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” - Alan Sugar “Once you decide to work for yourself, you never go back to work for somebody else.” - Alan Sugar “Don’t try to blame the rest of the world. The blame only lies with you. Recognize that immediately.” - Alan Sugar “Love what you do and do what you love, otherwise you will become unhappy and selfdefeating.” - Alan Sugar “If you enjoy what you do, don’t be afraid of expressing your enthusiasm. Enjoyment is infectious and you will bring others along with you.” - Alan Sugar “Start small and with your own money.” - Alan Sugar
The environment at coromandel translates to meaningful work and real growth at every level, where hard work and a supportive team are key to achieving goals. Coromandel‘s collaborative work style offers the support you need to make an impact on our business, while simultaneously developing the career you want through your own efforts. EMPLOYEE WELFAREINTRODUCTION: The study on welfare measures is more relevant in today‘s busine s s s c e n a r i o characterized by very tough competition. This situation had led to a stage where organizationsare more worried about survival; this led welfare to take a back seat. The employees themselvesare looking for the bare minimum and not making any demands for welfare. In such a situation, astudy on welfare measures and their effectiveness goes a long way in determining how relevantthese concepts are in the changed scenario. Therefore a study is required.The study was also required because implementation of welfare measures in India has become nominal. It has been so neglected in the implementation part that there are very fewt ak er s f or we lf ar e b ec au se of wh i c h t h e b as i c o bj ect i ve of ha vi ng we lf a r e m ea sur es b e in g implemented is lost. This study was therefore aimed at telling the management areas where theyneed to tighten up to make welfare really meaningful in the organization. Keeping in view theimportance of fertilizers, the following integrated polymers plants with foreign collaborationswere set up.The real need for welfare arises from the two basic conditions generally known as thelong arm of the job and the ‗social invasion of the factory‘. The working environment of any jobin a factory or mine or a workshop imposes some adverse effect on the workers because of theheat, noise, and order, fumes etc. involved in the manufacturing process. EMPLOYEE WELFARE Employee is the important factor of Industrial Production. Management seeks to cooperation of work force by providing welfare in terms of provisions for better working conditions, adequate lighting and ventilation etc., Employee Welfare work aim at providing such service facilities and amenities which enable the Employee employed in industrial to perform their work in healthy congenial surrounding conducive to good health and high morale. OBJECTIVES OF THE STUDY Primary Objective: To study the level of satisfacation of employees regarding welfare measures at C.I.L. 1 2. Trade union demands:Trade union competes with each other for getting more and a new variety of welfaremeasure to their members such as life insurance, beauty clinics. If one union succeeds in gettingone benefit, the other union persuades management to provide a new model fringe. Thus, thecompetition among trade union within an organization results in more and varied benefits.3. Employee‘s preference:Employee also prefers welfare
measure to pay-hike, as welfare measure motivate the em p l o yee f or b et t er c o nt r ib ut io n t o t h e o r g an i zat i on. I t im pr o ve s m or a le an d wo r k s a s a n effe ctive advertisement.4. As a social security. Social security that society furnishes through appropriate organization against certain risks to which it members are exposed These risks are contingencies of life like accidents ando c c u p a t i o n a l d i s e a s e s . E m p l o y e e h a s t o p r o v i d e v a r i o u s b e n e f i t s l i k e s a f e t y m e a s u r e , compensation in case of involvement of workers in accidents, medical facilities etc RESEARCH METHODOLOGY: The information pertaining to various labour welfare philosophies has been collectedmainly from various books however the information pertaining to Coromandel InternationalLimited has been obtained from the following two sources. PRIMARY DATA: This is done by personal discussion with various officials in employee r e l a t i o n department and human resource development. Questionnaires were prepared by keeping in view of t he o bj ect i ve of t he st u d y. Th e f ir st o n e is be i ng m a nag e m e nt q ue st io n na ir e c o ver i ng management data on participation of workers in welfare work. The second one was the canvass among the sampled employers to find out their opinion on welfare measures. The questionnaire was distributed to 150 and the responsewere limited to 100. The study is confined to a sample of 100 only. 32. Trade union demands: Trade union competes with each other for getting more and a new variety of welfare measure to their members such as life insurance, beauty clinics. If one union succeeds in getting gone benefit, the other union persuades management to provide a new model fringe. Thus, the competition among trade union within an organization results in more and varied benefits.3. Employee‘s preference: Employee also prefers welfare measure to pay-hike, as welfare measure motivate the em p lo ye e f or b et t er c o nt r ib ut i o n t o t h e o r g an i zat i on. I t im pr o ve s m or a le an d wo r k s a s a n effe ctive advertisement.4. As a social security Social security that society furnishes through appropriate organization against certain risks to which it members are exposed These risks are contingencies of life like accidents ando c c u p a t i o n a l d i s e a s e s . E m p l o y e e h a s t o p r o v i d e v a r i o u s b e n e f i t s l i k e s a f e t y m e a s u r e , compensation in case of involvement of workers in accidents, medical facilities etc RESEARCH METHODOLOGY: The information pertaining to various labour welfare philosophies has been collected mainly from various books however the information pertaining to Coromandel International Limited has been obtained from the following two sources. PRIMARY DATA: This is done by personal discussion with various officials in employee r e l a t i o n department and human resource development. Questionnaires were prepared by keeping in view of t he o bj ect i ve of t he st u d y. Th e f ir st o n e is be i ng m a nag e m e nt q ue st io n na ir e c o ver i ng management data on participation of workers in welfare work. The second one was the canvass among the sampled employers to find out their opinion on welfare measures. The questionnaire was distributed to 150 and the response were limited to 100. The study is confined to a sample of 100 only. 3SECONDARY DATA:
The secondary data is from various publications on personal management labour welfareand annual reports of Coromandel International Limited. LIMITATIONS OF THE STUDY Every study is conducted under some limitations. Some of the limitations of the study areas follows. During the project period most of the staff members are busy with auditing and other works. So they could not afford give full information. Some of the information was not available due to the confidential matters. S i n ce of f ic ia l s, e xec ut i ves an d ot her s wer e bu s y t he st u d y wa s pr im ar i l y f oc us ed on secondary data. Time was a constraint for the study. 4 CHAPTER-II REVIEW OF LITERATUREREVIEW OF LITERATURE 5Human Resource Management is the process of procuring, developing,m a i n t a i n i n g , a n d c o n t r o l l i n g h u m a n r e s o u r c e s f o r e f f e c t i v e a c h i e v e m e n t o f or g ani za t i on a l g oa l s. T h is pr oj ect i s f ocu se d on em p lo ye e we lf a r e m ea sur e an d employee morale. 2.1 EMPLOYEE WELFARE – DEFINITION Employee welfare means ―the effort to make life worth living forw o r k m en‖ . W hen a l l ba s ic f ac i l it i es ar e pr o vi d e d a nd em pl o yee s obt a in s a t i s f a c t i o n t h e n t h e p r o d u c t i v i t y c a n b e i n c r e a s e d a n d d e v e l o p m e n t o f t h e organ ization will be possibleCONDITIONS OF WORK ENVIRONMENT1) Working conditions • Temperature • Ventilation • Lighting • Dust • Smoke • Fumes and gases • Noise • Humidity • Posture – simple • Hazard and safety complex devices2) Factory Sanitation and Cleanliness: • Provision of urinals in factories
• Provision of spittoons • Provision for the disposal of waste and rubbish • Provision for water disposal (drainage) • Provision of proper bathing and washing facilities6 Care and maintenance of open spaces, gardens, roads, etc3) Welfare Amenities • Provision and care of drinking water • Canteen services • Lunch • Rest room • Crèches • Cloak rooms • Other amenities 2.1.1 EMPLOYEES’ HEALTH SERVICES 1) Factory health services • Medical examination of employees • Factory dispensary and clinic treatment • First aid and ambulance room • Treatment of accidents and • Health education and research2) Recreation • Playgrounds for physical recreation (athletics, games, gymnastics, etc) • Social and cultural recreation (music, singing, dancing, drama, etc)3) Workers education • Education to improve skills and earning capacity • Literacy • Library, audio visual education, lecture programmes and • Workers educational scheme and its working4) Economic Services • Employees‘ co-operative societies • Grain shops and fair price shops and7
Housing co-operatives5) Housing for employees and community services8 Study of the working of welfare Acts • Factories Act • Employees state insurance act • Minimum wages act7) Social Work in industrial Setting • Family Planning • Employee counseling 2.1.2 EMPLOYEE SERVICES AND BENEFITS These are concerned with the process of sustaining and maintaining thework force in an organization. They include1) Safety provision inside the workshop2) Employee counseling3) The medical services4) The recreational and other welfare facilities5) Fringe benefits and supplementary items 2.1.3 EMPLOYEE MORALE - DEFINITION According to Yoder ―morale is a feeling, somewhat related to esprit decorps, enthusiasm or zeal.Fippo has described morale ―As a mental condition or attitude of individuals and groups which determines their willingness to co-operate.Good morale is evidenced by employee enthusiasm, voluntary conformance withr e g u l a t i o n s a n d o r d e r s , a n d a w i l l i n g n e s s t o c o o p e r a t e w i t h o t h e r s i n t h e accomplishment of an organization‘s objectives. 2.1.4 FACTORS AFFECTING MORALE A c cor d ing t o Mc Far la n d, t h e im por t ant f a ct or s wh i ch h a ve a be ar ing on morale are • The attitude of the executives and managers towards their subordinates. •) Study of the working of welfare Acts • Factories Act • Employees state insurance act • Minimum wages act7) Social Work in industrial Setting • Family Planning • Employee counseling 2.1.2 EMPLOYEE SERVICES AND BENEFITS These are concerned with the process of sustaining and maintaining thework force in an organization. They include1) Safety provision inside the workshop2) Employee counseling3) The medical services4) The recreational and other welfare facilities5) Fringe benefits and supplementary items 2.1.3 EMPLOYEE MORALE - DEFINITION According to Yoder ―morale is a feeling, somewhat related to esprit decorps, enthusiasm or zeal.Fippo has described morale ―As a mental condition or attitude of individuals and groups which determines their willingness to co-operate.Good morale is evidenced by employee enthusiasm, voluntary conformance
withr e g u l a t i o n s a n d o r d e r s , a n d a w i l l i n g n e s s t o c o o p e r a t e w i t h o t h e r s i n t h e accomplishment of an organization‘s objectives. 2.1.4 FACTORS AFFECTING MORALE A c cor d ing t o Mc Far la n d, t h e im por t ant f a ct or s wh i ch h a ve a be ar ing on morale are • The attitude of the executives and managers towards their subordinates. • working conditions, including pay, hours of work, and safety rules • effective leadership and an intelligent distribution of authority an d responsibility in the organization9 working conditions, including pay, hours of work, and safety rules. effective leadership and an intelligent distribution of authority an d responsibility in the organization9 Housing co-operatives5) Housing for employees and community services Second, others take an opposite view. For example, Lyman Porter andLawler say that satisfaction results from high performance, because most peoplee xp e r i e nc e s at isf ac t i o n b y a cc om pl i s h ing m or e t ask s, lik e bu i l d ing a r a d i o , or clinching a sale. Third, still others claim that there is no consistent relationship betweenmorale and performance. Vroom found significant relationship between morale andperformance in only 5 out of 22 studies undertaken by him. 2.1.8 WARNING SIGNS OF LOW MORALE Among the more significant of the warning signals of low morale are • High rate absenteeism • Tardiness • High Labour turnover • Strike and sabotage • Lack of pride in work and • Wastage and spoilage. 2.1.9 IMPROVING MORALE A three-fold action may be initiated. In the first place, it is essential to change the policy or to correct it immediately. Employees do not lose their respectfor the boss who admits his mistakes but they cannot respect one who makes toomany, and they may have contempt for one who refuses to admit his mistakes.Se co n d, m isc o nc ept i on s s ho u ld b e r em o ve d, an d t h e c or r ect po s it io n s hould be explained to the employees. Third, a reasonable attempt should be made to educate and convince theemployees.11 REVIEW OF LITERATURE FROM JOURNALS AND ARTICLES Preserving Employee Morale during Downsizing Karen E. Mishra, Gretchen M. Spreitzer and Aneil K. Mishra Topic: Human Resource Management and Industrial RelationsReprint 3927; winter 1998, Vol. 39, No. 2, pp. 83–
95Mishra propose a four-stage approach to downsizing, gleaned from interviewsa n d s u r v e y s t h a t w i l l r e t a i n w o r k e r s ' t r u s t a n d s e n s e o f e m p o w e r m e n t . T h e company should consider all stakeholders' needs — survivors, laid-off employees,the community, local and national press, and any affected government agencies. The implementation of all the above, is the most important. Management shouldcommunicate frequently and be open and honest. How to Boost Employee Morale By Betsy GallupApril 9, 2006 The following are the ways to boost the employee morale. • Treat employees with respect • Show interest in your employees' personal lives • A l l o w yo ur em p l o ye e s t o g a in o wn er s h i p of t h e ir j ob s b y b e ing par t of t he decision-making process • Create a pleasant work environment • Establish an employee recognition program • Give clear direction and set priorities. • Stand behind your employees. Be their greatest advocate.12 Boost Employee Morale with an Employee Incentive Program By: Trevor MarshallGood managers know from their own observations that employee attitudeaffects their work and eventually the company‘s output.It is essential that your incentive program will actually inspire and motivate t h em t o wo r k ef f ic i ent l y and n ot j ust be com p et it ive wi t h e ac h ot her . H e a lt h y competition among the company‘s employees is good but too much of it may alsocause the company to disintegrate. The company should still be very much hands-on with the whole employeeincentive program to ensure that the outcome of the employee incentive programwill be good. Employee Welfare By Regina BarrEm p l o ye e W elf ar e pr og r am is b as ed o n t he m a nag em ent p o l ic y wh i ch i sa i m ed sh ap i ng p er f ect em p l o yee s. T he r ef or e t h e c o nc ept of em pl o ye e we lf ar e in cludes to aspects namely physical and mental welfares1 . A p p l i c a t i o n s o f m e r i t s y s t e m o r w o r k p e r f o r m a n c e s y s t e m a s t h e b a s i s f o r employee rewarding.2. Providing the retired employees with the old age allowance.3. Employee insurance program to provide the employee with better security.4. Improvement in health security for the employees and their families so that theycan work confidently and productively.5. Increase in basic salaries and pension as adjustment to the needs providing allwork units and their officials with v DIAGRAMATIC REPRESENTATION OF THE STUDY EMPLOYEEMORALEWELFAREMEASURES MEDICALFACILITYCANTEENFACILITYINFRASTRUCTURECREDITFACILITYSAFETYMOTIVA TION JOBSATISFACTIONINTERRELATIOSHIPWORK ENVIRONMENT Effect of welfare measure on morale 14
ehicles to help DIAGRAMATIC REPRESENTATION OF THE STUDY EMPLOYEEMORALEWELFAREMEASURES MEDICALFACILITYCANTEENFACILITYINFRASTRUCTURECREDITFACILITYSAFETYMOTIVA TION JOBSATISFACTIONINTERRELATIOSHIPWORK ENVIRONMENT Effectof welfaremeasureonmorale 14 ndia is primarily an agriculture based economy. The agricultural sector and its other associatedspheres provide employment to a large section of the country's population and contribute about25% to the GDP.The Indian Fertilizer Industry is one of the allied sectors of the agricultural sphere. India hasemerged as the third largest producer of nitrogenous fertilizers. The adoption of back to back Five Year plans has paved the way for self sufficiency in the production of food grains. In fact production has gone up to an extent that there is scope for the export of food grains. This surplushas been facilitated by the use of chemical fertilizers.The large scale use of chemical fertilizers has been instrumental in bringing about the greenrevolution in India. The fertilizer industry in India began its journey way back in 1906. Duringthis period the first Single Super Phosphate (SSP) factory was established in Ranipet in Chennai.It had a capacity of producing 6000 MT annually. In the pre and post independence era a coupleof large scale fertilizer units were established namely the Fertilizer Corporation of India inSindri, Bihar and the Fertilizer & Chemicals Travancore of India Ltd in Cochin, Kerala.The Indian government has devised policies conducive to the manufacture and consumption of fertilizers. Numerous committees have been formed by the Indian government to formulate anddetermine fertilizer policies. The dramatic development of the fertilizer industry and the rise inits production capacity has largely been attributed to the favorable policies. This has resulted inlarge scale investments in all three sectors viz. public, private and co-operative.At present there are 57 large scale fertilizer units. These manufacture an extensive range of phosphatic, nitrogenous and complex fertilizers. 29 of these 57 units are engaged in themanufacturing of urea, while 13 of them produce Calcium Ammonium Nitrate and AmmoniumSulphate. The remaining 20 fertilizer plants manufacture complex fertilizers and DAP. There arealso a number of medium and small scale industries in operation, about 72 of them. Thefollowing table elucidates the installed capacity of each sector.Sl. No Sector Capacity (LMT) Percentage Share N P N P1 Private Sector 53.94 35. 13 44.73 62.082 Public Sector 34.98 4.33 29.0 7.653 Cooperative Sector 31.69 17.13 26.27 30. 27Total 120.61 56.59 100.0 100.0 16 The Department of Fertilizers is responsible for the planning, promotion and development of theFertilizer industry. It also takes into account the import and distribution of fertilizers and also thefinancial aspect. There are four main divisions of the department. These include Fertilizer Imports, Movement and Distribution, Finance and Accounts, Fertilizers Projects and Planningand Administration and Vigilance. It makes an assessment of the individual requirements of thestates and union territories and then lays out an elaborate supply plan.Though the soil in India is rich in silt, it lacks chief plant nutrients like potassium, nitrogen and phosphate. The increase in the production of fertilizers and its consumption acts as a major contributor to overall agricultural development.The Indian fertilizer industry has come a long way since the setting up of the manufacturing unitof Single Super phosphate (SSP) near Chennai in 1906 A new impetus to the growth of IndianFertilizer industry was provided by the set up the two fertilizer plants- Fertilizer & ChemicalsTravancore of India Ltd. (FACT) in Kerala and the Fertilizers Corporation of India (FCI) inBihar. This was during the forties and the fifties.The aim was to create an industrial base that would provide India with self reliability in
foodgrains.India witnessed significant growth of the fertilizer industry during the sixties and the seventies.By 2003, India had an installed capacity of 12.11 million MT of nitrogen and 5.36 million MT of phosphate. Today, with 57 large sized fertilizer plants manufacturing a wide variety of thenitrogenous, complex and phosphatic fertilizers, the Indian fertilizer industry is the 3rd largest producer in the world. One of the major factors that have led to the rapid increase in the production capacity of fertilizers in India is the policy environment. With the formulation andimplementation of investor friendly policies, large investments poured into the private, publicand co-operative sectors and this propelled the growth of the Indian fertilizer industry.As per Government of India records on 31.01.2007, the Indian fertilizer industry has made a production of 120.61 LMT of nitrogen (N) and 56.59 LMT of phosphatic (P) nutrient. Theinstalled capacity of urea in India is estimated to be 207.52 LMT. These successes in the production by the fertilizer companies of India have crowned India the 3rd largest fertilizer producer in the world. 17 GROWTH OF INDIAN FERTILIZER INDUSTRY The Indian fertilizer industry has come a long way since the setting up of the manufacturing unitof Single Super phosphate (SSP) near Chennai in 1906 A new impetus to the growth of IndianFertilizer industry was provided by the set up the two fertilizer plants- Fertilizer & ChemicalsTravancore of India Ltd. (FACT) in Kerala and the Fertilizers Corporation of India (FCI) inBihar. This was during the forties and the fifties.The aim was to create an industrial base that would provide India with self reliability in foodgrains.India witnessed significant growth of the fertilizer industry during the sixties and the seventies.By 2003, India had an installed capacity of 12.11 million MT of nitrogen and 5.36 million MT of phosphate. Today, with 57 large sized fertilizer plants manufacturing a wide variety of thenitrogenous, complex and phosphatic fertilizers, the Indian fertilizer industry is the 3rd largest producer in the world. One of the major factors that have led to the rapid increase in the production capacity of fertilizers in India is the policy environment. With the formulation andimplementation of investor friendly policies, large investments poured into the private, publicand co-operative sectors and this propelled the growth of the Indian fertilizer industry Coromandel International Limited is in the business segments of Fertilisers,Specialty Nutrients, Crop Protection and Retail. Coromandel manufactures a widerange of fertilisers and markets around 2.9 million tons making it a leade r in itsaddressable markets and the second largest phosphatic fertiliser player in India. Inits endeavour to be a complete plant nutrition solutions company, Coromandel hasalso introduced a range of Specialty Nutrient products including Organic Fertilisers. The Crop Protection business produces insecticides, fungicides and herbicides andmarkets these products in India and across the globe. Coromandel is the secondlargest manufacturer of Malathion and only the second manufacturer of Phenthoate.Coromandel has also ventured into the retail business setting up more than425 rural retail centers in the agri and lifestyle segments. The Company clocked aturnover of Rs.9668 crores (USD 2.2 billion) in 2008 -09. Coromandel was rankedamong the top 20 best companies to work for by Business Today and was also votedas one of the ten greenest companies in India by TERI, reflecting its commitment tothe environment and society. Coromandel is a part of the Rs.15,907 crore (USD 3.14billion) Murugappa Group.It should have:1 . H i g h q u a l i t y p r o d u c t s a n d b r a n d i m a g e 2.Modern, cost effective and energy efficient m a n u f a c t u r i n g facility3 . P r o f i t a b l e o p e r a t i o n s 4.High level of satisfaction to stake holders. AdhereTo ethical norms in all dealings with shareholders, employees, custom e r s , suppliers, financial institutions and government.
ProvideValue for money to customers through quality products and services. TreatOur people with respect and concern provide opportunities to learn, contribute andadvance, recognize and reward initiative, innovativeness and creativity.21 NTEGRITY: W e v a l u e p r o f e s s i o n a l a n d p e r s o n a l i n t e g r i t y a b o v e a l l e l s e . W e achieve our goals by being honest and straightforward with all our stakeholders. Weearn trust with every action, every minute of every day. PASSION: We play to win. We have a healthy desire to stretch, achieve personalg oa l s a nd ac ce l er at e bu s in es s g r o wt h. W e st r i ve c on st ant l y t o im pr o v e a nd b eenergetic in everything that we do. QUALITY: We take ownership of our work. We unfailingly meet high standard of quality in both what we do and the way we do it. We take pride in excellence. RESPECT: W e r e s p e c t t h e di g n i t y o f e v e r y i n d i v i d u a l . W e a r e o p e n a n d transp a r e n t w i t h e a c h o t h e r . W e i n s p i r e d a n d e n a b l e p e o p l e t o a c h i e v e h i g h st a n dar d an d c ha l l eng i ng g o a ls. W e pr o vi de e ver yo ne eq u a l o pp or t un it i es t o prog ress and grow. RESPONSIBILITY: We are responsible corporate citizens. We believe we can helpmake a difference to our environment and change lives for the better. We will do this in a manner that befits our size and also reflects our humidity.26 OBJECTIVES OF COROMANDEL • To enable the farmers ―grow more‖ by producing and supplying highlynutritious complex fertilizers at minimum cost. • To maximize, the efficiency of both the men and machinery throughcontinuous up gradation of technology and providing training investment. • T o sat i sf y sh ar e h o ld er s b y g i vi ng t h em h a nd som e r et ur ns on t h e ir investment. SWOT ANALYSISSTRENGTHS: • Very long experience in the field of producing and selling fertilizers. • Up-to-date technology and continuous up gradation. • Optimum capacity utilization • Enjoying great brand and corporate image • Dealer and farmer loyalty. • Financially strong and firm. • Niche Marketing • Strong promotional attractive
• Widespread sales network • Minimum Labour problem • Well-trained employees and good work culture. WEAKNESS o Neglecting study based on sales promotion of retail outlets. o Marketing by intermediaries o Poor availability of product. o Import of major raw materials27 OPPORTUNITIES • Increasing trend in using complex fertilizer areas. • Large areas under each and oil seed crops • Growling awareness and education among farmer‘s community • Modern farming practices • Government subsidy reduction on urea for facilitating the use of complex fertilizer. THREATS • The heavy competition in fertilizer market. • Frequent/subsequent changes in government policies. • Shifting of demand from the company‘s products to competitor‘s DAP • Huge consumption of urea cover complex that is offered at lessor costin the market. • Temperance of the Agricultural sector by the present government. Over the years, Coromandel has received a number of awards and recognitionsincluding the British Council 'Five Star' rating for Safety Management Systems andbeing adjudged one of the 'Ten Greenest Companies in India' by a joint survey of TERIand Business Today magazine. 28 COMPANY HISTORY 1959: Independent India realized that its largely agrarian economy needed athrust in the right direction for its people to benefit and prosper. Prime Minister Jawaharlal Nehru invited the Ford Foundation to carry out a comprehensive study of Indian agriculture and give its recommendations. The study revealed a crucial needto produce indigenous chemical fertilizers to increase agricultural output to meetthe country‘s ever-increasing food demand. 1961 : An industrial license was granted to three companies – IMC (theworld‘s largest producer of fertilizers then), Chevron Chemical Company (a majorAmerican player in
fertilizers / industrial chemicals) and E.I.D.Parry (India) Limited (India‘s largest private fertilizer producer with 60 years‘ standing) – to set up a giantchemical fertilizer complex. The first Board of Directors was constituted on October 16, with H V R Iengaras its Chairman. Others on the Board included J Q Cope, Charles Dennison, J K John,Dr L Bharat Ram, A W Horton, J T Gibson, S C Dholakia, V K Rao and Raja RameswarRao. L L Powell and P J Davies were the first Managing Director and Dy. ManagingDirect respectively. Donald I Meikle was the first Company Secretary. 1962 Market development commence in the form of a ―seeding programme‖.E. I . D. P ar r y was a pp o int ed CO RO MA N D EL pr in c ip a l sa l es ag ent i n I nd i a f or o ur product aptly name ―GROMOR‖ epitomizing the idea of Growing More food for thenation.A 483.5 acres site was identified at Visakhapatnam along the ―Coromandel‖coast (India‘s east coast), from where the Company derived its name. The land,taken under a 50-year lease from Visakhapatnam Port Trust, has a private jetty just5 km from the plant site. With a capital investment of Rs.50 crores, Lumus Companyundertook construction of the plant.31 c om put er i zed p la nt ( d e s ig ne d b y wor l d r en o wn ed cem ent ma n uf act ur er Kr up p Polysius of West Germany) was commissioned in 1984. It was later sold to IndiaCements in 19903 1995 – 99 C h e v r o n C h e m i c a l C o m p a n y d i v e s t e d i t s s t a k e i n f a v o u r o f E. I . D. Pa r r y ( I ) L im it e d i n 1 9 95, f o l lo we d b y I MC i n 19 99. E. I . D. P ar r y ( I ) L im it ed acquired majority shareholding in COROMANDEL making it a part of the MurugappaGroup, a highly reputed industrial conglomerate. 2000 COROMANDEL growth over the years has been punctuated with severalp at hb r e ak i ng m od er n is at i o n / upg r ad at io n pr og r am m e s. Beg u n in 19 75, t h e program me gathered momentum in 1992-95, when the Sulphuric Acid, PhosphoricAcid and Complex Granulation plants were debottlenecked. Production capacitywe n d up f r om t h e or ig i n al 2 4 7, 0 00 MT t o 400 , 0 00 MT . O n Sep t em ber 2 9, Mr . N Chandrababu Naidu, the then Chief Minister of Andhra Pradesh, inaugurated a newcomplex granulation train. This further augmented capacity to 600,000 MT, a boonto the entire farming community. 2003: O n J u l y 1 2 , C O R O M A N D E L c o n s o l i d a t e d i t s b u s i n e s s b y a c q u i r i n g contro lling stake in Godavari Fertilisers & Chemicals Limited (GFCL). To optimises yner g y of o per at i on s in t he G r o up, t h e Far m I np ut s D i vis i on of E. I . D P ar r y ( I ) Limited was merged with COROMANDEL on December 1. 2004 : Mr. V. Ravichandran took over as President & WTD on January 22. Mr.A.Vellayan took over as Chairman on September 1. Other Directors on the Board areMr . J. Ja yar am a n, Mr . M. M. Mu r ug ap pan , Mr . T . M. M N am b ia r , Mr . M. K. T a nd o n, Mr . D.E.Udwadia, Mr. S.Viswanathan and Mr. K.A.Nair. The first post-merger AGM of the Company was held on July 15. 2005: C O RO MA N D E L s ig ns a Bu s in es s Ass i st a n ce Ag r e em e nt wi t h F osk or Limited, South Africa. Organizational Structure: T h e s u p e r v i s o r y b o a r d o f M u r u g a p p a g r o u p s u p e r v i s e s t h e organizati on of Coromandel International Limited. The top most authority of
thewh o l e Cor om a n de l I nt er n at i on a l L im it ed i s a dm in i st er e d a n d c ont r o l l ed b y t h e 33 p r e s id ent a nd m an ag ing d ir ect or . T h e m a i n r eg i st er e d of f i ce of Cor om a nd e l Int ernational Limited is located at Hyderabad. The Present Managing Director of Coromandel International Limited is Mr.V.Ravichandran. The Visakhapatnam Plant isheaded by the vice president who at present is Mr. N. Seetharam who undertakes the in charge of all the levels of departments in the organization. Functions: The vice president manufacturing and projects is overall in charge of manufacturing Fertilizers at plant and in implementation of all the projects in timewith a workforce of around 175 officers and 425 technicians. The vice president finance is in charge of overall fund management, internal audits ecr et ar i a l f un ct io ns. A wor k f or c e of ar ou n d 3 0 E xe c ut i ves an d 35 of f ic er s ar e under his control. The Sr. Vice President marketing is in charge of overall marketing of CoromandelInternational Limited finished products as well as the by-products like gypsum,fluorine etc. The functions of other executives are: General Manager – Operations: G e n er a l Ma n ag er – O per at io ns i s r e sp on s i bl e f or sm oot h r un n i ng of al l pr oc es s plants including operations. One AGM & other process plant Heads will directlyreport to him. AGM Operations: Asst. General Manager of operations is responsible for efficient running of Bagging &P r od uct H an d l ing P l a nt s i n a d d it io n t o Ma n ag em e nt I nf or ma t io n S yst em of al l Operations Department about 8 Executives and 100 workmen report to him. Sr. Manager – Accounts:34 Sr. Manager of accounts is responsible for maintaining statutory accounts and otherfund records, 10 officers and 36 office assistants assist him. AGM – IT: Asst. General Manager of IT is responsible in building skill gap of all the humanresources of the organization by requisite training and development. 3 officersassist him and 2 workmen who execute all HR philosophies and administer officerswage administration. AGM – Purchase and Stores: Asst. General Manager – Purchase & Stores is responsible for all purchase activities,raw material purchases and maintenance of stores at an optimum level. 5 officersand 20 assistants who look after the effective distribution of finished products andby-products assist him. AGM – Maintenance: Asst. General Manager – Maintenance is responsible for preventive maintenance of plant and machinery and buildings. He looks after the timely executives of all thecapital projects at the plant. 30 officers and 165 technicians assist him. AGM & RH – HR AGM & RH – HR is responsible for recruitment of technicians and office assistants.He is also responsible for execution of all welfare measures and for securityarrangement of plant and machinery. 8 officers and 40 workmen assist him. Asst. General Manager – Safety, health and environment: 35 AGM – safety, health and environment is responsible for identification of hazardousareas and in suggesting remedial safety measures and its effective compliance. Healso arranges medical checkups etc. 4 officers and 3 assistants assist him. The employees of the organization
are divided into three grades. They are:1. Technical—the technical employees are again sub divided into highly skilled, semiskilled and unskilled people. The labour comes under unskilled workmen. Technicalstaff is graded into S1 to S7 ranks.2. Clerical- The clerical staff is graded into C1 to C3 ranks where C1 grade is forassistant, C2 for junior assistant and C3 for senior assistant. The clerical staff mainlylooks after the office work.3. Managerial – The management staff is graded into CI1 to CI 3 and from MG3 toMG 10 grades. Thus according to the ranks the employees of Coromandel Fertilizers limited aregraded and the company runs round the clock. The employees work in shifttimings. The timings of the three shifts are.0700 hrs to 1500 hrs1500 hrs to 2300 hrs2300 hrs to 0700 hrs The general shift is from 0800 hrs to 1630 hrs. Thus the employees working underall the shift timings receive all the welfare facilities like canteen, transport, drinkingwater etc. Location: The plant is situated in 500 acres of site about 5 km from the harbour. The site islocated on the east coast of Visakhapatnam and has been leased fromVisakhapatnam port trust for a period of 50 years with renewal options, at the port;Coromandel International Limited operates its own bulk freight raw materialunloading berth, which is an added advantage as they import many for CoromandelInternational Limited Company.36
The plant uses a lot of seawater in the process for cooling purpose Vizag being aseacoast provides the facility. Coromandel International Limited is serving thefarming community of India for the past 3 decades by producing around 1 milliontonnes of complex Fertilizers per annum and catering to the needs of agriculturalsociety. Plants: Coromandel International limited has mainly three plants. They are: 1. Sulphuric acid plant-This plant is designed and constructed by M/s. Simon CarvesIndia Limited. It has a rated capacity of 1200 million tonnes per day. Sulphur is theraw material, which is imported from abroad from countries like USA, Japan andGulf. 2. Phosphoric acid plant-This plant is designed and constructed by M/s. Darr Oliverof USA is used in manufacturing of cement. It has a rated capacity of 400 milliontonnes per day. Rock phosphate a mineral from foreign countries such as USA,Africa and Australia and is still looking for other sources. Rock phosphate andsulphuric acid are reacted to give phosphoric acidand gypsum. Filtering separates gypsum and it is a by-product, which is a goodsource of income by sales. 3. Complex Fertilizer plant-Complex Fertilizer plant has rated capacity of 1400million tonnes per day. Ammonia and phosphoric acid are reacted in a reactor toform ammonium phosphate and urea is added to this mixture. The urea prill iscoated with ammonia phosphate to form the urea ammonia phosphate, which is aFertilizer.
F i r st i n Ind i a achi e ved t o c o mme r ci al l y ma n uf ac t ur e hi gh an al ysi s complex fertilizer, which is urea ammonium phosphate 28:28:0 with highnitrogen and phosphate content in 1:1 ratio.2 .Fi r s t i n In di a ac hi e ved t o i n st al l a l ar ge s ul p hur i c aci d pl an t b ase d onDCDA technology to control sulphur dioxide emission.3. Fi r st i n In di a ac hi e ved s ucce ssf ul l y t o i mpl eme n t t ot al r ec ycl i n g of seawater for its effluent recirculation system attached to phosphoric acidplant. Functional Areas Coromandel International limited comprises of four functional areas. They are:1. Manufacturing and production2. Marketing3. Finance4. Human Resources 1. Manufacturing and Production: The main objectives of manufacturing unit of Coromandel International Limited are1 To be a low cost Fertilizer manufacturer2 Emphasis on safety and environment improvement3 Trust on energy conservation The plant has planned to undertake manufacturing of single super phosphate withestimated production volume of 0.7 lakh tones per annum. The basic raw materialsused for manufacturing are phosphoric acid, urea and ammonia. They buy naphthato make ammonia from HPCL. Rock phosphate is imported from USA and Sulphur isimported from USA and gulf countries
1. Coromandel International Limited sells its product under the brand name“GROMOR ’. 1. Gromor (28:28:0) urea ammonium phosphate is one of the bestproducts of Coromandel International Limited .2.
Gromor (14:35:14) ammonium phosphate potash, Npk is a scientific Fertilizer withthe highest nutrient content of 63% among NPK complex available in India.3. Gromor (20:20:0) and parampos (16:20:0) ammonium phosphate
sulphate gives15% sulphur for the soil apart from their ammonia and phosphate content. The products o f Coromandel Internati onal limited are sold in Andhra Pradesh,Oriss a, west Bengal and Madhya Pradesh.
RANGE OF PRODUCTS & CUSTOMERS: Produc t/service Segment Top Key Customers 28-28-0High AnalysisComplex FertilizersFarmers by Government Institutionin AP, Orissa,
and West Bengal usethese products for soil application.14-351420-20-010-2626 Gypsum ByproductsCement Industries –As a Retarder inCement manufacture. Farmers inAP,Orissa,WestBenga
l,MadyaPradesh use thisproduct as a neutralizer for AcidicSoils Hydrofl uosilisticAcid ByproductsM/s Alufluoride Ltd-use this productfor the manufcture of AluminiumFluoride
which in turn is used forthe manufacture of Aluminium. GromorBe ntonite SulphurFarmers in AP, Orissa, West Bengal,and Madya Pradesh
which is urea ammonium phosphate is marked in 50kg bags and stored in a tankarea known as tank bund area. They have a canal from sea to salt water, which isused for cooling purposes. Quality Policy:
Coromandel Internation al Limited is committed in supplying phosphoric Fertilizersan d related products, which satisfy the requirements of customers and comply withapplicable specifications.Further it is committed
to continual improvement of quality management systemsand processes with the objectives of improving the product quality. They strive to achieve the quality objectives and customer satisfaction by1. Developing,
implementing and maintaining quality management systems tointernational standards.2. Imparting requisite knowledge, skills and competency to employees and3. Ensuring employee’s participation in
continuous improvement measures. NonFertilizer Activities: 1. Sale of intermediate such as sulphuric acid, phosphoric acid.2. Sale of Fertilizer raw material such as sulphur, rock phosphate, potash etc.3.
Sale of by-products like gypsum and fluorine. 3. Finance: Coromandel International limited laid its foundation stone in 1964 with aninvestment of 50 crore and leading presently with a turnover of about 613
croresand yields 10% growth rate on turnover and 27-30% of returns per year and spendsaround 20 to 30 lakh per month as salaries to the employees.41 which is urea ammonium phosphate is marked in 50kg bags
and stored in a tankarea known as tank bund area. They have a canal from sea to salt water, which isused for cooling purposes. Quality Policy: Coromandel Internation al Limited is committed in supplying phosphoric Fertilizersan
d related products, which satisfy the requirements of customers and comply withapplicable specifications.Further it is committed to continual improvement of quality management systemsand processes
with the objectives of improving the product quality. They strive to achieve the quality objectives and customer satisfaction by1. Developing, implementing and maintaining quality management systems tointernational
standards.2. Imparting requisite knowledge, skills and competency to employees and3. Ensuring employee’s participation in continuous improvement measures. NonFertilizer Activities:
1. Sale of intermediate such as sulphuric acid, phosphoric acid.2. Sale of Fertilizer raw material such as sulphur, rock phosphate, potash etc.3. Sale of by-products like gypsum and fluorine. 3. Finance:
Coromandel International limited laid its foundation stone in 1964 with aninvestment of 50 crore and leading presently with a turnover of about 613 croresand yields 10% growth rate on turnover and 27-30% of returns
per year and spendsaround 20 to 30 lakh per month as salaries to the employees.41 The main objectives of finance department are:1. Effective funds and foreign exchange management2. Controls cost including reduction
in interest cost3. Tax planningAs per the balance sheet stated on 31
March 2001 the fixed assets of the companycost around 250 crores and, has gained a net profit of around 46.87 crores for theyear 1998-99.
Except for a couple of years Coromandel International Limited is being continuously a profit based company. The company is of vital importance to the economy as it supplies Fertilizers toagriculture, which is the backbone of the
Indian economy. Thus the company'semphasis has been on extension and development involving constant updating of improved agricultural practices. These activities have helped Gromor to establishitself as a leader and pioneer
beard. It is titled as the farness friend. PLANTS OF COROMANDAL INTERNATIONAL LIMITED:Ammonia Plant: Ammonia plant of 357 tones per day capacity was designed and constructed by
Kellogg of USA. The basic raw material is Naphtha which is obtained from HindustanPetroleum refinery, Visakhapatnam. Urea plant: Urea plant which has an operating capacity of 400 tones per day,
based on the CPJ Allied, the process, the design and construction were done by M/s Nucamin,Nunmate of USA. The urea pills then send to complex plant for manufacture of urea. Ammoniaphosphate 28:28:0. The Urea plant
has been shut down due to the shutdown of Ammonia plant.42 Sulphuric Acid Plant: Sulphuric Acid plant of CFL has an operating capacity of 1300 tones per day. Thiswas designed and constructed by
Simon Carves (India).
Phosphoric Acid Plant: The plant was designed and constructed by
DorrOliver, USA. The originaldesigned capacity of the plant was 255 tones per day, which was increased to 325tones per day during revamp in 1975. The plant is now
producing on an averageabove 350 tones of phosphate. Complex plant: The complex plant utilizes ammonia, phosphoric acid, urea to make Ammoniaphosphate 28:28:0. Whereas for manufacturing complex
NPK 14:35: 14, ammoniaand phosphori c acid are used along with Potash, which is a bought out rawmaterial, mixed with the outer feed stocks in the complex plant. In case of manufacture of 16:10:0, 20:20:0
Ammonia phosphoric acid and sulphuric acid areused as feeds.Due to increase in prices of Hydrocarbons, Operations of Urea and Ammoniaproduction facilities have been suspended. Alternate arrangements are in place.Ammonia and
liquid sulphur are being imported at an economical rate. Urea too isbeing imported. The production material is bagged in 50 kg and dispatched by rail/road. PERSONNEL DEPARTMENT OF COROMANDAL
INTERNATIONAL LIMITED: Coromandel International limited gives importance to human resources and itlays emphasis on human safety and welfare. Presently the company comprises of about 600 employees
among whom about 425 employees are non managerial andabout 175 employees are managerial. Objectives: The main objectives of personnel department in Coromandel International L 1. Organizational
restructure through reskilling and redeployment2. Training in core competency areas3. Employee cost reduction through manpower rationalizatio n and optimumutilization.Pers onnel department
at Coromandel International Limited is classified into twodepartments. They are:
1. Human Resource Department: This department deals with the matters pertaining to
managerial staff and isheaded by Asst. General Manager & Regional Head - HR who looks after the matterslike recruitment, career planning, training and development, performance appraisaland smooth administration of
remuneration and policies of all categories of employees of Visakhapatnam Plant as well as Marketing Branches of in the StatesLe., Andhra Pradesh, Assam, West Bengal, Orissa, Madhya Pradesh, andChattisgarh.A total
of 40 non-managerial staff is working in this Department. Vice presidentin consultation with HRD and ERD reviews carefully and finalizes the manpowerplanning. HR Policy: This human resource policy was drafted in
the year 2000 in May and it IS consideredto be the corporate commitment.1. To create and nurture an organization culture committed to multi disciplinedteamwork in order to meet the customer's needs with
high quality products andservices.2. To facilitate and provide an environment congenial for continual learning aimedat increasing proactively, creativity and adaptability 3. To devise and sustain
an appraisal and reward system based on performance andmerit.
Recruitment: The company has a policy that the new employee should be carefully chosen as hehas to handle the job not only for his ability but also for his
suitability of futureadvancement. The requirements of the job shall be the determining factor in theselection and placement of the applicants and employees who satisfy the requiredqualifications
and requirements of the job shall be preferred. The main manpower sources of the organization are:1. Resumes or the applications received in personal or by mail.2. Local employment exchange.3.
Advertisements in local press.4. Direct interviews from colleges, universities and poly technical colleges.Coromandel Int ernational Limited also complies with the statutory requirement of informing
employment exchange vide form ER-1 under the Employment ExchangeAct 1959. Selection: The received applications will be reviewed by the ERD and HRD in consultation withthe concerned head of the
department and suitable applicants will be invited tomeet the preliminary evaluation panel at employee relations department or thehuman resource department. The process of selection at Coromandel International Limited is
done as follows:1. Conducting written examination and its critical evaluation2. Personal interview by the selection panel and its appraisal 3. Appointment order will be issued to the candidate and it contains the
placement,commencem ent of service, remuneration, benefits, compensation review, age of retirement, notice of termination etc. Thus when the person is selected for a particular job he is sent for training to knowthe work correctly so
that he performs the job effectively. Training and Development: Training and Development at CIL is being given much importance. It is a systematicapproach and its objectives are to:1. Upgrade and maintain
the technical and functional skill levels of employees2. To match the company's present as well as envisaged requirements.3. Improve the understanding commitment and general
effectiveness of employeesthrough appropriate workers education, supervisory development and managementdevelopme nt programmes.Normally organization will try to achieve the training man days up to a
maximum of 7 days that is considered to be the best. As against the normal standard, CILalready achieved 9.28 and 5.57man days for their managerial and non-managerial staff. Presently training is beingdone at the rate of 6.
mandays/employee/year . The training policy of Coromandel Internation al Limited is to facilitate and providean environment congenial for continual learning aimed at increasing proactivity,creativity and adaptability.
THE MAIN FUNCTIONS OF TRAINING DEPARTMENT ARE: 1.Effective coordinatio n with various departments aiming at alignment of training needs and training activity.2.Preparation of
training calendars and obtaining sufficient budget fromthe top management.46 3.Organizing the training effectively in line with the training calendar.4.Collection of feedback from the participant about the effectiveness. Thus
training and development at Coromandel International Limited is playing animportant role on the employees by upgrading their skills and knowledge. PERFORMANCE APPRAISAL:
When an employee's performance is excellent it is theresult of a number of circumstances that work together to make his excellencepossible. The level of performance of an employee is influenced by six factors. Theyare:
Degree of effort
Level of skill
Understanding the task
Other factorsPerformance appraisal systems at Coromandel Internati
onal Limited are at 180°and 90° in cases of managerial staff and non-managerial staff. Performanceappraisal is mainly used as tools to access the individual's competency, potentialand performance and based on these factors
increments; compensation reviewsand promotions are affected. It improves the performance of the employee so thathe performs well in future. Coromandel Internation al Limited has a very goodperformance appraisal system
through which their performance is evaluated andcompensation is awarded
Management makes t he welfare policies at the plant and the wel fareprogrammes are executed to the workers through their union. The union nominatesits members and negotiates about modalities of execution of welfare programmes. The
following are some of the welfare facilities provided to the employees: 1. Drinking Water: Drinking water facilities is provided to the employees in and around the plant. Thereare about 20 drinking water points at
suitable places for supply of wholesome cooldrinking water.48 2. Canteen: Canteen facility is also provided and in each shift at a time 60 to 70 persons can beaccommodated. Mobile and non-mobile canteen services are
provided round theclock. Every month company spends 4.5 lacks approximately on canteen and thefood is ordered on subsidized rates. 3. Recreational facilitie s: Recreational facilities a t Coromandel Internatio
nal Limited are organized throughtwo clubs, which are Coromandel recreation centre for nonmanagerial staff, andCoromandel club f or managerial staff. Th e clubs organize vario us cultural andentertai nment programmes for
recreation of its members and their members. Thesubscriptions of the clubs are Rs. 5
for CRC and RS. 40/for CC per month. 4. Transport: Coromandel International Limited p rovides subsidized
home transport to theemployees. Rs.
is recovered by the m anagement per month from theemployees salary. Company opera tes almost 6 routes of Vizag in all the shifttimings. 5. First aid:
Coromandel International Limited provides first aid and medical facilities to theemployees. 30 first aid boxes are located a t various locations and around 33numbers of managerial and nonmanagerial employees
are trained in first aid in thefactory during the year. Ambulance roo ms' works around the clock and a fullpledge d medical officer is provided by the management. The company also provides facility for house loan, consumer stores,
educationalallowance for employee children, maternity leave, and sick leave and bathroomfacilities. Th ese are some other im portant welfare faciliti es provided by thecom pany.
SAFETY AND ENVIRONMENTAL FACTORS: Coromandel Internation al Limited has given safety as the prime importance. Seni ormanager takes care of the implementation of safety measures in
tmparts safety education through posters, slogans, and safety training on continualbasis. The company has so far achieved one million safe working man hours record 28times, two consecuti
ve safe million man ho urs 8 times, three cons ecutive safemillion man hours 4 times. The company maintains an excellent safety records andachieved many national and international awards. All the employees at
CoromandelInternation al Limited are provided with personal protective equipment like safetyshoes, helmet, mask, fire protective clothing etc. The company spends nearly Rs. 40lacks per year for
providing safety measures. Coromandel International Limitedadopted a polic y of "safety to take pre cedence over expedien cy of jobs". Thefollowi ng is the safety policy at Coromandel International Limited
Safety policy: It is the policy of the company to achieve high standards for professional safety andcreate healthy work environment for its employees, contractors and neighboringcommunitie s.
It is the obligation of every employee toKNOW safety rules;FOLLOW safety procedure;WARN others of unsafe conditions;REACT positively to emergency property;PERFORM his or her task toENSURE total safety.
Management has the responsibility to conduct its activities in a manner to ensurethe above object ives and maintain a saf e and healthy work en vironment. Thecompan y has formed a separate department for safety, health and environment
andis named as SHE department. Coromandel International Limited has also exhibited a keen concern towards thecontrol of environm ental pollution. The tot al money spent on poll ution controlrelated to
equipment till recent times amount to 28 Crores approximately. Nearly60,000 trees have been planted so far covering an area of 20 hectares at a cost of 20 lacks approximately. The following is the environment policy of
Coromandel International limited. Environment policy: It is committed to optimizing the interests of the stakeholders in our business whilesimultaneously protecting the environment
by prevention of pollution and by.
Establishing and maintaining an environmental management system incompliance with good business practices and legislative requirements.
Achieving a high degree of efficiency in
consumption of inputs andenergy.
Reducing dust emission into atmosphere.
Increasing greenery in and around the plan
Conserving resources through minimized wa ste generation andthro
ugh promoting recovery recycle and reuse.
Creating employee awareness for making environmental protection anintegral part of work culture and
Continually improving our environmental performance. Thus the company provides
safety and environmental factors to the employees andit also maintains good relations with the workers hence there is no union problem inthe company. Coromandel International Limited has only one trade union, which
isCITU, and it has no political interference but the leader of the union is a politicalparty member who is an outsider and others are the employees of the company.90% of the non-managerial staff is the members of the union.
SR activities: Coromandel Internati onal Limited’s busine ss interest is not limit ed tocommercial profit alone. Its corporate re sponsibility does not st op with merely51 increasing shareholder value. The company has a stakeholder base
that goes farbeyond its shareholders. Displaying conspicuous social responsibility, it associateswith various community development activities in the villages around its facilities.The company constantly seeks out avenues where it can
help the community,and has contributed generously to several social causes, such as providing drinkingwater to villages, scholarships to meritorious students, free notebooks, fans andcomputers to government schools,
construction of additional classrooms for poorschools, veterinar y camps for cattle, fre e health / blood donati on camps forvillagers, pulse polio programmes for children, helping in the government's middaymeal scheme, etc.
ACCOUNTING POLICIES The accounts have been prepared primarily on the historical cost convention and inaccordance with the mandatory accounting standards. The significant accountingpolities
followed by the company are stated below.1. Fixed Assets : Fixed Assets are sho wn at cost or valuatio n lessdepreciation. Co st comprises the purch ases price and other attributeexpenses . Fixed assets other tha
n leasehold land/impro vement. Officeequipm ent, furniture fitting, certain vehicles and roads had been revaluedon 31
March 1991, based on a valuation by an approved value. Theindices, if
any used are not stated in the valuation.2. Depreciation on Fixed Assets: Depreciation has been provided onstraightline method. Depreciation on assets revalued as at 31
March 1991is provided on the basis of the residual technical life as ascertained by thevalue. Leasehold hold is being amortized over the lease period.3. Foreign Currency Transactions :
Transactions made during the years inforeign currency are recorded at the exchange rate prevailing at the time of transactions. Assets and Liabilities related to foreign currency transactionsremaining unsettled at the year
end are translated at contract rates, whencovered by forei gn exchange contracts and at year end rates in otherassets.52 4. Investments : Investments are valued at cost of
acquisition and relatedexpenses.5 . Inventories : Stores and spares are valued at monthly weighed averagecost. Other inventories are valued at lower of cost and net realized value. The method of
determination of cost of various categories of inventory is asfollows:Raw Material – First in first out method. Cost includes purchase cost andattributable expenses.Finished goo ds and work – in – process –
Weighted average co st of production which comprises of direct m aterial costs, direct wa ges andappropriate overheads. Goods for resale – Weighted average cost. 6. Sundry Debtors and Advances:
Specific debts and advances identifiedas irrecoverable and doubtful are written off or provided for respectively. 7. Revenue Recognition: Sale of goods recognized at the point dispatch to
customers. Sales excludeamount recovered excise duty and sales tax.Dividend income from investments is accounted for when declared.Subsidies: Credit for Government subsidies has been taken on the
basisactual sales made by the company. RECORDS Coromandel has cons tantly taken up moder nization and up gradat ionprograms. The modern programs undertaken by the company during the year '75,'80, and '92 has
helped to increase the volume of production form the original levelof 2,50,000 Mt per annum to the current level of 3,38,000 Mt per annum with aconsiderable gain in e nergy and material usa ge efficiently over the years. Thevarious
projects include primary reformer revamp phosphoric acid plant de bottle -necking molten sulphur for loading facilities at berth and atmospheric storage tankammonia handling etc.,53 Coromandel has enjoyed excellent tr
ack records in producti on and industrialrelatio ns, energy and environ ment since inception la rgely due to progressiv epolicies of the company with regard to Labour management.Ev er since the production commenced in 1967, Coromandel has been
an activepartner of the Indian farmer in the field, helping him in his efforts to produce morefrom small land holdings and played a crucial role in assisting India achieve self-sufficiency in food grain production.
ROLE OF CIL IN INDIAN AGRICULTURE: From the very beginning Coromandel proved to be a boon to the Indian farmers. Itbrought to India the worldclass production facilit ies with a new generati
on of fertilizer produc ts. Coromandel vision had started playing a vital role in theresurge nce of Indian Agriculture.Coromande l introduced a branded product Gromor, whic h is a high analysis NP complex fertilizer. It is the first in the world to
produce high analysis NP complexfertilizers in the highest 1: 1 ratio. This was implemented when most of the fertilizerproducts available in India were not balanced in nutrient contents.Gromor in a short span of time established itself as a
popular brand where andentire generation of farmers has grown up with it in a number of sates using it widevariety of crops.Gromor 28:28:0 is one of the best of its kind in the world. It has unique granuleconfiguration
where in a urea prill at the centre is coated with ammonia phosphate,which ensure nitrogen availability to the crop over a longer duration of time.Coromandel International limited gives importance to hu man resources
and it laysemphasis on human safety and welfare. Presently the company comprises of about600 employees among whom about 425 employees are non managerial and about175 employees are managerial.
FINANCIAL STATEMENTS COROMANDEL MAJOR COMPETITORS 54
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