An Organisation Study Of Kse 2m45a

INDEX SL

CONTENTS

NO.

PAGE NO.

01

INTRODUCTION

5

02

INDUSTRY PROFILE

7

03

COMPANY PROFILE

11

04

ORGANIZATION STRUCTURE

26

05

DEPARTMENT ANALYSIS

27

06

HUMAN RESOURSE DEPARTMENT

28

07

PURCHASE DEPARTMENT

34

08

PRODUCTION DEPARTMENT

39

09

MARKETING DEPARTMENT

45

10

FINANCE DEPARTMENT

51

11

QUALITY CONTROL DEPARTMENT

59

12

FUTURE PLANS AND PROGRAMS

64

13

SWOT ANALYSIS

65

14

FINDINGS

67

15

SUGGESTIONS

68

16

CONCLUSION

69

17

BIBLIOGRAPHY

70

INTRODUCTION This is an organization study about the KSE ltd. KSE stands for Kerala Solvent Extraction ltd. Company deals with the production of cattle feed products. Solvent extraction is usually used to recover a component from either a solid or liquid. The sample is ed with a solvent that will dissolve the solutes of interest. Solvent extraction is of major commercial importance to the chemical and biochemical industries, as it is often the most efficient method of separation of valuable products from complex feed stocks or reaction products. Some extraction techniques in involve partition between two immiscible liquids, others involve either continuous extractions or batch extractions. Because of environmental concerns, many common liquid/liquid processes have been modified to either utilize benign solvents, or move to more frugal processes such as solid phase extraction. The solvent can be a vapour, supercritical fluid, or liquid, and the sample can be a gas, liquid or solid. The Indian feed industry is about 35 years old. It is mainly restricted to dairy and poultry feed manufacturing; the beef and pork industry is almost non-existent. The quality standards of Indian feeds are high and up to international levels. Raw materials for feed are adequately available in India. The industry's production is about 3.0 million tons, which represents only 5 percent of the total potential, and feed exports are not very high. The feed industry has modern computerized plants and the latest equipment for analytical procedures and least-cost ration formulation, and it employs the latest manufacturing technology. In India, most research work on animal feeds is practical and focuses on the use of by-products, the upgrading of ingredients and the enhancing of productivity. The country has entered into a period of liberalization and this is bound to influence the livestock industry. The per capita consumption of milk, eggs and broiler meat will grow. The Indian feed industry is undergoing a very exciting phase of growth for the next decade.

OBJECTIVES OF STUDY The overall objective is to conduct a study on organizational structure of KSE Ltd. The following are the specific objectives of the study. 

To examine the developments of KSE.



To understand about the functional areas of the company.



To understand the organization structure of KSE.



To understand the product profile of KSE.



SCOPE OF THE STUDY

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With an increasing entry of new companies, information of newer technologies and changing economies, the world of business is changing very rapidly. This organization study in KSE Limited exposes to the practical side of the business enterprise. This study helps to understand the history, structure, activity and the products of the company and its contribution to the Indian cattle feed industry. This study exposes to various departments namely purchase department, production department, stores department, etc.

METHODS OF DATA COLLECTION Data required for the study is obtained through primary and secondary sources.

Primary data Primary data is collected directly from the employees, department heads and the organization study guide in the company. It is collected through observation and direct interview methods.

Secondary data The secondary data is collected from journals, company files and annual reports, department manuals and website of the company.

LIMITATIONS OF THE STUDY  As the study was conducted during a short period as a part of the course curriculum, so a detailed study of all the functions in the organization could not be completed within this period.  The company‟s authorities could not disclose matters relating to some functional areas. Hence some areas could not be studied extensively.

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INDUSTRY PROFILE Growth in milk sector has occurred mainly through co-operative efforts. The milk collection centers started through co-operative effort and collected milk from villagers in quantities as small as liter and gradually started to provide other services to farmers, including education, artificial insemination, veterinary health and feeding. Small farmers became prosperous, loan facilities were made available through banks, and member farmers started to share the profits from co-operatives .Co-operative society also set up their own computerized feed plant. They began to own modern computerized as well equipped milk processing plants from which they produce and market pasteurized milk, butter oil, chocolate, ice-cream from milk, sweets, which are very popular with Indian consumers. Today the feed production capacity of the co-operative society is about 0.7million tones per year. The solvent industry has achieved a phenomenal progress and at present there are 520 units having overall oil cake or oil seed processing capacity of more than 25.6 million tons per year, which included rice bran processing capacity of more than 9.9 million per year. The solvent extraction plays the important role in the oil economy. Solvent extraction in India was started in 1945. It had to struggle for more than 20 years to establish it.

CRISIS OF COCONUT INDUSTRIES IN KERALA IN 1960’ In the 1960‟s there was a crisis in coconut oil extraction industry in Kerala. After conversion from wooden ghani‟s to rotaries the cost of the production had increased considerably. By using this new method they were able to extract more oil from the coconut cake. Earlier 20% of the oil was retained in the coconut cake, now it has reduced to 12%.Although Kerala produces 80% of copra produced in the country large part of it was sold to other state as copra itself and they were earning good profit when mills in Kerala wasn‟t able to get enough copra for their daily needs. When oil industry in other parts of the country was thriving in Kerala it was struggling. So they understood the need for modernization of their mills. At that time Dr. P. S. Lokanathan committee set up to study the feasibility of starting new industries in Kerala, recommended of establishment of 3solvent plants in Kerala and it was also proposed that one should be located in Thrissur itself.

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COCONUT OIL MILLER’S CO-OPERATIVE SOCIETY Lion share of copra went to mills in Bombay and they were able to generate good profits. To overcome the situation a co-operative society formed by name Coconut Oil Miller‟s Co-operative Society and it was decided that this society would act as an agent of state trading corporation for distribution of copra. By seeing the performance of the Bombay group an investigation department was assigned to investigate it. Then they found out that they were using expeller mills for extracting oil and was able to reduce the oil content up to 6%. The industries in Kerala later began to follow it.

CATTLE FEED INDUSTRY From the beginning KSE Ltd marketed the buy product obtained from its solvent extraction division in the brand name of Jersey Copra Cake. Most of the progress in the cattle feed sector has come about in the past 30 years only. There are only few cattle feed units in the country especially in Kerala. The cattle industry of the state has been utilizing the indigenous raw material i.e. coconut cake, which is the residue left after the extraction of oil from copra which is mainly used as cattle feed. Coconut cake contains four to five per cent oil is generally used for industrial purpose and deoiled cakes is used to make mixed cattle feed. In Kerala the rotary cake was used as a cattle feed and actually this excessive oil on cakes reduced the keeping quality of the cake and also upset the digestive system of the cattle e. In foreign countries, the cattle is feed only with de-oiled cakes and according t o t h e d a i r y e x p e r t s , t h e m i l k a n d f a c t c o n t e n d o f m i l k d e p e n d s s o l e l y o n t h e p r o t e i n contend of the feed. All these factors stress the importance of having a few cattle field industry in the state. Thus in 1996, KSE Ltd. Entered the cattle field industry by setting up the new plant for manufacturing ready mixed cattle feed. During the last three decades KSE has been acting as a leader in ready mixed cattle feed industry of the country. Today, KSE Limited commands the resources, manufacture a range of livestock feed in high volumes, driven by the commitment to high standards of quality.

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DIARY INDUSTRY Most of the progress in the dairy sector has come about in the past 25 years only. Till 1970, the country‟s milk production increased merely by one per cent a year. But after the intensification of cattle improvement programme through artificial insemination, using sasses of exotic breeds and launch of operation flood, the production started rising rapidly from the mid 1970‟s. The transformation of India from a milk deficit to a milk s u r p l u s c o u n t r y i s essentially the result of an intensive campaign launch by the Govt. and semi Govt. bodies to promote animal husbandry as a means of generating income for the landless poor. Many of these producers have organized themselves into co-operative under the umbrella if the National Dairy Development Board (NDDB) which had been running a highly successful animal husbandry promotion programme named Operation Flood. The private sector has now entered into this field in a big way, capitalizing on the availability of cheap surplus milk to produce various kinds of dairy products for the domestic and international market. Several dairy products like skimmed milk powder, whole milk powder, and infant milk foods of western origin are now being produced in India. A variety of cheeses, milk drinks, ice creams, pasteurized butter etc. which, were very common in this country till a few decades ago are now available in abundance in department stores of big and small cities. The main objective of this programme is to build a viable and selfsustaining national dairy industry capable of meeting the domestic demand for fresh liquid milk and milk products and competing in the international markets.

THE FUTURE OF THE INDIAN FEED INDUSTRY At the beginning of the twenty-first century, India has a population of 1 billion people. Although the annual growth rate has slowed from 2 to 1.8 percent, the base is so broad that changes in population dynamics are not perceptible. The population may stabilize by sometime between 2030 and 2040 if all sections of society family planning wholeheartedly. The purchasing power of the middle class is growing (the middle class s for approximately 300 million people) and food habits are also changing. The Indian economy is growing at the rate of 6 to 8 percent per annum. The livestock industry in India is the second largest contributor to gross domestic product (GDP), after agriculture, and s for 9 percent of the total. Consumption is likely to increase as follows: per capita milk from 240 to 450 g per year; per capita eggs from 40 to 100 per year; and per capita broiler meat from 1 000 to 2 000 g per year. A major change is occurring in India on the economic front. The country has adopted a model that lies midway between liberal and public sector production, but growth has been affected by the poor performance of most of the public sector units, rising Page | 6

government costs and fiscal deficit, and the economy has suffered. A process of liberalization was set in motion by the government and has been implemented for the last eight to ten years. This has caused India to open up and invite investment from multinationals, liberalize imports, reduce government expenditure and remove public sector businesses. It also means that the days of nationalization, unnecessary government controls and restrictions will soon be over thanks to progress in the country's economy. India has entered into an agreement with its trade partners under the World Trade Organization (WTO). The changes brought about by the liberalization process will be slow but certain. The government is opening up imports in a phased manner, and it is expected that this process will be completed by April 2003. In the meantime, about 930 items, including agricultural products, will be open for import under open general license from April 2001, making it possible to import dressed chicken, milk and milk products. Various livestock industry associations have taken issue with such imports in an attempt to protect their . If the livestock industry is affected, the feed industry will also be affected. The Government of India has raised the tariff on all poultry and poultry products from 35 percent to the WTO boundary level of 100 percent. It therefore appears that there will be a level playing field. In view of the expected rise in per capita consumption of chicken meat, eggs and milk, livestock production and productivity will grow. The dairy industry, which is cooperative-based, is growing with the increased capacities of milk processing units. The population of cross-bred cattle and buffaloes is also growing. Milk is very popular in India. The poultry industry is developing towards vertical integration and a few multinational companies have already entered the Indian poultry business. Although the live bird market currently s for about 90 percent of the total market, it is expected that the consumption of dressed chicken will grow in the next five years, from the existing 10 percent to 25 percent or more. This would mean establishing very hygienic and scientific processing units. Cold chains, branded chicken, chicken cuts, etc. will be introduced and, depending on the success and consistent quality, consumer preference for dressed meat will grow. The next decade will see significant changes in restructuring, mergers, acquisitions, amalgamations, t ventures, diversification, integration and efficient service chains, e-commerce and use of the latest information technology in global tenders, trading, export/import and other commercial activities. At the root of all these developments will be the scientific development of feed manufacturing technology. The Indian feed industry will increasingly use biotechnology, more scientific formulations, new molecules and natural and herbal products to improve animal productivity. Indian agriculture will also use biotechnology and genetically modified organisms (GMOs) to the feed industry, which is entering a very exciting phase of growth for the next decade

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COMPANY PROFILE ESTABLISHMENT Kerala Solvent Extractions Limited now known as KSE Limited was established in 1963 by a handful of coconut millers in and around Irinjalakuda with a vision to overcome the crisis of the coconut oil industry. Initially started as a solvent extraction plant, the company now produces 750 to 850 MTs of coconut cake a day with four cattle feed production units two solvent extraction plants. The company has diversified into the area of dairying by establishing two diary plants for the production of pasteurized milk and milk products. It has obtained ISO recognition for its commitment to quality and professionalism.

ORIGIN OF THE ORGANISATION It was in 1963 that Kerala Solvent Extraction Limited, now known as KSE Limited, entered the solvent extraction industry setting up the very first solvent extraction plant in Kerala. The solvent extraction plant went on stream in 1972 and in 1976, a new plant was set up to manufacture ready mixed cattle feed. The last three decades have seen KSE emerging as a leader in solvent extraction and ready mixed cattle feed in the country. Today KSE commands the resources, expertise and infrastructure arrange of livestock feed in high volumes, coconut oil from coconut cake and refined edible oil. Driven by a commitment to high standards of quality, KSE has not only won customer‟s confidence but also national recognition through several awards and accolades. With modern manufacturing facilities spread over three states, KSE caters vast beet stretching across southern India and enjoys a significant presence in exports too. Since the early days, KSE has endeavored to supply products to customers through an extensive network of dealers and retailers, which form a dedicated force behind the success of KSE. It is a matter of pride that KSE is a house hold today. With a strong commitment to customers and product quality and being cost competitive, KSE stands poised to meet new challenges. The copra crushing industry has been in existence in Kerala for decades and has been the most important basic industry in state utilizing the indigenous raw materials viz., coconut. During the 60‟s the oil millers in Kerala used wooden village Ghani‟s operated by bullocks which left about 80 per cent oil in the cake. Later iron rotaries driven by electricity were used but they left about 12 to 13 per cent oil in the cake. But in other part of the world including other states in India, giant expellers came up following by the solvent extraction plants. Thus oil millers outside Kerala obtained an extra amount of oil by crushing copra subsequently processing the cake through solvent extraction plants. This new technology enabled the millers outside Kerala to take away a Page | 8

large portion of the copra from our state, starving our local industry. We could not keep the pace with the time due to the lack of capital and had to face tough competition from other states. In 1960, a committee was appointed under the chairmanship of Dr. Loganathan to study the feasibility of starting new industries in Kerala. Based on the technoeconomic survey conducted, the committee recommended for the establishment of the three solvent extraction plants in Kerala and one of them in Thrissur district. The oil mill owners in and around Irinjalakuda who were also thinking in similar lines and saw the opportunity and look the initiative to establish a solvent extraction unit and for this purpose they brought 9.6 acres of land in the name of Sri. K V Devassi and Sri. K L Francis and also applied for the industrial undertaking license. They decided to start it as a public limited company, issuing shares to almost all the oil millers who were interested. For this purpose on 1st May 1963, a meeting was held which was presided over by Sri. K V Devassi and attended 17 . Sri. K V Devassi was elected as the chairman and 10 others were elected as Directors. The Directors were Sri. K L Frncis, Sri T O Paul, Sri. N P Venkittarama Ayyer, Sri. M S Menon, Sri. A P George, Sri. E T Joseph, Sri. P L Ouseph, Sri. M C Paul, Sri. M P Kochudevassi, Sri. A Narayan Swami. On 25th September 1963, the Kerala Solvent Extractions got certificate of incorporation (No.2028) from the Registrar of Companies, Kerala. The first formed meeting was held on 20th October 1963 and in this meeting, Sri. K V Devassi was elected as the chairman and Sri. K L Frnacis as the Managing Director. The initial capital of the company was Rs.4,17,500 consisting of 4175 shares of Rs.100 each subscribed by the promoters. The initial capacity of the plant was 40 tons per day. There were 23 staffs and 28 workers initially. On the road to success there were many hurdles in the beginning. Mobilization of capital caused the greatest challenge. But determination and optimism paid of. The solvent extraction plant was on stream in 1972 and in 1976 a new plant was set up at Irinjalakuda to manufacture ready mixed cattle feed, which was a pioneering step. Thus the KSE Limited had given Irinjalakuda an important place in the industrial map of Kerala and showed us how to convert a waste material into national income.

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IRINJALAKUDA UNIT The pioneering plant of KSE at Irinjalakuda is unique in many ways. It was the first solvent extraction plant in Kerala. It was the first major factory in the locality spread over 15 acres. It was hear that KSE set up its first cattle feed plant. The plant embodied the spirit of the enterprise of a group of committed people, who wanted to usher in an era of modernity into a traditional society and change the industrial landscape of the state. Naturally, today the Irinjalakuda plant enjoys of flagship states and commands an edge on infrastructural strength. Taking great strides technological development, the process of computerization in plant and office was initiated way back in 1987. Micro processers have been in using in the production line since 1989. Research and development plays an important part in the activities of the KSE, central R & D unit is located here. The plant houses a modern laboratory. The quality control cell here leads and guides other units and formulates stringent standards. The chief Nutritionist and Assistant Manager of quality control are also based here. A proud symbol of growth, the Irinjalakuda unit is an inspiring force for the entire KSE family. In 2007, company decided to install 500 TPD cattle feed production in the unit. This unit acquired ISO 9001 – 2000 accreditation.

SWAMINATHAPURAM UNIT Sale of KS cattle feed in selected markets in Tamil Nadu was started as early as 1984. To enable the company to extend its products and services to whole of Tamil Nadu, a new production unit was set up at Swaminathapuram in Dindigul district of Tamil Nadu. A solvent extraction plant was started the very next year. Spread out on 22 acres of land on the banks of river Amaravathi, this Rs.3.5 crores plant works round the clock. Keyes Forte is also manufactured in this unit. A model Diary farm with high yielding animals is also maintained in the unit for conducting feeding trials and other experiments.

VEDAGIRI UNIT The third cattle feed plant of the company with a daily production capacity of 240 MTs started operation at Vedagiri in Kottayam district, in March 1996. This Rs.6 crores project, fully financed from internal resources, was formally inaugurated on 17th August, 1996. This unit is built on a spacious area of 10 acres. Utilizing highly advanced technological features, this unit marks a new chapter in the cattle feed manufacture.

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VEGETABLE OIL REFINING PLANT In 1195, the company explored the possibility of refining solvent extracted oil and marketing it in various states in India, the company commissioned a vegetable oil refining plant in December 1995, with a capital investment of Rs.1 crore, wholly raised from internal accruals. The company also refines sunflower expeller oil and markets it in the name KSE supreme.

PALAKKAD UNIT A recent addition to the KSE family is the livestock feed plant at Palakkad. With a manufacturing capacity of 120 TPD, this plant caters predominantly to the needs of the northern districts of Kerala such as Palakkad, Malappuram and part of Calicut.

KORATTY UNIT Company acquired land from Kinfra Small Industries Park, Koratty, Thrissur district and installed 200 TPD Solvent Extraction Plant and 100 TPD Physical Refining Plant with a capital outlay for refining vegetable oil. Solvent extracted coconut oil is refined in the plant and made edible. Commissioned Fraction Plant in March 2009.

VISION We shall endeavor to maintain leadership through quality products, explore new avenues in product development and marketing, create a stronger bond between the management, work force, dealers and customers, contribute to social development and rural upliftment, and constantly strive for excellence in all spheres of our activities.

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MISSION To provide maximum benefit to the dealers and to give good quality products to the customers at a fair profit. To increase the turnover and to widen their markets to all the zones etc.

OBJECTIVES The Memorandum of Association of the company lists out altogether 38 broader objectives. Out of these, the important objectives for which the company is established as follows: 1. To produce, manufacture, extract purchase refined, prepare, import, export, sell and generally to deal in oil form seeds, oil cakes and other oil bearing materials. To carry on business of the refining and hydrogenation of oil and the manufacturing of byproducts share from and of trades connected there with. 2. To acquire correct, construct, establish, operate and maintain oil mills, extraction plants, ghee plants, workshops other works. 3. To purchase for the purpose of the business of the company, oil neutralizing, in washing, tying, bleaching, filtration and hydrogen plant, boilers, tanks, engines, electric motor shafting tin plates punch machines and other machines. 4. To plant, cultivate and purchase all kinds of food stuffs, oil seeds, vegetable and other produce of land and to sell and deal in them. 5. To make, manufacture and prepare mixtures and fertilizers to install and run bone mills and to buy, sell or trade in trade in any fertilizers and manures of kind.

GOALS    

To achieve a minimum compound growth rates on sales turnover. To promote sales turnover. To provide for the optimum use of technological innovation. To enhance productivity.

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BOARD OF DIRECTORS Board of KSE Limited consists of ten Directors out of which the Chairman and Managing Director is the Chief Executive Officer of the company. Moreover there is one executive director who is looking after the daily transactions of the company. The Board invariably meets in every month and evaluates the performance of the company. All major policy and business decisions are taken after due deliberations and with mutual consensus. A management committee with five directors as its is functioning to assists the Board, which is regularly meeting, twice in a month, in order to review the company and proposals that are to be placed before the Board and mark recommendations there on.

MILESTONES OF SAGA OF SUCCESS 

1972 plant

: The company started production in Irinjalakuda with a Solvent Extraction with a capacity of 40 MTs per day.



1976 : A new plant was set up in Irinjalakuda to produce 50 MTs of ready-mixed cattle feed.



1979 per

: Production capacity of Cattle feed Plant in Irinjalakuda increased to 60 MTs day.



1980 day.

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1984 : The Solvent Extraction Plant capacity of Irinjalakuda increased to 80 MTs per day.

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1987 : Cattle feed Plant at Irinjalakuda capacity increased to 180 MTs per day.

: Solvent Extraction Plant capacity in Irinjalakuda increased to 60 MTs per

 1988 : Cattle feed plant in Swaminathapuram, Tamil Nadu started production Capacity 100 MTs per day. 

1989 : Solvent Extraction Plant of Swaminathapuram unit with a capacity of 120 MTs per day started production.



1990 : Cattle feed production capacity at Swaminathapuram unit increased to 150 MTs per day.

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

1991 : Palakkad Branch started.

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1994 : Keyes Forte, the new feed supplement for cattle introduced. Cattle feed production capacity at Swaminathapuram increased to 180 MTs per day.

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1995 : Calicut Branch opened.

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1996 : 240 TPD cattle feed Plant at Vedagiri in Kottayam District started operation. Company renamed as KSE Limited. (Formerly Kerala Solvent Extractions Limited)

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1998 : Company acquired its fourth manufacturing unit at Palakkad for manufacturing Cattle feed.

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1999 : A modern CHILDRENS' PARK AND INFORMATION CENTRE was Completed at Irinjalakuda for the benefit of the Public. Company introduced “K.S. Deluxe Plus" the Pelleted feed in HDPE bags for Kerala Market.

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2000 : Company started production and marketing of Pasteurized Milk and Milk products from Konikkara Dairy, Trichur District,Kerala and Thalayuthu Dairy, Palani Taluk, Tamil Nadu.

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2002 : Cattle feed production at Irinjalakuda unit increased to 195 MTs per day. 'VESTA' Ice Cream launched.

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2003 : Started production of Cattle feed in a leased plant at Edayar, Kalamassery. Cattle feed production at the Swaminathapuram unit increased to 195 MTs per day.

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2004 : Acquired Land from KINFRA for starting the new project of 200 TPD Solvent Plant and 100 TPD Oil Physical Refining Plant at Kinfra Park, Koratty. ISO 9001:2008 Accreditation for Irinjalakuda.

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2005 : Cattle feed Production capacity at the Irinjalakuda unit increased to 210 MTs per day. Company acquired property at Mysore. ISO 9001:2008 accreditation for Vedagiri and Swaminathapuram units.

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

2006 : The 200 TPD Solvent Extraction Plant at Koratty commissioned. 100 TPD Physical Refining Plant at Koratty commissioned. Solvent Plant at Irinjalakuda dismantled.

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2008 : Ice cream production unit commissioned at Thalayuthu.

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2009 : Cattle Feed production capacity at Swaminathapuram increased to 200 MTs per day. Commissioned Fractionation Plant at Koratty. Commenced 500 TPD Fully State-of-the-Art German Technology Animal Feed Plant at Irinjalakuda.



2010 : Ice cream production unit at Vedagiri commissioned.

PRODUCTION UNITS KERALA

: KSE LIMITED, IRINJALAKUDA UNIT, P.B.NO.20, IRINJALAKUDA -680121, PH: 0480 2825476/2826676, FAX: 0480 2825244

KSE LIMITED, VEDAGIRI UNIT, KURUMULLUR PO, ATHIRAMPUZHA, KOTTAYAM DIST – 686632, PH: 0481 2536829/2538718/2538719, FAX: 0481 2536830

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KSE LIMITED, PALAKKAD UNIT, OTHUNGODE, PALAKKAD – 678020, PH: 0491 2536332/2538451/2531858

KSE LIMITED, DAIRY DIVISION, KONIKKARA, MARATHAKARA PO, THRISSUR – 680320, PH: 0487 2356394/2351501/2358806

KSE LIMITED, (KINFRA UNIT), KINFRA PARK, NELUKETTU ROAD, KORATTY – 680306

KSE LIMITED XXXIII/2837, PAROPADI, MERIKUNNU PO, CALICUT-3 PH: 0495 2370056/2900194

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TAMILNADU

: KSE LIMITED, SWAMINATHAPURAM UNIT, SWAMINATHAPURAM, DINDIGAL DIST - 642113, PH: 04252 252560/252561/252562/252563, FAX: 04252 252565

KSE LIMITED, DAIRY DIVISION, THALAYUTHU, DINDIGAL DIST – 624618, PH: 04252 252860/252867

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CATTLE FEED SEGMENTATION

CATTLE FEED

PELLET

PELLET PLUS

DELUXE

MASH

SUPREME PELLET

ORDINARY

MASH

SUPER MASH

SPECIAL MASH

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PRODUCT PROFILE KS

: One of the all-time favorites in the cattle feed.

K S Super

: A special cattle feed that has won immense popularity.

K S Deluxe Pellets

: The choice of caring farmers for better results.

K S Supreme Pellets cattle

: A by protein feed with ISI marks. Specially made for

with superior germ plasma and high production potential.

Jersey

: Protection rich, tasty, de-oiled coconut cake.

Keyes Forte

: Keyes Forte is a feed supplement for cattle. It contains Vitamin A, D3, E and all. The required trace minerals at recommended quantities.

K S Supreme oil.

: Refined sunflower expeller oil. Solvent extracted coconut

Refined solvent extracted coconut oil.

MILK PRODUCTS OF THE COMPANY INCLUDES: K S Milk K S Ghee K S Curd Butter Milk Vesta Ice Cream

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DISTINCTIONS THAT MAKES KSE NO: 1 

Kerala„s first solvent extractions plant.



No.1 in processing coconut oil cake though solvent extraction in India.



Winner of S.E.A. national award and state productivity and safety.



Front-ranker in mixed cattle feed production in India.



Recognition from Annual Nutrition Society for contribution in cattle feed manufacturing.



Kerala‟s first export mixed cattle feed.



The name trusted by millions of people.

AWARDS AND RECOGNITIONS 1. “Best Productivity Performance for cattle feed in India” award from National Productivity Council continuously for eleven years 1996-97 to 2006-07. 2. The Solvent Extractors Association of India – „S.E.A Award‟ for highest processor of coconut cake in India continuously for 19 years including 2008-09.

3. Kerala State Productivity Council Award. 4. “Top Cattle feed Award” for aflatoxin free feed from the Indian Association of Veterinary Pathologists (IAVP) and Kerala Agricultural University.

5. Tamil Nadu Productivity Council Safety Award. 6. Animal Nutrition Society of India award for Company‟s contributions for propagation of balanced compound livestock feed in India.

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7. Industry Excellence Award from the Indian Society for the Study of Animal Reproduction for the year 2001.

SOCIAL RESPONSIBILITY KSE Ltd is in the forefront for meeting its responsibility towards the society. KSE has contributed liberally towards the social events. 1. Construction and maintenance of a modem children‟s information centre “KS PARK” in irinjalakkuda at the cost of Rs 80 lakhs. 2. Construction of footpath cum handrail for public at cost of Rs 10 lakhs. 3. Contribution of Kargil Fund Rs 5 lakhs. 4. Contribution to Gujarat earthquake relief fund Rs 10 lakhs. 5. Contribution to Bharatia Vidya Bhavan in Irinjalakkuda Rs 1 lakhs. 6. Contribution to St. James Hospital Rs 3 lakhs. 7. To Amala cancer centre – hospital and Research Centre Trissur Rs 3 lakhs. 8. The Chief Minister relief fund Rs3 lakhs. 9. Mahatma Gandhi 10. For construction of class rooms of Unnai Warier Smarakalanilaya Rs20000 11. To St Joseph Collage for women Rs 80000 12. For construction of blood bank attached to the Government Taluk Hospital Rs 25000

INDUSTRIAL RELATION The company has 926 employees in its roll on 31.3.2011. the company is an expectation to the advise labor conditions existing in Kerala. During its working of 39 years, the company had lost few man-days by labor unrest. However, during the year under review, the Vedagiri unit was under lock out from 30.09.2010- 14.02.2011. Section of the employees of that unit resorted to slowing down of production to their demand for an interim hike in their remuneration during the validity field of settlement and management was forced to declare the lock out. After several round of negotiation, the management arrived at a settlement with the employees on their agreeing to drop their demands and the lock out was lifted. During the lockout period management had made alternate arrangements to ensure regular supply to the dealers and the performance of the company had in no way affected. There were no labor issues of serious nature in any other unit of the company. The management continues to maintain cordial industrial relation with its employees in all Units and is attending to their grievances with an open mind.

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Commitment in Rural Development KSE has taken up rural development as a major corporate task and responsibility. The agrarian rural society is the back born of the nation‟s economic structure and KSE has always been active in ing and promoting images in their vacation. Today Kerala and Tamil Nadu comparison the largest market of KSE cattle feed. The majority of their deposal over 600 KSE dealers ensure that the KS Range of cattle feed is available to them at a lower price suggested and enforced but the company KSE has made arrangements for the supply of cattle fed in villagers directly from dealers and through retailers . Besides beginning range of trusted products to the villages KSE also imparts valuable advice and instruction regarding animal has boundary and cattle to the villagers.

Progressive Management and Unique Work Culture The management KSE rests on a eminent team of personalized from the cultural and financial and social system of society who from the BOD. The Chairman and MD executive director and whole time Director head the operations of the company and overseas its smooth functioning. The day to day management of various units is carried out by experienced professionals under a chief general manager. Who lead and motivate a dedicated world force. The total number of employees in various units of KSE now exceeds 1000. Besides KSE gives endured employment to over 2000 people, through its distribution network across Kerala and Tamil Nadu. The work culture of KSE is an exception to the rule in the strife ridden industrial climate of Kerala. During the quarter century of it is operation, the days lost to industrial unrest is only 23 days. This fact illustrates the cordial work environment and speaks of the extra ordinary relationship between the management and employees. Periodic appraisal and renewal of agreements between the management and workers credit a responsible attitude and productive atmosphere. The united efforts mutual test and progressive vision of management and force is the cornerstone on which the success of KSE is based.

ORGANISATION STRUCTURE Page | 22

BOARD OF DIRECTORS CHAIRMAN / MD EXECUTIVE DIRECTOR

CHIEF GENERAL MANAGER

GENERAL MANAGER FINANCE

CHIEF MARKETING

MANAGER

CHIEF PURCHASE MANAGER

CHIEF

CHIEF

NUTRITIONIST

PERSONNEL

WORKS MANAGER

MANAGER PLANT MANAGER

SALES

EXECUTIVE PURCHASE

PERSONNEL OFFICER

SENIOR CHEMIST

OFFICE ASSISTANT

SENIOR ASSISTANT

OFFICE ASSISTANT

JUNIOR CHEMIST

MAINTANANC

ATTENDER

EXECUTIVE (PRODUCTION )

FINANCE MANAGER

EXECUTIVE

JUNIOR OFFICER

SENIOR ASSISTANT

RK CLERK

SENIOR CIVIL EXECUTIVE

ASSISTANT MANAGER ELECTRICAL

E EXECUTIVE

CLERK GODOWN

SENIOR SHIFT

OFFICER

SUPERVISOR

CLERK OPERATOR

OPERATOR

GODOWN ASSISTANT

WORKER S

TALLY CLERK

BOILER

ELECTRICIANS

WORKER S

Page | 23

DEPARTMENT ANALYSIS

Page | 24

HUMAN RESOURSE DEPARTMENT

Page | 25

HUMAN RESOURSE DEPARTMENT Human resource is of paramount importance for the success of any organization. It is a source of strength, aid and, it is the most important asset of an organization. Human resources are the wealth of an organization which can help it in achieving its goals. Human resource management is the planning, organizing, directing and controlling of procurement ,development, compensation, integration, maintenance and reproduction of human resources to the end of the individual, organizational and societal objectives are accomplished. Human resource management is the qualitative improvement of human beings who are considered the most valuable assets of an organization. It is the strategic approach to the acquisition, motivation, development and management of the organization’s human resources. The primary objective of HRM is to ensure the satisfactory accomplishment of the objectives of an organization and of its employees and management. It helps workers in accomplishing individual and organizational goals. The HR manager organizes the HR department to carry out the functions entrusted to him. In KSE personnel department functions are controlled by Personnel Manager.

Department Structure

CHIEF PERSONNEL MANAGER

PERSONNEL OFFICER

OFFICE ASSISTANT

Page | 26

Functions of Human Resource Department

1. Recruitment Recruitment is the process of searching for prospective employees and stimulating them to apply for jobs in the organization. This is made on the base of personal interview. Only qualified candidates are selected. Final selection is done by the head office.

2. Pay Fixation It is based on the job analysis, conduct of salary survey, group similar jobs into pay grades, price each pay grade and wage istration rules.

3. Promotion Advancement within an organization is ordinarily labeled as promotion. It refers to the advancement on an employee to a better job. Promotion is a mean of filling up vacancies which occur in any organization from time to time. Promotion is given on the basis of:   

Seniority Performance Additional Qualification

There is an understanding between the workers and the management that promotions will be made on the basis of ability and seniority.

4. Welfare Labour welfare means anything done for the comfort and improvement intellectual or social, of the employees over and above the wages paid which is not necessary for the industry. KSE gives first priority to the welfare of the employees. Statutory and non-statutory benefits are provided.

5. Performance Appraisal

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Performance appraisal is the systematic, periodic and an impartial rating of an employee, excellence in matters pertaining to his present job and his potential for a better job. It is done to ensure the efficiency of workers.

6. Statutory Requirement   

Factory license and boiler license renewed every year. Punchayathu tax and building tax, company tax, individual employee tax, etc. are paid. Diesel license and environmentally acceptable licenses are renewed every two years.

WELFARE ACTIVITIES Labour welfare activities of KSE Ltd ensure a peaceful and friendly atmosphere in the workplace. Labour welfare is a matter of first priority to the management. The firm provides sanitation, periodical medical checkup and recreational facilities to the employees .Firm provides both statutory and non-statutory benefit.

Statutory Benefits 

ESI and per ESI Act 1948.



Gratuity as per payment of gratuity Act 1972.



Employees Deposit Linked Insurance.



Contribution to Kerala Labour Welfare Fund.



P.F

Non Statutory Welfare Fund

Page | 28

 Employee Welfare Fund All employees of the firm contribute a fixed monthly amount to the fund. The fund is istrated by a committee nominated by the management and the employees.

      

Terminal Fund Death Fund Disablement fund Medical benefit Cash award for children Loan for marriage of children Loan for house hold items.

 Annual Gift Firm give annual gift to all employees. Same amount is given to all from the General Manager to Lowest paid workers.

 Uniform and Footwear Firm provides two sets of uniform to the workers. Technical staff is also provided two sets of uniform and pair of shoes.

 Ex-Gratia Payment One month salary is granted as Exgratia in connection with marriage of employees and if an employee dies in service.  Leave and Travel Allowance It is given every year.

 Conveyance allowance

Page | 29

It is allowed to all permanent employees based on category in which they work.

 Shift Allowance The second and third shift employees are provided with shift allowance .

 Washing Allowance It is provided to all employees with uniforms.  Group Insurance It is introduced recently in the firm. All employees are provided with group insurance of LIC.  Leave Allowance 13 days declared as holiday in a year.

Trade Unions 

KTUC(M)



INTUC(I)



BMS



CITU

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PURCHASE DEPARTMENT

Page | 31

PURCHASE DEPARTMENT Department Structure

PURCHASE EXECUTIVE

SENIOR ASSISTANT

OFFICE ASSISTANT

The purchase department consists of purchase committee, which in turn is comprised of management officials. Purchases are normally done from reliable suppliers.

PURCHASE PROCEDURES 1. Purchase Requisition: It is a document through which the department requests the purchase manager to arrange for purchasing the material required. Each department head prepares the purchase requisition and send it to the purchase manger on receipt of purchase requisition report. The purchase manager will make necessary steps for purchasing material that has been mentioned in the purchase requisition. 2. Plans are made by the purchase department about what to purchase, how to purchase, when to purchase and so on.

3. Purchase manager does not invite quotation for the supply of materials from different suppliers. Orders are placed through telephonic orders. Normally the orders are made in bulk quantity. Maximum Economic Ordering Quantity is 250 tons per order. 4. The purchase committee selects the supplier after evaluation. The purchase manager then discuss with the supplier about rate, quality, requirements, quantity, delivery time and packaging. Then both parties agree that they will enter in to purchase contract according to supply and payment. Page | 32

5. Making of purchase contract: Six copies of the purchase contract will be prepared and it is signed by Chief Purchase Manager and Chief General/Finance Manager. The company will send two copies of purchase contract to the supplier, one copy to the purchase department, one copy to the finance department, one copy to the stores department and the last one will keep it in their running file. The supplier will send back one copy as a token of confirmation. A purchase contract will contain the details such as, the name of the material, quantity to be supplied, agreed rate, quality specification, time in which it is to be supplied (delivery date), place of delivery, rate whether inclusive of tax, packing of material, mode of transportation, option if the material is not supplied on due date and mode of payment. Generally, 90 per cent of the payment will be made in the next day. In case the delivery is not made on due date, this 10 per cent will be adjusted. 6. Receiving and inspection of material: When the material arrives, the drivers have to report at the gate. The guards will inform it to the purchase department who will give permission to enter into the company.

Before taking the material to the godown, the total weight of the truck containing the materials will be calculated. This weight involves the weights of truck, materials, and packing of material. Later after unloading of material, the weight of the truck, gross weight (actual weight of material and its packing) and net weight (weight of materials only) will also be calculated. At the time of unloading the material, actual samples of it will be taken and send to the Lab another packet will be kept a check sample. The Material Received Report (MRR) will be prepared and send it to the purchase department. Full payment for the materials received will be given only after getting the lab results. The rebate will be deducted if there is any non-fulfillment of the conditions of the contract. If there is any dispute regarding the quality of the material, the company will send half of the check samples to the supplier who will send the second half of the check sample to an independent lab for re-test. Nearest result‟s average will be taken for settlement.

IMPORTANT MATERIALS USED FOR THE MANUFACTURE OF CATTLE FEED The most needed material is de-oiled rice barn, which is purchased in bulk from north India by rake load and also by lorry from Tamil Nadu and to a concerned extends from Kerala. Molasses is vital ingredient as it adds taste to the cattle feed. Page | 33

MAINTANANCE OF STOCK Materials purchased are required to be delivered at the Vedagiri unit. Specifications of the materials required are communicated to the supplier who supplies the materials as per specifications. The load of materials entering the factory will be ed at the factory gate. The load is then sending to the store where the store officials check the materials for visual defects through sample test. Once the store officials verified the load, it will be unloaded and each material will be stocked separately in its lot and stored in a pattern. Then raw material samples will send to the company late for content analysis. If the quality of the materials is found inappropriate, then adjustments in the price will be made in the final settlement. Maximum storage capacity of the store is 7500 tons. The company maintains a minimum stock level of 15 days a minimum of one and a half months.

MATERIAL HANDLING Once the material requisition report is made, the material is accepted and receipt is forwarded to the s department. The load number is specified in the MRR. Factory item is stored as per specified act and each issue is recorded. Issue of material is done L.I.F.O basis. Hence stock can be verified easily whenever required.

FORMS USED Forms used in the purchase department are ; 1. PURCHASE CONTRACT 2. MATERIAL RECEIVED REPORT (MRR)

Page | 34

1. PURCHASE CONTRACT This contains information regarding the name of the dealer, order number, date, name of the material, quantity required and rate. It also contains specific information regarding quality duties, packaging, and mode of delivery, place of delivery, delivery rate and payment schedule. Chief purchase manager of general manager will sign this report. Copies of this document are prepared too are send to the supplier out of which one will be send back by the supplier as confirmation, on copy is send to finance department, one to godown, one is kept in the running file.

2. MATERIAL RECEIVED REPORT (MRR) This contains details about the materials received, date, supplier name, number of bags, voucher number, quality, freight, etc. This form should be signed by the authorized signatory. Three copies of this form need to produce. One will send to godown, two copies are retained by the purchase department.

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PRODUCTION DEPARTMENT

Page | 36

PRODUCTION DEPARTMENT Department Structure

ENGINEER

SENIOR SHIFT SUPERVISOR

TECHNICAL STAFF

WORKERS

Production is the process of conversion of inputs into outputs. It involves certain heavy machineries and some complicated process to convert raw materials into finished products. Cattle feed production is based on the formula given by the nutritionist. The formula will change according to the availability and the price of raw materials. The important raw materials used for this purpose are coconut oil cake, cotton seed cake, maize, rice, wheat bran, etc. and nutrients.

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PRODUCTION FLOW CHART

Raw Material Feeding

Raw Material Weighing

Batch Grinding

Batch Mixing

Molasses Mixing

Palletizing

Bagging

Quality Check

Despatch

Page | 38

1. Raw Material feeding : Various raw materials to be taken for production are listed in the raw material feeding report on a day to day basis and fed to the conveyors. The materials fed are taken to the top floor through the coveyor. 2. Raw Material Weighing : The raw material is weighted in the weigh hopper as per the formulate given by the Chief Nutritionist. For each recipe, separate formulae are entered in the computer. 3. Batch Grinding : The batch which is weighed in the weigh hopper is taken for grinding in hammer mills, where required sleeves are used to ensure adequate particle size for the ground material. 4. Batch Mixing : The material ground in the hammer mill is taken to the ribbon type batch mixer for predetermined time to ensure homogeneous mixing. The minor ingredients are directly added to the mixer. 5. Molasses Mixing : The required molasses added to the batch and mixed in molasses mixer. 6. Palletizing : The food that is mixed with the molasses is ed through the pellet mill feeder conditioner where required quantity of steam is added. It is then ed through the pellet mill where pellet are produced. The hot pellets are cooled in cooler and then bagged. 7. Bagging : After completion of production, bagging is done and appropriate identification is done with respect to the date and shift of production.

OPERATION The whole operation is automatic which is programmed to the computer placed at the plant operator‟s room. After feeding of raw materials to the hopper, the computer automatically takes the amount of raw material needed for the batch as per the chief nutritionist formulae. The bagging is also done automatically. The plant operator is responsible for the change in the percentage of raw material in the batch. The raw materials are fed to hopper which itself is a weighing machine. It allows only the appropriate amount of raw material to enter the production.

PRODUCTION PLANT In KSE Vedagiri unit, production take place in the cattle feed plant. Page | 39

CATTLE FEED PLANT In this plant the company uses different types of cakes according to their availability apart from other materials of the company such as coconut cake, sunflower cake, mustard cake, soya been, wheat, calcium, vitamins, cotton seed, phosphate, tapioca, maize, jowar and other vitamins. Except from the coconut cake, all the other materials are purchased from other states. It can produce 200 tons per day.

MM TECHNOLOGY It involves mixing, milling, cooking and pelleting.

MILLING This is being used for ensuring that all the granules are grinded, screened three mm sieve. The materials feed in to the grinder and powdered as it es. Through the screen provided at the bottom side of grinding chamber. Two hammer mills are used.

MIXING The raw material will mixed thoroughly by using a horizontal mixer.

COOKING The steam for cooking is produced using a boiler. The mixer carries out a strong mixing while the mash is moved forward and added with dry saturated steam. The cooking is carried out at a temperature of 80 degree Celsius using a high pressure saturated steam.

PELLETING The pellet mill die by rotating drags the mixture of mash and steam towards the roller, which press it and consequently compel it to through the hole of the die. It increases the density of the mixture, which together with heat generated by the saturated steam facilities the extraction of the pellet. Page | 40

MARKETING DEPARTMENT

Page | 41

MARKETING DEPARTMENT

Department Structure

CHIEF MARKETING MANAGER

SA;ES EXECUTIVE

OFFOCE ASSISTANT

CLERK

Page | 42

Functions Marketing Department of the company concentrates on building long term relationship with the customers, dealers, distributors and suppliers. The company also undertakes sales promotion works. Marketing department mainly concentrate on consumer promotion and dealers promotion. In this company the departments by Marketing Manager and under him there are 2 Assistant Manager. One for sales Dispatch other for Customer service and Sales promotion. The company sells its products only through the dealers, No direct sales are allowed. The company has around 500 dealers. It delivers goods at their shop unloading changes; rent etc will not bear by the company.

ment and sales promotion The company does not give much importance to ment but it concentrate on sales promotion to a greater extends. However the advertising and sales promotion expenditure for the year 2008-2009 amounts to Rs 7, 92,913: catalogues and Descriptive leaflets are also provided to dealers. The main s of the product are farmers. So the ment is given in local channels only. The company also gives dealers board to dealers as an ment for their product.

Other ment are Used 

Radio ads



Wall paintings



Hoarding



Flexes



Tin boards to dealers



Dangles



Pamphlets



Flex banner



Cinema slides



Yearly calendar Page | 43

Sales Procedure 1. Dealers can use own or rented vehicle 2. Vehicle is weighted before going to godown 3. After weighting it is loaded with required quantity 4. Vehicle is then weighed with load 5. Weight of products is verified 6. Bill clearance done

Training Training for KS sales persons was conducted from 2001. According to the training session the main objectives of sales management were a) Sales volume b) Contribution to growth c) Continuing growth

Cattle Shows Company sponsors cattle shows conducted by milk society, dairy departments etc. Cattle shows neither help the company to reach many prospects nor reached their sales force.

from Customers Marketing department encourage from the customers. Labels with address for enquiry are put each packet for s.

Obtaining sales order Dealers are selected by proper methods. Dealers can give order either directly or through telephone. Date of delivery is given in advance.

Page | 44

Pricing The pricing of KSE is flexible. Pricing of the product varies according to the cost of raw materials. During 1998 the company was forced to increase the price of their product. But when the price of row materials lowered, the company decided share it with the customer. As a result there was a reduction of Rs 13-18 per pack. According to Kerala General Sales tax a 15% additional sales tax was imposed. So price were renewed from 23rd August 2006.

Dealers Promotion It carried out by providing dealers with a) Banners b) Purchase- pointers c) Dealers commission is granted at the rate of 10%

Marketing segmentation Since the final consumer of cattle feed is cattle, market segmentation is done, on the basis of milk production of cattle is segmented as 1. Dry animals with no milk 2. Animal yielding milk 5 liters 3. Animal yielding milk between 5-10 litters 4. Animal yielding milk more than 10 litters

Page | 45

DEALERSHIP CHART

Company

Authorized dealers

Wholesalers

Sub dealers

Retailers Retailers

Wholesalers

Customers

Customers

Retailers

Customers

Page | 46

FINANCE DEPARTMENT

Page | 47

FINANCE DEPARTMENT

Department Structure

SECRETARY/CHIEF FINANCE MANAGER

ASSISTANT FINANCE MANAGER

OFFICE ASSISTANTS

CLERKS

The main function of Finance department is to have overall control over both inflow and outflow of the financial resources. The finance department is divided into different sectors. The authorized share capital of the company is Rs 10crore and issues and subscribed capital is Rs3.2crore. The par value of 1 equity share capital is Rs 10. The company issued 6000 bonds 5% redeemable cumulative per share of Rs 100 each. The redeemable of this allotment. The company went in for public issue of shares in 1994. Company shares listed at stock exchange at Cochin, Chennai, and Mumbai. The present market value of the company share is Rs 200. The reserves and surplus us on 31 st march2012 is Rs . The company paid a dividend of Rs for the year 2011. Financial accepts fixed deposits from the public at the rate of 15%PA. The company keeps books as purchase day book, sales day book, cash and bank book. Page | 48

Major Applications Computers are used for ing and technical aspects of such as; 

Inventory control



Production Planning and Control



Purchase ing



Budgetary control and standard costing



Machine capacity utilization



Quality control



Input/output Analysis



Market research



Management Information System

Source of Finance Long term Finance, Medium term Finance and short term Finance is considered as source of finance. Source of long term finance are 

Shares



Debentures



Internal finance



Public deposits



Industrial financial institution



Industrial banks Page | 49

Sources of Medium term Finance 

Redeemable preference shares



Debentures



Bank loans



Hire purchase and installment system



Public deposits



Mortgage loans internal finance

Sources of short term funds 

Bank OD



Trade creditor



Money lender



Customers advance



Loan from MD and Directors

Page | 50

Capital Structure It consists of both owned capital and borrowed capital. Owned capital consist of funds brought in by owners, borrowed capital consist of shares debentures and loans.

Financial policies s in KSE Ltd are prepared under historical cost convention on accrual basis unless otherwise specially stated in notes to

1. Fixed Asset Asset put to use have been stated at cost less depreciation. Asset not put to use have been stated at cost

2. Depreciation: Depreciation on fixed assets have been provided on written down value method at the rate prescribed in the company Act 1956,

3. Investments Investments as at the aloes of the year are valued at loses cost as net realizable Value.

4. Goods in transit at cost 5. Retirement benefit: A. Contribution to Provident fund and employees welfare funds is charged to Profit and Loss B. Gratuity

Page | 51

The accruing liability towards the gratuity of employees in covered by the group gratuity assures in scheme is charged to Profit and Loss . Gratuity in respect of whole time directors is provided for or gross whole time directors is provided for on gross basis for on charged to P&L

6 Sales: Sales are stated gross of excise duty as well as net of excise duty and are stated exclusive of VAT/ sale tax

7 Claims: Claims are ed for as fund where finally determined/ settled.

8 Grants: Grant/ subsidies received specially related to capital assets, are credited to the carrying cost of the respective assets other. Subsidies received are credited to capital reserve .

9 Inventories: Inventories as at cost of the year are valued at lower cost or net realizable value. Cost includes cost of purchase, conversion and other cost, as the case may be, incurred in brings the Inventories to their location/ condition, determine on the following methods. a) Raw materials

: FIFO

b) Packing materials

: FIFO

c) Stores and spare and consumables cost

: At weighted average

Borrowing cost: Page | 52

Borrowing cost that are attributed to the acquisition or construction or production qualifying assets are capitalized as part of the cost of such assets. A qualifying asset is one of that necessarily takes substantial period of the fine to get ready intended use. All other borrowing costs are charged to revenue.

Tax on income: Current tax is determined as the amount of tax payable in respect of taxable income for the year. Deferred tax is the required on timing difference, being difference between taxable income and ing income that originate in one period and are capable of reversal in one or more subsequent periods where there is un absorbed depreciation or carry forward losses deferred tax assets are recognized only if there virtual certainty of realization of such assets. Other deferred tax assets are recognized only to the extent to there is reasonable certainty or realization in future.

Segment reporting: The company‟s primary segments (business segments) have identified as the a) Animal Feed Division b) Oil Lake Processing division c) Diary Division Compressing Milk and Milk Products Industry Ice Cream.

There no reportable geographical segments. Segments revenue, segment results, segment assets and segment liability include the respective amounts identifiable to each of the segment as also amounts allocated on a reasonable allocated to any of the business segment, are shown as unallocated expenditure. Assets and liabilities that cannot be allocated between the segments are shown as part of unallocated assets and liabilities Page | 53

respectively. Later segment transfer of processed material is ed considering the estimated reliable value of such goods.

Foreign Exchange Transactions: Monetary assets and liabilities relating to transactions involving foreign currently remain unsettled as the end of the year end rate. Gains or loss due to such transactions of foreign exchange transactions (other than for fixed assets) are recognized in the P&L s of Gains or loss due to such transactions of foreign exchange transactions relating to fixed assets, if any, are adjusted the carrying cost of such assets.

Capital expenditure The ice cream manufacturing Unit adjacent to our existing cattle feed plant at Vedagiri has been commissioned on 28.03.2011. The capital outlay of the new ice cream unit is 127 lakhs as on 31.03.2011 excluding the value of land already owned by the company

Page | 54

QUALITY CONTROL DEPARTMENT

Page | 55

QUALITY CONTROL DEPARTMENT

The success of a company depends upon the quality of its product. Quality is the totality. Quality is the totality of features and characteristics of a product and service that bear on its ability to satisfy stated or implied needs. Total quality is the key to value creation and customer satisfaction. The quality control department has to play an important role in the success of a company through innovating quality product. It aims at total quality control. It begins right from the purchase of raw materials to after sales quality check. Uncompromising quality is the main feature of KSE. It is with which the company maintains its reputation. The quality control department ensures the quality of cattle feeds through testing the products at different stages. Statistical sampling techniques are applied for quality control tests. The quality control tests include the raw materials inspection, in process inspection, finished products inspection and finally after sales quality control.

Department Structure

CHIEF NUTRITIONIST

SENIOR CHEMIST

JUNIOR CHEMIST

ATTENDERS

Page | 56

Steps in Quality Control In order to ensure total quality, tests are conducted right from the stage of raw material acquisition to after sales. Payment of raw material is done on the basis of thetest results. There are four stages in the quality control: 1. Raw material quality verification 2. Quality verification during grinding and mixing 3. Product quality verification 4. After sales quality control.

1. Raw material Quality Verification Protein fat are the required context. The main impurities are moisture and silica. The fat content in the raw material is verified by a test known as “Crude fat test” apparatus used is known as soxtlete apparatus. There are three such apparatus in the lab. Protein content is verified with the help of an apparatus termed as fumes chamber. As protein is a Nitrogen compound, protein content can be verified using this apparatus to measure nitrogen content. Only one apparatus is there in the lab for this purpose. Moisture content of raw materials should not be above a prescribed percentage (usually 10%) the best tube for moisture is conducted to ensure that the raw materials are properly dried. In later concept in 5gms is tested by using an apparatus “Hot Air Owen”. Silica content is verified using the test named as “Acid Insoluble Test” apparatus used is “muffle furnace”.

Other Apparatus Used 

Distilled water unit



Vacuum pump



Hot plate



Electric weight machine

Quality Verification during Grinding and Mixing Page | 57

In second stage there are two quality checks:

a) Check during grinding. Check during grinding is done at the grinding stage to ensure the proper size recommended. b) Check during mixing. Check during mixing is conducted to find out whether the mixture is properly balanced. Alsop the weight is checked at this stage.

2. Product Quality It involves a) Calcium content verification. b) Chlorine content verification

c) Phosphorous content verification

Volumetric test is used. Product quality verification is done at 3 shifts by taking samples and checking it at the lab. Then it is pat before the medical officer for approval.

3. After Sales Quality Control Customers are given proper guidance and instructions. They are advised not to store the feed in moist place, also labels put in each bag to ensure proper .

Training: Quality control personnel regularly undergo in – service training at courses conducted at control food Training and Research Institute (CFTRI), RRL, NDRI & other national research organizations including various veterinary colleges in the southern states.

Page | 58

FUTURE PLANS AND PROGRAMS KSE, having an annual turnover of Rs.250 crores, which s the largest manufacturer of cattle feed. It provides employment to around 1000 directly and another 5000 indirectly. Its share is being listed in three stock exchanges in Cochin, Chennai and Mumbai. The company commenced its production in the year 1972. It is marketing annually about 1.80 lakhs per tons of superior quality cattle feed. KSE has successfully launched its Vesta Brand Ice Cream which has been well accepted in the market for its matching international quality standards. KSE plans to add more ice cream production units across Kerala in the coming years to serve all pockets. KSE is in the oil extraction industry in the past 31 years. It is having two solvent plant with processing capacity of 100 tons per day. The company has also a chemical oil refining plant of 20 tons per day. The company has secured the National Productivity Award for the year 2001-2002 for being first in of production efficiency in the animal feed sector. This is the sixth time in a row that the company is being selected for this most coveted award. It is pertinent it note that in the Kerala industrial scenario, where many companies are choosing down, either due to labour unrest or due to other economic reasons, KSE continue to commence new venture each year and runs them successfully. The company is having six units at different locations. The relation with the labour unions is very warm and cordial. KSE, with a capital base of Rs.36crores embarks on an expansion to double its solvent extraction capacity and add a most modern ecofriendly vegetable refining plant. The company has already identified six Acres of land in the KINFRA small industries park, koratty fort his expansion.

Page | 59

SWOT ANALYSIS

Strength

Vast experience of 36 years in the cattle feed and solvent extraction industry. KSE has survived many ups and downs in the industry



KSE is the Market leader in the cattle feed segment



KSE has won many awards and recognitions because of its outstanding quality of products which give them an edge when comparing to others companies.



KSE has a Huge network of product dealers because of this the company need not spent muc n the marketing.

Weakness Labour unrest from 10 Feb 09 to 25 Mar 09 in KSE's Swaminathapuram unit caused a rift between the workers and the management



KSE is finding it difficult to procure coconut oil cake domestically and has rely on imports. Further the depreciation of the Indian Rupee against US Dollar is pushing up KSE's import costs



Promotional activities are limited



High price row materials



High cost of production

Opportunity Page | 60



With the VAT removed on sale of cattle feed, de-oiled cakes and coconut oil, KSE's products are competitively priced



KSE is in process of establishing ice-cream production units near identified potential markets. This will expand its sales

Threat Cutthroat competition from the unorganised sector who have comparitively less labour overhead costs

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Probable entry of MNCs in the cattle feed sector

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Rise in crude oil prices causing an increase in input costs

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Stagnant growth in cattle population might slower growth prospects of the cattle feed industry

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Indirect control by govt. over the price of milk

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Crop rotation by farmers, since oil seeds and grains are raw materials for KSE

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Import of cheaper oils for industrial consumption leading to a fall in demand for solvent extracted coconut oil

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Findings We have found many things in KSE they are as follows:        

The company has huge market demand for its product. Because company has created a goodwill among customer over years. Company has faced many they problems over the years and they have been successfully running. Because of its good istration department. Company has always tried to maintain a good employer-employee relation by providing good working condition. While other companies have put lots f money in marketing their products KSE has limited marketing. But they have a huge demand for their products Even though they are running 365 days but they still can‟t satisfy the demands of the customers. In olden days their demand has been highly seasonal but now it have change. They are manufacturing milk and ice cream but due to unavailable of raw material they have been limited their market of those products. Their products price is little higher when compare to competitors but they still have demand because f its supreme quality of those products.

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SUGGESTIONS  Gather more raw materials from domestic territory. It reduce the cost of raw material and transportation.  Introduce direct marketing with customer so that it helps customers to buy goods at low cost  KSE can think of establishing human relation development for dealing with all aspects related to its employees

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Conclusion KSE ltd Company has been running successfully over years. They have seen many up and down in market still they have become successfully. The reason behind it is the management and the workers tly work together for the good will and for the profit of the company at times it needed most. Most of all they have given only good quality products to the costumers according to the needs of the customers. Perhaps this is the real reason for the company‟s success.

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Bibliography      

Kotler Philip, „Marketing Management‟ Eleventh edition, prentice Hall of India Pvt Ltd, 2005. Annual report of KSE Ltd. Principles of mgt www.kselimited.com http://www.fao.org/DOCREP/Article/AGRIPA/X9500E01.htm http://stason.org/TULARC/science-engineering/chemistry/24-1-What-is-SolventExtraction.html

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