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ORGANISATIONAL STUDY OF KSE LTD

SUMMER INTERNSHIP REPORT


(In partial fulfilment of the degree of Master of Business Administration)

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 Administration 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)

__________________________
EXTERNAL EXAMINER

DECLARATION

I hereby declare that the report entitled AN ORGANISATIONAL STUDY has


been prepared by me during the period from 5 th June2015 to 21st July2015
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:

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
support.
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.

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

Chapter 1
INTRODUCTION TO THE STUDY

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

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.

Chapter 2
COMPANY PROFILE AND PRODUCT PROFILE

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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 registered 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

11

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 Accounting 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.

12

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 bypass 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.

15

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 childrens information Centre was opened to the public to fulfill the Companys
16

social responsibility. Adjacent to the Registered 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 childrens playing equipments, this
Centre provides the following facilities:

Park with latest playing equipments 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 Childrens 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.

17

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 PREMIUM

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

18

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

20

Chapter 4
DEPARTMENTS OF THE ORGANISATION

21

4.DEPARTMENTS OF THE ORGANISATION


4.1 PERSONNEL DEPARTMENT / HUMAN RESOURCE
DEPARTMENT

Human resource and administration 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 employees
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.

22

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.

23

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.
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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.

26

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

27

4.2.1 DEPARTMENT STRACTURE

FINANCE MANAGER

DEPUTY
ACCOUNTANT

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

28

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 accounting records
Prevention and completeness of accounting 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 members. 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 Limiteds 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 accountant 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 account 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 ACCOUNTING POLICIES

31

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

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 account

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 account. Gratuity represent of

Whole time directors is provided on basis and charged to profit and loss account
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

34

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 doesnt 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

35

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 companys 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. Farmers 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 dealers 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 premium 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%

37

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-users 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

38

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 MMCP. Such as

Milling

Mixing

Cooking

Pelleting

4.4.4 MMCP 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 pass 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 user 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

41

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 accounts and
purchase departments.

RECEIVINGANINSPECTIONOF MATERIAL

Generally, 90% of payments are made in advance when the company receives the specified
material and bill passed on the store department. They verify quality and other aspects of material
after verifying 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 accounting
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

43

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 account department for recording it in the
profit and loss account. 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 terms, improved by 9.50 % compared to
previous year.

SUGGESTIONS

>
>
>
>
>

Use of TV advertisement
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 equipments


> 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 administrative 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.

51

BIBLIOGRAPHY

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

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