ORGANISATIONAL STUDY REPORT At KERALA BOOKS AND PUBLICATIONS SOCIETY, KAKKANADU, COCHIN. Submitted by ANANTHARAM.D (Reg.No.1067)

In partial fulfilment of requirement for the award of POST GRADUATE DIPLOMA IN MANAGEMENT To

BHAVANS ROYAL INSTITUTE OF MANAGEMENT (Approved by All India Council for Technical Education, New Delhi) THIRUVANKULAM

KOCHI-682305 2010-2012

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DECLARATION

I, Anantharam.D. hereby declare that this organization study report at Kerala Books And Publications Society,Cochin has been prepared by me under the guidance of Mr. Sreejith.S, Assistant Professor, Bhavans Royal Institute of Management, Thiruvankulam, Kochi. I also declare that this training report is my original work & that has not previously formed the basis of award of any degree or diploma.

Place: Kochi Date: 30th September 2011 ANANTHARAM.D.

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ACKNOWLEDGEMENT

First of all, I thank The Almighty, for his enlightened inspiration throughout my life and pray that he may continue to bless my endeavors. I express my thanks to all Officers& Staff members of KBPS for their whole hearted cooperation & guidance throughout my project work. I express my deepest sense of gratitude to Prof. B Hareendran, Dean, Bhavans Royal Institute of Management for allowing me to do this internship with all his support. I express my thanks to Mr.Sreejith, Assistant Professor of Bhavans Royal Institute of Management for guiding me in preparing my internship report. Finally I thank to my family members & friends for their support & encouragement throughout the study.

Place: Kochi Date: 30th September 2011 ANANTHARAM.D.

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TABLE OF CONTENTS Chapter 01 1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 02 2.1. 2.2 2.3 2.4 2.4.1. 2.5 2.6 .7 2.7.1 3 3.1. 3.2. 3.3. 3.4. 3.5. 3.5.1 Title Introduction Introduction of the Study Need & Significance of the Study Objectives of the Study Scope of the Study Coverage of the Study Methodology Followed Sources of Data Scheme of Reporting Industry Profile . Introduction to Industry Key Growth Markets Printing industry America Indian Scenario Printing Machinery Legal Environment of Printing Facts about Indian Printing Industry: Competitors in Kerala Few Printers & Presses of Repute in India Company Profile Introduction of the Company Mission of KBPS Brief Description of Organization and its Functions History of the Company Promoters of the Company Governing Body Page no. 8 9 9 9 10 10 10 11 11 13 14 17 19 20 20 21 22 22 25 26 27 27 27 28 29 294

3.5.2. 3.5.3. 3.6. 3.6.1. 3.6.2. 3.6.3 3.6.4 3.7. 3.8. 3.9. 3.10 3.11 4 4.1. 4.2.

Auditors Bankers Product Details Lottery Ticket Printing Facilities Binding Major Clients Organizational Structure Financial Performance Of the Company Staff List Activities Future Plans Detailed Study of Departments Functional Departments Personnel and Administration

30 30 30 30 32 33 34 36 42 46 49 50 51 52 53

4.2.1. 4.2.2. 4.3. 4.4 4.5 4.6. 5 6 6.1. 6.2. 7 7.1. 7.2.

Details of Leave Recruitment: Finance Department Purchase Department Distribution Section Problems of KBPS SWOT Analysis of the Company Findings & suggestions Findings of the Study Suggestions and recommendations Conclusion Conclusion of the Study: Bibliography

53 53 54 55 56 56 57 60 61 62 63 64 65

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List of Tables: Table No. 1 2 3 4 5 6 Global Print Market by Print Product Fastest Growing Print Markets Print Market Rankings Industry Overview 2009 Industry Compositions: Shipments by Sector Balance sheet of KBPS 16 17 18 19 19 43 Title of the Table Page No.

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CHAPTER-1 INTRODUCTION

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1.1. Introduction of the Study The Kerala Books and Publications Society is registered under the Travancore Cochin Literary, Scientific and Charitable Society registration Act, 1955.The society is fully owned by the Government of Kerala and established for printing the entire textbooks required by the school children in the state. The main objective of the society is to print and supply textbooks at the rates on the principle of no loss no profit basis to education department and its allied institutions and prescribed authorities from time to time and to promote the advancement of general and technical education and reading habit among the general public. The production center of KBPS is situated in a fortified land of 10 acres adjacent to collectorate and civil station with plinth area of 1.37 lakhs sq.feet. KBPS is one of the largest printing complexes in south India. There are 3 main departments in KBPS; they are personnel and administration, finance and purchase. At present there are 237 employees working in the company. 1.2. Need and Significance of the Study The internship training is intended to expose the trainee to the real life situations in the corporate environment and to link the corporate management practices with the theory we have learnt in the classroom. Each process in the organization is observed during the training. During the course of training a detailed study of minimum 4 departments is conducted. 1.3. Objectives of the Study 1. To develop a fair understanding about the KBPS and the printing industry in general. 2. To understand the organizational structure of each department 3. To understand the objectives of each department, its functions and find out how it is linked to the corporate objective.

4. To study all processes procedures and programs of the department. 5. To develop an understanding on the coordination and control mechanisms in the organization. 6. To find out the problems faced by each department in achieving their goals.

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1.4. Scope of the study The researcher studied the evolution of the printing industry. Researcher can analyze the current competition prevailing in the printing industry. The researcher got awareness about the world scenario and Indian scenario of the printing industry. The researcher got an opportunity to study about the companys vision and mission, promoters of the company, product details, organizational structure, financial performance, and future plans of the company. The company could learn about its strengths, weaknesses, opportunities and threats through the study. Company can take various remedial steps to rectify its problems by conducting the study. The society can know about the operations of the company and they can understand how the company is performing from this study. 1.5. Coverage of the Study The organization study was conducted for a period of 1 6 d a ys d u r i n g M a y 2 0 1 1 , mainly in the three major departments of KBPS at Kakkanad division. 1.6. Methodology of Study The trainee used direct observation and direct interview techniques for completing this study. Being an internship training to familiarize with the organization and its organizational practices these are the two most effective methods of hands on training. 1.6.1. Sources of Data 1) Primary data Primary data was collected through direct observation and interview. By directly observing the processes and procedures of the company information was collected. It was done by observing employees and machines of the company. Through personal interviewing with workers and managers data was collected. 2) Secondary data

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Secondary data was collected from company records, annual reports of the company and from the internet.

1.7. Scheme of Reporting Chapter-1: Introduction to KBPS It contains need and significance of the study, objectives of the study, scope of the methodology of the study and scheme of reporting. Chapter-2: Industry profile It includes introduction to printing industry and its evolution, an analysis of the current competition prevalent in printing industry and world scenario and Indian scenario of printing industry. Chapter-3: Company profile It contains introduction of KBPS, vision and mission, promoters of KBPS, product details, organizational structure, financial performance and future plans of KBPS. Chapter-4: Detailed Study of Departments It includes the detailed study of the various departments of the organization. Chapter-5: Suggestions and conclusion of the study study,

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CHAPTER-2 INDUSTRY PROFILE

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2. Global Scenario 2.1. Introduction to Printing Industry and its Evolution Printing in the west began with Johannes Gutenberg and has undergone heavy technological change since then with methods becoming cheaper and more efficient. These developments led to widespread literacy, with newspapers, books and magazines becoming available to the masses. The industry is changing rapidly even today; digital information has widely reduced the importance of printed - on- paper material. 2.1.1 Ancient times to Gutenberg The very earliest forms of printing go back to early Mesopotamia, around 3000 B.C., in the form of round cylinder seals for stamping signs or images into clay tablets. Woodblock printing was used in China for more complex information, such as writing, from before 220 A.D. This technique began to appear in Europe around the 1300s, mostly for putting images on cloth. In 1436, a German goldsmith named Johannes Guttenberg invented the first western printing press. 2.1.2 Guttenberg to the Industrial Revolution The first newspaper, Relation aller furnemmen und gedenckwurdigen Historien was published in 1605 by Johann Carolus in Strasbourg, then in Germany. Academic journals with limited circulation had been circulating since the 1500s.The first general-interest magazine was The Gentlemens Magazine, first published in London in 1731. 2.1.3 Industrial Advances The Gutenberg press was far more efficient than manual copying, but books were still relatively expensive. In 1810, Friedrich Koenig patented a steam-powered printed press. The steam press was far more efficient than the older, manually powered presses, but in 1843 a New York inventor called Richard Hoe made another leap forward with the first rotary press. The rotary press fed a continuous stream of paper through drum-shaped cylinders and was much cheaper to operate than any of its predecessors.12

2.1.4 Mass Circulation The rotary press allowed newspapers and books to be produced at a price that even working-class people could afford. In the mid-to-late 1800s, publishers such as Joseph Pulitzer and William Hearst Competed fiercely for these readers with sensationalist reporting that became known as yellow journalism. Another result of cheaper printing was the dime novel, cheap stories that led directly to the low-priced fiction magazines that are now known as pulp magazines. In the mid-19th century, cheap smaller presses, called jobbing presses appeared. These were low- priced and intended for smaller print runs. They made it possible to create advertising circulars, flyers and mass mail. 2.1.5 The Modern Era Electronic technology in the mid-20th century led to the photocopier, which was developed in the late 1930s and first produced in 1959 by the Xerox Corp. In 1975 IBM came out with the first high-speed laser printer, the model 3800, for the business market. The first mass-market household model was the HP Laser Jet, which was released in 1984.With the rise of the internet in the 1990s; the printing industry faces major changes. Its now possible to distribute information electronically at a much lower cost than on paper, and most newspaper publishers now produce online editions.

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Table No. 2.1:- Global Print Market by Print Product 2006-2011 (US$ million) Sector Books Catalogs Directories Magazines Newspapers Direct mail Brochures pamphlets Inserts 13,507.7 15,968.8 2937.1 18.2% 12.3% 2006 36,539.1 33,215.3 11,383.1 62,010.4 46,433.8 33,092.2 and 31,407.4 2011 42,984.1 35,075.2 13,016.5 73,532.4 54,679.9 39,328 36,848.9 Forecast gro,2006-11 17.6% 5.6% 14.3% 18.6% 17.8%wth 18.8% 17.3%

Coupons, tickets and 2614.3 tapes Posters and banners Business forms 12,918.4 12,316.2

15,212.7 13,128.8 20,658.7

17.8% 6.6% 18.9%

Financial and legal 17,376 printing Packaging -Corrugated/solid fiber -Cartons -Flexibles Labels Others Total 37,262.9 49,515.9 25,165 96,230.2 609,808.5 175,599.4 88,820.6

211,254.4 105,497.3

20.3% 18.8%

45,458.3 60,298.8 29,461.8 116,602.8 720,690.1

22% 21.8% 17.1% 21.2% 18.2%

Source: NPES/PRIMIR/PIRA

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Table No. 2.2:- Fastest Growing Print Markets 2006-11 (US$ million) Rank Country 2006 2011 Growth 2011 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. India Russia Venezuela Ukraine China Malaysia Indonesia Romania Turkey Brazil Poland Thailand $12,131 4257.8 877.8 529.6 41,200 3504.3% 6096.5 718.2 2110.9 12,552.2 3004.7 596.9 $20,990.7 7192 1419.3 848.8 65,934.1 5503 9547.8 1112.2 3227.9 19,192.2 4579.2 909.4 73% 68.9% 61.7% 60.3% 60 57 56.6% 54.8% 52.9% 52.9% 52.4% 52.4% 2006-

Source: NPES/PRIMIR/PIRA

2.2. Key growth markets Nine key markets with significant potential identified: China, Brazil, India, Mexico, Indonesia, Russia, Poland, Turkey and the Ukraine. Combined population of 3.27 billion in 2006, rising to 3.42 billion by 2011.Combined print market value rising by US$54 billion overseas the same period. China is a significant producer of print machinery and prepress Print market forecast to grow at a slightly slower rate than GDP in the period to 2011 in China. Size and growth vary across countries. Mature markets North America, Japan, and West. Europe. Developing markets growing more strongly.US rank one, ahead of Japan. China has moved up from 5th to 3rd, overtaking the UK and Germany. India (population: 1.2 bn) and Indonesia (pop:15

225 mn) emerging as significant print markets with great long term potential. Other fast movers include Russia, moving up from 37th in 2000 to 22nd into 2006. Table2.3:- Print Market Rankings, 2000-11 Country United states Japan China 2 5 2 4 3 2 3 4 2 3 4 Australia 13 13 14 15 13 14 15 14 15 16 2000 2005 2006 2011 Country 1 1 1 1 India 2000 2005 2006 2011 11 11 12 8

Netherlands 14 South Korea 18

Germany 3

U.K. France Italy Canada Spain Brazil Mexico

4 6 7 8 10 9 12

5 6 7 8 9 12 10

5 6 7 8 9 10 11

5 6 7 10 12 9 11

Sweden Indonesia Belgium Austria Hong Kong Norway Russia

17 21 19 20 15 22 37

16 20 17 19 18 21 24

16 17 18 19 20 21 22

18 13 19 21 20 24 17

Source: NPES/PRIMIR/PIRA 2.3. Printing industry - America The industry includes: 1. Commercial printing (general commercial, quick, magazine, book, financial/legal, screen and thermography) 2. Form, label and tag printing (business forms, label/wrapper,and tag/ticket/tape printing) 3. Greeting card printing 4. Specialty printing 5. Packaging printing16

6. Trade services (prepress services, trade binding and other finishing services)

Table 2.4:- Industry Overview 2009: Shipments Employment Establishments $140.7 billion 909,179 33,565

Source: Printing industries of America, Sewickley

Table 2.5:- Industry Compositions: Shipments by Sector ($ billions): Commercial Printing Form, label and tag Greeting Card printing Specialty Printing Packaging Printing Trade Services $95.43 8.83 0.60 5.82 22.96 7.01 Source: Printing industries of America, Sewickley

2.6 Indian Scenario

2.6.1 Few Printers & Presses of Repute in India: 1) Thomson Press: Thomson Press Printing Division comprises of one prepress and two printing units in Delhi, one printing unit in Chennai and one printing & Book Bindery unit in Delhi exclusively for exports.

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2) M/s SUBRAMANIAM BROTHERS PRIVATE LIMITED SBP Ltd is one of the leading and experienced Paper Trading Company in South India and was established in 1942. SBP is also a wholesale dealer for various paper Mills in India for variety of Printing Paper, Kraft Paper, Cream wove Paper, Duplex Board. Maplitho, Xerox Copier and Bond Paper We have entered manufacturing activity recently and now manufacture various paper stationery items as listed here below. Various Indian GOD Pictures of Artistic , Thematic and Religious Values, Various Stationery Items, Notebooks Memo Pads Writing pads Diaries in attractive designs and colors. 3) Pragathi Offset Pvt. Ltd. Pragathi Offset Pvt. Ltd is a forty year old company catering to the high-quality printing requirements of customers worldwide. We are a one-stop service provider with prepress, printing and finishing/bindery under a single roof. With 6 presses capable of 4-6 colour printing at speeds of upto 15,000 impressions per hour and sizes of upto 28.5 x 40, have the capacity and the redundancy built into the system to handle your largest jobs with the quickest turn-around time. 4) Anderson Printing House Anderson Printing House Pvt Ltd has entered country's elite printing club with its recent installation of computer-to-plate technology system from Heidelberg India, a wholly-owned subsidiary of Heidelberger AG of Germany The Indian Printing Industry is well established and presently growing at 12% per annum. According to NPES / PRIMIR report India is the worlds fastest growing market with a projected 73% rate of growth from 2006-2011.Not only is India growing extremely fast but it is doing so from a very large base. Today, Indias printing market is about $ 12.1 billion and is forecast to grow to US $ 20.9 billion by 2011.There are more than 8000 daily newspapers published in India, besides a large number of weekly and fortnightly periodicals published in all Indian languages.

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The Indian Printing Industry today comprises more than 250,000 big, small and medium printers with a total turnover of more than US $ 12 billion. Almost 75% printing presses are family owned and hence closely held. The Indian packaging industry currently valued at over US $ 14 billion - is also growing at 14-15% annually. This growth rate is expected to double in the next two years. These figures indicate a fairly rapid change in the industrial and consumer set up. There are about 600700 packaging machinery manufacturers, 95% of whom are in the small and medium sector and are located all over India. Indias population of 1.2 billion makes India the second most populous nation in the world. Literacy level has shown a steady increase since 1990 and is now just over 60%.If this progress is maintained, by 2011 literacy levels in excess of 65% are expected to be achieved, giving a significant boost to traditional publication markets. Indias literacy level is still very low by world standards, but even so, a 65% literacy rate factored into a population of 1.2 billion gives 780 million people who can read. Further, the emergence of the retail revolution across the country is acting as a fuel to the growth of the Printing Industry. Also, the enormous reading capacity leads to more consumption of paper. Growth in economy and paper consumption is closely linked. By the industry projection, the paper consumption is projected to reach 13.95 million tons by 2015-16.India is the worlds fastest growing market for paper. The Printing Industry of India is providing employment opportunities to more than 3.0 million people directly and more than 1.5 million indirectly. Due to liberalization and globalization, the printing industry is progressing at a very fast speed by adopting modern technology and by employing professionals. The facilities available in India, as compared to the other parts of the world, are more economical due to lower labour costs and availability of basic infrastructure. India is therefore attracting entrepreneurs from all over the world to set up their units in this country. Foreign investment regulations have been relaxed. Up to 26% Foreign Direct Investment (FDI) is permitted in newspapers and periodicals dealing with news and current affairs. In non-news19

publications,100% foreign investment is permitted. Due to the changes in the regulation, many foreign investors have taken strategic stakes in the domestic print media companies. Multinational Companies (MNCs) are investing in our printing industry and collaboration agreements are being entered. Special economic zones are being developed by Government of India and additional facilities are being provided in all these zones. The Ministry of Micro ,Small & Medium Enterprises and the Ministry of Industry have several schemes that help develop the infrastructure and promote the print sector, particularly the micro and small enterprises, alongside cluster developments. The All India Federation of Master Printers plays an active role in the human and resources development of the printing sector by holding seminars, conferences, exhibitions etc. in different parts of the country. AIFMP organises National Awards for Excellence in Printing that are coveted honours in the printing industry. Awards are given in almost all categories. I am proud to say that our Indian printers are also winning many international awards AIFMP members M/s Pragati Offset, Hyderabad and Silver Point, Mumbai, Thomson Press, Faridabad are among leading printers who win international awards, year after year. India today has more than 50 printing institutes across the country in the private as well as public sector which are imparting training to more than 4000 printing professionals including M-Tech/ Degree/Diploma holders and others into the mainstream industry every year.AIFMPs official journal Printing Times, published since 1977, is a key contribution to the Indian print scene. There are more than 1,30,000 all types of printing presses in India. More than 10 Million families are involved in the Industry. Industry has a turnover of more than 20 billion. Per capita consumption of Paper & boards are 4.5. Kilograms. Machinery of first hand and second hand used is predominately from China, England, France, Germany, Italy, Japan, the Netherland, Switzerland, Spain, Taiwan and USA. Presently, AIFMP has a number of projects under its umbrella that will showcase the print sector in India, such as PAMEX-2010 from January 19-22, 2010 at Pragati Maidan, New Delhi, and National Awards for Excellence in Printing on 20th January 2010 at Indian Habitat

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Centre, New Delhi, and Conference of South Asia Print Congress (SAPC) during August, 2010 at Bangalore. Plans are underway to set up AIFMPs own state-of-the-art Printing Testing, Training and Research Institute at Bangalore to impart training to printing students. AIFMP with the active cooperation of all its 57 affiliate associations each year celebrates Printers' Day on 24th February to honour Johannes Gutenberg, Father of Printing Industry who was born on this auspicious date. To commemorate the day free medical camps are organised, books are distributed to needy children and students of printing institutes are invited to participate actively. To return to the national scene: India's growth record during the recent years is commendable; with the continuation and completion of some key reform initiatives Indias potential to become a significant player in the next 5-7 years is high.Progress made in computerization, automation and in the field of printing industry is becoming more interactive changing every aspect of our daily life.Printing industry requires more and more skills and resources, both human and financial, to exploit new technologies.Seminars, conferences, exhibitions provide the forums to deliberate upon the challenges and opportunities.The Indian economy, even in these days of global recession, is continuously growing at an even pace.The national income has doubled in just 15 years, as also Indias share of world exports.India is amongst the six top book producers in the world and the third largest English language publishing country. But in the context of the world-wide recession there has been some effect on the Indian market also. But since our domestic market is big the recession has so far not been the cause of too much worry to us and we hope this will remain the case in the future too. However, I must also add that there has been a psychological effect on the industry in terms of investments on capital equipment with a wait-and-watch attitude. The emerging consensus is that the economy may now be at its lowest but a firm recovery may take longer depending on the global economy. Well, we should be able to tide over by this year-end with signs of revival being already seen on the horizon.

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Exhibitions such as China Print 2009 help raise the status of our industry. They provide a golden opportunity to the visitors to see state-of-the-art print and related equipments through live demonstrations under one roof. 2.6.1 Legal environment of printing 1. Printing Industry: Over the years, the printing industry has grown in all parts of the globe. The advent of TV and Internet has not affected the growth of and requirement for printing professionals. The industry has made giant strides in recent times in improving its machinery in terms of the scope, technology and speed. Computers and electronics have invaded all the departments of printing, improving quality and speed of the jobs executed with the consequent enhancement of costs enormously. In fact, the arrival of computers has complemented the printing business and has played a vital role in increasing its status as a clean profession. 2. Hubs of Printing Industry There is a set of industry players which are growing systematically and regularly. These kinds of set-ups do not belong to any specific region of India but are scattered all over the country. The so-called clusters of printing Industry are present in North: (Amritsar, Delhi, Faridabad), West: (Ahmedabad, Bombay) ,South: ( Bangalore, Coimbatore, Madras). The publishing firms in the private sector are also quite large in number and these are scattered throughout the country. But majority of these are very small in operation and each one of these may not be producing more than a dozen titles in a year. These are also confined to producing titles in Indian regional languages and catering to the needs of the local markets. Only a few (about 10%) of the publishing concerns in India are reasonably large producing more than 50 titles annually and are equipped with proper infrastructures such as printing presses and distribution networks. In totality, today Indian publishing is one of the greatest in the world and the country is counted among the top seven publishing nations. Increasing number of printers is adopting newer and modern technologies. The growth of such organizations indicates that recession is nothing but a changing trend towards adoption of new style of working. The modern style of business is completely in favour of the consumers. It22

ensures that they get optimum quality products at bare minimum price. Probably in all areas of life the consumers are getting products at most competitive prices, which is definitely lower than yesterdays prices and printing industry is no exception. To meet this challenge, people in the printing industry have to find the solutions and not fret on decline in prices. Some printers with a vision have already taken a step towards it and are able to produce printed products at much lower unit price by adopting new technologies. Kerala Scenario C.M.S press the first printing press in kerala was established in 1821, by Benjamin Baily, a British missionary at Chalakunnu in Kottayam district. The first printed new paper published in Kerala has been printed and published in 1848 from this press. Printing introduced by B. Bailey led Kerala to universalisation of public instruction, development of means of communication and dissemination of knowledge. This in turn culminated in social reforms, enlightenment and development of culture. Publication of books, journals and periodicals along with universal education paved the way for the development of Malayalam prose and its standardization. The first Government printing press was established in 1838, by the then Travancore Maharaja Swathi Thirunal at Thiruvananthapuram and named it the Government Press. Initially it was meant only to print the Punchangas, and later all the printing works of the State came under it. Gradually this small printing press developed into the present Government Central Printing Press. Ernakulam Government Press was established in 1847 and Pujappura Central Jail Press in 1901. When the Kerala State was formed in 1957, there were three printing presses under the Department of Printing. In 1960 a Government Press was established in Shornur,esp. for printing of text books The Stamp Manufactory, which was established exclusively for the minting of coins and printing of stamp papers of Travancore State, was handed over to the Printing Department in 1964 from the Revenue Department. The Kannur Government Press was established in 1967, Kozhikode Government Press in 1983, Mannanthala Government Press in 1984, Wayanad Government Press in1985, Vazhoor Government Press in 1994 and the Kollam Government Press in 2001. Now there are eleven printing presses functioning under the department. District Form Stores are working at 12 district head quarters for smooth supply and sale of forms and other Government publications.23

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CHAPTER- 3 COMPANY PROFILE

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3.1. Introduction to the company The Kerala Books and Publications Society was registered under the Travancore Cochin Literary, Scientific and Charitable Society registration Act, 1955. The Society is fully owned by the Government of Kerala and established for printing the entire textbooks required by the school children in the State. The main objective of the Society is to print and supply text books at rates on the principle of no loss no profit basis to education department its allied institutions and prescribed authorities from time to time and to promote the advancement of general and technical education and reading habits among the general public. The objectives of the Society also include, relief of the poor, Education, Medical relief and advancement of any other object of general public utility not involving carrying on any activity for profit. 3.2. Mission of KBPS The society is expected to function on a no loss any profit basis as regards printing of text books. 3.3. Brief description of organization and its function The Kerala Books and Publications Society is an organization constituted in 1976 to establish and run a printing press mainly with the objective of printing text books for the entire school going children of the state. The Government presses were able to print only 30% of the requirement of school text books and hence bulk of the text book printing was being entrusted to private presses. Hence Government thought of establishing a printing unit primarily intended for printing text books for the state. Hence on entity was constituted by name The Kerala Books and Publications Society and registered on 1st day of March 1976 under the Travancore Cochin Literacy, Scientific and charitable Societies Registration Act 1955 to establish and run a printing press at Thrikkakara as per G.O. (P) No. 17/76/H.Edn. Dated 17/2/1976. The Memorandum of association and Rules and Regulations of the Society provide for the objectives, rules and guidelines for the functioning of the Society. 3.4. History The Kerala Books and Publications Society is registered under the Travancore Cochin Literary, Scientific and Charitable Society registration Act, 1955. The Society is fully owned by25

the Government of Kerala and established for printing the entire text books required by the school children in the State. The Societys Press at Kakkanad, Kochi was established with technical collaboration of M/s. Unitechna of erstwhile German Democratic Republic (GDR) under deferred payment agreement. The Administrative Office and the Press building are located in 3.97 hectres of land at Kakkanad near Civil Station where Collectorate Ernakulam and other battery of Government Offices are functioning. The press is the biggest multicolour offset printing unit in Kerala Government Sector. The Society started commercial production in August 1978. The senior technical persons in KBPS are trained in GDR. In order to achieve the objectives of the Society it entered into an agreement with M/s. Unitechna of German Democratic Republic for the supply, erection and commissioning of a printing Press at Kakkanad for a total cost of Rs. 104.39 lakhs on a turnkey basis. It was agreed with M/s. Unitechna that the cost of the plant and machinery to be erected will be paid back to M/s. Unitechna 16 semiannual installments with interest at 4.5%. The Society has already paid back the amount. The Government of Kerala had extended loans amounting to Rs. 232 lakhs repayable in 15 annual installments. The Government have also provided 3.97 hectares of land and constructed the press building and administrative block costing about 100 lakhs. Thus in all the investment can be termed as Rs. 5 crores by the time the press was commissioned in 1978. The Government has charged lease rent at the rate of 7% per annum over their investments of 100 lakhs.

3.5. Promoters of the company The Society consists of the following policy making bodies. 1. General Body consisting of all its members.26

2. Governing Body consisting of not less than 7 and not more than 15 persons and consisting of a Chairman, a Vice Chairman and the Managing Director. The members of the Society are ex-Officio members. However Government may nominate not more than two non-officials as members. 3.5.1. Governing Body The Governing body of Kerala Books and Publications Society is as below 1. Principal Secretary to Government, Higher Education Department 2. Vice chancellor Cochin University of Science and Technology 3. Secretary to Government, General Education Department 4. Director of Collegiate Education 5. Director of Public Education 6. Nominee of Principal Secretary, Finance Department 7. Director of Technical Education 8. Director of Printing 9. Controller of Stationary Member Member Member Member Member Member Member Member Chairman

10. Managing Director, Kerala Books and Publications Society

-

Member

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11. Production Manager, KBPS

-

Member

3.6. Product details 3.6.1. Lottery Ticket Printing Introduction KBPS has taken up the work of printing and supplying of lottery tickets for the use of the Government from 1984. As per the agreement executed, the work is being done under strict security arrangements and in accordance with the specification and particulars containing in the order of the Director of State Lotteries, TVM. We are printing the required number of tickets for each of the lotteries as per the intend placed by the Director of state Lotteries from time to time. As per direction from the Lottery department, the conventional numbering system was later changed to computer generated bar code numbering from 2004 onwards. The Lottery department is taking delivery of the tickets directly from the Press after strict verification. The average production of tickets per week will be around 65 lakhs. A. Printing of tickets Tickets are printed in sheet fed HMT machines with four colour on front side and price structure in single black in back side.

B.

Numbering I. Conventional numbering system From the year 1984 to 2007, all lottery tickets were printed in conventional system. In this system, the printed tickets were got numbered in Letter Press machines and checking was done manually by the staff in the lottery section.

II.

Computer generated bar code numbering system The computer generated bar coding in lottery tickets was started from 1/1/2008 by

the introduction of this system, bar coding, serial numbering and cross numbering are done in computer on the basis of the software supplied by the lottery department.

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Bar coding, serial numbering and cross numbering are carried out in the computer system by engaging required contractors within the press and the work is executed by utilizing their facilities but strictly under our super vision. 3.6.2 Details of existing lottery tickets A. Win win 40 lakhs

3.6.3 Existing production in the lottery section A. Checking 9,000 sheets (5 ups tickets) B. Stiching 8 lakhs tickets C. Ent 8 lakhs 3.6.4 Existing staff in the lottery section A. Deputy Manager 1 B. Supervisor 2 C. Employees 33 D. Apprentices Nil 3.6.5 Facilities In addition to the full-fledged DTP and processing facilities, the Society is equipped with the following important printing and Binding machineries :A. Printing B. One Harris M-300 High Speed Multicolor Web offset printing machine imported from France C. Four Web Offset colour Printing Machines imported from GDR. D. Two Sheet fed Offset Printing Machines imported from GDR. E. One Label Printing Machine imported from Japan. F. Two HMT Sheet fed offset Printing Machines. G. Three HMT Letterpress machines.

3.6.6 Major Clients

29

1) AIDS Control Society, Thiruvananthapuram 2) Animal Husbandry Department 3) Archieves Department 4) Attappady Hills Area Development Society, Palakkad 5) Bar Council 6) Child Welfare Society, Ernakulam 7) Clean Kerala Mission, Thiruvananthapuram 8) Cochin University of Science and Technology 9) Commercial Taxes, Thiruvananthapuram 10) Commissioner of Commercial Taxes 11) Commissioner for Govt.Exams, Thiruvananthapuram 12) Commissionerate of Labour, Thiruvananthapuram 13) Directorate of Archives 14) Directorate of Census 15) Directorate of Health Services, Thiruvananthapuram 16) Directorate of Higher Secondary Education, Thiruvananthapuram 17) Directorate of State Lotteries, Thiruvananthapuram 18) Directorate of Vocational Higher Education, Thiruvananthapuram 19) DRDA 20) Farm Information Bureau 21) Forest Department, Thiruvananthapuram

30

22) KAMCO 23) Kerala Civil Supplies Corporation, Kochi 24) Kerala Institute of Local Administration 25) Kerala Press Academy 26) Kerala Public Service Corporation, Thiruvananthapuram 27) Kerala Shipping and Inland Navigation Corporation Ltd, Kochi 28) Kerala State Open School, Thiruvananthapuram 29) Kudumbasree 30) Labour Department 31) M.G. University 32) National Rural Health Mission 33) National Savings Department 34) Police Department 35) Social Welfare Directorate Department 36) Travancore Devasowm Board 37) Vegetable and Fruits Promotion Council

31

3.7. ORGANIZATIONAL STRUCTURE 3.8 FINANCIAL PERFORMANCE OF THE COMPANY KBPS constituted by government of Kerala to print and supply text books to school children of Kerala state started its business with interest bearing loan received from government of Kerala. The society does not have any share capital of its own. The society has availed more32

loans during the year 1987-88 and 1989-90 from the state government for procurement of machineries. The land and building in which the society is functioning are owned by government of Kerala. An amount of Rs.7.02 lakhs per year is paid as lease rent to government for use of land and building. The society has requested government to transfer the ownership of the land and building to the society and steps are being taken at government level to transfer the same.

Table - 3.9:Balance sheet of KBPS

KERALA BOOKS AND PUBLICATION SOCIETY, KAKKANAD. BALANCESHEET AS ON 30TH SEPTEMBER 2010 PARTICULARS SCH HALF YEAR ENDED YEAR

33

ENDED

UN

AUDITED 30.09.2010 Sources of Fund Capital Account 30.09.2009 31.03.2010

Permanent Capital Loan Reserves & Surplus

I II

5,000,000.00

5,000,000.00

5,000,000.00

160,329,157.6

146,772,591.7

155,619,906.3

Loan Liability

III

73,972,446.90

70,180,175.90

72,064,771.40

Total

239,301,604.6

221,952,766.7

232,684,678.3

Fixed Asset Investment Shares in KBP

IV

55,291,449.08

25,313,241.44

56,312,304.59

Employees -Co- operative Society Current Assets Loans & Advances 100,000.00 100,000.00 100,000.00

Inventories

V

42,784,094.25

40,942,388.84

65,294,714.44

Sundry Debtors

VI

29,626,812.46

95,477,325.74

92,127,662.44

Cash and Bank Balances

VII

170,144,725.6

120,947,724.7

113,777,977.7

Loans & Advances

VIII

13,491,468.18

23,449,509.72

9,730,622.0034

256,047,100.5

280,816,948.7

280,930,976.5

Less

:

Current IX for 2,018,250.44 3,334,569.61 10,041,346.00 70,118,694.43 80,942,853.83 94,617,256.51

Liabilities & Provisions Less: provision

Income Tax

72,136,944.87

84,277,423.44

104,658,602.1

Net Current Asset

183,910,155.8

196,539,525.4

176,272,373.4

Total

239,301,604.6

221,952,766.8

232,684,678.3

Source:- Company Website

35

Table-7:- Income and Expenditure Statement

36

30.09.2009 In rinted Material Printing Charge SALEOF WASTE PAPER SALE OF NOTE BOOK Misc. Income Other income

Year ending 31.03.2010 ( unaudited)

XI

32,112,473.40 50,499,580.00 4,798,663.61 1,375.00 170,694.65 331,697.87

38,623,008.80 32,698,307.03 3,458,391.65 150.00 116,072.30

800,068.74

59,290,106.45 64,047,158.80 156,298,614.80 50,802,748.00 52,183,831.40 56,761,328.80 10,179,870.40 7,781,170.56 15,344,756.43 39,275.00 34,120.00 47,728.00 580,879.15 387,640.60 1,512,892.85 777,626.97 1,165,941.64 7,180,913.29

87,914,484.53 75,695,998.52121,670,505.97 125,599,863.00 237,146,234.17Expenditure Increase in stock in trade and WIP Materials and Stores Consumed Manufacturing expense

XII XIII XIV

Administrative expensesinterest on Govt. of Kerala Loans

XV

(4,985,833.08) (629,495.81) 4,538,292.97 14,012,617.27 32,449,714.18 34,701,288.21 2,652,134.22 1,126,232.28 254,163.00 254,163.00

22,045,445.36 8,877,737.81(21,532,450.44) 19,416,164.14 26,721,397.2245,627,622.66 64,738,070.07 72,004,680.65 160,837,259.98 5,077,586.00 2,927,245.81 16,525,815.50

Penal Interest on Government of Kerala Depreciation IV loans

1,108,326.00 1,108,326.00 2,216,652.00 399,675.00 399,675.00 799,350.00 776,269.50 1,552,539.00 879,031.47 1,590,248.60 1,758,062.93 3,180,497.20 6,360,994.40 36,187,177.75 51,454,728.55114,943,004.50 115,596,154.18 211,588,433.10

Profit before taxLess Income tax Net Profit Provision

51,727,306.78 24,241,269.97 6,727,501.47 10,003,708.8225,557,801.07 15,518,192.03 7,272,380.99 2,018,250.44 3,334,569.61 10,041,346.00 36,209,114.75 16,968,888.98 4,709,251.03 6,669,139.21 15,516,455.07

Total Sales Sales as Percentage of previous year Profit before tax Profit as Percentage of previous year

87,412,092.01 74,779,857.48120,311,999.85 124,046,280.76 228,452,428.03 116.89 96.99 94.64 51,727,306.78 24,241,269.97 6,727,501.47 10,003,708.8225,557,801.07 213.39 67.25 95.27

37

3.9. Activities Men, machines and materials are the basic input of any industry. But todays professional management lays greater stress on the employees welfare activities. 1. Welfare association The society has formed a welfare association to meet the aspirations of the employees of the society. The welfare association runs a circulation library with a fairly good selection of books apart from a reading room which makes available to the employees newspapers/periodicals. A sports and recreation club to locate talented sportsmen, artists etc from among the employees of the press is proposed to be organized. To start, with a scheme to award scholarship to talented children of the employees has been introduced with effect from 1981-82. 2. Subsidized canteen :- The building used for canteen has been renovated spending about one lakh rupees during 1982-83.The employees of the KBPS have formed and registered a co-operative society during 1983.The canteen is entrusted to the co-operative society. Subsidized meals, tea etc are served to the full satisfaction of the employees. KBPS is giving a monthly subsidy of Rs. 15000/- to the co-operative society to run the canteen. 3. Construction of quarters The society is contemplating steps to construct residential quarters for the employees of the society under a phased programme. A sum of Rs. 15 lakhs have been provided towards this head in the annual budget for 1982-83. 4. Bore Well The society has been forced to seek other sources for its enhanced consumption of water as advised by the phed. Society considers it as a fortune to have struck ground water source adjacent to its premises. A bore well with a low level tank has been constructed with a network of hydrants which help water and keep alive the rose plants and coconut saplings raised in the campus.

38

3.10. Future plans Proposal for constructing a go down cum shopping complex to store books and paper and to earn revenue.

39

CHAPTER- 4 DETAILED STUDY OF DEPARTMENTS

40

4.1. Functional D epartments Organization is the association formed by a group of people who w o r k e d individually or in groups to achieve common set of goals. The main purpose of functional areas in an organization is to ensure that all important business activities are carried out efficiently. 4.2. Personnel and Administration Structure of Personnel and Administration

41

The head of the department is manager personnel and administration. He is assisted by assistant manager (personnel and purchase and administration).under him there is a junior superintendent, senior assistant, office assistant and peons in the hierarchical order. The entire organization comes under administration department. The department carries out the functions of recruitment, disciplinary actions, employee welfare measures, matters relating to attendance and leave etc.The main objective of the department is to administer the organization, control the organization and reduce labour turnover and labour problems, to ensure welfare of employees etc.42

Functions The entire organization is under administration. Exhibition of Standing Orders A copy of the orders in English and Malayalam is posted in the Societys Notice Board and if there is any doubt regarding the interpretation of the rules, the English version will prevail. Display of Notices: - Copies of all notices are required to be given by the society to workmen and shall be suitably displayed either in English or in Malayalam on noticeboard and when so posted the notice shall be deemed to have been given to the workmen for whom it is intended. Strike: - The workmen shall not go on strike without giving 15 days notice of their intention to do so. Address: - Every workman shall furnish to the Management the address to which notices or letters affecting him may be sent. It shall be the duty of the workman to notify any change in the address. Wage rates: - Notice specifying the rates of wages payable to all categories of workmen shall be displayed in English and Malayalam on the notice board Publication of holidays and Pay day: - Notice specifying the days observed by the Society as holidays and pay days shall be pasted on the societys notice boards. Leave:-1) Earned leave 2) Medical leave 3) Maternity Leave 4) Casual Leave 5) Special casual leave Entry and Exit Workmen shall enter or leave the premises only by the gate for that purpose. When a workman leaves earlier than the closing time under permission, he should punch or register his time out as provided by the society. Search Any female worker detained shall be searched only by a female searcher in the presence of another female worker

43

Ticket 1. The identity card or badge shall be finally surrendered by the workman at the time of termination of his service or on leaving the service of the society. 2. Any workman, who has entered the premises without an identity card or badge or permission slip issued to him, is liable to be sent out and will not be entitled for the wages for that day. 3. If an identity card /badge are lost by a workman he should immediately report the matter to the officer who issued it to him and who on payment of Rs 10/- will issue a fresh card/badge.

Classification of Workmen 1) Permanent 2) Temporary 3) Probationer 4) Casual 5) Apprentice 6) Trainee A casual Workman is workman whose employment of a casual nature. Apprentice is a learner who may or may not be paid an allowance during the period of his training and who may or may not be absorbed in the regular service at the discretion of the society. Punishments 1. Warning 2. Fine up to 2% of his wages in a month for any of the act or omissions mentioned under clause 13. 3. Suspension for a period not exceeding 15 days at a time. 4. Stoppage of increments for a specified period 5. Demotion to a lower grade or salary 6. Discharge from service. 7. Dismissal from service without notice or without compensation in lieu of notice. Disciplinary Action

44

The following acts and omissions shall be treated as misconducts 1. Willful insubordination or disobedience whether alone or in combination with others, to any lawful and reasonable order of superior. 2. Theft, fraud or dishonesty in connection with the Societys business or property 3. Willful damage to or loss of Societys goods or property 4. Taking or giving or offering bribes, or any illegal gratification 5. Habitual absence without leave or absence without leave for more than 8 days. 6. Habitual late attendance 7. Breach of any factory rules or instruction given by superiors for the proper functioning and safety of the factory/ press 8. Riotous, or disorderly behavior of drunkenness during working hours within the factory/press premises or any act subversive of discipline. 9. Habitual negligence or neglect of work or malingering 10. Frequent repetition of any act or omission 11. Striking work or enacting others to strike work in contravention of the provisions of any law or rules having the force of law 12. Interference with factory /press safety devices or contravention of safety rules 13. Collection of funds within the premises for purposes not specifically sanctioned by the management. 14. Distributing or exhibiting inside the premises for purposes of any bills, posters etc without the permission of the management. 15. Pursuance of a conduct against the interest of the company 16. Poor or unsatisfactory workmanship

45

17. Engaging in idle talk or on conversation and failing to respect the right of others to work in peace. 18. Leaving work before whistle signal 19. Sleeping while on duty 20. Conviction for any offence by a criminal court, involving moral turpitude 21. Absence on loss of pay over a month in aggregate in a calendar year 22. Smoking at the prohibited areas within the factory premises. 23. Instigating the workmen to stage demonstrations or taking part in such demonstrations within the precincts of the press. 24. Conducting public meetings on societys premises without prior sanction of the management 25. Breach of any of the provisions in the standing orders prescribed to be compiled by a workman 26. Habitual breach of any rules or instructions for the satisfactory maintenance of any department or division Note: - What is habitual or reasonable within the meaning of the above clause shall be determined by the management or head of the department in which the workman is working. 1. Gambling within the premises of the press or office 2. Intimidating, assaulting, threatening or abusing any superior or any person within the premises of the press or office. 3. Insolvency 4. Unauthorized use of societys residential quarters 5. Entering or attempting to enter, leaving or attempting to leave the premises except through gates specified for the purpose.

46

6. Loitering or absenting without leave from the place of the appointed work in the press. 7. Furnishing false information at the time of employment about himself, his parents, his age, qualifications, previous experience, service etc. 8. Manufacturing or attempting to manufacture unauthorized articles within the premises. 9. Refusal to accept or take notice of charge sheet, order or any other communication served either in person or by post 10. Proxy registering of attendance or attempting in the act of registering attendance of another man 11. Impersonation 12. Applying for appointment, scholarships, fellowships and training otherwise than through the departmental head or managing director.

Publication of Holidays and Pay Day The management reserves the right to declare any day as paid holiday without affecting the quantum of other declared holidays unless it is a substituted holiday. Daily rated temporary employees will not be entitled for any paid holiday. Twelve days per calendar year including 26th January and 15th August will be declared as holidays with full pay. Deduction from Wages The following deductions are made from the wages of the workers subject to the payment of Wages Act and the rules there under: 1. Fine 2. Deduction for absence from duty 3. Deduction for damages or loss caused to the society by the neglect or default of the employed person47

4. Deduction for recovery of advance 5. Deduction for recovery of loans 6. Deductions for payment of Co-operative and insurance scheme 7. Court attachment 8. P.F. deductions Attendance If a workman is habitually late he will be treated as habitual late comer and shall be dealt with as per the standing order. Punching system is adopted for employees and officers. In a month 90 minutes is allotted as grace time for employees and an employee can take 20 minutes at a stretch for each time. No deduction of wages is done during grace time.

Welfare of Employees Shift allowance, Milk allowance, Food allowance, washing allowance etc are provided to employees. Monthly Rs.45 is collected from every employee for the employee welfare association. Total amount will be returned at the time of retirement to employees. Annual increment is given to employees once in a year. Festival advance is provided for Onam only. It is given according to the demand of trade unions. Festival advance upto Rs 10,000 was provided last year and it will be collected from the employees in a monthly basis. In May Rs.7500 is given to all employees and Rs.750 will be collected from employees in each installment of total 10 installments. All permanent employees are insured by the New India Assurance Company. A card containing the name of registered hospitals is issued to employees and employees can avail discount in these hospitals. An amount of Rs.3000 is provided for buying medicines for 1 year by submitting medicine bills by the employees. Insurance is provided for the medical expenses upto 1 lakh. There is a buffer for critical illness above 1 lakh and it is sanctioned by the insurance

48

company through a request by the MD or through the approval by the MD. It is given to maximum 10 employees. For provident fund employee is contributing Rs.780 and employer is also contributing Rs. 780.PF amount of employees is cut from the monthly salary. Out of the Rs. 780 collected from employees, Rs. 239 is given to employee PF account and balance amount is remitted to pension fund of employees. Gratuity is provided the LIC for retired employees. Maximum one employee can get upto Rs.10 lakh based on their basic pay, DA and their service of employment. Salary is provided through Union Bank of India and pension fund is handled by some banks such as Federal Bank, SBT etc. Employees Deposit Linked Insurance (EDLI) is implemented through LIC in the organization. The lowest salary scale in the organization is of Rs.4630 - 7000 and the highest scale is between Rs.20700 - 26600. Welfare Association All permanent staff are members of the KBPS welfare association. Welfare association is providing loans to employees at the interest rate of 11%. It is recovered through the wage cut. Welfare association is accepting deposits from the employees at the interest rate of 7%.For the Death Cum Retirement Benefit Scheme (DCRB) Rs 45 is cut from the wages of employees every month. Minimum 3 Years of service is needed for availing DCRB scheme. An amount of Rs.5 is collected from employees as a contribution to welfare association. Welfare association is providing facilities like reading room, library etc and arranging facilities for the entertainment. It also conducts tours for employees and half of the total expense of tour is born by the welfare association as a subsidy. Association is also providing scholarship to students of employees from 4th standard to higher secondary. Welfare Association is mainly providing loans as a financial aid to employees. They arrange free medical checkups for employees in every 2 years. Onam kit is given to all employees including daily wages before the festival of Onam. Structure of the association comprises of employees representative and M.D.is the managerial staff chairman. Ten members committee is there for the administration of the association consisting of secretary, treasurer etc. Once in a year election is conducted to the posts of welfare association. Trade Unions49

Organization is allowing the freedom of trade union activities. There are 3 main trade unions operating in the organization. They are 1. KBPS Staff and Workers Union (INTUC) 2. KBPS Employees Federation (AITUC) 3. KBPS Employees Association (CITU) 1. Details of Leave Medical leave: A workman who is not covered by the ESI scheme may be granted medical leave for 10 days a year on full pay. Medical leave cannot be carried forward from 1year to the next. Maternity leave: A woman worker who is not covered by the ESI scheme will be covered by the provisions of the maternity benefit act, 1961. Application for maternity leave shall be submitted in the prescribed form atleast 15 days prior to the date of entering on leave. Maternity leave can be combined with any other kind of leave except casual leave. Casual leave: 12 days casual leave is admissible to a workman in a calendar year.it cannot be combined with any other kind of leave. Casual leave may be taken for half a day but not exceed 3 days at a time. Casual leave cannot be carried over from one calendar year to the next. Classification of workmen: 1) permanent 2) temporary 3) probationer 4) casual 5) Apprentice 6) trainees. Recruitment: - The permanent employees are recruited through the PSC and temporary employees are recruited from employment exchanges. Professionals are selected from professional employment exchanges. Casual workers and trainees are recruited through Kudumbasree, through advertisements in gazette and newspapers etc. Employees are selected following the reservation criterion of the state government.

50

4.3. Finance and Accounts Department Structure of Finance and Accounts Department

51

Functions 1. Tax management judicious tax management 2. Payment of rent 3. Minimizing cost and maximizing profit 4. Receipts of income and payments. 5. Verify whether costing is correct or not 6. Find the source of fund for salary 7. Raise invoice and realize money from party or payment from party. 8. Budget preparation

52

Details of Finance Department The money of the society is deposited in public sector banks through fixed deposits. Society has no permission for share trade in BSE and NSE. But KBP employees cooperative society have the shares of employees. Miscellaneous income:Income other than the main income or sub income. For example, income other than the main printing activity. Sale of ink bottles or ink buckets, sale of the fruits of trees like coconut, jackfruit etc comes under this category. Printing charge:Printing charge is the charge taken only for printing. Printed materials charges are the charges of the materials required for printing.eg:- Paper, printing ink etc. Sale of notebooks: - Sale of notebooks to employees. It is not provided freely to employees. Stores consumed: - Expenditure incurred for storing items. Eg:-spare parts of machinery etc. Administrative expense: It includes expenses incurred for paying taxes, paying salary to employees and security, maintenance of building etc. Society is paying taxes to Kerala government. Approximately Rs.40000 is given to Factory and Boilers Department for renewing license.

53

III

Production Department

Structure of Production Department

Production Planning The duties and nature of work performed by the department are detailed below: 1. Preparation of work tickets, follow up action and all works connected with text books and commercial jobs. 2. Preparation of estimates, costs and bills for text books and commercial job with prompt entries of dispatches. 3. Preparation of notes, statements for audit, administration report, data for governing body etc.

54

4. Indenting materials for printing text books and commercial jobs. 5. Entry of title wise daily progress and preparation of data/statements in connection with commercial and text book printing. 6. Arranging outworks such as processing, screen printing, lamination, block making etc 7. Compilation and preparation of all periodical data and other details as and when required. 8. Valuation of annual stock details.

55

4.4. Purchase Department The purchase procedure really starts from the actual

requirements intimated to purchase section through request (PR) forwarded from the General Stores Department. The purchase procedures are decided by assessing the approximate cost and value of the item. If the item is found important and the cost is below Rs.5000/- the department can purchase it from the local market. The department also invites quotation giving 1 or 2 weeks time, if the cost involvement is below Rs.20, 000/-. They can procure the items by inviting tender if the cost exceeds Rs.20, 000.The tender are of 2 types.1) Limited Tender 2) Tender 1. Limited Tender Limited tender is invited for the urgent requirements. Tender notice is published in suitable dailies and in the companys website. The parties can submit their offers in their own letterheads furnishing an agreement (format issued by the company) in Kerala Stamp Paper worth Rs.50/- and an amount of 1% of the offered rate of the full quantity as Earnest Money Deposit. (EMD) 2. Tender Tender is invited by publishing the tender notice in Kerala gazette, newspaper and in the companys website and by sending to venders. There will be tender document and tenderers should submit the tender document along with EMD and agreement.

56

The orders are placed by observing mainly the quality. The price is also a factor. The orders are placed after obtaining the approval of MD, if the cost exceeds Rs.5000/-.If the cost is below Rs.5000/- approval seeks from MPA. After receiving the items, the stores department issues Goods Received Note (GRN) along with the invoice. After receiving GRN & Invoice the purchase department forwards it to the Finance & Accounts Department after obtaining the approval of Manager Personnel and Administration (MPA). 4.5. Distribution Section Distribution of School Text Books Printing of text books has been traditionally undertaken by KBPS. Distribution of the text books to schools was always done by Text Book Department. In the academic year 2010-11 government has decided to entrust the distribution of text books to school societies to KBPS. In 2011-12 also the distribution of text books to school societies is to be done by KBPS. . Distribution process was done by inviting tenders which was published in leading Malayalam and English dailies for the transportation and delivery of textbooks from KBPS depots in various districts to the school societies.

An online indent registration facility was

given

to

schools for registering their indents. Subsequently as per the request of text book officer, DPI and principal secretary (general education department) an opportunity for left out schools was given. KBPS has completed the first phase of printing of text books for the academic year 201112. Print order given to KBPS for volume 1 of text books was 24,685,000. Distribution of 4, 03, 75,000 no. of text books in 292 titles to approximately 12271 no. of schools through approximately 3112 no. of school societies is the task given to KBPS.As the order entrusting the distribution to KBPS is issued only on 15-12-2009, society had very little time to plan. The undertaking given to the Honble High Court of Kerala by state government not to distribute text books before 31-03-2010 was also another constraint faced by the society.

57

As KBPS is not having godown facilities and extra human resource for managing the logistic operations of text book distribution in the field society sought the assistance of Postal Department of Government of India. Accordingly a MOU was signed with Postal Department on 9th April, 2010 to take up the transportation from source (KBPS, Government Presses, KSAVRC and various text book deports in the state.) to 25 hub centers in the field. From these Hub Centers, text books will be packed society wise as per the indent from Director of Public Instruction /text book officer. Thus transportation from source, unloading and storage at hub center, sorting, repacking as per society wise indent, loading, transportation to societies and unloading at societies are the responsibilities entrusted with Postal Department. KBPS will arrange loading of books hub wise in its premises in the trucks arranged by India Post. KBPS will also supply indent of books to India post, society wise and hub wise in soft copy. India Post will do transport of textbooks, stocked in KBPS and 37 state textbook depots, to the hubs and from hubs to societies as per the indent and it will furnish delivery data to the KBPS. India Post will properly insure the consignments while during transport and while in stock at hubs. Accordingly Postal Department has established 25 hub centers. They have also deployed 100 dedicated staff exclusively for logistic support. Logistics handling at godowns of KBPS, sufficient loading facilities and proper delivery challans, preparation of a transportation plan etc are the crucial activities involved in transporting text books. Timely arranging of Transport vehicles, managing hub centers, sorting, repacking and onward transmission to Societies etc are done to ensure safer and efficient transportation of text books.

Distribution of text books is broadly divided into 4 phases Phase 1 Distribution of Text Books of class X Phase 2- Distribution of Text Books of classes V-VII Phase 3- Distribution of Text Books of Classes I-IV

58

Phase 4- Distribution of Text Books of Classes VIII and IX

The daily progress is being informed to: 1. Text Book Officer 2. Director of Public Instruction 3. Secretary to Government, General Education Department 4. Principal Secretary to Government, Higher Education Department 5. Office of the Honble Minister for Education 6. Office of Honble Minister for Printing, Stationary and Devaswom Through e-mail Stores Department Stores department is keeping stores ledger. The stores ledger contains Purchase requisition, Material requisition, Goods Received Note (GRN) and inspection report. Input and output are separately recorded. The inventory contains raw materials, spare parts etc. There is chemical store for handling chemicals and miscellaneous store for handling miscellaneous items. There are separate racks for different types of items. There is a separate section for finished goods. Each department will give the details of materials required for their functioning in writing to stores department. It is called material requisition form. Material requisition form contains the form number, material number, date, serial number, description of material, unit, quantity issued, amount in rate and value in rupees and paisa, signature of indent or and date, name of the person issuing and there is a provision called posted stores ledger by. All the finished goods are stored in Finished Goods Store. A gate pass is issued from finished goods store to transport goods to outside. The gate pass contains quantity, vehicle number, name of the place to which goods are going and it is signed by store keeper or the person in officer grade. Delivery Chelan is issued from the finished goods store. There is separate delivery Chelan for text books and for commercial books. Goods are transferred to finished goods store from binding section through a slip called Transfer Slip. There is Daily59

Docket Cum Transfer Slip for transfer of Finished Goods. It contains quantity and details of titles of books. All books are transferred through proper authorization or through proper channel. There is a godown for storing text books separately. Waste paper godown is there for storing waste paper. All solid waste is stored in this godown. Lowest quality papers are stored in this godown and it is going to Vellore news print for paper making, pulp and for packing. Printed waste and cutting waste are having better quality and it goes to Shivakashi for packing crackers. It is done by outside contractors. Wasted ink is also stored in buckets and it is being sold to outside contractors. Binding Section Binding is categorized by the method used to hold units of printed material together. The three most commonly used methods are adhesive binding, side binding, and saddle binding. Three types of covers are available to complete the binding process: self-covers, soft-covers, and case bound covers.

Gathering and binding of text books is done at the binding section. Hand binding and machine binding is done for text books. Hand binding is done manually through hands. Machine binding is done with the help of binding machine. Numbering is done either through machine or by using hand. Press machine is used for numbering. If there is a mistake in the numbering it is corrected by using whitener and it is being pressed again. Sometimes it is corrected by sticking papers. Addresses of magazines are pasted by using sponge. In the case of textbooks addresses are cut and pasted on the cover. Large sheets of papers which carry addresses are cut into single pieces and pasted on the cover page and the books are put into cover pages.

Book Binding Techniques Book Binding Technique - 1 Materials Required for Binding a Book

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1) Sheets of paper (depending upon the size of the book) 2) Piece of cardboard 3) Wallpaper, contact paper, felt or cotton fabric 4) Paper cutter 5) A pair of scissors 6) White glue or wallpaper paste 7) Needle with a large eye 8) Twine, carpet thread, crochet thread or quilting thread. Procedure of Binding Determine the size of the book that you require. Fold the sheets midway. If you want a book of 5 1/2 x 9 dimensions use sheets of paper having dimensions of 11 x 18 as folding them midway will give you pages of the desired size. Each side of a folded sheet of paper will give four pages. Hence divide the number of pages you want to have for your book by 4. Use one sheet extra than the number that you get. This extra sheet will serve as the first and the last page onto which the cover will be pasted.

Place all the sheets on top of each other. Fold them midway. Clip all the four edges to hold the sheets in place. You can also clip the center of the fold. Beginning '' from the top of the fold start marking for holes at regular intervals. Make holes with the needles and sew the book along the holes.

For the Cover Page of the Book Cut two cardboard pieces in the shape of the book. These pieces could be the same size or a little larger than the book's dimensions. Place the two pieces on the felt, cloth or the61

material you are using to cover the cardboard pieces such that there is a gap of 1/8 to 1/4 between them. Draw the outline of the cardboard pieces on the material with a pencil. Remove the cardboard pieces. Now cut the material one inch around the entire outer side of the pencil mark. Apply glue to the cardboard pieces and place them along the pencil mark. Apply glue to the one inch of extra material along the border of the cardboard pieces. Fold in the four corners so that the tip of the corners of the material lies on the diagonal of the cardboard piece. Now fold in the material along the sides of the cardboard. Let the cover dry. Apply glue to the outer sides of the first and the last page of the book. Place the book carefully along the center of the two cardboard pieces and smooth down. Close the book and place some weight over it. Leave it to dry for a few days.

Book Binding Technique 2 Materials Required 1) Sheets of paper (depending upon the size of the book) 2) Piece of cardboard 3) Wallpaper, contact paper, felt or cotton fabric 4) Paper cutter 5) A pair of scissors 6) White glue or wallpaper paste 7) Stapler62

8) Staple pins Procedure Fold the sheets of paper. Instead of sewing them along the fold, staple the sheets together. Wrap the felt, cloth or the material that you are using to make the cover. Cut the material leaving inch extra along the sides of the sheets. Also mark the spine of the book in a rectangular shape. Draw a line radiating out from each corner of the rectangle on the cover material that marks the spine. Cut the cover material along these lines and fold in the flaps that are formed on the top and bottom sides of the cover.

Cut two pieces of cardboard exactly the same size as the front and back of the book. Paste the cardboard sheets one on each side (front and back) of the book. Now apply glue along the outer surface of the spine of the book and place it on the rectangular area on the cover material. Press it hard for some time. Stick the cover material on the cardboard pieces of the book.

Fold the corners of the material in over the tips of the cardboard pieces in the same way as in the previous book binding technique. Now fold and stick the rest of the cover along the sides of the cardboard. Put the book underweight for a couple of days to let it dry. Adhesive Binding Adhesive binding, also known as padding, is the simplest form of binding. It is used for note pads and paperback books, among other products. In the adhesive binding process, a pile of paper is clamped securely together in a press. A liquid glue is then applied with a brush to the binding edge. The glue most commonly used in binding is water-soluble latex that becomes impervious to water when it dries. For note pads, the glue used is flexible and will easily release an individual sheet of paper when the sheet is pulled away from the binding. Adhesive bindings are also used for paperback books, but these bindings must be strong enough to prevent pages from pulling out63

during normal use. For paperback book binding, hot-melt glue with much greater adhesive strength than water-soluble latex is applied. A piece of gauze-like material is inserted into the glue to provide added strength.

Cutting After pinning, cutting is done. Unarranged books are kept in the platform and they are folded into sections. Then numbering is done. Then machine stitching is done and gum is pasted and at the edge or end of each page cutting is done. Cutting is done according to the weight of the book.64

Printing Letter Press It is the oldest form of printing. Ink is applied to the top surface of the raised image area. This in turn is pressed against the substrate to transfer the image. From the 15th century until the mid1940s metal type was the only means for converting reading matter into standard typefaces for printing. Photographic typesetting and computerized composition developed in the 1960's has almost completely displaced metal line casting and led to the decline of letterpress, as we know it today. Ink fountain (reservoir) is feed to a fountain roller which is wiped with a fountain blade to reduce film thickness and vary ink flow across the width. The ductor roller transfers ink to the main ink system where the thin ink film that is needed for printing is transferred to the substrate. Inks used are thick in body, much like lithographic (offset) inks. The majority of printing done today by the letterpress process includes newspapers, labels and books; however, the process is a slowly dying one as other better printing methods such as Offset and Flexography take over it. Sheet-Fed Printing A common six color sheet fed press is there with a coater and infrared dryers. Each unit prints a different color. The usual sequence for printing is to print black, cyan, magenta and then yellow. The extra two units on the press are used to print special colors. The coater is used to give gloss or protection to the printed sheet. Between each print unit is a transfer cylinder to transfer the printed sheet from one unit to the other. The ink is still wet during this transfer process.

Sheet fed press is configured so that the sheet can be turned and printed on the back side. It is having the "turn" cylinder between the 2nd and 3rd print units. This is called a "perfector cylinder." The cylinder can be configured by the pressmen so that he can print 2 colors on the top of the sheet and 2 colors on the bottom or not configure.

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Printing Process Cutting The machine typically used for cutting large web-type substrates into individual pages or sheets is called a guillotine cutter or "paper cutter". These machines are built in many sizes, capacities, and configurations. In general, however, the cutter consists of a flat bed or table that holds the stack of paper to be cut. At the rear of the cutter the stack of paper rests against the fence or back guide which is adjustable. The fence allows the operator to accurately position the paper for the specified cut. The side guides or walls of the cutter are at exact right angles to the bed. A clamp is lowered into contact with the top of the paper stack to hold the stack in place while it is cut. The cutting blade itself is normally powered by an electric engine operating a hydraulic pump. Manual lever cutters are also used for cutting paper stacks. To assist the operator in handling large reams of paper which can weigh as much as 200 pounds, some tables are designed to blow air through small openings in the bed of the table. The air lifts the stack of paper slightly providing a near frictionless surface on which to move the paper stack. The cutter operator uses a cutting layout to guide the cutting operation. The layout is one sheet from the printing job that has been ruled to show the location and order of the cuts to be made.

Folding Folding largely completes post press operations for certain products such as simple folded pamphlets. Other products are folded into bunches, known as signatures, of from 16 to 32 pages. Multiple signatures are then assembled and bound into books and magazines. Three different folders are used. They range in complexity from the bone folder to the buckle folder. Knife folders use a thin knife to force the paper between two rollers that are counterrotating. This forces the paper to be folded at the point where the knife contacts it. A fold gauge and a moveable side bar are used to position the paper in the machine before the knife forces the66

paper between the rollers. The rollers have knurled surfaces that grip the paper and crease it. The paper then passes out of the folder and on to a gathering station. Several paper paths, knives and roller sets can be stacked to create several folds on the same sheet as it passes from one folding station to another. Buckle folders differ from knife folders in that the sheet is made to buckle and pass between the two rotating rollers of its own accord. In a buckle folder, drive rollers cause the sheet to pass between a set of closely spaced folding plates. When the sheet comes in contact with the sheet gauge, the drive rollers continue to drive the paper causing it to buckle over and then pass between the folding rollers. ASSEMBLY The assembly process brings all of the printed and non-printed elements of the final product together prior to binding. Assembly usually includes three steps: gathering, collating, and inserting. Gathering is the process of placing signatures next to one another. (A signature is a bunch of printed sheets ranging from 16 to 32 pages.) Typically, gathering is used for assembling books that have page thicknesses of at least 3/8 inch. Collating is the process of gathering together individual sheets of paper instead of signatures. Inserting is the process of combining signatures by placing or "inserting" one inside another. Inserting is normally used for pieces whose final thickness will be less than one-half inch. Assembly processes is done in manual, semiautomatic or fully automatic modes. In manual assembly operations, workers hands assemble pieces from stacks of sheets or signatures laid out on tables. Sheets or signatures are picked up from the stacks in the correct order and either gathered, collated, or inserted to form bindery units. Circular revolving tables are used to assist in this process. However, due to the high cost of labor, manual assembly is used only for small works. Semiautomatic assembly is completely automated except that stacks of sheets or signatures must be manually loaded into the feeder units. During semiautomatic inserting, operators at each feeder station open signatures and place them at the "saddle bar" on a moving conveyer. The number of stations on the machine is determined by the number of signatures in the completed publication. Completed units are removed at the end of the conveyer and passed67

on to the bindery. Automatic assemblers are similar to semiautomatic units except that a machine and not a person deliver the sheets or signatures to the feeder station and places them on the conveyor. In order to improve efficiency, automatic assemblers are typically placed in line with bindery equipment.

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4.6. Problems of KBPS KBPS hasnt the marketing department for product expansion. Proper utilization of employees does not take place. There is no more security measures like security alarm, camera etc inside the press. The direct communication among the workers and the management does not take place. KBPS is not following the advanced method in printing. Recruitment of employees is not properly done due to lack of human resource department. Due to non-cooperation of employees, delay in work is happening.

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CHAPTER- 5 SWOT ANALYSIS OF THE COMPANY

5.1. SWOT Analysis of the Company It has always been important for a business to know and understand how it fits in and interacts with the surrounding environment on both an internal and external view. Researching

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the environment will benefit the management team by putting them in a position to develop a strategy for both the long and short term.

1) Strengths: - KBPS is a government undertaking firm. As it is a government firm, price of the products are comparatively less. Due to this the KBPS gets more preference in customers mind. It is a well-structured organization. Societys high point is its capacity to take up and execute print orders of varied nature, volume and customers. Facility for bulk production is one of the strength of KBPS. It is a major player in public sector. It carries out large and bulk printing work in the government and public sector. The location, machinery and experienced workforce have contributed to the success of KBPS in the industry. The society has a good infrastructure, a building of 2000 square feet and well equipped printing press. Society has made a name in professionalism and in carrying out printed works in a timely manner. It is the sole supplier of textbooks to government schools and aided schools which are following the Kerala state syllabus.

2) Weakness: - Being a public sector organization there is delay in the decision making process of the organization. Being a public sector organization the society is not getting government aid. Expansion of the organization is not taking place. Employee morale is low in the organization because of lack of training and there is lack of technical up gradation of skills of employees. Proper utilization of employees does not take place. There is lack of security measures like security alarm, camera etc inside the press etc. The direct communication among the workers and the management does not take place. It is not following the advanced method in printing. Recruitment of employees is not properly done due to lack of human resource department.

3) Opportunities: - Product line expansion is one of the methods of development. Now KBPS mainly produces only text books and lottery, apart from this organization can add more products in the product line like note book, letter pads, brochures etc. The advantages of KBPS note books are good quality and low cost. Business opportunities in Cochin are increasing day by day. If the71

government and management is ready to take this advantage, they can make Cochin as a printing hub. Now Shivakashi and Chennai are considered as the printing hubs in India. In Cochin facilities like Railway, Airport and Port are available. If modernization and expansion of business takes place in proper time KBPS can export its products. 4) Threats: - Unavailability of raw material is one of the major threats. For manufacturing one real of printing paper 30-40 trees are needed. Trees are scarce resources, so in the future the availability of the printing paper became a threat for the organization. Old generation employees are not computer savvy and this affects performance of the society. Fast technological changes in the industry can make KBPS less competitive and inefficient if the society is not in the path of radical changes.

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CHAPTER- 6 FINDINGS & SUGGESTIONS

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6.1. Findings of the Study a) Employees are highly experienced and technically skilled. b) KBPS implements welfare schemes for employees. c) KBPS is a government undertaking firm but didnt get any support from their side. d) Planning department and production department is under control of production manager. Due to this there is lack of effective control. e) Absence of the quality control department affects the quality of paper used for the printing. f) No well-structured management to the organization. h) Products are limited. There are so many sources for producing more products but management didnt take any action against it. i) Management and government dont take any expansion policies. j) Due to non- co-operation of employees, delay in work is happening. k) Management is not providing proper training to the employees.

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6.2. SUGGESTIONS AND RECOMMENDATIONS 1. Import new generation printing machine for increasing the production. 2. Give adequate training about advanced technologies to the employees. 3. Apply new technologies for the production process as it helps the completion of work in time. 4. Motivate the employees for better performance. 5. Organization should optimally utilize the men, material and machines.

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CHAPTER-7 CONCLUSION

Conclusion of the Study: KBPS is a government undertaking firm. As it is a government firm price of the products are comparatively less. Due to this KBPS gets more preference in the customers mind. Society has capacity to take up and execute print orders of varied nature, volume and customers. Society has made a name in professionalism and in carrying out printed works in a timely manner.

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BIBLIOGRAPHY a. Company Website www.keralabooks.org b. Department manuals of the company c. Annual Reports & documents of the company d. Marketing Management, A South Asian Perspective, Authors: Philip Kotler, Kevin Lane Keller, Abraham Koshy, Mithileshwar Jha e. Human Resources Management, Author : Subba Rao78

f. www.eHow.com g. www.printing.org

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