Organisational Study Of Kse Ltdsummer Internship Report 204s24

ORGANISATIONAL STUDY OF KSE LTD SUMMER INTERNSHIP REPORT (In partial fulfilment of the degree of Master of Business istration)

SUBMITTED BY: HIJAS K.H (RA1452001010446)

Under the guidance of Prof. Dr R VELU (M.A, M.B.A, M.Phil., Ph.D., D.P. Tech) (Faculty guide – SRM)

DEPARTMENT OF SRM FACULTY MANAGEMENT SRM UNIVERSITY-KATTANKULATHUR – 603 203 KANCHEEPURAM DISTRICT, CHENNAI, TAMILNADU.INDIA BATCH:2014 -2016 1

(JULY -2015)

BONAFIDE CERTIFICATE

This is to certify that the Summer Internship Report entitled “ORGANISATIONAL STUDY”, in partial fulfilment of the requirements for the award of the Degree of Master of Business istration is a record of original training undergone by HIJAS .K.H (Reg.No: RA1452001010446 ) during the year 2014-16 of her study in SRM University, Kattankulathur Campus under my supervision and the report has not formed the basis for the award of any Degree/Fellowship or other similar title to any candidate of any University.

Submitted for the viva-voce examination held on ___________________________

__________________________

___________________________

Signature of Guide

Signature of Dean

(Prof. Dr R VELU.

(Dr. JAYASHREE SURESH)

SRM University)

2

__________________________ EXTERNAL EXAMINER

DECLARATION

I hereby declare that the report entitled “ AN ORGANISATIONAL STUDY” has been prepared by me during the period from 5 th June’2015 to 21st July’2015 under the guidance of Mr M ANIL , General Manager ,KSE.PVT LTD and Dr R VELU Professor, SRM University.

I also declare that this project has not been submitted nor shall it be submitted in future to any other University or Institute for the award of any other Degree or diploma.

___________________________ HIJAS K H Date:

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ACKNOWLEDGEMENT Before I get into thick of the things, I would like to add a few heartfelt words of gratitude for the people who were part of this project in numerous ways people who gave unending . First and foremost I thank god almighty without whose mercy and grace, I would not be here | where I am today.

I thank my Dean Dr. JAYASHREE SURESH SRM Faculty of Management, SRM University, I also thank my guide Prof. Dr. R VELU Sir for his expert advice and help, without which the present study, could not have been accomplished, and I thank my college, SRM Faculty of Management, who aided me for doing this project. It is with profound gratitude that I acknowledge the contribution and co-operation extended by my guide, Mr ANIL sir, General manager (operations) and I would like to thank Mr PRABU sir who took off his busy schedule to advice and guide us on the technical and other overall aspects of the organisation. I also thank my family and friends who rallied upon me helping face the trying situation and also were a source of my strength.

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CONTENTS S.NO Chapter 1

TITLE 1.INTRODUCTION OF STUDY

1.1 1.2 1.3 1.4 Chapter 2

PAGE NO 1-3

Need and significance of the study Objective and scope of study Sources of data collection Limitations of study

2.COMPANY PROFILE AND PRODUCT PROFILE

4-12

2.1 History of the company 2.1.1 Quality policy 2.1.2 Vision 2.1.3 Mission 2.1.4 Objectives of the company 2.1.5 Units 2.1.6 Capital structure 2.1.7 Achievements and recognitions 2.1.8 Milestones 2.1.9 Turnover of KSE limited 2.1.10 Competitor's information 2.1.11 Future prospects and growth plan 2.1.12 Social ethics 2.2 Product profile

Chapter 3

Chapter 4

Chapter 5 Chapter 6

3.ORGANISATION STRUCTURE

13-14

4.DEPARTMENTS OF THE ORGANISATION

15-39

4.1 Personnel department / human resource department 4.2 Finance department 4.3 Marketing department 4.4 Production department 4.5 Purchase department 4.6 Store department 5. SWOT ANALYSIS 6. FINDINGS AND SUGGESTIONS CONCLUSION 5

40-42 43-44 45

BIBLIOGRAPHY

46

6

Chapter 1 INTRODUCTION TO THE STUDY

7

1. INTRODUCTION TO THE STUDY

The basic purpose of every organization is to coordinate the effort of many people towards the achievement of some common goals. No organization can survive for long unless it takes care of prudent utilization o f the resources, particularly human resources. Human resources are the assets o f an organization. Organization is the process of identifying and grouping the work to be performed, defining and delegating responsibilities and the authority and establishing relationship for the for the purpose of enabling people to work most effectively together in accomplishing the objectives. Organization is the integration of various departments and its functions. A sound organization can contribute greatly to the continuity and the success of the enterprise. Organization study deals with critical evaluation and analysis of all the aspects of a particular firm. It gives a clear idea about the function and practice of various heads of department as a whole. This would help to get a practical and real time feel of various aspects concerned with organization and to relate it to the concepts and theories studied so far in the class rooms. This particular study gives a clear idea about the functions, practices and the delegation of authority of K S E ltd.

1.1 NEED AND SIGNIFICANCE OF THE STUDY 1. To familiarize with the functions of the business organisation. 2. To study the work culture of the executives and the worker. 3. To familiarize with the different departments in the organisation, the structure and their functioning. 4. To understand how key business processes are carried out in the organisations. 5. To understand how the theoretical knowledge go together in order to achieve organisation goal.

1.2 OBJECTIVE OF STUDY The main objective of the study is to get knowledge about the organizational and its various activities of the departments. 1. To get knowledge about the organisational functions and strategies followed by different departments to fulfil organisational goals. 2. To study how the management tries to control and co-ordinate various departments to achieve organisational goal. 3. To do SWOT analysis of the firm. 4. To get an insight about the cattle feed industry

8

1.3 SCOPE OF STUDY Scope o f the study is immense as it is named at covering the entire operation of the plant and functional department in the organization. The study gives an insight into the day to day operations and the management o f the organization. In a broad sense the scope of this project work is an attempt to know about the organization as a whole and also about the functions and the practices o f the organization. The study helps to understand the improvements, the working conditions, work environment o f the organization.

1.4 SOURCES OF DATA COLLECTION



PRIMARY DATA

Primary data is those data collected from real life. And it is collected by the employees directly. It is collected by using direct interview and observation. 

SECONDARY DATA

Secondary data are those data which are already available i.e. they refer to the data which have already been collected and analyzed by someone else. The secondary data collected from journals, existing records, company files, and annual report of the company. It is collected to find out the profile o f the company its functioning and overall performance of the company.

1.5 LIMITATIONS OF STUDY One of the important limitations of this is shortage of time. The researcher could not see all the employees personally and hence the researcher could not collect opinion of all employees. 

The researcher could not see the workers personally



Busy schedule of the officers and employees prevented lengthy discussions.



Concealment of confidential matter.



Period of study is limited.

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Chapter 2 COMPANY PROFILE AND PRODUCT PROFILE

10

2. COMPANY PROFILE AND PRODUCT PROFILE 2.1 HISTORY OF THE COMPANY Kerala Solvent Extraction was incorporated in 1963 under the Indian companies Act 1956.It was ed as a public company was held on 20 October 1963. It was formally known as solvent extraction limited (KSEL) was prompted by K.L Francis, MC Paul, T.O Paul and A.P George. Now it is come to know as KSE Ltd .KSEL is engaged in the production of cattle feed, Solvent extracted coconut oil, rice brain oil, de oiled coconut cakes are other oil cakes

The company is mainly engaged in animal feed division, oil cake processing division comprising milk and milk products including ice cream. The company commands the resources, expertise and infrastructure to manufacture a range of livestock feed in high volumes coconut oil from coconut oil cake and refined edible oil .the company has endeavored to supply its products to customers through an extensive network of dealers and retailers which from a dedicated force behind the success of the company. It is a matter of pride that the company

The capacity of the plant was raised to 60 tons per day .By 1982 the cattle feed capacity was increased to 100 tons per day .In 1987 the cattle feed capacity was increased to 180 tons per day .The company s second production unit with capacity of 150 tons per day solvent extraction commenced operation at swaminathapuram, dindingul district in tamil nadu in 1988

The company provides direct employment to 1000 people and indirect employment to 5000 people   

To plant cultivate and purchase all kind of food stuffs and deals in them To deal with all kinds of milk and milk related products like candies, butter and ghee etc. The main objective is the social concern, I.e. the children s information Centre and park at irinjalakuda, conducted to commemorate the silver jubilee of production of the company at a cost of 30 lakh has been opened for public on second April 2000.the company contributed rs 5 lakh to the kargil fund and all the employee of the company contributed their one day wage for their good because the company also contributed rs 25 rakh to Tsunami fund for helping those who lost everything

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KSE had computerized its operations way back in the year 1999; KSE went to upgrade its EDP setup further. Customers made ERP software private limited, Cochin and online computerization was fully implemented at allots plants, being custom made for KSE this ERP software, with SQL RDBMS, front end or visual basic and windows NT OS had integrated all functions of the organization via FA, inventory, billing, payroll, MIS, Share ing etc. The head office at Irinjalakuda has 2 server and 40 nodes running the application. Other units are above 8 server and 50 nodes. The latest plant at vedagiri, kottayam has a computerized control room for monitoring homogenization, size reduction, batching, pelletisation, pellet cooling and aspiring system. 2.1.1 QUALITY POLICY We at KSE Ltd, Irinjalakuda division shall endeavor to produce animal feed to satisfy the needs of the customer and within the regulatory requirement and look for continual improvement in all spheres of our activities through whole hearted efforts of our committed and trained employees.

2.1.2 VISION We shall endeavor to maintain leadership through quality products, explore new avenues in product development and marketing, create a strong bond between the management, work force, dealers and customer, contribute to social development and rural up liftment , constantly strive for excellence in all spheres of our activities. 2.1.3 MISSION 1. 2. 3. 4. 5.

To maintain the market leadership. To minimize the cost incurring in production process. To maintain the product quality. To be competitive at all markets. To be compliment to all global quality standard.

2.1.4 OBJECTIVES OF THE COMPANY

The company came into existence with a very modest objective to help the Coconut 1Oil millers through solvent extraction process. Achieving the same with remarkable success, KSE Ltd, over the years has expanded considerably, having ventured into other growth areas as well. The oil come was very impressive, success has followed success. Today KSE Ltd is among the top ranking industrial houses in the state of Kerala and a recognized industrial force, nationality.

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Main objectives are:1. 2. 3. 4.

To increase the sales. To improve employee skill through training. Improve customer satisfaction by reducing customer complaints. Implement quality management system.

5. Reducing down time of the plant. 2.1.5 UNITS • • •

SWAMINATHAPURAM UNIT VEDAGIRI UNIT PALAKKAD UNIT

• • • •

KORATTY UNIT KONIKKARA UNIT-DAIRY DIVISION. THALAYUTHU UNIT - DAIRY DIVISION VEDAGIRI UNIT - ICE CREAM DIVISION

2.1.6 CAPITAL STRUCTURE The share capital of the company comes of the company come to 320 lakh from around 6500 shareholders. Its shares are listed in stock exchange of Mumbai, Chennai, Cochin. This 320 lakh where divided as 32 lakh share of RS 10 each. Now the value of the share is RS 730(march 2015)

2.1.7 ACHIVEMENTS AND RECOGANITIONS •"Best productivity performance for cattle feed in India "Award from National productivity Council continuously for Eleven Years 1996-97 to 2005-06. • "The Solvent Extractions Association of India "-SEA Award for highest processor of coconut cake in India, since institution of the award. • Kerala state productivity Council award. • "Top Cattle feed award" for afflation free feed from "The Indian Association of veterinary Pathologists" (IAVP) and Kerala Agriculture University. • Tamil Nadu Productivity Council Safety Award. • Animal Nutrition Society of India Award for Company's contributions for propagation of balanced compound livestock feed in India. • Industry Excellence Award from the Indian Society for the study of animal Reproduction for the year 2001. • Entrepreneur Award from the College of Veterinary and Animal Sciences.

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2.1.8 Milestones

1972: The Company started production in Irinjalakuda with a solvent extraction capacity of 40 MT's per year. 1976: A new plant was set up Irinjalakuda to produce 50 MT's of ready mixed cattle feed. 1979: Production capacity of cattle feed plants in Irinjalakuda increased to 60 MT's per day. 1983: In Irinjalakuda, fully automatic new cattle feed plant started opened with a capacity of 120 MT's per day. 1984: The solvent extraction plant capacity at Irinjalakuda increased 80 MT's per day. 1987: Cattle feed plant at Irinjalakuda capacity increased 180 MT's per day. 1988: A new mixed cattle feed starts operation at Swaminathapuram in Tamil Nadu with a capacity of 100 MT's per day. 1989: A solvent unit with a capacity of 120 TPD commences operation at the Tamil Nadu plant. 1990: Introduction of "KS Supreme pellets "a by protein cattle feed in the market. 1991: Palakkad branch started. 1992: Cattle feed manufacturing beings in third party unit. 1993: Enter exports market. 1994: "Key Forte" the new cattle feed supplement for cattle introduced. Cattle feed capacity At Swaminathapuram increased to 180MT's per day. 1995:

1996: 1998: 1999:

"KS Supreme" Sunflower Refined oil launched. Vegetable oil refining plant commissioned. Cattle feed production started at Mysore in Karnataka. Calicut branch opened. 240TPD cattle feed plant at Vedagiri Kottayam district started operation. Company acquired its fourth manufacturing unit at Palakkad for feed Launched Dairy products. A modern "children's park and information Centre has been completed at Irinialakuda for the benefit of public. Company introduced "KS Deluxe plus " the pallet feed in HDRE bag for Kerala:

2000:

Company started production and marketing of pasteurized milk and products from Konikkara Dairy, Thrissur district, Kerala and Thalayuthu Dairy, Palani Taluk 14

, TamilNadu. 2002:

Cattle feed production at Irinjalakuda unit increased to 195MT's per day.

-Ice cream "Vests" launched. 2003: Started producing cattle feed in a lease plant at Edayar, Kalamasseri. - Cattle feed production at the Swaminathapuram unit increase 195MT's per day. 2004: Acquired land from KINFRA for starting the new project of 200TPD solvent plant 100TPD oil physical refined plant at KINFRA park, Koratty. -ISO 9001:2000 accreditation for irinjalakuda. 2005:

Cattle feed production capacity at the irinjalakuda unit increased to 210MT s per day -Company acquired property at Mysore. -ISO 9001:2000 accreditation for Vedagiri and Swaminathapuram units.

2006: Tenth Consecutive National Productivity Award. -Solvent extraction plant at irinjalakuda dismantled 2007: Cattle feed production increased to 295MT's. 2008: Company has own best productivity Performance Award. 2009: Cattle feed production capacity at Swaminathapuram increased to 200MT's per day. -Commenced 500TPD fully stat of the Art German Technology Animal feed plant at 2010:

Irinjalakuda. Ice cream production unit at Vedagiri commissioned

2.1.9 TURNEOVER OF KSE LIMITED The total turnover during the year improved .25% compared to the immediate preceding year. Since 1976 KSE has been making steady profits and paying uninterrupted divided and a 20% yearly bonds to the employees. The turnover has recorded continues growth and the crossed Rs 1300 million during 1997-98 the profit from operation have also kept rising phenomenally. The net profit recorded in 1997-98 is around 100 million. Prudent financial management and a futuristic outlook has been the abiding principle of turning around the initial setbacks into strengths. The company's constant investments in growth have been producing good returns. The financial future of KSE limited is secure and bright.

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2.1.10 COMPETITOR'S INFORMATION Severe competition exist in the cattle feed industry. Most of the competitors are from Kerala and many of others nearest states. Most of the people in Kerala and many others southern states of India use cattle feed for their cows and buffaloes and this makes the competition very tough. In the cattle feed sector competition is mainly from Govt, sector Company "Kerala feed" has set a plant at Kalletumkara. Milk marketing of Kerala (MILMA) is also a strong competitor of KSE in the dairy division. Govt, is showing high protectionism towards Milma. KSE Ltd is given permission to procure milk only from certain area of Thrissur district. Vesta ice cream is another milk product of KSE Ltd. It has many competitors in the market. So the company may adopt better strategies to face stiff competition. The main competitors are as follow: • Kerala feed- Cattle feed • Mysore feed-Cattle • Prima feed-Cattle • Godrej -Animal feed-Cattle feed • Milma- milk products • Amul-milk products 2.1.11 FUTURE PROSPECTS AND GROWTH PLAN I.

Aim to increase annual sales turnover into 800 crore. Then increased the production capacity also.

II.

Aim to increase the production of milk products.

2.1.12 SOCIAL ETHICS    

Proper disposal of wastes there by controlling environment pollution. Providing direct and indirect employment. 25lakhs donated to Tsunami relief fund. Money donated to earthquake relief fund.

On 29th March, 1998, on the occasion of commemorating the Silver Jubilee of the first production of the factory, the Management of KSE Limited promised the public that a Park and Library will be set up to benefit the children of surroundings. On 2nd April, 2000, the KS Park and children’s information Centre was opened to the public to fulfill the Company’s 16

social responsibility. Adjacent to the ed Office of the Company at Irinjalakuda the KS Park is spread over more than half an acre of land. The locale is blessed with unique scenic beauty and pristine charm. With a beautiful building of nearly 3000 sq. ft., which accommodates a library and Information Centre and children’s playing equipment’s, this Centre provides the following facilities: 

Park with latest playing equipment’s for children - a new rider imported from China was recently installed.



Beautiful, lush greenery and resting place for the parents accompanying the children.



A good library – with an extensive selection of books, magazines and periodicals to facilitate acquisition of knowledge.



Computers – with multimedia facility.



Newspapers and other informative magazines for the grownups.



An open air stage in the compound for cultural programs and competitions.

For the personality development of the children an association was formed and it was named, KARTAVYA (Keyess Association for Regular Training And Voluntary Youth Activities). On behalf of KARTAVYA various competitions and personality development programs are conducted. As a part of Children’s Day celebrations, in the month of November, a painting competition is held every year for school going children on all Kerala level. The painting competitions are usually conducted for 3 or 4 days. Competitions are also held for KG students and the winners are crowned with Vesta Baby Prince and Vesta Baby Princesses. Various cultural competitions are also held during these days. Nearly 2500 students used to participate in the competitions. During the school vacations - Onam, Christmas and summer vacations - various programs like public speak practice, Handwriting improvement classes, Quiz competitions and other personality development classes are conducted.

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2.2 PRODUCT PROFILE The main products marketed are 1. K S CATTLE FEED It includes six types they are Product Name

Form

Weight

a)

K S ORDINARY

MASH

57 Kg

Rs 1030

b)

KS SUPER

MASH

60 Kg

Rs 1110

c)

KS DELUX

PELLETS

70 Kg

Rs 1302

d)

KS DELUX PLUS

PELLETS

50 Kg

Rs 892

e)

KS SUPREME

PELLETS

50 Kg

Rs 1008

f)

KS

PELLETS

50 Kg

Rs 902

2. KS SUPREME (Refined sunflower expeller oil) 3. JERSEY COPRA CAKE 4. KS FORTE (Feed Supplement-Tonic) 5. KS MINERAL MIXTURE 6. KS MILK PRODUCTS It includes five types they are a) b) c) d) e)

KS PAAL (KS MILK) KS GHEE KS CURD KS BUTTER MILK VESTA ICE CREAM

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Price

Chapter 3 ORGANISATION STRUCTURE

19

3. ORGANISATION STRUCTURE

BOARD OF

EXECUTIVE

FINANCE MANAGE

ASSISTA NT ACCOU NT

MANAGING

PERSONN EL

PURCHAS E

EXECUTI VE

SHARE DEPUTY

EXECUTIVE ASSISTAN T FINANCE MANAGER

WHOLETIM

OFFICER

MARKETIN G

SECURITY OFFICER

OFFICE

SECURITY SUPERVIS

CLERK SECURI TY

OFFICE

ASSISTANT SALES

SALES EXECUTI OFFICE ASSISTANT CLERK

EXECUTIVE

CUSTOM ER

SALES SUPERVIS OFFIC SALES REPRESENTATI VE

PRODUCTI ON CHIEF

ASSISTAN T CHEMI ST LAB ATTENDER

CLERK

OFFICE

ENGINEER

CLERK

ASSISTANT PLANT ENGINEER

ELECTRICAL FOREMAN

MAINTENAN CE

BOILER OPERATO

REFINIG PLANT

SOLVENT OPERAT

MAINTENAN CE

ASSISTAN T

ASSISTA NT WORK

CATTLE FEED ASSISTA NT

GODOWN

ELECTRIC AL ELECTRIC

GODOWN SUPERVISOR STORES GODOWN

ELECTRI CAL

WORKER WORKE R

PLANT ATTENDER

ASSISTA NT WORKE

WORK WORKE

STORES

STORES SUPERVIS

SHIFT

ASSISTA NT OPERAT

QUALITY MANAGER

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Chapter 4 DEPARTMENTS OF THE ORGANISATION

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4.DEPARTMENTS OF THE ORGANISATION 4.1 PERSONNEL DEPARTMENT / HUMAN RESOURCE DEPARTMENT

Human resource and istration department is the department, which enables the smooth working condition and harmony in employee employer relationship KSE limited has given Utmost care in giving functions to the personnel department, the basic functions includes recruitment, selection, induction training and development, motivating the employee’s performance appraisal

According to JUCIUS “Human resource refers to a whole consisting of interrelated, interdependent and interacting, psychological, physiological, sociological and ethical components” Thus Human resource represents the quantitative measurement of work force required in an organization

4.1.1 The major function of personnel manager are :

      

Man power planning including job analysis ,job specification and job description Recruitment to all the departments of the company Training of newly recruited employees Performance appraisal , job evaluation Running welfare scheme for employees Grievance redressal Fixing wages and salaries of the employee in consultation with the trade union

4.1.2 LABOUR RELATION There is good relationship between company and employees. The main trade unions are INTUC, CITU, BMS. In the past 36 years there is no more strikes to be take place in KSE Ltd. The management continuous to maintain ordinal industrial relation with its employees in all units and is attending to their grievances with an open minded.

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4.1.3 This shows the personnel department as follows :-

PERONNEL MANGER

ASSISTANT MANAGER

SECURITY OFFICER

SECURITY SUPERVISOR

SENIOR EXCECUTIVE

EXCECUTIVE

SECURITY GUARD

OFFICERS

WATCH MAN

SENIOR ASSISTANT

OFFICE ASSISTANT

CLERK

The departmental concentrates on recruitment, welfare facilities motivation schemes, remuneration, leave and holiday and holiday benefits etc. company at the present has ten directors. The irinjalakuda unit provides a total direct employment about 5000 persons.

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4.1.4 Employee in the company can be classified as four categories :-

   

Unskilled labours Technical Assistants Officers Security

A. UNSKILLED LABOURS As a part of the company policy , un skilled labours are selected from within 5 km radius of the company. The age education should be less than SSLC Workers can be classified as: 

Daily rated workers Monthly rated workers

B. TECHNICAL ASSISTANTS Minimum qualification of Technical Assist is ITI. C. OFFICERS Graduation is the minimum qualification for the post officers. D. SECURITY For this category, minimum age need is 50. The application should be ex- serviceman.

4.1.5 MANPOWER PLANNING KSE Limited proud of its well-coordinated labour force. The personnel department was seen as a place where the lesser productive employees could be placed with minimal damage to the organisation on going operation. 4.1.6 EMPLOYEE SELECTION PROCEDURE Employees are selected based on their educational qualification, work experience technical knowhow and age, company ads on newspapers through employment exchange and promoting its own employees based on performance, In KSE Limited 24

total number of employees more than 900 including the employee in its 4 units. In this 500 employees attached to irinjalakuda unit. 4.1.7 TRAINING On the job: KSE Ltd gives the job training to the employees’ .They are kept in probation for six months. If the company found it unsatisfactory, then probation period may be extended. Induction training is given at this period. Workers are selected as substitute workers. If a substitute worker works for a period for minimum of 240 days with in a year they would be made permanent worker. Fresh blood would be preferred for lower divisional works. Based on this policy company promotion for senior posts are made Off the job: The company staff is got off the job training from out of the campus. Occasionally this type of training is provided on the surrounding conference hall 4.1.8 TRANSFER According to the discretion of the management employers and workers are may be transfer from one department /selection to another department /selection, they can also change from one job to another

4.1.9 PERFORMANCE APPRAISAL It is known as assessing The quality of personnel ,his behavior the relation among Them .his efficiency to complete the target on time

4.1.10 REMUNERATION

There are three types of wages schemes:-

 

Unskilled permanent workers get daily wages Badali workers will get wages on weekly bases. 25



Office staffs will get salary on the last working day of every month

4.1.11 SALARY STRACTURE  Basic salary  Fixed dearness allowance  Variable dearness allowance ALLOWANCES 

Dearness allowance :- it is given to employees DA is divided into two classes  Fixed DA calculated at rate of 15% of basic pay  Variable DA based by the cost of living index published by government of Kerala

        

Convenience allowance Washing allowance Canteen subsidy Leave and travel allowance Housing subsidy Shift allowance Overtime allowance Scholarship for employees children Employee welfare fund

4.1.11 WORKERS WELFARE ACTIVITIES

The companies establish a trust known as company welfare trust in which ensuring sound working condition a. Ensuring fair wage system. b. Protecting the right of workers c. A committee consisting of chairman, managing director, whole time executive director. General Manager works manager and personnel manager approve the demands of workers.

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d. Rs 20 are paid both by the employees and company every month. Additional funds are provided to employee during the death of employee or in the case of employees siblings marriage

4.1.12 SAFETY MEASURES Safety equipment: Mask  First aid facility  Dust extraction system

4.1.13 LEAVE  Casual leave: 9 days for workers and 11 days for staff.  Privilege: For workers 1 day for 15 days worked15 ,for staff 30 days  Sick leave: 7 days

4.1.14 RETIREMENT Retirement age of the employee 58 years.

1.1 FINANCE DPARTMENT

Finance is the life blood of the business. All the financial activities are handled by the financial department of the company All department have a link between the financial department . The main functions of financial department are to prepare the budget, financial management, management the investment of the company, management of taxes ,management of financial risk ,and merge and acquisition decision

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4.2.1 DEPARTMENT STRACTURE

FINANCE MANAGER

DEPUTY ANT

DEPUTY FINANCE MANAGER

DEPUTY SHARE MANAGER

EXECUTIVE OFFICER

EXECUTIVE OFFICER

EXECUTIVE OFFICER

SENIOR OFFICER

OFFICE ASSISTANT

CLERK

SENIOR OFFICER

OFFICE ASSISTANT

SENIOR OFFICER

OFFICE ASSISTANT

CLERK

CLERK CLERK

4.2.2 CAPITAL STRUCTURE The share capital of KSE ltd comes to 320 Lakh. from around 6500 shareholders. These shares are listed in stock exchange of Mumbai, Chennai & Cochin. This 320 lakhs where divided as 32 lakhs share of Rs 10 each. The company is having the over-all profit after tax is ` 4,363.41 lakhs in year 2014-15 compared to ` 1537.36 lakhs in the previous year. The turnover of the Company improved by 12 % from ` 806 crores to ` 900 crores during the year ended 31st March, 2015.

4.2.3 SOURCE OF FINANCE The company makes use of two types of source to finance activities, they are

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1. 2. 3. 4.

Shareholders fund Share capital Reserves and surplus Loan funds

4.2.4 FUNCTIONS OF FINANCE DEPARTMENT 1. 2. 3. 4. 5. 6. 7. 8.

Maintaining a good financial structure Identify the future financial requirement Dividend payment Salary payment Collection of cheque Receipt General payment Payment of raw materials

4.2.5 MAINTENANCE OF COST RECORD As far as KSE Limited is concern maintainer of cost record is not mandatory as none of its products fall within that category .Even through not mandatory, company maintains necessary cost records to meet its own requirements. 4.2.6 INTERNAL CONTROL The system of internal control may define as the organizational plan and all the methods and procedure adopted by the management of the entity to assist in achieving 1. 2. 3. 4. 5. 6.

Timely preparation of reliable financial information Accuracy and completeness of ing records Prevention and completeness of ing records Safeguarding asset Adherence to management policies Orderly and efficient conduct of its business

4.2.7 AUDITING The company has constituted on adult company .three independent non-executive directors assists . The main auditor of the company is varma and varma A. INTERNAL AUDIT It is independent appraisal function within an organisation, for review of activities as a service to all levels of management. Its objective is to measure ,evaluate ,and report upon the effectiveness of internal control financial and other as a contribution to the efficient use of resource with an organisation. The KSE Limited’s internal audit is taken care of by assistant manager, some of the units are audited by himself and the 29

rest, mainly situated in other districts and states are performed by independent charted ant firms B. INTERNAL CHECK The company has devised internal check measures. Internal check refers to a system of book keeping and arrangement of staff duties in the organisation in such manner that no one person can completely carry through a transaction and record every aspect there 4.2.8 BUDGETING Budget is prepared by each other year. The budget is prepared in the month of February. Profit and loss is prepared monthly by finance department .Two committee meeting are conducted by management

4.2.9 FINANCIAL HIGHLIGHTS PARTICULARS

20102011 (in Lakhs)

20112012

20122013

20132014

20142015

(in Lakhs)

(in Lakhs)

(in Lakhs)

(in Lakhs)

45436. 07

Shareholders’ Equity (Net worth)

54336. 28 1446.98 2387.8 3 667.31 1587.0 4 449.81 1044.9 3 3335.3 3971.1 4 8

69825. 80720. 89 11 1401.8 2956.3 4 0 666.09 2343.8 7 465.30 1537.3 6 4069.5 4858.0 0 9

90133. 16 6173.9 0 6388.9 3 4363.4 1 7181.0 7

Capital employed

4498.23

4898.6 7 7194.27 7308.6 2

4958.2 1 8078.2 9

7764.1 3 7975.5 1

Sales and Other Income Gross Profit (Profit before depreciation and interest)

Profit before tax Net profit after tax

Gross fixed assets

Rs

Shareholders’ equity per share Earnings per share of Rs10 each Dividend rate

YEAR 2010-2011 2011-2012

Rs

5702.4 1 8110.6 4

Rs

Rs

127.17

151.82

224.41

Rs

104.23 14.06

124.10 32.65

14.54

48.04

136.36

100%

110%

100%

200%

500%

NET PROFIT(in Lakhs)

SALES (in Lakhs)

449.81

45436.07

1044.93

54336.28

30

2012-2013 2013-2014 2014-2015

465.30

69825.89

1537.36

80720.11

4363.41

90133.16

(Showing the sales comparison of last 5 year)

Source: company records

4.2.10 MARKET PRICE OF SHARE

Month

High ( Rs)

Low ( Rs)

April, 2014

239.95

221.05

May, 2014

255.75

209.25

June, 2014

375.60

268.50

July, 2014

399.00

340.50

August, 2014

412.00

360.10

September, 2014

440.00

361.00

October, 2014

402.00

351.50

November, 2014

611.85

375.00

December, 2014

620.00

541.00

January, 2015

722.30

544.95

February, 2015

730.00

544.65

March, 2015

730.00

651.00

(During the financial year 2014-2015 based on BSE data Source: company records

4.2.11 ING POLICIES

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s in KSE ltd are prepared under historical cost conversion on accrual basis unless otherwise especially in the notes to . 

Fixed assets a. Asset put to use have been stated at costless depreciation b. Asset not put to use have been state at cost

Depreciation Depreciation on fixed asset has been provided on written down value method at The rate prescribed in the company Act 1956 

Investment Long term investments are stated at cost less provision, if any permanent elimination in the value of such investment



.Inventories Inventories at the closing of the year are valued at lower cost or net realizable value. Goods in transits at cost



Retirement benefit Contribution to provident fund and employee welfare fund is charged to profit and loss



Gratuity The accruing liability towards gratuity of employees is covered by the group gratuity Assurance scheme of LIC (Life Insurance Corporation) of India and contribution due in Accordance with the scheme is charged to profit and loss . Gratuity represent of

Whole time directors is provided on basis and charged to profit and loss Sales Sate includes exercise duty but exclude tax.

4.3 MARKETING AND SALES DEPARMENT 32

The company must design a marketing function that can carry out marketing strategies and plans .If the company is very small , one person might do all the research , selling , and advertising , customer service and other marketing activities .As the company expands a marketing department emergence to plan and carry out marketing activities

Managing the marketing function would be hard enough if the marketer had to deal only with the controllable marketing mix variables. But the company operates in a complex marketing environment consisting of uncontrollable forces to which the company must adopt

4.3.1 MARKETING IN MODERN WORLD

In the olden days, Marketing has identified as physical movements of goods from producer to customers. But modern concept of marketing aims at satisfying the needs and wants of customer at reasonable amount of profit

The management process responsible for identifying anticipating and satisfying customer requirements profitably, marketing requires coordination, planning, implementation of campaigns and a competent manager with the appropriate skills to ensure success. Marketing objectives, goals and targets have to be monitored and met competitors strategies analyzed anticipating and exceeded through effective use of marketing research an organization should be able to identify the needs and wants of the customer and try to delivers benefits that will enhance or add to the customer lifestyle , While at the same time ensuring that the satisfaction of these needs results in healthy turnover for the organization PHILIPS KOTLER defines Marketing as “satisfying needs and wants through an exchange process”

Within this exchange transaction customer will only exchange what they value (money) if they feel that their needs are being fully satisfied. Clearly that greater the benefit provides the higher transactional value an organization can charge. Marketing is not about providing products or services it is essentially about providing changing benefits to the changing needs and demands the customer. According to modern concept, profit can be earned only through customer satisfaction 4.3.2 This shows the Marketing department as follows 33

CHIEF MARKETING MANAGER

CUSTOMER SERVICE

DEPUTY SALES MANAGER

SALES SUPERVISOR

ASSISTANT MANAGER

SALES REPRESENTATIVE EXECUTIVE OFFICER

SENIOR OFFICERS

JUNIOR OFFICER

CLERK

4.3.3 MARKETING STRATEGY OF KSE LIMITTED

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 Necessary publicity will be provided for assistance .The Company reduced its advertising and expenditure and concentrate more on radio wall painting and hoardings.  Seminar will be conducted on relevant topic  Cost of operation kept to be minimum  Sales representatives will be provided for assistance  Supply quality products at reasonable price using advanced production technique  Other marketing strategies

4.3.4 SELECTION OF DEALER

The field staff under assistant customer service and complaint manager will evaluate the dealer on the basis of certain things .They are      

Financial position of dealer Good and spacious go down Marketing potentiality Dealers credit worthiness One dealer within an area of 5 km

If the dealer doesn’t buy at last one load of cattle feed of 3 month, automatically the company will terminate his dealership.

4.3.5 PRICING METHOD No marketing department can follow same pricing policy for all time. It is on the basis of situation they make pricing .Now KSE is following a mixture of quality plus pricing and markets oriented pricing .When situation changes they also change the pricing policy .IN case of oil price based on Cochin market. The price is based after evaluating the raw material and procurement and storage costs plus profit

4.3.6 MARKETING INFORMATION SYSTEM

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These are collected from     

Directly from dealers. Report from sub dealers. Customer telephoning. Field force like sales representatives. Daily call reports by sales representatives.

4.3.7 MARKETING RESERCH   

It is done by company’s sales force by redressal of customers complaints Seeing the competitors. Checking whether the channel in the distribution system are weak or not

4.3.8 SALES PROMOTION ACTIVITIES 

 



Farmers meet and dealer meet .These are conducted by company once in every two year at different headquarters (TVM, ERM, TCR, CALICUT) .These meet are conducted in five star hotels. It is a one day program with two sessions. In that dealers can express their problem current market for the product. Farmer’s attitude towards the product etc. Giving incentives dealers promotion KSE give a target to dealers. If any dealer achieves the target KSE gives incentives Coupons are put inside the package. These offers are made in onam season. Coupons are certificates offering a started amount of reduction in purchase of specific product. This method includes customers to buy a particular brand Seminar will be conducted for farmers about cattle feed .In this seminar; an award is given for the best farmer. This award is given for best farmer; this award is in the form of cattle feed.

4.3.9 SALES DPARTMENT It is a full- fledged department itself functioning under marketing department to become an executive dealer of a company. Company sees that the dealer’s agency would be 5 km away from other KSEL agencies. Market study will help of the sales representatives will be undertaken .Social status , Financial capacity ,go down facility etc. of the dealer will also be studied the demand of the competitors product in the market also will be assessed before giving the dealership

4.3.10 SALES PROCEDURE 36

Order is received through phone or in person. Name and expected date will be entered in a computer system. The advance payment is received in the form of cash (up to Rs 20000), DD or check along with the intend from in which the product needed quality required. Expected date of delivery order. One kept for the data storage in computer, the order two with go down people out of which one is sent back to sales department for the preparation of invoice. One copy is kept in files and other two copies are sending to the dealer from which the carrier returns one copy

4.3.11 LOCATION OF THE SALES OFFICES    

Irinjalakuda Edayar near cochin Palakkad Vedhagiri near kottayam

4.3.12 DEALER COMISSION  For KS cattle feed 10%  For de oiled coconut cake(jersey) 5.5%

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4.4 PRODUCTION DEPARTMENT 4.4.1 PRODUCTION FUNCTIONS         

PRODUCTION LAN PRODUCTION PROCESS PRODUCTION CONTROL EMPLOYEE SUPERVISION MAINTANCE OF MACHINE QUALITY ASSURANCE MAINTAINING HYGIENIC WORK PLACE MANAGEMENT OF DIFFERENT SHIFT EMPLOYEES MAXIMIZING THE PRODUCTION WITH MINIMUM RESOURCE

In KSE production takes in three pants

4.4.2 SOLVENT EXTRACTION PLANT The de-oiled coconut contains 8% of used as the main raw material. The coconut cake is being put into slow moving container or belt. Then it shaded and mixed with hexane a product of petroleum. This mixture of oiled and hexane is called miscellany. The next steps to separate the solvent from the cake and stored for use. For one tone of coconut cake, the usage of hexane is 9.91 kg. Here 24 hrs. production is taking place and its produces 200 tonnes per day. THEREARE THREE SHIFTS 8 AM -4 PM 4 PM-12 PM 12 AM -8AM 4.4.3 CATTLE FEED PLANT In this plant, the company uses different types of cakes according to their availability apart from other material the co-s coconut cake, sunflower cake, mustard cake, soya bean, wheat, vitamins cottonseeds, phosphate, tapioca, maize, jower and other vitamins. Except from coconut cake all other are purchased from other state. Here 24 hour production take place and it produces 650 tons per day

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The plant is designed with having a capacity of 200 tons per day. It work 8 hours with three shifts: 8-4, 4-12, 12-8 respectively. Only dumping of raw materials and stocking of finished feed is done manually. The other process are fully automated and controlled from the plant control room. The specialty of the plant is the high level of automation that has been incorporated and this automation has been helpful in attaining the consistency in quality through the repeatability of the formulation during the batching process. This technology has been marketed by us in the form of MM. Such as



Milling



Mixing



Cooking



Pelleting

4.4.4 MM TECHNOLOGY

 Milling This is being used for ensuring that all the granules are grinded, screened to 3mm sieve. Then it is made powder using grinder, two -harmer mills are used for this process.

 Mixing The raw material is used thoroughly by using horizontal mixer. Capacity of this mixer is 6 mm.

39

 Cooking Steam for cooking is produced using 3MT Boiler. The mixer / homogenizer carryout mixing while the mash is being moved forward and add with dry saturated steam. High efficient steam traps are used in the stream line for obtaining day-saturated steam. Cooking is carried out a temperature of 80 c using pressure dry statured steam. Cooking is carried out a temperature of 80 c using high pressure dry saturated steam.

 Pelleting The pellet mill die, by rotating, drags the mixture of mash steam toward the roller, which presses it and consequently compels it to through the role of die. The compression cause an increase in density of the mixture ,Which together With the heat generated by the dry saturated steam facilities the extraction of pallet. 4.4.5 .REFINING PLANT In this plant oil refined according to the seasonal demand , here two types of oil are refined 1. Solvent extracted oil 2. Sun flower oil Here 20 tons per day is produced. The oil produced will be colourless and odourless so it is not used for house hold consumption .The of this oil are oil millers, industries and is used as an ingredient for their product

In the company store department divided in to two  General store  Go down

40

4.4.6 RAW MATERIALS The various materials used for the production of cattle feed are as follows. 1) Tower 2) Maize 3) Sun flower extraction 4) DORB (de-oiled rice brain) 5) Rice polish 6) De oiled coconut cake 7) Soya bean meal 8) Ground nut extraction 9) Tamarind seed powder 10) Wheat bran/flakes 11) Rape seed extraction 12) Cotton seed extraction 13) Ragi powder 14) Molasses 15) Calcite powder 16) Urea 17) Salt 18) Minerals

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4.5 PURCHASE DEPARTMENT

4.5.1DEPARTMENTAL STRACTURE

PURCHASE MANAGER

EXECUTIVE OFFICER

OFFICER

OFFICE ASSISTANCE

CLERK

4.5.2 PURCHASE PROCEDURES Purchase Requisition It is the document through which other department heads make request for purchasing the raw material requires. On receipt of the requisition, the purchase manager will make necessary steps for purchasing the material.

42

 Plants are made by purchase department, about what to purchase when to purchase , How to purchase and so on  Purchase manager invites quotation for supply of material from different suppliers  A meeting of purchase committee held after receiving the quotation the committee includes general manager , marketing manager and finance manager  The purchase committee selects suppliers after proper evaluation  The purchase manager then discuss with suppliers about the rate , quality requirements, quantity, delivery, time and packing  If both parties agree, they will enter into purchase contract according to supply and payment

Purchase order The purchase department sends the purchase order to the selected supplier. It includes date of order, description of material to be supplied and mode of supply etc. .It is prepared three copies. One is send to the supplier and other two are maintain in the s and purchase departments.

RECEIVINGANINSPECTIONOF MATERIAL

Generally, 90% of payments are made in advance when the company receives the specified material and bill ed on the store department. They quality and other aspects of material after ing the delivery date; the concerned staff will permit to enter in to the factory. The store man will prepare the material received report with three copies. The original will retire the store department. The other copies are send to ing department and production department respectively .The purchase department will payremaining10%only after the approval from the laboratory .The department will make cutting to the lab report

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4.6 STORES DEPARTMENT

STORE DEPARTMENT

STORE OFFICER

GODOWN EXECUTIVE

STORE

GODOWN SUPERVISOR GODOWN ASSISTANT

STORES CLERK

WORKER

WORKER

KSE follows centralized storing system. Under this system requirement of various departments are stored and issue from one store. KSE follows centralized storing system. Under this system requirement of various departments are stored and issued from one store. The total available store space is divided into various tracks. When material in the store is exhausted, the store department prepares purchase requisition and forward to purchase department. The main functions are, 1. Identify the material that has reached the recorder level 2. Storage and proper keeping of the material 3. Issuing material to the customer department 4. Stores all data regarding the storage and supply of materials in the computer, computerization of this department helped the company to save lot of time and eliminate various records like storage ledger

44

STORAGE CONSUMPTION DEPARTMENT It is prepared by the store keeper and sends the department for recording it in the profit and loss . The consumption of this material by each department is shown in this statement GENERAL STORE The officer is in charge of general store keeper. The store keeper is responsible for identifying the material that has reached the recorder level and is responsible for its storing. The main item purchased and stored here are spare part of machinery, packing material, belt, chain and miscellaneous articles. GODOWN The company store raw material for one month or one and half month .the company has got more than seven go downs. In the case of sampling of good, all the visible impurities are identified. The impurities like fatty acid can be found only after lab analysis, In go down they follow FIFO .as the department is computerized annual stock can be calculated easily.

45

Chapter 5 SWOT ANALYSIS

46

5. SWOT ANALYSIS STRENGTH 1. Experience in the field over 35 years 2. Leadership in the market 3. Reputation and brand image of the company for the quality of its products 4. Good network of leadership 5. Capable of marketing personnel 6. Good financial back ground 7. Acceptability of the feed and its quality standards in the market 8. Fully computerized plant 9. Good - employee employer relationship 10. Talented marketing personnel

WEAKNESS 1. Inadequate promotional activities for diary product 2. Stagnant number in cattle production affecting the market growth in future 3. Aging technology 4. Employee over head is high as it is a public limited firm 5. As the size o f the company is large there is less flexibility in the organization structure

47

OPPORTUNITY 1. Expanding its distribution areas 2. Growing demand of the product 3. Adequate infrastructure can be made available for the production of other animal feeds 4. Financial strength of the company will help the company to withstand the un healthy market competitions 5. As the diary product field is in a developing stage the company can made quality product

THREAT 1. Competition from other manufactures of organized and un organized sector 2. Probable entry of multinational entities 3. Indirect control by government over price of milk 4. Depletion in number of cattle and as cattle reusing is increasingly becoming un economical 5. As industries are importing cheaper oil which affects the demand of the solvent extraction coconut oil 6. Un healthy competition from small players 7. High inflation rate of the country resulting in slowing down the business

48

Chapter 6 FINDINGS AND SUGGESTIONS

49

1. FINDINGS AND SUGGESTIONS

FINDINGS 1. The price of several ingredients have doubled during the last two years 2. The oil cake processing have marginally improved compared to previous year 3. The increase in turnover has been mainly contributed by the increase in the selling rate of cattle feed, de-oiled coconut cake and coconut oil. 4. The total turnover during the year under review improved by 11.50 % compared to immediately preceding year 5. The company has 926 employees in its rolls as on 31-3 -2008 The company is now catering the Tamil Nadu markets also. 6. In diary division the milk operators are carried out a lower level so as to meet requirement of milk and cream for production of ice cream with true quality. 7. The sale of cattle feed, in quantity , improved by 9.50 % compared to previous year.

SUGGESTIONS

> > > > >

Use of TV ment Reference group should be formal to educate consumer Company can earn profit by expanding the market The company should pay more attention to the market outside Kerala Customer retention measure should be enhanced

> Provide proper safety equipment’s > Improve the facilities to the employees

50

CONCLUSION

The organization studies enable me to understand in details the mode of operation and various departments of KSE ltd. The study has brought to know how the organization, as a whole workers together to achieve its objectives effectively and efficiently. KSE ltd is No: I cattle feed manufacture in Kerala market. The company has an efficient management and istrative structure. They are utilizing the available resources to the maximum. The company has high market share and reputation in the market. It has got many awards and good recognition in cattle feed industry and it is a leading company in the cattle feed market. It is permanent to notice that in Kerala industrial scenario where many companies are closing down, either due to labor unrest or due to other economic reason, KSE continues to commence new ventures each year and run successfully. To conclude KSE ltd excellence in the frame work of their co-operate value along with innovation and entrepreneurship; they need to be excellent in many dimensions. I am indebted for SRM Faculty Management for providing a chance to undergo organizational study programmed enabled to develop my organizational knowledge.

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BIBLIOGRAPHY

     

www.kselimited.com www.smbsmgu.org www.Info.shine.com www.indiainfoline.com www.Investopedia.com www.managementstudies.com

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