective employees
to apply for a job And Selection is selecting the right candidate from
the pool of applicants.
SELECTION PROCEDURE:
1) Job Analysis:
Job analysis includes dividing the application according to the
nature of the job.
2) Initial Screening:
Includes screening of the documents send by the applicant and
making a list of the qualifying candidate based on the educational
qualification, experience, and background.
3) Test:
Conducted by the company to select only the eligible candidate
.A Candidate who achieves the qualifying marks proceeds to the next
step.
4) Interview:
Selected candidate have to go through interview and group
discussion of a management panel of HCL/ICC.
5) Medical Fitness:
A medical test gets conducted by the HCL doctors and only a fit
candidate gets an offer letter.
6) Offer Letter:
Offer letter is issued to the finally selected candidate including all
the rules , regulation .it includes
I. codes of conduct.
II. pay scale and allowance.
III. joining details(date ,place ,reporting authority)
pg. 68

69. IV. Declaration of Acceptance.
7) Verification and reference check:
In this step company verifies all the details provided by the candidate
through following sources
 Verification of antecedents/character from civil bodies/legal authorities.
 Previous organization/organizations and other sources.
Probation policy
Employees remain on probation for a period of six months, at the
end of which they gets confirmation. Confirmation is dependent on to
the satisfactory conduct and performance of the employee during the
probation period. In case the conduct and/or performance is not
satisfactory during the probation period and/or not found medically for
confirmation service gets terminated without any prior notice or
compensation.
During probation period the training authorities constantly check the
employees performance and also keeps an eye on the nature and all
the activities of the employee.
Induction Program
This program specially organized by the company to introduces
new joinee to the company, making them aware of the structure and
working environment ,about campus ,location ,company history
,present status, achievements , and other necessary details.
pg. 69

70. Employee Training
Employee training is the planned effort of an organization to help
employees learn the job related behaviors and skills they will need to
do their job properly. It is a set of planned activities that the
organization will have their employees complete in order to increase
their job knowledge and skills and to have them get accustomed to the
attitudes and social atmosphere of the company. It will help the
employee to be familiar with the goals of the organization and the job
requirements.
There are typical steps that go into a training program. These are
outlined below.
1.Conduct Needs Assessment :A need is described as a "gap"
between what is currently known and what will be needed now and in
the future. These gaps in knowledge could be between what an
organization expects to happen and what actually does, how
employees are performing on the job and how the organization desires
them to perform, and existing skills and desired skill level.
In order to conduct an assessment there are some analyses that must
be done.
 Organizational analysis:-An organizational analyses determines the
effectiveness of an organization, where training needed and under
what conditions the training will be conducted.
 Task analysis:-A task analysis is used to provide data about a job or
group of jobs, and the knowledge, skills ,attitudes and abilities that are
needed to achieve optimum performance. This information can come
from job descriptions, task analyses, employee questionnaires and
interviews ,performance evaluation, and observation of the workplace.
pg. 70

71.  Personal analysis:-Analyses how well an individual employee is doing
their job and determines which specific employees need training and
what kind of training. The methods of this kind of analysis include
employee questionnaires and interviews, performance evaluation, skill
and knowledge testing and the observation of behavior and results.
2.Training Methods:The two most frequently used training
methods include
 Lecture: Lecture involves one-way communication, from instructor to
learner - the learner is passive in the process.
 On-the-job-training: This method involves such methods as
apprenticeship and mentoring, where the employee is actively
engaged in the type of work they will later be doing on their own.
 Simulations: Employee being placed into a simulated situation of
what may occur in real on-the-job situations. Techniques include: Case
studies where trainees analyze a problem outlined in a report and offer
solutions; Part of the implementation of the training is making sure that
the training is actually teaching the employees the skills they will need
- this is known as the Transfer of Training. A more technical definition
is: the extent to which the knowledge, skills or attitudes learned in the
training will be used or applied on the job.
3) Training Evaluation:
Used to evaluate the reactions of the learners, measure the
learning that occurred, identify business results that are due to the
pg. 71

72. training and calculate if the investment in training has had any return in
the gains of the company .Business results can be measured in "hard"
data and "soft" data. Hard data are measures of productivity, quality,
material costs, absenteeism and turnover. Soft data is items such as
job satisfaction, teamwork, and organizational commitment on the part
of the employees. If the result is up to the expectation mark the
candidate gets letter of conformation ,a certificate for successful
completion employee can be called as the a permanent employee and
join the respective department.
pg. 72

73. Health and safety policy
As a Public sector unit HCL comes under the factories
act 1948 ,and Mines Act,1952 to insures the health ,safety ,welfare of
all the employees within the company .Workers (Safety Health &
Welfare) Act,1986;
____Health
Every factory shall be kept clean and free from
effluvia arising from any drain, privy or other nuisance, and in
particular.
I. Disposal of wastes and effluents: Effective arrangements are made
in factory for the treatment of wastes and effluents due to the
manufacturing process carried on therein, so as to render them
innocuous and for their disposal.
II. Ventilation and temperature: Effective and suitable provision are
made for adequate ventilation by the circulation of fresh air, and such
a temperature will secure workers therein reasonable conditions of
comfort and prevent injury.
III. Dust and fume: No stationary internal combustion engine operated
unless the exhaust is conducted into the open air, and no other
internal combustion engine are operated in any room unless effective
measures have been taken to prevent such accumulation of fumes
there from as are likely to be injurious to workers employed in the
room.
IV. Artificial humidification :Prescribing methods to be adopted for
securing adequate ventilation and cooling of the air in the workrooms.
pg. 73

74. V. Overcrowding :No rooms in any factory are overcrowded to an extent
injurious to the health of the workers employed therein.
VI. Lighting: In every part of a factory where workers are working or
passing there are provided and maintained sufficient and suitable
lighting, natural or artificial, or both.
VII. Protection of Eyes: significant rules are made to ensure the eye
protection as well as other precautionary measures are taken.
___________________________________________________Safety
A safety officer ensures the safety of all the employees working in
company.
I. Work on or near machinery in motion.
II. Excessive weights.
III. Pressure plant: any plant or machinery or any part thereof is operated
at a pressure above atmospheric pressure, effective measures shall
be taken to ensure that the safe working pressure of such plant or
machinery or part is not exceeded.
IV. Employment of young persons: on dangerous machines.
V. Striking gear and devices for cutting off power : Factory suitable
devices for cutting off power in emergencies from running machinery
shall be provided and maintained in every work-room.
VI. Self-acting machines. No traversing part of a self-acting machine are
allowed and no material carried, if the space over which it runs is a
space over which any person is liable to pass, whether in the course of
his employment or otherwise, be allowed to run on its outward or
inward traverse within a distance of 2ft[forty-five centimeters] from any
fixed structure which is not part of the machine.
pg. 74

75. VII. Prohibition of employment of women and children near cotton-
openers.
VIII. Hoists and lifts: HCL made sure that all the machines are of good
mechanical construction, sound material and adequate strength
properly maintained, and are thoroughly examined by a competent
person ,and a register are kept containing the prescribed particulars of
every such examination.
IX. Lifting machines, chains, ropes and lifting tackles. Floors, stairs and
means of access. Pits, sumps, openings in floors, etc
X. Precautions in case of fire.
XI. Maintenance of buildings: Safety of buildings and machinery.
specifications of defective parts or tests of stability
XII. Precautions in case of fire:
XIII. Effective measures are taken to ensure that in every factory all the
workers are familiar with the means of escape in case of fire and have
been adequately trained in the routine to be followed in such cases.
XIV. Explosive or inflammable dust, gas, etc Where in factory any
manufacturing process produces dust, gas, fume or vapour of such
character and to such extent as to be likely to explode on ignition, all
practicable measures are taken to prevent any such explosion by
i. Effective enclosure of the plant or machinery used in the process.
ii. Removal or prevention of the accumulation of such dust, gas, fume or
vapour,
iii. Exclusion or effective enclosure of all possible sources of ignition.
XV. Precautions against dangerous fumes, gases, etc.
XVI. Safety of buildings and machinery. Maintenance of buildings.
XVII. Permissible limits of exposure of chemical and toxic sub-stances.
XVIII. Right of workers to warn about imminent danger.
pg. 75

76. _____________________________________________Welfare
I. Facilities for sitting.
II. First-aid appliances. provided and maintained so as to be readily
accessible during all working hours first-aid boxes or cupboards
equipped with the prescribed contents, and the number of such boxes
or cupboards to be provided and maintained shall not be less than one
for every one hundred and fifty workers ordinarily employed 1*[at any
one time] in the factory.
III. Canteens, Shelters, rest rooms and lunch rooms.
IV. Welfare officers are employed in the factory to make sure the welfare
work are done in a proper manner.
Other health and safety related rules:
 Internet use policy: Appropriate use of electronic mail.
a. reach the harassment and discrimination or other policies of the Group
through.
b. By amongst other things, sending or forwarding inappropriate
messages or viewing inappropriate material;
c. breach the intellectual property rights of persons who make material
available on the Internet;
d. Upload any non-work related computer program or image to the
Group‘s computer system; post any non-work related messages to any
Internet bulletin board, discussion list, newsgroup or other publicly
accessible discussion forum.
e. View material only for business purposes and not for any other
purpose;
 Smoking policy:Committed to providing its employees with a smoke-
free working environment.
pg. 76

77.  Alcohol and drug policy :Committed to providing and maintaining a
working environment that is healthy, safe and productive for all of its
employees. Employees in the workplace who are affected by illegal
drugs (―drugs‖) or alcohol may be a danger to themselves, as well as
to others.
a. must not attend for work under the influence of drugs or alcohol;
b. must not perform duties while under the influence of drugs or alcohol;
c. must not consume drugs or alcohol on work premises; and
d. must not sell or distribute, alcohol or drugs during work hours or on
work premises.
pg. 77

78. Working Time Policy
a. Weekly hours: No adult worker are required or allowed to work in
factory for more than forty-eight hours in any week
b. Daily hours:- Subject to the provisions of section 51, no adult worker
shall be required or allowed to work in a factory for more than eight
hours in any day. Provided that, subject to the previous approval of the
Chief Inspector, the daily maximum specified in this section may be
exceeded in order to facilitate the change of shifts.
c. Intervals for rest: [The periods of work] of adult workers in company
and factory each day is so fixed that no period shall exceed five hours
and that no worker shall work for more than five hours before he has
had an interval for rest of at least half an hour .
d. Spread over: The periods of work of an adult worker in a factory shall
be so arranged that inclusive of his intervals for rest under section 55,
they shall not spread over more than ten and a half hours in any day:
e. Prohibition of overlapping shifts: Work shall not be carried on in any
factory by means of a system of shifts so arranged that more than one
relay of workers is engaged in work of the same kind at the same time.
f. Register of workers: The manager of every factory maintains a
register of workers, to be available to the Inspector at all times during
working hours, or when any work is being carried on in the factory,
showing—
(a) the name of each adult worker in the factory;
(b) the nature of his work;
(c) the group, if any, in which he is included;
(d) where his group works on shifts, the relay to which he is allotted;
pg. 78

79. g. Notice of periods of work: displayed and correctly maintained in
every factory in accordance with the provisions of sub-section (2) of
section 108, a notice of periods of work for adults showing clearly for
every day the periods during which adult workers may be required to
work.
h. Night shifts: Where a worker in a factory works on a shift which
extends beyond midnight
(a) For the purposes of sections 52 and 53, a holiday for a whole day
shall mean in this case a period of twenty four consecutive hours
beginning when shift ends;
(b) The following day for workman should be the period of twenty-four
hours beginning when such shift ends, and the hours workman worked
after midnight shall be counted in the previous day. Shift timing for
HCL workers:-
Shift Shift Timing
A 6am to 2 pm
B 2am to 10 pm
C 10 pm to 6 am
General 7-30 am to 12 noon
General office 8.30 am to 12.30 pm
1.30 pm to 4.30 pm(on
Sunday-8.30 am to 1.00 pm
only.)
pg. 79

80. Conduct and Discipline Policy
Conduct
Conduct can be defined as a dynamic process and endless.
There are few examples .A workman
I. Should maintain absolute integrity, devotion to duty, and respect and
value other employees as well as control and supervise workmen
working under supervision.
II. Refrain from doing anything which is unbecoming of a public servant.
III. Position should not be used to influence directly or indirectly to secure
undue benefits.
IV. should not engage or participate in any demonstration which involves
incitement to an offence.
Except without previous sanction of the competent
authority A Workman should not get engage in any of the following:
I. Any demonstration which involves incitement to an offence.
II. In radio and television program or contribute an article or write a letter
either in your own name, anonymously. Or with pseudonymously. In
the editing or publication of any newspaper. However this is not
required in case of literary, artistic, professional or scientific character.
III. Accept employment with any private firm which has official dealing with
the company.
IV. Get engage in the trade or business or undertake any other
employment.
pg. 80

81. V. Bring or attempt to bring any outside influence to further in own
interest in respect of matters pertaining to the service in the company.
VI. Criticize the policy any of the central government or state Gov. of the
company.
VII. To obtain any valuable thing by any member of the family acting on
behalf without consideration or with inadequate consideration.
VIII. Obtain for self or for any other person or any other valuable thing or
pecuniary advantage by corrupt or illegal means or by abusing own
position as a public servant.
IX. Engage in sexual harassment of any women at work place.
X. Take part or assist in any manner in any movement/agitation or
demonstration of a political nature. election of any legislature or local
authority or become office bearer of political party or an organization
which takes part in politics.
XI. Take part in Accept any fee or remuneration or any pecuniary
advantage from any work done for any public body or any private
person.
XII. Enter into any transaction concerning any immovable or movable
property with a person or a firm having official dealing with workman
himself or subordinates.
A workman should:
I. Forthwith intimate the competent authority on entering into a marriage
with a person that of other than that of Indian Nationality.
II. Avoid habitual indebtedness.
III. Take due care that performance of duties is not affected in any way by
the influence of any intoxicating drink or drug.
pg. 81

82. IV. Report within one month to the competent authority every transaction
concerning movable property owned or held in the own name or in the
name of family member if the value of such property exceeds 15,000/-
Code of Conduct
____________________________________________Definition
The Board have laid down a code of conduct for Directors
and senior executives for promoting sound corporate practices and
ethical conduct on the part of all concerned.
This Code of Conduct applies to:
» All the Directors of Hindustan Copper Limited (Company); and
» Allthe Senior Management employees of the Company i.e. who are
of the rank of General Manager and above including all functional heads
who have the opportunity to materially influence the integrity, strategy and
operations of the business and financial performance of the Company.
___________________________________________Objective
The purpose of this Code of Conduct is apart
from meeting the requirements of Listing Agreement with the Stock
Exchanges is to :
» Articulate the high standards of honesty, integrity,
ethical and law abiding behavior expected of Directors and Senior
Executives;
pg. 82

83. » Encourage the observance of those standards to
protect and promote the interests of shareholders and other
stakeholders (including employees, customers, suppliers, creditors
and society at large);
» Guide Directors and Senior Executives as to the
practices thought necessary to maintain confidence in the Company‘s
integrity; and
» set out the responsibility and accountability of
Directors and Senior Executives to report and investigate any reported
violations of this code or unethical or unlawful behaviour.
_____________________________________Salient Feature
This Code of Conduct lays down the following guidance for
observance by Directors and Senior Management personnel of HCL :
Honesty and integrity
The Company expects each Director and Senior Executive to :
(a) Observe the highest standards of honesty, integrity and
ethical and law-abiding behaviour when :
(i) Performing their duties ; and
(ii) Dealing with officers, employees, investors, creditors, customers,
suppliers, auditors, lawyers, other advisers of the Company and
Government Authorities ; and
pg. 83