CHAPTER 1

INTRODUCTION

1.1 INDUSTRY PROFILE

In India, agriculture is the largest sector of economic activity. It provides

food, raw materials and above all, the employment to a very large proportion
of population. The national output depends on the output in agriculture, as it is
one of the most dominating sectors in India. For the same reason, it has to
provide the capital required for its own development and make available
surplus for national economic development. At the same time, the exports of
primary produce earn valuable foreign exchange which can be used to import
capital goods for the development of industry and infrastructure. Because of
all these reasons, an improved and efficient agriculture is a dire necessity in
our economy.

The vital role of agriculture arises out of the position the agrarian sector
occupies in the overall economy of the country. 80 percent per cent of the
population resides in the rural areas and 72 per cent of the work force depends
on agriculture for their livelihood. Agriculture is the back-bone of the Indian
economy, and hence, the very existence of economic activities of entire
people in the country is dependent on the state and health of its agriculture
sector.

Since last 30 years, the fertilizer industry in India has grown

tremendously. The Government is keen to see that fertilizer reaches the
farmers in the distant and hilly areas. This is the reason why it has been
decided to decontrol the prices, distribution and movement of phosphate and
potassic fertilizers. Some steps are implemented to assure an increase in the
supply of nonchemical fertilizers at reasonable prices. In India, there are 53
fertilizer quality control laboratories.
 Since bio-fertilizers are regarded as an effective, cheap and renewable
supplement to chemical fertilizers, the Government is implementing a
National Project on Development and Use of Bio fertilizers. This scheme
covers one national and six regional centers for organizing training,
demonstrating programs and quality testing of bio-fertilizers.
1.1.2 NEEDS FOR CHEMICALS AND FERTILIZERS IN INDIA

Fertilizer is a substance to soil to improve plants’ growth and yield. First

used by ancient farmer’s fertilizer technology developed significantly as the
chemical needs of growing plants were discovered. Modern synthetic
fertilizers are composed mainly of nitrogen, phosphorous and potassium
compounds us the secondary nutrients added. The use of synthetic fertilizers
has significantly improved the quality and quantity at the food available today
but their long term use is debated by environmentalists.

(1) Its universally accepted that the use of chemical fertilizer in an

integral of the package of practice for raising the agricultural
production to a higher place. Studies continued by the Food and
Agricultural Organization (FAO) of the United Nations have
established beyond about that there is a close relationship between
the Gerry crop yields and fertilizer consumption level.
(2) Increasing agriculture production in Indian by area increasing
process is no longer possible as cultivable and left over is only
marginal. Further a considerable cultivable land is being diverted
year after year for housing and industrial etc. Hence self
sufficiency in food lies in increasing the field per unit area per unit
time through adoption of modern agricultural technology.
(3) Fertilizer have the advantages of smaller bulk easy transport
relatively quick in an availability at plan- food constituents and the
 facility of their application in proportion suited to the actual
requirements of crops and soils.
(4) There is need for an efficient use of fertilizers as major plant
nutrient resource in enhancing the farm productivity
(5) Other resource of plant nutrients like organic manures bio-
fertilizers etc. Also should be integrated to get the maximum
agriculture output term every kilogram of applied nutrient in the
form of fertilizers.
(6) To improve our agriculture output India needs more fertilizers.
1.1.3 GROWTH OF CHEMICALS AND FERTILIZER INDUSTRIES
IN INDIA

The Indian fertilizer industry has come a long way since the setting up of
the manufacturing unit of Single Super Phosphate (SSP) near Chennai in
1906. A new impetus to the growth of Indian fertilizer Industry was provided
by the set up the two fertilizer plants -Fertilizer and Chemicals Travancore of
Indian Limited (FACT) in Kerala and the Fertilizer Corporation of India (FCI)
in Bihar. This was during the forties and the fifties. The aim was to create an
Industrial base that would provide India with self reliability in food grains.
With the effect from 25th July 1991, the government implemented three major
policy decisions.

 Decontrol of Ammonium Sulphate CAN and ammonium

chloride
 Increase in the selling prices of all other fertilizer by 40%
 Introduction of a subsidy ceiling on SSP.
 Reduction in subsidy
 Continued growth in food grain production
 Keeping healthy soil intact
1.2 COMPANY PROFILE

Tuticorin Alkali Chemicals and Fertilizers Limited (TFL) produce all

grades of Soda Ash and coproduces Ammonium Chloride Fertilizer. It is
located at Tuticorin, Tamilnadu contiguous to SPIC Fertilizer Plant.

Tuticorin Alkali Chemicals and Fertilizers Limited (TFL) produce all

grades of Soda Ash and coproduces Ammonium Chloride Fertilizer. It is
located at Tuticorin, Tamilnadu contiguous to SPIC Fertilizer Plant. The
major raw materials are Ammonia, Carbon-di-oxide gas, which are received
from SPIC through pipe lines and the locally produced Salt. The Unit was set
up in the year 1981 and is the only producer of Soda Ash in the South India. It
has adopted an eco-friendly dual process, coproducing Ammonium Chloride
Fertilizer.

1.2.1 FACILITIES

Through inhouse R&D efforts, additional production units for

producing Sodium Bicarbonate, Ammonium Bicarbonate, Technical and Pure
Grade Ammonium Chloride have also been set up. The various production
capacities of the Plants are as below
CAPACITY OF THE PLANTS (MT / ANNUM)

1150
SODA ASH
00
1050
AMMONIUM CHLORIDE (FERTILISER GRADE)
00
AMMONIUM CHLORIDE (TECHNICAL/PURE 1000
GRADE) 0
AMMONIUM BICARBONATE 5000
SODIUM BICARBONATE 9900

The 'Dual Process' adopted is as explained below

The major raw materials used and the quantum is as below

QUANTITY
SOURCE
(MT\ANNUM)
RAW INDUSTRIAL
TNSC\VARIOUS 1,60,000
GRADE SALT
CARBON-DI-OXIDE
SPIC 62000
GAS
AMMONIA IMPORTED 31000
UTILITIES

WATER TWAD 800000M

POWER TNEB 110KV Grid 6MWH
COAL Imported 37000MT

1.2.2 PRODUCTS

Our technology uses a well proven Carbonation Tower Technology

which produces low bulk density Soda Ash, fine and free flowing and most
preferred by all the detergent manufacturers. It is chemically converted to
Dense Soda Ash by a hydration technology, which is the ideal raw material
for Glass Industries and also certain type of compact detergents.
SODA ASH

Soda Ash, technically termed Sodium Carbonate, is one of the basic

industrial chemicals which have increase in demand of 8% per annum.
Sodium Carbonate finds extensive application in various industries - Soaps &
Detergents, Glass, Silicates, Dyes & Dyestuffs, Bichromate, Textiles and
other products including House cleaning and Petroleum refining agents.

Owing to the adherence to the stringent quality control measures, TFL's Soda
Ash is rated the best in the industry.

THE SPECIFICATION OF LIGHT & DENSE SODA ASH IS AS

BELOW
Soda Ash Light & Soda Ash Dense

SODA ASH  IS: 251 – 1998

Characteristic Unit IS Spec.

Total Alkalinity, as
% min. 98.50
Na2CO3

Insoluble matter % max. 0.15

Sulphate as Na2SO4  * % max. 0.08

Chloride, as NaCl % max. 1.00

Iron, as Fe2O3 % max. 0.007

Volatile matter % max. 2.0

Bulk Density (Soda Ash

kg/m3 500 – 750
Light)
 Sieve – Soda Ash Dense  +
% max. 1.00
10
% max. 15.00
                   -  200
*For modified Solvay process          0.5 % max.

AMMONIUM CHLORIDE FERTILIZER

Ammonium Chloride, a Nitrogenous fertilizer containing 25% N,
enjoys a high demand owing to its wide acceptance by the farming community
for the various crops including paddy, sugarcane, groundnut, banana, coconut,
cotton, chillies, mulberry, etc., in different agroclimatic conditions.

SPECIFICATION – AMMONIUM CHLROIDE (FERTILISER

GRADE)
Characteristic Unit FCO IS:1114-1964
Spec.

Moisture % max. 2.0 2.0

Amm. Chloride as NH4Cl % max. - -

Iron, as Fe % max. - -

Sulphate, as (NH4)2SO4 % max. - -

Total sulphated residue % max. - -

pH - -

Matter insoluble % max. - -

Heavy metals including iron, as Pb ppm max. - -

 Arsenic, as As2O3 ppm max. - -

Other chlorides, as NaCl % max. 2.0 2.0

Ammoniacal Nitrogen (as N) % by weight 25.0 25.0

min

AMMONIUM CHLORIDE TECHNICAL GRADE & PURE GRADE

Ammonium Chloride Technical Grade & Pure Grade Plant were set up
by the R&D Department and commissioned in the year 1998. It utilizes the
recycled liquor from the Ammonium Chloride Plant, thus saving use of lime
for recovery of Ammonia. It is used in batteries, pharmaceuticals and for
galvanizing. The specification of Technical Grade Ammonium Chloride is as
below

AMMONIUM CHLORIDE - TECHNICAL AND PURE GRADE 

IS:1113 - 1965
Characteristic Unit IS Spec. IS Spec.
Pure Tech.
Moisture % max. 0.50 1.00

Amm. Chloride as
% max. 99.50 98.50
NH4Cl

Iron, as Fe % max. 0.01 0.01

Sulphate, as
% max. 0.10 0.30
(NH4)2SO4
 Total sulphated
% max. 0.30 -
residue

Ph 4.50-5.20 -

Matter insoluble % max. 0.10 0.20

Heavy metals
ppm max. - -
including iron, as Pb

Arsenic, as As2O3 ppm max. - -

Other chlorides, as
% max. - -
NaCl

1.2.3 BOARD OF DIRECTORS

Thiru B. Narendran DIN 01159394 Director

Thiru S. Asokan DIN 06591756 Director

Tmt. Rita Chandrasekar DIN 03013549 Director

Managing
Thiru G. Ramachandran DIN 00051999
Director

1.2.4 COMMITTEE OF THE BOARD

AUDIT COMMITTEE
Mr. B. Narendran Chairman - Independent Director
Mr. S. Asokan Member - Independent Director
Mrs. Rita Chandrasekar Member - Independent Director
STAKEHOLDERS RELATIONSHIP COMMITTEE
Mr. B. Narendran Member - Independent Director
Mr. S. Asokan Member - Independent Director
Mr. G. Ramachandran Member - Managing Director

NOMINATION AND REMUNERATION COMMITTEE

Mr. B. Narendran Chairman - Independent Director
Mr. S. Asokan Member - Independent Director
Mrs. Rita Chandrasekar Member - Independent Director

RISK MANAGEMENT COMMITTEE

Mr. B. Narendran Chairman - Independent Director
Mr. S. Asokan Member - Independent Director
Mr. G. Ramachandran Member - Managing Director
Mr. S. Nandakumar Member - CFO

SODIUM BICARBONATE
As part of diversification 5,000 Tonnes of Refined Sodium
Bicarbonate plant had been set up in the Company's manufacturing facilities at
Tuticorin. The production has been commenced in the year 1995. Sodium
Bicarbonate is used in the manufacture of Biscuits, Pharmaceuticals, Fire
Extinguishers etc.

SODIUM BICARBONATE – REFINED GRADE

IS: 2124 Specification.   Refined Grade

SPECIFICATION FOR SODIUM BICARBONATE

SODIUM BICARBONATE - IS: 2124

Characteristic Unit IS Spec.

 Total Alkalinity as NaHCO3 % 99.0 Min

pH of 1% solution -   8.8 Max

Chloride (as Cl) % 0.06 Max

Water Insoluble matter % 0.10 Max

Sulphates (as SO4) % 0.07 Max

Iron  (as Fe) % 0.0040 Max

Heavy metals  (as Pb) ppm 5 Max

Arsenic (as As) ppm 1.5 Max

Copper  (as Cu) ppm 30 Max

*For modified Solvay process          0.5 % max.

1.2.3 INVESTORS

To set up a new unit of this nature and in equal capacity would cost
Rs.400 crores. SPIC holds 45% of the equity and rest of the shares are held by
the public at large. The shareholding pattern is as below
1.2.4 FINANCIAL RESULT

DESCRIPTION 2018-19 2017-18

Sales Turnover (Net of
174.80 133.59
Excise Duty / GST)
Gross Loss after
meeting all expenses but
32.10 39.21
before providing
depreciation and interest
Add: Interest 2.34 3.21
Cash Loss 34.44 42.42
Add: Depreciation for
3.47 2.33
the year
Extraordinary items -- --
Net Profit / (Loss) for
(37.91) (44.75)
the year
Accumulated Loss 302.79 264.88
EPS & Diluted EPS
(4.15) (30.51)

1.2.5 MARKET SCENARIO

The selling price continued almost unchanged during the year. Since
quantum of production was less, we didn’t participate in the market,
concentrating only couple of large customers. Due to steady Ammonia prices,
the sale price of Ammonium Chloride also remained steady through-out the
year. However imposition of GST on Ammonium Chloride fertilizers has
brought down the sales, as the fertilizers has become costlier in the hands of
farmers, who prefers to buy other subsidized fertilizers at lower prices. Efforts
to request reduction of GST on Ammonium Chloride fertilizers, which will
boost local sales compared to the export, is being made.

1.2.6 FUTURE OUTLOOK AND STRENGTH

Since your company is the only production source for Soda Ash in
South and the quality is best suited for manufacture of detergent, it is a
preferred product in the market. Tuticorin port seems to be the second largest
source for Soda Ash in South with almost all western based manufacturers
have started to import through this port and competing with us. However
continuous production from the company can easily ward of such kind of
efforts, the selling price of the products are easy to determine matching with
landed cost.

It is considered as very good opportunity available for the company to

expand. The unit is situated right on the salt belt, hence sourcing the salt with
availability of in house Co2, are easy and large market for Soda ash in Asia &
supply of imported ammonia from cheaper Asian market are the strengths of
the Company to expand its operation. We are also continuously working in
finalizing the plans for NPK complex fertilizer for better utilization of
Ammonium Chloride (ACL).

The absence of subsidy for ACL and need to make further investment
to convert the ACL to NPK complex and the accumulated losses are the
weaknesses of the Company.

1.2.7 OPPORTUNITIES AND THREATS

 As already reported last year, your company has opportunity to market
its fertilizers and soda ash not only in South India but also at mid and eastern
states, when the expansion activity gathers steam. The major threat of single
source CO2 has been overcome with the commissioning of the CO2 plant.
Addition of lime kiln plant, probably will make available more CO2.
Greenstar’s second larger Ammonia tank will ensure continuous availability
of Ammonia, which will substantially nullify the single source of Ammonia.

1.2.8 ENVIRONMENT AND SAFETY

Updation to ISO 9001:2015 the latest standard is under progress.

1.2.9 WIND MILL

During the year 2018 - 19, 591608 units were generated from Wind
Turbine Power Generators at Gudimangalam, Tirupur District, as against
55,000 units generated in the previous year. The aging windmills are being
refurbished for better results.

1.2.10 INTERNAL CONTROL SYSTEMS & THEIR ADEQUACY

Company’s Internal Control System has been designed to provide for:

• Accurate recording of transactions with internal checks and prompt

reporting.

• Adherence to applicable accounting standards and policies.

• Compliance with applicable statutes, management policies and procedures.

• Effective use of resources and safeguarding of assets.

 The Internal audit was carried out periodically through a practicing
chartered accountant. The observations arising out of the audit were
periodically reviewed and compliance ensured. The summary of the internal
audit observations and management responses were submitted to the Board
after review by the Audit Committee.

1.2.11 SHARES

The Company has allotted 10,70,40,000 equity shares of Rs.10 each on

17.09.2018 by converting unsecured loans and Preference shares in to equity
in continuation to the EGM dated 10.04.2018 and order of SEBI dated
06.09.2018. The Company has not bought back any of its shares during the
year under review. The Company has not issued any “Sweat Equity” Shares
during the year under review. No Bonus Shares were issued during the year
under review. The Company has not provided any Stock Option Scheme to
the employees.

1.2.12 ANNUAL RETURN

The extracts of Annual Return in Form MGT pursuant to the

provisions of Section 92 read with Rule 12 of the Companies (Management
and Administration) Rules, 2014 is furnished in Annexure 4 and is attached to
this Report.

1.2.13 CORPORATE GOVERNANCE

A report on Corporate Governance as stipulated under Schedule V and

Regulation 34(3) of the SEBI (Listing obligations and Disclosure
Requirements) Regulations, 2015 forms part of this Annual Report. The
requisite certificate from a practicing company secretary confirming
compliance with the conditions of corporate governance as stipulated is
annexed to this report.

1.2.14 RISK MANAGEMENT

Company has formed Risk Management Committee as already

reported, headed by Mr. B. Narendran, Director. The other members are M/s.
S. Asokan, Director, G. Ramachandran, Managing Director, and S.
Nandakumar, Chief Financial Officer. The Committee meets once in a quarter
to discuss the points forwarded by the Risk Management Team and other risks
facing the Company and submit a report to the Board of Directors.

The report will contain the methods to mitigate the risk. The Risk
Management Committee will study the risks/threats/concerns both in short
term and long term and take adequate steps periodically to protect the interest
of the various stakeholders.

1.2.15 REMUNERATION POLICY

PURPOSE

The Remuneration Policy is applicable to all employees of the

Company, including Executives, Non-Executives and Board of Directors of
the Company. The Policy is primarily focused on the employees of the
Company other than Directors and Senior Executives to provide a competitive
attractive remuneration to retain, protect and develop competent personnel.
The pay package shall be based on the roles and responsibilities and shall
consist in addition to the substantial fixed salary portion, motivating pays like
Performance Pay, Production Incentives, Leave Travel Assistance, Ex-gratia
payments and non-salary benefits like Health Care, Transport, Canteen
Facilities, Pension, Township and Retirement/Statutory benefits of Provident
Fund and Gratuity.

PAY PACKAGE

The Pay Package shall comply with general industrial practices and
shall reflect the cost of living and also should take into account ability of the
Company to sustain and pay such packages. The Package shall consist of
predominantly fixed income and not more than 30% of the pay shall be based
on variable components consisting of Performance and Motivating Pays.

EXECUTIVE PAY PACKAGE

The Executive Pay Packages shall also follow the above guidelines.
However, since they are primarily responsible for taking the Company
forward and improving its business ability, deviations as necessary can be
made to provide substantial motivating pays apart from the fixed salary.
Perquisites of housing and transportation can also be different as per the need.

The Non-Executive Board of Directors would be paid Sitting Fees as

decided by the Board from time to time depending on the ability of the
Company, but to be within the statutory maximum.

OTHER GENERAL ISSUES

Notice pay, PF, Gratuity, etc., will be as per the various statutory
regulations/ Company’s approved policy from time to time.

PROCEDURES

The Remuneration Committee of the Board will meet from time to

time, discuss, review and approve the pay packages suggested by the
executives of the Company for implementation and for settlement with the
employees through the Trade Union either through a 12(3) agreement or 18(1)
agreement as per the need. The pay packages/ sitting fees of the
Executives/Working Directors and the other members of the Board would be
fixed by the Remuneration Committee and suggested to the Board for
implementation.

1.2.16 CODE OF CONDUCT FOR DIRECTORS INCLUDING

INDEPENDENT DIRECTORS

PURPOSE

TAC's commitment to ethical business conduct is a fundamental

shared value of the Board of Directors, management and employees and
critical to the Company’s success. TAC's Code of Conduct provides that the
Board of Directors will uphold the ethical standards as vigorously as the
Board pursues the financial objectives and that honesty and integrity will not
be compromised by TAC anywhere at any time. Consistent with these
principles, the Board has adopted this Directors' Code of Conduct as a guide
to the high ethical standards expected of its members.

GUIDELINES

In performing the Board and Board Committee functions, the Directors will:

 Become familiar with TAC's business and the economic and

competitive environment in which the company operates and have a
basic understanding of TAC's principal operational, financial and other
plans, strategies and objectives; operational results and financial
condition; and relative marketplace position.
 commit the time necessary to prepare for, attend and actively
participate in all meetings of the Board and of the Board Committees
on which they serve.
 Discharge their duties, as members of the Board and of any Board
Committees on which they serve, in accordance with their good faith
business judgment of the best interests of the company and its
shareholders
 Inform the Board of any changes in their employment and other board
positions; relationships with other business, charitable and
governmental entities; legal or administrative proceedings; and other
events, circumstances or conditions that may interfere with their ability
to perform their Board or Board Committee duties or impact the
Board’s assessment of whether they meet the requirements applicable
to their service on Company’s Board and Board Committees as per the
Listing Agreement entered into with the Madras Stock Exchange
Limited and the Stock Exchange, Mumbai
 Without the prior approval of the disinterested members of the Board
or in compliance with materiality criteria which the Board has
adopted, enter into any transaction or relationship with TAC in which
they will have a financial or personal interest (either directly or
indirectly, such as through a family member or other person or
organization with which they are associated) or which involves the use
of TAC's assets or competition against TAC
 Not pursue for their own account, or for the account of any other
person, any business opportunity that correlates with TAC's business
strategies, plans or objectives
 Maintain the confidentiality of all non-public information about TAC
and its business and affairs
 Abide by all applicable Corporate Laws and Regulations at all times.
1.2.17 QUALITY POLICY

 Customers' Satisfaction
 Continual improvement
 Compliance of applicable legal and other requirements
 Conservation of resources
 Pollution prevention practices
 Prevention of injury and ill-health
 Sustained training in quality environment and occupational health &
safety management1
1.2.18 SAFETY POLICY
 Generate Develop and Sustain a movement of safety consciousness
among all, through sustained safety consciousness among all, through
sustained safety training and practices.
 Integrate safety practices completely with all other production
activities.
 Provide a Healthy and Neat work Environment.
 Comply with all Safety and Health Measures required by law.

1.2.19 R & D AND QUALITY CONTROL

 All Progress starts from research and quality is the key word for
success.
 Company therefore is very research-oriented and quality conscious.
 Company has its own well-equipped modern laboratory to conduct
R&D besides exercising steadfast quality control to keep its products
at international levels of excellence.
 Besides, Company commissions and assigns outside organisations to
conduct vast amounts of research for its products.
  The Research Project entrusted to Tamilnadu Agricultural University
to find out the efficacy of Ammonium Chloride Fertilizer has helped to
establish the use of this fertilizer for different crops like Paddy,
Sugarcane, Groundnut, etc.
 The Project entrusted to the University of Agricultural Sciences,
Hebbal (Karnataka, India) has established the usefulness of
Ammonium Chloride Fertilizer for Mulberry crop compared to other
fertilizers.
 The Andhra Pradesh Agricultural University has approved the efficacy
of Ammonium Chloride Fertilizer for cotton crop.
 The Tamilnadu Agricultural University has endorsed the efficacy of
Ammonium Chloride for Potato crop by conducting research in the
Nilgiris.
 Quality control and Research is a continuous process in the Company.

1.2 INTRODUCTION TO THE STUDY

1.2.1 OBJECTIVE

Primary Objective

My Primary objective is

 To examine the impact of health and safety measures on employee

commitment.

Secondary Objective
 My Secondary objective is

 To identify the relationship between health and safety measures on

employee turnover.

1.2.2 CONCEPTUAL MODEL

Workpl
ace
Workpl
Hazards
ace Organ
Policies
Occupat izatio Empl
and
ional n oyee
Procedu
Health Com Turn
res
Particip
and mitm over
ation
Safetyin ent
Occupat
Measure
ional
s
Health
and1.1 Conceptual model for Health and Safety Measures on
Figure
Safety Employee Commitment

1.3.3 SCOPE OF THE STUDY

The scope of the study examines the relationship between organization

commitment and employees turnover. Collecting data through conducting
surveys among the employees in Tuticorin Alkali Chemicals and Fertilizers
Limited. The scope of the study focuses on examining the impact of health
and safety measures on employees commitment.

1.3.4 NEED OF THE STUDY

 To measure the organization commitment towards employees turnover
in an organization.

1.3.5 LIMITATION

CHAPTER 2

MAIN THEME OF THE PROJECT

2.1 THEORY

2.1.1 The ABC theory of Health safety

A – Attitudes

Employee behavior is arguably one of the greatest determinants in

workplace safety, especially as employees interact amid a host of varying
safety issues. The human behavior thus plays a huge role to a task performed
by an employee. The task can have a negative and a positive impact on
connected to the person doing the specified task.

Your work attitude not only affects how well you do your job, but it
also affects how safe you are when doing it. Positive people usually perform
better in the workplace because they maintain an open mind and consider the
outcome of their behavior. Negative people, on the other hand, complain
about everything, including having to practice safety. The person with the
negative work attitude is less likely to care about the quality of the job she is
doing or how she does it. A negative work attitude can lead to unsafe work
habits and accidents.

B – Behavior

Behavior in the workplace is all about emotions such as aggression,

happiness, or depression.

Negative workplace behavior, such as workplace bullying, is an

important work‐related psychosocial hazard with the potential to contribute to
employee ill health. Two major health issues can be noted; poor mental and
cardiovascular health.

An effective HSE Officer needs the following types of skills:

• Technical support skills – the ability to ensure the product or service are
produced without risk
• Human Skills – the ability to work as a leader under groups
• Connectional skills – the ability to see everybody in the HSE cycle and how
they are intergraded. 

C – Conditions
 The condition to follow or consequences are what happen after the
behavior – reward or punishment. Past conditions become influencers to
future behavior. Most people do not want to suffer the "consequences" of their
behavior. When people understand and believe in the potential conditions,
behavior starts to change. The motivating conditions are different for people.
The impact an injury has on them personally or their family is important. For
others, losing their job, or having a consequence directly impact their social
life is more important and can lead to behavior change. The point is, we are all
motivated differently. So understanding the motivations for safety in our
people becomes important for long-term behavior change.

During the project the following condition are followed:

• Conceptual, design, construction, commission, modification and
decommissioning phase. 
Typical hazards to identify should risk minimize
• Mechanical, electrical, structural, chemical, physical, and biological hazards
(stresses)

2.1.2 Franks Bird’s theory

Frank Bird Accident Triangle show the relationship between
numbers of accidents with different outcomes. Research shows that this
relationship forms a triangle, with the most serious outcomes being the least
numerous at the top and those with proportionally higher numbers but less
serous results forming the base.

The important message of the accident triangle is that serous outcome

accidents tend to happened rarely and randomly. They are notoriously difficult
to predict. Near misses/incidents, on the other hand, happen far more
frequently. Many near misses will be minor events of little or no
consequences; if they happen again there would be no serous outcome. but
some near misses will have the potential for very serious injury. These near
misses should be thoroughly investigated and preventive measures put in
place to avoid the recurrence.

2.1.3 DR William Haddon's Theory

Energy release theory method is developed by Dr William Haddon to

identify or classifying and preventing damage cause by accidents. Accidents
are caused by the transfer of energy with such force that body injury and
property damage occur. Strategies can interrupt or suppress the chain of
accident-causing events. These strategies revolve around

(1) control and prevention of buildup of energy that is inherently

injurious;

(2) creation of an environment that is not conducive to injurious

buildup of energy; and

(3) production of counteractive measures to injurious buildup of

energy.

2.2 LITERATURE REVIEW

2.2.1 ORGANIZATION COMMITMENT

Schneider and Bowen 1985 suggested that if employees in service

firms have positive perceptions of the HR practice, they are likely to put more
effort and resources in delivering excellent customer services. He further
explains that when employees perceive that their organization is facilitating
their performance, enhancing career opportunities, providing positive
supervision, and so on. They will show their zing to achieve an organizational
objective. Fitz – enz 1990 concludes that employees retention is influenced by
many factors training and development, recruitment and selection – which
should be managed congruently, and it implies that both organizational factors
and HR practice may influence retention of employees and their commitment.
Cascio 2003 describes retention as initiatives taken by management to keep
employees from leaving the organization, such as rewarding employees for
performing their jobs effectively, ensuring harmonious working relation
between employees and manager ,.and maintaining a safe , healthy work
environment. Literature surveys conducted by McNee et al 1998 and Dockel
2003 indentified the following six critical factors that need to be considered in
the retention of high technology employees : 1 compensation ( base salary) ;
(2) Job Characteristics ( Skill variety and job autonomy); (3) Training and
development opportunities; (4) Supervisor support; (5) Career opportunities ;
(6) work by life policies.

2.2.2 WORKPLACE HAZARDS

According to Siegal, 1962 examines to maintain a safe and healthy

work place, workers and supervisors must be taught to keep a healthy and
safety mind set. Such mindness does not always accompany the acquisition of
skills or knowledge on equipment operation. Most person how to drive an
automobile, for example, with relatively little difficulty. An attitude of
maturity is however, it is necessary. Garcia – Herrero et al., 2012 Work safety
requires that safe working conditions should not create significant risk of
people being rendered unfit to reform their work. Health and safety at work is
therefore aimed at creating conditions, capabilities, and habits that enables the
work and his/her organization to carry out their work efficiently and in a way
that avoids events which could cause them harm. Canadian Labor Code, 2015
presents that part two of the Canadian labor code stipulates the duties of both
the employer and employees. These duties have a goal of preventing
occupational related injuries and diseases. Employees have a responsibility to
take all reasonable and necessary precautions to ensure their health and safety,
and that of anyone else who may be affected by their work or activities. They
are required to use all materials, equipments, device and clothing that are
provided by the employer.

2.2.3 WORKPLACE POLICIES AND PROCEDURES

Muchinsky, 1990 OSHA is comprehensive, covering such things as

record keeping, inspection, compliance and enforcement of safety standards. It
lists over 5000 safety and health standards, ranging from density of particle in
the air to the height at which a fire extinguisher is to be mounted. Bratton and
gold , 1999 the healthy and safety function is directly related to the element
of the HRM cycle – selection , appraisal , reward and training .maintenance of
a healthy and safe workplace can be facilitated in the selection process by
selecting applicants with personality traits that decrease the likelihood of
accidents .Safe work behavior can be encouraged by a reward system that ties
bonus payments to the safety record of a work group or section. Antony et al .,
2007 .Employees healthy and safety programs should be a major priority for
managements because they safe lives, increase productivity , and reduce
costs .These healthy and safety programs should stress employees
involvements , continued monitoring , and an overall wellness components.
Ynze Houten (ed., 2012) .A research carried out at The Research Center
Design and Technology of the Saxion University of Applied science on
‘’Safety at Work concluded that personal safety , a safety environments and
safe behavior were important components that employer need to ensure their
availability within their organization . According to this research , enforcing
safety by adjusting the environments people have to work in and detecting
risks at work so that worker can avoid dangerous situation is key

2.2.4 OCCUPATIONAL HEALTH AND SAFETY MEASURES

 Nyakang’o (2016) confirms that more than half of the industrial
accidents and injuries in Kenya go unreported. The report estimates that
occupational health and safety fatalities and injuries in Kenya for the last
five years 2000-2004 are: 1528, 1923, 1332, 1599 and 1387, this was viewed
from the background that 11,387 factories and other places of work are
registered by the Department of Health and Safety. The report observed that in
2003, mining, construction and transport accounted for 41% of accidents in
Kenya, machine operators and assemblers 28% while other occupations share
31% of workplace accidents. From this detail, in relation to age groups 44.4%
of the injuries occurred to persons in the age group of 20 to 29 years, 25% to
the age group of 30 to 39 years and 24% to the age below 20 years. According
to Manduku and Munjiri (2017), a closer scrutiny of the OSHA, 2007 reveals
that many of the dangerous occurrences and prescribed occupational diseases
in the 1st and 2nd schedules may exist. There are several instances of unsafe
working conditions and work behavior that both employees and employer
should place emphasis on. Assets development and operations of water and
sanitation facilities are risky assignments for contractors and operators. Health
and safety of employees at the workplace in the water industry cannot be
underestimated in the wake of increasing risks in sensitive service industries.

2.2.5 PARTICIPATION IN OCCUPATIONAL HEALTH AND

SAFETY
Kirkman and Rosen 1999 noted that work teams vary in the degree
they are empowered and this has an impact on their commitment,
productivity, and other attitudinal and job outcomes. They found that highly
empowered teams are more effective than less empowered teams. Shapiro
and Kessler 2000 found that employer’s fulfillment of the psychological
needs of the employees, such as providing food, shelter and clothes, raise the
level of commitment in employees. Reciprocity is a mechanism underlying
commitment. Benson and Lawler, 2003 Employees have stronger
commitment to their organizations when they perceive that their organization
is committed towards their wellbeing.
2.2.6 EMPLOYEES TURNOVER
Al-Kahtani, 2002 In Saudi organizations, it is very significant to keep
an eye on employee turnover for both Public and Private sectors. In public
sectors, although some fringe benefits are given to the employees regularly
do not satisfy them sufficiently. In private sectors, though salary and benefits
are high but security of job is less. Despite the increased resolve of the Saudi
Arabian government to commit the private sector to Saudization, owners and
managers of some Saudi businesses retain negative attitudes against the
recruitment of Saudi nationals who are searching for jobs. They believe that
Saudis are neither serious nor loyal to Saudi companies Achoui and Mansour
(2007) conducted a study on employee turnover in Saudi companies
confirmed that the turnover rate in the Saudi market is very high especially
in the private sector. The policy of Saudiz ation or "localization" drives
many companies to achieve the required percentage of Saudization by the
Saudi government. Consequently, private companies compete on a limited
number of Saudi qualified employees in the market. Furthermore, the
economic/market development in the private sector drive private companies
to attract more qualified Saudis on the expense of the other companies.
These factors had contributed significantly to the turnover problem in the
Kingdom.
2.3 RESEARCH METHODOLOY
Research Methodology provides the impact of analyzing
Occupational Health and Safety practices in Tuticorin Alkali Chemicals and
Fertilizer Ltd. The research investigated the workers organizational
commitment and employee turnover in association with OSH practices. The
study used questionnaire guide and observation protocol to collect data. The
study used descriptive statistics. The data collected was analyzed using
descriptive statistics, tools and presented in charts and tables.
2.3.1 SAMPLE SIZE
The sample consisted of managerial level and permanent employees
of Tuticorin Alkali Chemicals and Fertilizers Ltd. A total of 300
questionnaires were distributed among the employees and 250 respondents
gave their responses.
2.3.2 INSTRUMENT
A Survey is used in the research to accomplish the study objectives.
The questionnaire is used for the survey for the impact of health and safety
measures on employee’s commitment. Scales are used for the study are
5. Strongly Agree 4. Agree 3. Neutral 2. Disagree 1. Strongly Disagree. The
full questionnaire including the demographic profile of the sample. We
performed a pre – test in validate the instrument and consulted with expert
based on the suggestion the questionnaire is modified.

2.3.3 DATA COLLECTION

There are 2 ways in which data can be collected i.e Primary and
Secondary
Primary Data – The data that are gathered from actual site of occurrence.
Secondary Data – The data gathered from the existing sources.
2.3.4 TOOLS USED
Descriptive Statistics – A Descriptive statistic is a summary statistics that
quantitatively describes or summarizes features from a collection of
information, while descriptive statistics is the process of using and analyzing
those statistics.
T- test - A t-test is a type of inferential statistic used to determine if there is
a significant difference between the means of two groups, which may be
related in certain features.
Correlation – Correlation is a statistical measure that indicates the extent to
which two or more variables fluctuate together.
Regression - Regression Analysis is a set of statistical processes for
estimating the relationships between a dependent variable and one or more
independent variables.