Internship Report on

Organizational Study of
“Totgars Cooperative Sale Society Limited”,

APMC Road,Market Yard,Sirsi.

BY

(Ganapathi N Sabhahita)
(4PM18MBA19 )
Submitted to
VISVESVARAYA TECHNOLOGICAL UNIVERSITY, BELAGAVI
In partial fulfillment of the requirements for the award of the degree of
MASTER OF BUSINESS ADMINISTRATION

Under the guidance of

INTERNAL GUIDE EXTERNAL GUIDE
(Mr.Arjun .j) (Ravindra Bhat)
Assistant Professor (HR)
PGDMS& RC, (TSS)
PESITM (Organization )
Shivamogga

P G Department of Management Studies and Research Centre

PES INSTITUTE OF TECHNOLOGY AND MANAGEMENT
NH -206, Sagar Road, Shivamogga – 577 201
(2018-2020)

1
 Organization Letter Head

CERTIFICATE
To whom so ever it may concern

This is to certify that (Ganapathi N Sabhahita) (USN 4PM18MBA19), student

of Master of Business Administration course of from PG Department of

Management Studies & Research Centre, PESITM Shivamogga, has carried out

the internship study at our organization, from 08th July 2019 to 03 th August 2019

under our guidance.

We wish her all the success in his/her future endeavors

2
 PRERANA EDUCAIONAL & SOCIAL TRUST (R)
PES INSTITUTE OF TECHNOLOGY & MANAGEMENT
NH-206, Sagar Road, Shivamogga-577204 Karnataka, India
ISO 9001 : 2015 Certified Institute | Affiliated to Visvesvaraya Technological University, Belagavi

Approved by AICTE, New Delhi |Recognised by Govt. of Karnataka

Telephone: 81470 53064-81470 53067 | E-mail : principal_pesitm@pes.edu | Website :pestrust.edu.in/pesitm

CERTIFICATE

This is to certify that (Ganapathi N Sabhahita) bearing USN (4PM18MBA19),

is a bonafide student of Master of Business Administration course of the Institute

(2018-2020 Batch), affiliated to Visvesvaraya Technological University, Belgavi.

Internship study report with special reference to “(TSS)” is prepared by him/her

under the guidance of (Mr.Arjun.J), Assistant Professor, PG Department of

Management Studies & Research Centre, PESITM Shivamogga, in partial

fulfillment of the requirements for the award of the degree of Master of Business

Administration of Visvesvaraya Technological University, Belagavi, Karnataka.

(Mr Arjun.J) Dr. Prasanna Kumar T M Dr. Chaitannya Kumar M V

Asst., Professor Professor & HOD Principal
PGDMS& RC, PGDMS& RC, PESITM,
PESITM PESITM Shivamogga.
Shivamogga. Shivamogga.

Examiners

Sign: Sign:

Name: Name:

Institution: Institution:

3
 DECLARATION

I, (Student Name), hereby declare that the Internship report entitled

“(Organisarion study)” with reference to “(TSS,Sirsi)” prepared by me under
the guidance of (MR Arjun.J), Assistant Professor, PG Department of
Management Studies & Research Centre, PESITM Shivamogga and external
assistance by (Mr.Ravindra Bhat, HR,TSS).

I also declare that this Internship work is towards the partial fulfillment of the
university regulations for the award of degree of Master of Business
Administration by Visvesvaraya Technological University, Belgavi.

I have undergone a summer project for a period of four weeks. I further declare
that this project is based on the original study undertaken by me and has not
been submitted for the award of any degree/diploma from any other University/
Institution.

Place: Signature:

Date: Name:

USN:

4
 ACKNOWLEDGMENT

I feel greatly honoured to be part of our beloved and highly esteemed educational
institution - PG Department of Management Studies, Research Centre PES Institute of
Technology and Management, Shivamogga. for developing me as a real MBA student.

I wish to place my deep sense of gratitude to Dr. Chaitannya Kumar M V, Principal,

PESITM, Shivamogga, and also Dr. R Nagaraja, CCA, PES Trust, Shivamogga, for
continuous support. who have been a constant source of inspiration to me and have
encouraged me to undertake and conclude this project successfully.

I am very much pleased to acknowledge the support of Dr. Prasanna Kumar T M

Professor & Head, PG Department of Management Studies & Research Centre,
PESITM Shivamogga; his innumerable suggestion, keen interest and constant co-
operation towards my project.

I am extremely grateful to Guide Name, Assistant Professor, PG Department of

Management Studies & Research Centre, PESITM, Shivamogga; who has helped me
thought this project and has given the shape with great interest.

I extend my warm regards to my external Guide Name Designation and Address, for
his/her support extended during my project.

Last I am grateful to my beloved parents and my friends, Faculty for their encouragement,
which is the great source of my inspiration.

Place: Shivamogga
Date:
(Ganapathi N Sabhahita )
(4PM18MBA19)

5
 TABLE OF CONTENTS
SL Page
Chapter
No Number

Chapter 1:
1 Introduction about the internship, and 1-2
Industry Profile

Chapter 2:
2 3-11
Organization Profile:

Chapter 3:
3 12-18
Mckensy’s 7S framework

Chapter 4:
4 19-21
SWOT Analysis

Chapter 5:
5 22-30
Analysis of financial statement.

Chapter 6:
6 31
Learning experience.

Bibliography 32

Annexure 33

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 LIST OF TABLE

SL Page
Table
No Number

1 Varieties of areca nut sold in the market during 2017-18 27

Sales recorded for products manufactured by TSS Ltd

2 during last 3 years 28

3 Data showing arecanut exports for the last five years 29

Sale of peper and cardomom

4 30

5 Consolidated Balance Sheet 33

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 LIST OF GRAPH

SL Page
Table
No Number
Varieties of areca nut sold in the market
1 27

Sales recorded for products manufactured

2 28

3 Arecanut exports for last five years 29

Sale of pepper and cardamom
4 30

8
 EXECUTIVE SUMMARY
The study conducted at TSS, Siddapura about the work culture of company. The
main aim of the study is to know the position of internship is the integral part of
the academic syllabuses of MBA. Internship is the incentive to link the gap
between knowledge and its application through a series of intervention that will
enable students of MBA programs to pick up experiences and presentation to the
organizations. The 4 week internship has been placed during the 3rd semester of
MBA program as its attends that twin purpose of providing critical insight to the
students as well as providing industry with graduates of a high caliber who are
ready to get ahead in the world from day one.

9
 Chapter: 1
INTRODUCTION

1.1 INTRODUCTION ABOUT THE INTERNSHIP:

The study conducted at TSS, Siddapura about the work culture of company. The
moto of the study is to know the position of internship is the internal part of the
academic syllabuses of MBA. Internship is the incentive to link the space
between knowledge and its process through a series of intervention that will
enable students of MBA programs to pick up experiences and presentation to the
organizations. The 4 week internship has been placed during the 3rd semester of
MBA program as its attends that twin purpose of providing critical insight to the
students as well as providing industry with graduates of a high quality who are
ready to get ahead in the world from day one.

Need for the study:

 To understand the nature of the organization.

 To know SWOT analysis of the company.
 To know the effect Mckensy`s 7S Frame work with special reference of
the company.
 To know the proprietorship example, accomplishments and honors.
 To understand financial position of the organization.
 Identify strength and weakness of the concern
 To know the overall performance of the company.

Objectives of the study:

Objectives are short term and medium term goals that organization seeks to
accomplish an organization objective will play a large part in developing
organization policies and determining the allocation of resources.

10
1.2 INDUSTRY PROFILE

Development of agriculture is essential for the development of our country. Most

of the peoples in India are dependent on agriculture for their sources of income.
This basic aspect has three important things there are:
1. The Agriculture claims priority consideration for economic development.
2. It is a source for providing employment.
3. The main cash crops like pepper, card mum, areca nut, and other are
playing a unique role in contribution to National Income.

Hence, the regular flow of produce from the point of produces to consumer
should be ensured to suits the requirement of economy. Agricultural price suffer
from violent fluctuation due to so many factors. If farming is a risky on rains and
also it is equalent to a gamble on price also. The well organized marketing
associated proper pricing policy has to take care of all such irregularity for rapid
growth.
Areca is a commercial crop which is also known as garden crop. The other crops
produced along with areca are pepper, banana, cardamom, vanilla by the framers
of this region. So our agricultural study concentrates on the marketing of areca
nut. Sirsi is a leading producer of areca nut in the North Kanarataka District. For
the Areca nut Sirsi is a main commercial centre of North Kanarataka District.
And it is a major co-operative centre of a District. The report of Agricultural
Produce Marketing Committee Sirsi (APMC) reveals some interesting figures.
Here different types of agricultural produce are bought and sold in the market. It
also includes areca nut, paddy, pepper, dry chilies, rice, pineapple, coconut,
cardamom, groundnut, cotton, etc.

11
 Chapter 2 : ORGANIZATION PROFILE

BACKGROUND:

TSS was initially started in at Sirsi in 1905 with the moto of saving agriculture
and agriculture activities from the leverage of local money lenders. The Act of
Co-operative society of 1912 was passed for purpose of supplying local
agriculture items, materails and apart of non co-operativties in marketing felid. In
early days financing the farmers for the purpose of production of Areca nut,
Pepper and Cardamom and other agriculture items were in private undertaken
organization, land owners and agents. The agriculture especially small land
holders were being considered. The actual price and weights are not getting
correctly.

2.2 NATURE OF THE BUSINESS

 To mainly providing for the marketing facilities to the members.

 Cattle feeds, consumer goods and groceries are also supplied.
 To provide paddy de husking facility.
 Having conduct processing activity.
 Also provide storage facilities to the members.
 Providing financial support to the TSS members in the way of loans and
deposits, education loan, agriculture loans, pledge loans etc.

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2.1 VISION,MISSION AND QUALITY POLICY

2.1.1 Vision statement:

“Vision of TSS Sirsi is spreading its operations to international

market and by that creating a global demand for the products of
members.

2.1.2 Mission Statement

Society has set the mission as “members welfare is institution’s

pride”. It has a mission of launching many projects to recover the
quality of service given to the members of the society and to
diversify its business by introducing different

2.1.3 Quality Policy:

Company can provide the good quality product & service to the
customer. Producer when sell the product in to society than credited
amount in to his account. They can provide the van facility to the
producer to transport the product to society.

13
 2.2Workflow model
Introduction-

Work flow model is a continuous series of task and decision that make up a business
process.

Workflow model of TSS-

Customer

Sales

Contracts/
Tender

Legal

Fulfillments

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PRODUCT/SERVICE PROFILE

ARECANUT:
Areca nut is the key product of TSS. It sells Areca nut in a huge quantity to
numerous parts of the country like Gujarat, Maharashtra, Rajasthan, Delhi etc. In
India Karnataka has the main area under Areca nut cultivation with a production
of 2.31 lakh tones constituting about 45 percent of the total are and 48 percent of
the total production of the India.
PEPPER:
Pepper is one of the products that are marketed by TSS. TSS does not trade or
sell the pepper but it acts as an intermediary between growers and purchasers on
the basis of commission. It creates a market for pepper where purchases buy the
pepper through tender System.
CARDAMOM:
Cardamom is the agricultural product that is marketed by TSS is an intermediary
in case of Cardamom marketing. It gives platform to sell their crops by acting as
an agent between grower and purchaser.
SWEET SUPARI:
Sweet Supari is the manufacturing to marketing product or sale of value added
product. Sweet Supari product and rates.
PRODUCT RATES

Arjun 50ps
Tiger 50ps 1re 5rs
Elachi 1re
Plane Supari 50ps
Tamil Tiger 50ps 1re
Supari fresh 50ps
Gold 50ps 1re

15
2.2 Ownership pattern
TSS is co-operative society, formed and managed by the members. The board of
director is elected by the share members by poll. They were elected for the period
of 5 years.

COMPITITOR’S INFORMATION:
In every business there are competitors who produce homogeneous products and
compete to occupy the large market share with a huge production. TSS also has
many competitors who are involved in production of areca nut. Competitors of
TSS can be divided into 2 types

Domestic competitors
CAMPCO
TOTAGAR’S MARKETING SOCIETY SIRSI
TOTAGARS MARKETING SOCIETY SIDDAPUR
LOCAL DEALERS

Foreign competitors
There are many other countries who are involved in production of areca nut,
pepper and cardamom. So foreign competitors are
BANGLADESH
MALAYSIA
SRILANKA
GREECE
PERSIA
VIATNAM

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BOARD OF DIRECTORS
Shri Shantaram V Hegde, Shigehalli - Chairman
Shri Ramakrishna S Hegde, Kadave - Director
Shri Chandrashekhar N Hegde, Hudlamane - Director
Shri Seetaram M Hegde, Neernalli - Director
Shri Ganapati SheshagiriRayod ,Kalsalli - Director
Shri Ganapati MahabaleswarHegade - Director
Shri AnnappaGovinda Gouda Hulkutri - Director
Smt. Sharada AnnappaHegade - Director
Shri Subray Venkatraman Bhat Salkani - Director
Shri Narasimha Timmanna Bhat Guntakal - Director
Shri Ramakrishna TimmappaHegadeAlagod - Director
Shri Balachandra Prabhakar HegadeKodamuda - Director
Shri Shashank ShantaramHegadeShigehalli - Director
Shri Narayan Ira Naik Menasi - Director
SmtMahalaksmiDivaspatiLingadkona - Director
Shri Raveesh Hegde General Manager

17
Name of leader who served as the chairman of this institution and
period:
Name Period
1) Sri M.S.Jade 1923-31

2) Sri G.M. Hegde Lingadkon 1931-37

3) Sri P.G. Hegde Heepanalli 1937-45

4) Sri G.V. Hegde Janmane 1945-52

5) Sri S.R. Hegde Kadave 1952-57

6) Sri G.S. Hegde Ajjibal 1967-59

7) Sri T.M. Hegde Motinsar 1959-60

8) Sri S.R. Hegde Kadave 1960-75

9)Sri D.D. Vishwamitra Onigadde 1975-84

10) Sri S.R. Hegde Kadave 1984-87

11) Sri D.D. Vishwamitra 1987-93

12) Sri S.R. Hegde Kadave 1993-95

13) Sri S.V. Hegde Shigehalli 1995

18
Achievements/awards

This society was registered on 21-09-1923 and started its activities on 24-
11-1923.
1. Siddapur branch was opened In 1947.
2. Yallapur branch was opened in 1955.
3. Linking credit with marketing system was introduced.
4. Society was classified as “A” by audit department In 1959.
5. On 8-10-1962 Medical Stores was started.
6. On 17-06-1964 the office was shifted from Nadig Galli to Namaj
Gudda which is now called as A.P.M.C. yard.
7. Petrol bunk was started on 21-12-1964 and then handed over to another
society.
8. The Rice Mill was started on 09-05-1965.
9. By the request of this society, North Karnataka District printing co
operative society branch was started.
10. With the efforts of the society, K.S.R.T.C. divisional office was started.
11. With the collaboration of the society, soil testing laboratory was started in
the office building by K.D.C.C. Bank.
12. During 1969-70, Society returned Government share and loan.
13. Society is the founder member of Campco which was established in 1973.
14. Financial assistance too many educational institutions, students’ hostels,
agricultural and horticultural research, poor and intellectual and
meritorious students and to some other areas.
15. In the year 1985, well equipped and well furnished Samrat Hotel was
purchased. Since then it is serving not only members but also people from
different areas by providing good accommodation facilities.
16. As it is having own and substantial funds, it is providing financial help to
its members, good marketing facility.
17. Cold storage has been constructed for the first time in this region to store
areca nut.
18. 24 hours’ payment facility to members through ATM.
19. On 14-11-2005, high -tech hospital was started.
20. Installation of Computers in all sections.
21. Founder member of Karnataka Rajya Adike Mahamandal Niyamit.
22. On 05-10-2005 cattle breeding centre was opened with the collaboration
of BAIF at Sirsi.
23. On 06-06-2006, public library was started at Head Office.
Awards

1. Sarvajanika Seva Prashasti - 1962

2. IFFCO Cash Award - 1988-89
3. Best Marketing Society - 2005
4. Best Co-operative Society - 2007

19
2.3 Future growth and prospects

Future growth of TSS the credit goes to expired”Shree Shreepad Hegde” former
chairperson of TSS ,who work hard and fought to initiate TSS to the upper level
. It made of his restive effort, huge contribution in co operative field,
encouragment and reliance in agriculture, high perception TSS became in
Karnataka,India and worldwide. During his authority chairman the society
returned government share and loan. The way in which getting loans from banks
was stopped. Where the rates were falling, he actively worked to establishing of
CAMPCO started in 1973,CAMPCO was joint venture between Karnataka and
Kerala.

20
 Chapter 3: Mckensy’s 7S framework and Porter’s Five Force model

2.1 Introduction to Mckensy’s 7S framework

This model explains management model, was developed by two consultants

(business) in the year 1980.This model includes seven S. In 7S some are soft S
and hard S. The objective is to have improving company’s perpormance.The hard
elements are–strategy, structure, systems and soft S are shared values, skills,
staff, and style. 7S is used in the organizational changes, merger of company,
having new strategy, future planning. The 7S are as follows:-
1) Structure.
2) Strategy.
3) Staff.
4) Skill.
5) Style.
6) System.
7) Shared value.

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I. STRUCTURE

Introduction:

Organization structure in TSS can be seen as organized pattern of relationship

among the elements of the TSS. The frame of structure in TSS is well planned.
The authority and responsibility are properly allocated rest is carried without
difficulties. It follows line organizational structure where there are section heads
that manage and supervise the work in their section and they are answerable
directly to the general manager. Each section has assistants and clerks who are
answerable to their immediate authority and the responsibility flows upward.

22
a. Organization Structure

The organizational structure of TSS is Line structure as the organization needs

structure for achieving common goals. In line organization there are section heads
that manage and supervise the work in their section and they are answerable
directly to the general manager and other section heads cannot question his work
and position. Each section has assistants and clerks who are answerable to their
immediate authority and the responsibility flows upward.

12
PG Department of Management Studies & Research Centre, PESITM Shivamogga.
 b. Structure of Finance Department

GENERAL MANAGER

(FINANCE & ACCOUNTS)

ASSISTANT MANAGER ASSISTANT MANAGER

(F&A)

ACCOUNT ASSISTANT H.O.ACCOUNTS HSS ACCOUNTS CASHIER

ACCOUNT ASSISTANT

BRANCH ACCOUNTS MARKETING OFFICER

Functions of Key People in Finance Department

Primary co-operative societies are also members’ of this society. These societies will also
get direct financial assistance. NABARD and APEX Bank will release funds to KDCC
bank.KDCC bank will sanction fund to the primary co-operative societies. Primary societies
will sanction loan to their members. These members bring and sell the products in TSS.
Discredits the sale proceeds to the account of primary societies in KDCC bank. This system
is called as “Linking Credit with Marketing”.
TSS has got good status as far as financial position is concerned. Purchasers may not make
the payment on the date of sale itself. Advance can be given against security of products.
Poor and intelligent students will be sanctioned scholarship. For last six months education
loan also is being sanctioned to those students who wish to study higher education subject to
the condition that his parents should be the member of this society.

Page 2
 c. Structure of Human Resource Department

GENERAL
MANAGE
R

DY.MANAGER

SUPERINTENDEN
T

ADMINISTRATO ADMINISTRATO
R R

ASST-1 ASST-2

Functions of Key People in HR Department

Human resource management is the important function of every organization. Skilled

efficient and expertise workers are proved to be the assets of the firm. The
administrative unit in TSS is taking care of employee details, salary records, paying
bonus to workers, managing industrial relation, providing other facilities to the
employees, Employee State Insurance scheme (SIS) etc.

Page 3
d. Structure of Marketing Department:

MANAGER

ASSISTANT MANAGER INTERNAL AUDITOR

MARKETING MANAGER

ASSISTANT MARKETING
MANAGER

ASSISTANT ASSISTANT
ASSISTANT

PEON DRIVER

Functions of Key People in Marketing Department

The main function of TSS is marketing. It provides platform to the

members to sell their product and traders to purchase. Areca nut, pepper
ago the society or through the primary co- operand cardamom and are the
three crops being sold in TSS. Vanillas are also being marketed in TSS.
Areca nut is the main crop sold in TSS. Agriculturists bring their products
directly to the society or through the primary co-operative societies for
sale. Agriculturists should have to be the members to the TSS for market
activities to undertake.

Page 4
 II. SYSTEMS

Introduction:

The system refers to group of independent and interlinked activities as a whole.

In this case the system signifies the regulation including procedures that support
the organization structure. So the company has production planning and control
system, financial and cost accounting system, training and development system,
management information system, performs evaluation system etc.

Page 5
a. System at Finance Department

Managing the deposits:

Deposits only from those members who will sell their produces in this society
will be accepted. There are three types of deposits.
1) Fixed deposits
2) Cash certificates
3) Savings bank deposits.

LOAN SECTION:
TSS is providing loans to its members at lower and simple rate of interest. This
society is not having any “Government Share”. It is providing loan to members
from its own fund @12.5% p.a. of simple interest. It provides three types of
loans.

1) Production loan:
75% of total sales amount in the current year or 70% of average sales amount of
consecutive three previous years’, whichever is less, will be given as production
loan. While sanctioning this loan, encumbrance on the properties of the
concerned member will be recorded and members will have to give surety of
another member. This loan will be disbursed on installment basis. This loan will
have one year duration. Once in a year, interest will be charged on basis of day’s
calculation. Sometimes interest will be collected on the same day when amount is
credited.

2) Pledge loan:
Members’ will get loan up to 75% market value of produce kept in the godown.
This is called pledge loan.

3) Deposit loan:
Members will also get loan on deposit. 85% of deposit amount plus interest on
deposit up to that day will be given as deposit loan.

Page 6
b. System at Human Resource Department

Recruitment and selection:

For posts like GM and manager posts advertisement will be given in newspapers
and magazines Selection process.
Written test.
Interview.
Selection.
For middle level posts like office assistant direct interview will be conducted and
candidates are selected. Some methods used for selection is technical interview
and personal interview. Lower level posts like peon and helpers will be appointed
based on the reference of the existing employees. Training and induction program
is conducted for all the new employees. The training will be of one year period.
They will be taught regarding origin, growth, principle of co-operative societies,
and maintenance of different accounts in the society. Special classes of one hour
duration will be conducted once in a week. All trainees will be given theoretical
and practical training in different sections. They will also be trained about
relationship between members, purchasers and the society. After one year, every
trainee will be issued a certificate.

Wages and salary administration:

The main intention of wages and salary administration is to establish and
maintain equal wages and salary structure. The management of Totagars’ co-
operative sale society consolidated wages to the employees. Pay fixation to these
employees mainly based on the qualification, ability and experience. Skilled
employees are paid between Rs.2000toRs.20000 per month and unskilled are
paid between Rs.1500 to Rs.5000 based on their work performance.

Page 7
c. System at Marketing Department

STEPS INVOLVED IN MARKETING PRODUCTS:

Activities including in the marketing are discussed below briefly.

A. Assembling the products

The product is assembled through personal delivery by the formers at the
society’s office or through primary societies according to a fixed schedule.

B. Weight measurement
Once the product reaches the society weight measurement is done and the weight
is recorded to avoid mistakes. A copy of this will be given to the owner which he
has to submit at the time of getting the sale note. On
arrival of the goods, member’s name, number of bags etc. Will be written on the
bags and then rough weight will be recorded on a register and a rough will given
to the members. It contains:
Name of the society
Receipt no.
Date
Account no.
Name of the member
Variety
No. of bags
Rough weight

C.Grading
Through grading, the society sorts out the products into lots of uniform quality
and characteristics
.
D.Storage
TSS provides storage facilities to its members to store the goods. TSS has 9 well
designed godowns and also cold storage facility to store the goods.

Page 8
III. STRATEGY

Introduction:
Strategy is a systematic action plan and allocation to achieve company goals; it is
the upon on the intention and the basic long term objective of an company and
the approval of action and grant of necessary resource to these objective. The
strategy of TSS is to provide platform to the members for their products and
traders to purchase. The main hard S's

Innovative Marketing Strategy adopted:

TSS introduced 'pooling system' under which the members produce were pooled,
graded and sold in different terminal markets at remunerative prices. As a result
of successful marketing operations over the years, there was an enormous
increase in its internal resources. So to become self-reliant and perhaps to be free
from the Government interference, it returned the entire Government share
capital and loan during 1969-70. In 19 72 the economy of North Kanarataka
district in general and Sirsi taluka in particular received a serious jolt when areca
nut prices nosedived. The price of Rashi Standard variety of areca nut which was
quoted around Rs.717 per quintal in October 19 71, slumped to Rs.340 per
quintal in 1972. The TSS studied the causes and realized that rampant speculation
and overplay of private finance contributed to the periodical as well as sudden
variation in the prices of areca nuts. To foil the speculative attempt of private
traders, the CAMPCO was started and the TSS became its founder member, and
has been acting as its purchase agent in Sirsi market since then. Thus the TSS
played a key role in reviving areca market and stabilizing areca prices.

Page 9
IV. Skills

Introduction:

Skills are the talent that firm’s employees perform very good. They also have
capacity and ability. During organizational change, the question comes are.

What are the strongest skills represented within the company/team?

 Are there any skills gaps?

 What is the company/team known for doing well?

Skills Available at TSS

The organization is capable of producing quality products and services well

before the time schedule and other expectation of the customers. TSS is satisfying
the needs of its members by providing various facilities required to them.TSS
possesses good skills in the procurement of raw materials which is reflected by
the quality assurance test taken by the organization during the procurement of
raw materials. It also builds skills of employees by giving proper training

Page 10
 V. STYLE

Introduction:

Style shows the way the organization is managed by upper level managers, how
they contact, what actions do they take and their shy value.

 How to take part in the management leadership?

 How to make of leadership effectively?

 Are employees tend to be cooperative and competitive?

Communication Style at TSS

There are three types of communication system is there according to the

direction. They are

1. downward communication
2. upward communication
3. horizontal communication

In TSS following these three types of communication system. The messages will
be sent from downward to upward and upward to downward. There is no restricts
are there to express their opinions of the employees. They are free to share their
opinions with the higher officers

Page 11
Leadership Style at TSS

A leader’s method of providing direction, executing plans, and motivating

people is known as leadership style.

At TSS, they follow a very in effectible style of functioning.

 There is a good cordial relation between the management and the
employee which shows a participatory leadership style.
 Staff has very good informal conversation that develops sense of loyalist,
motive, and dedication within the employees.
 Manager and staff etc. are approachable.
 Personal attention to the project trainees helps in creating a good image in
the eyes of the public.

Page 12
VI. STAFF

Introduction:

Staff includes the company’s human resource, educational, demographic. What

and how many employees are needed for company. It has motivation, training
and development and rewards.

 What positions need to be filled?

 Are there gaps in required competencies?

Staff Profile at TSS

A style refers to the way the management behaves and collectively spend time to
achieve organization goal. In TSS management holds meeting regularly and
spend time to achieve organization goals. Every department maintains proper
records, which is helpful for verification purpose and they have to do presentation
on their department activities.

The style of organization is authoritarian. It means management followers

authoritative style of management.

Page 13
 VII Shared Values
Introduction:

The internal values of the organization, as shown in its general work ethics and
corporate culture. It includes core values, corporate culture and strong values.

Shared Values at TSS

Shared value goals refer to a set of standards and ambition that goes beyond the
convention formal statement of corporate objective. The employees work hard to
see that good
quality products and services are produce in the organization. There are some fun
damental ideasaround which business is built. In TSS every worker is dedicated
to the achievement of the organization goals. The organization also took the
valuable guidance and suggestions from the employees, members and customers.
This will show the free flow of authority from management to workers.

Page 14
 Porter’s Five Force model

Introduction Porter’s Five Force model

Five Force model is way in which completion of business can be analyzed. Five Forces
goes with the micro as well as macro environments It is like a SWOT analysis Model is
used mostly in new business entering in industry sector. Model was in 1979.strategies
for success are differentiation, focus, alternatives, cost leadership.

Page 15
1) Threat of new entrants.

. Threat of new entrants this force determines how easy (or not) it is to enter a particular

industry. If an industry is profitable and there are few barriers to enter, rivalry soon
intensifies. When more organizations compete for the same market share, profits start
to fall.
TSS is a society so it will see a some of the rivalries like pan pbhara, vimala, rajsupari
where they give different taste and different price

2) Bargaining power of suppliers

Bargaining power of supplier’s are believed on suppliers to the company.It includes raw
materials, labor, services. Bargaining has directly affects the buying company’s profits.
There is no much bargaining can seen in TSS by its suppliers because suppliers supply the
raw materials and the products sold in the super market sometimes happens when there is a
stock at that time they sell to the local shops or return the products to suppliers.

Page 16
3) Bargaining power of buyers.

The bargaining power of suppliers is also described as the market of inputs. Suppliers
of raw materials, components, labor, and services (such as expertise) to the firm can be
a source of power over the firm when there are few substitutes.
In TSS the bargaining power of buyers will not be seen because there is a super market
so there the product rate is fixed no question of bargaining by buyer or customer.

4) Threat of substitutes

This force is finds easy when substitute products with better price and good quality
where buyer can find easily .In market substitute products exits in a close substitute
products.

TSS substitutes products are more supari is like from different region so here
different region has different type of shape and taste, So commonly the rate also
differs in the same way.e.g- TSS supari has 1rs and .50paise, and raj supari costs 1
also.

Page 17
5) Rivalry among existing competitors.

In this force how the profitable and competitive an industry is the major aspect.
Rivalry intense when there are too many competitors, growth of industry is slow,
high in the exit barriers, and loyalty of customer is low, equal size of competitors,
no differciance in products.
TSS as many competitors like CAMPCO,APMC,APCOS,MAMCOS etc but
compare to above competitors TSS has much network so competition is high.

Page 18
 Chapter:4
SWOT – ANALYSIS

4.1 Introduction to SWOT Analysis

Every company, either big or small, has to make its own SWOT analysis. It is
very helpful to take decision, to measure company’s growth and predicting the
future.
SWOT analysis means the way of recognizing the internal and external analysis.
SWOT is a 2*2 matrix .SWOT includes the strength, weakness, opportunities,
threats. It has favorable and unfavorable objective, SWOT gives an idea in
decision making process

4.2 Strength of TSS

1) Well established, long history.

2) Expertise of management team
3) Responsive to member’s needs.
4) Extensive services provided to members.
5) Loyal membership base.
6) There is good reputation and goodwill for the society in locality.
7) Governance structure.
8) Vertical integration for supari.
9) TSS is having sufficient financial resources and can invest in my interested
areas.

Page 19
4.2 Weakness of TSS
1) The target cannot be fixed due to production fluctuations.
2) Limited capacity of production facilities.

4.3 Opportunities of TSS

1) Expansion into international markets.

2) Investment in integrated machinery (boiling, drying, packing)
3) Product diversification.
4) Financial capacity to respond to member’s needs.
5) Demand exceeding supply for sweet supari.

Page 20
Treats of TSS
1) There may be chances of banning tobacco products which is produced
from Areca nut.
2) Processing of Areca nut required lot of labour.
3) The primary societies may change their loyalty due to several reasons.
4) The government is not giving proper recognition to the co-operative
societies.
5) Potential changes to regulation Health concerns of areca nut.
6) External factors influencing price volatility of areca nut.

Page 21
 Chapter: 5
ANALYSIS OF FINANCIAL STATEMENT
5.1 Introduction to Financial Statement Analysis
The way in which data is collected and organized so that one can
extract helpful information by company. Analysis of data is a method of
inspecting, cleaning, transforming, and modeling data with the goal of
discovering useful information, suggesting conclusions, and supporting
decision making.

Financial statement analysis consists of creditors, management, investors, and

regulatory authorities. There are two type of financial analysis one is horizontal
and vertical analysis and another one ratio analysis, horizontal analysis is as
called as trend analysis.

5.2 Key Points to be considered for Financial Performance Analysis

1. Recognize economic nature.

2. Know your customers.
3. Know about your company’s financial statements.
4. Analyze risk.
5. Create financial statements.
6. Value.

Page 22
5.3 Ratio Analysis:

a) current Ratio = current assets

current liability
3974299449 =25.151:1
158013949
Interpretation-
Shows high liquidity in the current ratio
Conclusion-
Better flow of the assets in the organization.

b) Acid ratio-
Acid assets
Acid ratio:
Acid liabilities
2576431201 =16.305:1
158013949
Interpretation-
Seems to be enough quick assets to pay for its current liabilities.
Conclusion-
Acid ratio clear that organization good quick ratio are favored by creditors.

C) Net Profit Ratio:

Net Profit
Net Profit Ratio: X 100
Sales
2,03,47,512 X100 =1.25425
162,22,73,867
Interpretation-
Origination can able to achieve a satisfactory return.
Conclusion-
Origination has ability face adverse economic condtion.

Page 23
D) Inventory turnover ratio:
Net Sales
Inventory turnover ratio:
Closing Stock
2,03,47,512 *365days= 7.22 times
102,81,54,806
Interpretation-
It is clear that organization has efficient inventory control.
Conclusion-
Better reputation in market and better competitive capacity.
e) Fixed Asset Turnover Ratio:

Net sales
Fixed asset turnover ratio:
Fixed assets

20347512 =0.086061
236430972
Interpretation-
It indicates lower than the using its assets to their fullest extent.
Conclusion
Not utilization of small amount of assets.
f) Total Asset Turnover Ratio:

Net sales
Total asset turnover ratio:
Total asset
20347512 =0.05108
398,33,00,181
Interpretation-
Origination does not have ability to generate sales from its assets.
Conclusion-
No much efficiently an origination has use its assets to generate sales.

Page 24
g) Creditor’s Turnover Ratio:

Net credit purchases

Creditor’s turnover ratio:
Average creditors

65,92,83,261 =3286.835
2,00,583
Interpretation-
Shows the quick payable off its vendors.
Conclusion-
Origination pays frequently and regularly
h) Proprietary ratio:

Proprietary Fund
Proprietary ratio: X 100
Total assets

92,2260,600=45.351
20347512
Interpretation-
It shows more dependence on external source.
Conclusion-
Dependence on stage of growth.
i) Debt Equity Ratio:

Debt
Debt equity ratio:
Equity
15,65,42,451 =30.396
5150000
Interpretation-
Organization can able to generate enough cash.

Page 25
Conclusion-
Organization using the financial leverage in long run.
j) Debt Asset Ratio:

Debt
Debt asset ratio=
Total assets
156542451 =7.693
20347512
Interpretation-
Organization looks risky to invest or lend to.
Conclusion-
Look like extremely leveraged.
k) Dividend per shares ratio:
Equity dividend
Dividend per share:
No. of equity shares
18,00,000 =3.495
5150000

Interpretation-
The investors will receive 3 for every share held.
Conclusion-
Organization is moderate in issuing the dividends.

Page 26
 //cash Flow Analysis:

Varieties of areca nut sold in the market during 2017-18

Product name Sales (in
crores)
Chali 195

Red areca nut 85

Coca 3

White areca 5

chart showing varieties of areca nut sold in the market

Sales in Crores
250

200 195

150

Series 1
100
85
50

0 3 5
Chali Red arecanut Coca Whiteareca

The above graph shows that during the year 2017-18 sales recorded with respect to
various areca products. Chali recorded the highest sale of Rs.195 crores where as coca
recorded the lowest sales with Rs.3 crores, while the sales for red areca and white
areca for the year 2017- 18 closed at 85 crores and 5 crores respectively.

Page 27
 Sales recorded for products manufactured by TSS Ltd during last 3
years

Product name Sales during 2015 Sales during 2016 Sales during 2017
(crores) (crores) (crores)
TSS GOLD 4 5 7
TIGER 1 3 -

CHOCOLATE
ARJUN 1.5 2 3.5
TSS SUPARI 3 4.5 5
MIX SUPARI 1 2 2

Chart showing sales recorded for products manufactured

1
8
1
6

1
4

1
2

1
0

8 TSS GOLD TIGER ARJU TSS MIX

CHOCOLATE N SUPARI SUPARI
6
Sales during sales during sales during
4 2015 2016 2017

2 The above chart shows the products produced by TSS Ltd in the year 2015-
0 16-17. The company produced 4 crores units in the year 2015 with increased
by 7 crores units in the year 2017. Increase in the production of TSS Supari,
Mix supari, and Arjun were 7 crore units, 3.5 crores, 3.5 crores, 5 crores and
2 crores respectively. During 2017 due to some problem it was stopped to
start manufacturing Tiger chocolate supari.

Page 28
 Data showing arecanut exports for the last five years

Amount (in
tonnes )
State name 2013-14 2014-15 2015-16 2016-17 2017-18
Maharashtra 60 65 80 100 95
Gujarat 70 50 60 98 100
Andra Pradesh 90 45 75 85 90

Madhya 50 52 65 60 60
Pradesh
Kerala 40 50 25 55 50
Tamilnadu 40 35 30 50 45
chart showing arecanut exports for last five years

450

400 95
100 90
350

300 100 85
98 60 2017-18
250
60 2016-17
55
200 80 75 45 2015-16
60 55
65 2014-15
150 50
65 45
50 25 2013-14
100 52 30
90 50
70 35
50 60 50 40 40
0
Maharashtra Gujarat Andra Madya Kerala Tamilnadu
Pradesh Pradesh

There is 40 tones increase in the production of areca nut in the state of Maharashtra
over 5 years of period. There is slight increase in the export of areca nut from 40 to 98
tons in Gujarat over five years. Production of areca nut reported drastic increase over
five years of period from30 to 85 tons in AP, 45 to 60 tonnes in MP, 40 to 50 tons in
Tamilnadu.

Page 29
 SALE OF PEPPER AND CARDAMOM

YEAR PEPPER CARDAMOM

RS RS (CRORE)
(CRORE)
2015-16 7.15 0.5

2016-17 7.18 0.1

1
2017-18 4 0.2

Sale of pepper and cardamom

sale of pepper and cardamom

9
8
7
6
5
4
3
2
1
0
2015-16 2016-17 2017-18

pepper cardamom

The above chart shows the sale of pepper and cardamom made during last three years.
Pepper sale shows an increasing trend. During the year 2015-16 society made sale of
Rs.7.15 crores and in the year 2016-17 and 2017-18, sale of Rs.7.18 crores and 4
crores respectively.

During the year 2015-16 and 2016-17 sale of Pepper shows an increasing
trend of Rs.0.5 crores to Rs.0.11 crores after that it declined to Rs.0.2 crores.

Page 30
 Chapter 6: LEARNING EXPERIENCE

It had been wonderful experience in TSS Ltd, as it helped me to

understand the real life situation. I learnt about how the organization
functions and cache department role in the entire organization success.

During the organization study of one month, I have got enough exposure
about how an organization will run successfully. The particular
organization has shown me the fact that even co-operative societies can be
run profitably as a corporate body. Many co-operative bodies which fail
because of poor management have got lot many things from TSS. The
organization has facilitated me to understand the marketing of agricultural
product and services.

According to the government rules the co-operative organizations have to

maintain their books of accounts in their regional language. Although I
am familiar with the regional language it was very tough for me to
understand the financial terms. But it was necessary in order to get clear
picture of the organization.

I also get practical knowledge of the manufacturing company activities,

like production process, how to utilizing machineries, raw materials, and
packing system, payment system etc.

Page 31
 BIBLIOGRAPHY

BOOKS:

Marketing management- Philip Kotler

Human resource management- V.S.RAO

Business studies – B.S.Raman

Annual report of TSS as on 31-03-17

Adike Patrike

Krashi Vani

Co-operative societies and rural development by S.K.Dutta

Website
- www.tssindia. Inindiancooperative.comwww.wikipedia.com

PG Department of Management Studies & Research Centre, PESITM Shivamogga.

 ANNEXURE

The Totagars’ Co-operative Sale Society Ltd., Sirsi (U.K.)

2.4 Consolidated Balance Sheet As On 31-03-2017

Capital & liabilities Amount Properties & Assets Amount
Authorized share capital 30,00,000 Cash in hand 1,08,58,230
Paidup share capital Cash at bank 22,34,76,748
Share A/C (From societies) 2,82,500 Sort term deposits
Share A/c(From individual) 18,68,000 21,50,000 Bhatkal urban co-operative bank
Funds deposit a/c 11,00,00,000
KDCC bank deposit a/c
Reserve fund 19,25,94,657 46,25,13,376
Price fluctuation fund 22,40,00,000 Deposit in KDCC bank (zuarry
Building fund 24,86,00,000 bank guaranty) 3,00,000
Bad debts fund 15,65,42,451 KSCARD bank Sirsi FD a/c
Dividend equalization fund 18,00,000 52,54,144
Members welfare fund 1,71,30,133 Vikas urban co-operative bank
Staff welfare fund 62,04,596 Sirsi deposit a/c 1,75,00,000
Charity fund 3,68,821
Risk fund 2,00,17,000

Propaganda fund 1,31,532 CANARA bank Sirsi deposit a/c 62,55,67,520

Agri production and ,market research 3,00,00,000
fund 19,77,586 Deposits
Reserve fund dp in KDCC
8,54,70,000
Price fluctuation fund deposit
77,59,317
Members welfare fund deposit in
Sirsi urban bank 1,17,00,000
Employees welfare fund deposits
in Sirsi urban bank 27,58,798
Risk fund deposit in KDCC
2,10,00,000

PG Department of Management Studies & Research Centre, PESITM Shivamogga.

 Members welfare fund 51,03,556
Employees fund 26,91,508

Capital reserve a/c 15,88,640 Centenary fund deposit in KDCC 14,24,83,179

Centenary fund 60,00,000 bank 60,00,000
Vehicle replacement fund 1,99,94,996 Investments
Machinery replacement fund Shares in KDCC bank ltd Sirsi
1,50,05,000 6,25,000
Health fund 86,22,189 92,2260,600 Shares in CAMPCO 5,00,000
Tss members agri. labour accidental 51,73,143 Shares in other institute
relief scheme 42,20,500

Deposits in other institute 90,00,732

36,55,232
Deposits 127,30,18,483 Movable and immovable
Fixed deposits 22,14,18,000 85,85,84,614 properties
Cash certificate 101,81,53,485 ATM 2,261
Savings deposit 2,25,22,361 LINNIN 60,498
Staff security deposits 31,15,979 Computers 24,45,475
Staff cumulative deposits 52,63,424 Furniture and fixtures
Members cumulative deposit
1,44,86,058
25,45,234 Plant and machineries
Assami agri. development 5,02,42,892
deposit/loan a/c Alaram systems 45,722
Purchasers a/c 1,28,19,256 Solar systems 272
Value of vehicles 55,95,541

Reserves Bore-well pump 2,32,017

Interest payable on CC 8,93,27,016 Library 3,947
Reserve for depreciation in Generator 21,20,602
investment 10,00,000 Electrical equipments 27,07,164
Reserve for repairs and renovation 9,06,87,390 Land and building 5,31,97,249
3,60,374 Building(on lease land)

PG Department of Management Studies & Research Centre, PESITM Shivamogga.

Loans 2,13,34,529
KDCC bank overdraft a/c 4,74,28,593
HDFC bank ltd WCDL A/C Silver and gold items 2,98,465 15,25,72,715
25,00,00,000 Building work in progress
NABARD P.O.D.F Loan a/c Godown a/c in Yellapur
1,00,00,000 1,39,30,631
NCDC godown loan 13,13,600 Super market building advance
NABARD Suparmarket&godown 5,21,84,952
loan 2,95,40,000 Godown a/c Siddapur 67,39,348
Canara bank godown loan soddapura Siddapur branch supermarket 8,00,68,834
69,69,877 building advance 72,13,503
Canara bank godown loan yellapura Site
1,07,99,108 Vacant site (h.o) 12,81,600
Axis bank WCD Loan 7,50,02,389 Vacant site (yallapur) 5,25,121
NABARD WC loan a/c Vacant site (mundgod) 17,82,725 35,89,446
10,00,00,000
Loans
Vijaya bank cash credit loan Assami agriculture development
3,05,75,591 deposit and loan a/c 94,77,95,876
HDFC short term loan 5,00,00,000 Staff housing loan 32,40,389
Vijaya bank short term loan Education loan 1,19,54,340
10,00,87,314
Karnataka bank OD a/c 5,00,48,899 76,17,65,371
Other liabilities
Customers a/c 9,00,08,085
Suppliers a/c 2,00,583
K.S.A.M.B. revolving fund of TSS
14,81,694
Share suspense 10,500 Purchasers a/c 65,92,83,261 162,22,73,867
Share suspense (ceased) 1,92,800 Advances
Share confiscated a/c 1,000 Staff advance 1,05,71,151
Vat payable 1,79,37,861 Hamali advance 3,896
Staff providend fund payable Grading advance 34,353
6,13,055 Miscelenous advance

PG Department of Management Studies & Research Centre, PESITM Shivamogga.

Staff pension fund payable 2,60,366 1,15,95,472
Security deposit(samrat) 1,38,000 Temrary staff 45,043
Staff professional tax payable 16,000 Customers a/c 5,97,653
Staff income tax payable 4,49,867 Suppliers a/c 1,34,20,300
Staff insurance premium 3,705 Site advance 33,83,784
Merchant association fund payable APMC site advance 3,99,065 4,00,53,737
1,00,593 Other assets
Luxury tax payable 4,668 Exebution fees recoverable
Honorararium payable a/c 48,325 1,49,163
Room rent advance 82,550 ABN fees recoverable 59,523
Assami a/c (ceased) 21,63,736 Spare parts (rice mill) 1,25,696
Electricity charges payable 4,29,757 Rubber stock a/c 9,180
Commission payable 36,82,281 Interest receivable a/c
Bonus & exgratia 1,17,780 1,59,04,342
Income tax tds a/c 6,24,075 Recoverable recovery expenses
Hamali payable 3174 3,84,129
Watch and ward charges payable Court fee receivable 25,260
46,323 Airtel easy recharge 18,768
Matured fixed deposit 4,300 Online recharge 41,438
Matured cash certificate 2,95,501 BSNL easy recharge 46,070
Suspense a/c 19,49,909 Disputed income tax under
Entry tax payable 23,537 protest 1,63,17,560
Interest payable on HDFC loan Advance purchase amount of
19,65,753 PAN card coupon 33,700
Charge creation fee payable 72,200 Lease rentreceivable 25,000
Advertisement expense payable e-stamping advance receivable
2,94,400 70,555
Interest payable on canara bank Vat on URD @5.5% 11,17.008
godown loan a/c 3,47,317 Vat on URD @2%
Gift coupon 12,548 1,07,83,688
Tata sky easy recharge 23,436
Amount receivable from swipe
a/c 13,199

PG Department of Management Studies & Research Centre, PESITM Shivamogga.

 Receivable from supplier 22,550
Sun direct recharge 9,821
Employees state insurance payable 3,64,93,013 Airtel dth recharge 20,281 4,52,00,367
Value of closing stock 102,81,54,806
2,19,320
Tax payment a/c 59,464
Adike patrike subscription 525
Incentives on sales payable
17,67,467
Net profit 2016-017 2,03,47,512

Total 398,33,00,181 Total 398,33,00,181

PG Department of Management Studies & Research Centre, PESITM Shivamogga.