travancore os

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CHAPTER 1

INTRODUCTION

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INTRODUCTION TO THE STUDY

An organizational study is the systematic study about how people – as

individuals and as groups –act within organizations. It involves the

study of the structure and functioning of its departments. Organizing or

organizing is one of the important functions of management. Almost all

the organizations are different but they have certain common features.

All are collection of people, linked together by formal and informal

relationships. They have hierarchical orders that are engaged in co

operative activities and they all have identical boundaries. !o the study

of people in organization is important for future managers. !tructure of

an organization is very important for its functioning and growth. It

provides the basic frame work for its progress and e"pansion. #or

future managers, it is imperative to study the organizational structure

and functioning of successful organizations so that they as future

managers may guide organizations towards success and profitable

functioning.

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SCOPE OF THE STUDY

The organization selected for purpose of the study was Travancore

!ugar * +hemicals td Thiruvalla. It is -erala overnment

undertaking company. The organization study was aimed at covering

the functional departments of the organization. It was to make aware

about the various operations in the organizations. The study helps in

understanding what all activities are done in an organization. The study

is mainly based on details collected from each department. /ach and

every activities of the company is studied carefully with the data

available. The data is available from various sources like past records

of the organization, direct interaction with concerned persons or by

personally visiting each department. The study helps in obtaining

practical e"perience of the operations in an organization.

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The organizational study covers the following aspects. They are to

study the0

1resent position of the company

Overall functioning of the company

1erformance of the company

2anagement * employee relationship

1rofit of the company as well as industry

TITLE OF THE STUDY

“An Organizational Stud at Tra!an"or# Sugar$ and

C%#&i"al$ Ltd' T%iru!alla(

As a part of our 23A curriculum, organizational

study is the area where we put our theoretical knowledge under

study with an organization to find out his overall working learn

about the origin, growth and development of the company,

understand and analyze about the 4uality policy of the

organizational and the role of each department in an organization

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dealing industrial products and also of the working culture of

e"ecutives and the workers. The organization study about T!+,

T$I567AA has provided me with information of various

aspects and has been of in valuable help and assistance to me.

O)*ECTI+ES OF THE STUDY

The study was aimed at understanding the organizational structure of a

typical organization indulged in making profit through production and

functions each of its components namely the functional departments,

the various policies, standards, practices, work culture followed there,

and so on. The ob%ective of study was to make a student aware about

what all operations are taking place in an organization and also to

understand directly how the organization face their problems without

affecting their function. The study was also aimed in getting and insight

into the daytoday operations of typical firm. The study helps to gain

practical knowledge.

The main ob%ective of the organizational study conducted at

&Travancore !ugars and +hemicals td( is as follows0

PRI,ARY O)*ECTI+ES

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The primary ob%ectives of organizational study were to get an

integrated understanding of the organization.

SECONDARY O)*ECTI+E

7arious secondary ob%ectives of organizational study are0

To have an overview of the structure of company.

To analyze the e"ternal and internal environment of the organization.

To understand the functions of each department.

To have an interaction with the company officials at various levels.

To conduct a !)OT analysis of the firm.

LI,ITATIONS

The study had its own limitations too. #ollowing are some of the

limitations of study.

/ven through the workers rendered their helping hand in assisting me

to collect data0 I had to be cautions in seeing that their work was not

affected for my sake. This limitation has affected my elaborate study.

Time constraint prevented the complete collection of data.

The inability to obtain confidential data's.

!ince permission was re4uired for entering the production department,

I was not able to enter there always. It was allowed only when guide

would be free.

/ven through employees cooperative because of their busy time

schedule they were not able to contribute more.

The absence of website made to contribute much time collecting data.

Absence of enough %ournals and publications about the industry. The study relies largely on secondary data and hence the limitation.

RESEARCH ,ETHODOLOGY OF THE STUDY

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RESEARCH

5esearch means search for knowledge. It aims at discovering the truth.

It is an essential and powerful tool for leading men towards progress.

It is an essential contribution to the e"isting stock of knowledge. It is

undertaken to discover answer to the 4uestions by applying scientific

method. It is the search for knowledge through ob%ective and

systematic methods of finding solutions to problems. There for

research is the systematic and in depth study or search of any

particular topic, sub%ect or area of investigation backed by collection,

computation and interpretation of relevant data.

TYPES OF RESEARCH

#or the sake of perceiving the concept of research, let us briefly

classify the research on various head.

5esearch may be broadly classified as0

• #undamental research and applied research

• 8escriptive research and analytical research

• 9uantitative and 4ualitative research

• +onceptual research and empirical research

Fundantal r#$#ar"% and a--li#d r#$#ar"%

#undamental research is mainly concerned with generalization with

the formulation of the theory. It is the research concerning with

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principles or laws or rules. It aims that to achieve the knowledge and

truth. :eed for such a research arias with the emergence of the new

problems and new situations in the !ociety. #undamental research

aims at the attainment, increase and verification of knowledge. It tries

to find out cause and effect relationship in social phenomena.

#undamental research in essentially a positive and not normative.

Applied research is concerned with the solutions of particular

problems. It aims at finding solution for the immediate problems

facing a society or an industrial organization. Applied research is

empirical and practical. It is concerned with applied aspects of the life.

5esearch to identify social, economic or political trends that may

affects a particular institution, or the marketing research, evaluation

research etc are the e"amples of applied research.

D#$"ri-ti!# r#$#ar"% and Analti"al r#$#ar"%

8escriptive research includes survey and fact finding en4uiries of

different kinds. The ma%or purpose of descriptive research is

description of the state of affairs as it e"ists at present. The main

characteristic of this research is that the researcher has no control over

the variables. $e can only report what has happened or what is

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happening. In analytical research one has to use facts or information

already available and analyze this to make a critical evaluation of the

material.

.uantitati!# r#$#ar"% and .ualitati!# r#$#ar"%

9uantitative research is applicable to phenomena that are measureable

so that they can be e"pressed in terms of 4uantity. 9uantitative

research is concerned with 4ualitative phenomenon. 5esearch

designed to find out how people feel or what that thinks about a

particular sub%ect is a 4ualitative research. 9uantitative research is

especially important in the behavioral sciences where the aim is to

discover underlying motives of human behavior.

Con"#-tual r#$#ar"% and E&-iri"al r#$#ar"%

+onceptual research is that related to some abstract ideas or theory. It

is generally used by the philosophers and thinkers to develop new

concepts or to reinterpret e"isting ones.

/mpirical research is relies on e"perience or observation alone. It is

data research coming up with conclusion capable of being verified by

the observation or e"periment. It can be called e"perimental research.

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In empirical research the researcher has to first set up a hypothesis or

guess

As to the probable results. $e then works outs to gets enough facts to

prove or disprove his hypothesis.

RESEARCH APPROACH

There are two basic approaches to research namely 4uantitative

approach and 4ualitative research.

.uantitati!# r#$#ar"%

In the research is based on measurable 4uantities. There for data in this

approach, are available in 4uantitative form. This approach can further

classified into inferential, e"perimental and simulation approach. The

inferential approach aims at forming a data base from which to infer

characteristics or relationship of population. In this approach a sample

is selected from the population and it is studied to determine the

characteristics of the sample. In this approach some variables are

manipulated to observe their effects on other variables.

.ualitati!# R#$#ar"%

9ualitative approach to research is concerned with sub%ective

assessment of attitudes opinions and behaviors. 5esearch in such

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situations is a function of researcher's insight and impressions. !uch

an approach, generates results either in non4uantitative from or in the

from which are not sub%ected to rigorous 4uantities analysis.

SOURCES OF DATA COLLECTION

The data collection for the present study obtained from primary and

secondary sources.

PRI,ARY DATA COLLECTION

1rimary data are those collected by the researcher himself for the first

time and thus are original in character. 1rimary data is collected by

1ersonally interviewing and interacting with the staff and other

employees of various departments. The data has been collected from

the direct interaction, discussions, and interviews with the employees

of the various departments in the organization. This helped in getting a

great deal of information functions * interdependence of various

departments in the organization

Sour"#$ o/ -ri&ar data

The primary sources are direct observation, 4uestionnaire methods and

interviews.

O0$#r!ation ,#t%od

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The observation method is the commonly used methods specifically in

studies relating to behavior sciences. In a way we all observe things

around us, but this sort of observation is most scientific observation.

Observation becomes a scientific tool and the method of data

collection for the researcher, when it servers a formulated research

purpose, is systematically planned and rewarded and it is sub%ected to

checks and control on validity and reliability.

The main advantage of this method is that sub%ective bias is

eliminated, if observation is done accurately. !econdly the information

obtained under this method relates what is currently happening. It is

not complicated by either the past behavior or future behavior or

attitudes. This method is particularly suitable in studies which deal

with sub%ect who are not capable of giving verbal reports of their

feeling for one or the other.

.u#$tionnair# ,#t%od

9uestionnaire is the self administrated process whereby the responded

himself to read the 4uestions and answering the entire 4uestion with

assistance of the investigator schedules are widely prepared their

4uestion.

P#r$onal Int#r!i# ,#t%od

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It re4uires a person known as the interviewer asking 4uestions

generally in a face to face contact to the other person or persons to

collecting information. This sort of interview may be in the form of

direct personal investigation the interviewer has to collect the

information personally from the source concerned. 3ut in certain cases

it may not be possible or worthwhile to contract directly the persons

concerned or on account of the

/"istence scope of en4uiry. The direct personal investigation

techni4ue may not be used.

SECONDARY DATA COLLECTION

The data has been collection from the direct interaction, discussions,

and interviews with the employees of the various departments in the

organization. This helped in getting a great deal of information

functions * interdependence of various departments in the

organization. !econdary data means that are already available i.e., they

refer to the data which have the researcher utilizes secondary data, and

then he has to look into the various sources from where he can obtain

them. !econdary data may either be published data usually published

data are available in0

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Technical and trade %ournals

3ook magazines * newspapers

5eports * 1ublication of various associations connected with business

and industry, bank, stock e"change etc.

5eports prepared by research scholars, universities, economist etc in

different field and public records and statistics, historical documents,

and other sources of published information.

,ANAGE,ENT

The term management has been used in different senses. !ometimes it

is used in the sense of managing the group of managing the personal in

an organization. At other times, management refers to the process of

planning, organizing, staffing, directing, coordination and controlling.

DEFINITION

According to eorge Terry,( management is a distant process

consisting of planning, organizing, activating and controlling the

performance to determine and accomplish the ob%ectives by the use of

human being and other resources(.

FUNCTIONS OF THE ,ANAGE,ENT

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The following are the various functions of the management;

1lanning

1lanning is the basic management function. 1lanning help in

determining the course of action to followed for achieving various

organizational ob%ectives. 1lanning is the process of looking ahead.

The primary of planning is to achieve better results.

Organizing

Organizing is the part of managing that involves establishing and

international structure of role for the people in an enterprise to fill.

Organization provides the necessary work with in which people

associate for the attainment of the business ob%ectives.

!taffing

The function involves manning the position created by the

organization process. It is concern with human resources of an

organization.

8irecting

8irecting is concern with carrying out the desired plans. It initiates the

organized and planned action and ensures effective performance by

subordinates towards the accomplishment of group activities.

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+ontrolling

It is the process of determining what is being accomplished, that is

evaluating the performance, if necessary, applying the corrective

measures so that the performance takes place according to plans.

ORGANI2ATION

An entrepreneur organizes various factors of production like land,

labor, capital, machinery, etc. for channelizing them in to productive

activities. The product finally reaches consumers through various

agencies. 3usiness activities are divided in to various functions and

are assigned to different individuals. 7arious individual efforts must

lead to the achievement of common business goals. Organization is the

structural frame work of duties and responsibilities re4uired of

personnel in performing various functions with a view to achieve

business goals through organization.

&Organization is process of identifying and grouping work to be

performed, defining and delegating responsibility and authority and

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establishing relationship for the purpose of enabling people to work

most effectively together in accomplishing ob%ectives(

CHARACTERISTICS OF ORGANISATION

8ivision of work

+oordination

+ommon ob%ectives

+ooperating relationships)elldefined authorityresponsibility relationships

O)*ECTI+ES OF ORGANI2ATION

The organization aims at the achievement of the following aims;

To %#l- &anag#nt; The organization help management to have a

control over various business functions. The work is divided properly

and control centers are established. The authority is delegated and

responsibilities are fi"ed. It helps management to have a coordinate

administration.

To in"r#a$# -rodu"tion; The duties are assigned according to the

principle of division of labor. The efficient system of organization

encourages every employee to make his best contribution in raising

output

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1ractical or commercial use. )hen the en4uiry is aimed at applying

the available knowledge for practical or commercial use, or for solving

a problem faced in practice, its termed as Applied 5esearch.

5esearch is a systematic en4uiry, whether scientific or otherwise.

!cientific research on the other hand, employing !cientific 2ethod has

well defined ob%ectives * methods, generates dependable data, reliable

* unambiguous findings * %ustifiable conclusions.

,ANAGE,ENT RESEARCH

5esearch in 2anagement is primarily applied research, in the sense

that it is directed towards aiding the manager in his decision making.

5esearch is carried out in the enterprise to solve mangers' immediate

problems or help them in their predictive efforts for determining the

future course of action or tackling an anticipated problem.

2anagement research comprises of;

5eporting 5esearch

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8escriptive 5esearch

/"planatory 5esearch

1redictive 5esearch

R#-orting R#$#ar"%

It consists of furnishing data, information or statistics. It may also

involve considerable skill in obtaining data from sources, abstracting

the information from it * evaluating the information thus obtained.

D#$"ri-ti!# R#$#ar"%In this researcher may try to describe a single event or characteristic

through distributions or may try to relate a few events or variables

through statistical analysis. The results cater to broader decisions

interests in the organization, relating to policy, administration etc.

E5-lanator R#$#ar"%

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This research e"plains the phenomenon. $ypothesis * Theories mark

this kind of research. !tatistical or Operations 5esearch modeling may

be used in analysis.

Pr#di"ti!# R#$#ar"%

It uses the type of modeling done in /"planatory 5esearch to forecast

the occurrence of an event or event under certain condition arising in

the future.

INDUSTRY PROFILE

i4uor production is one of the profitable businesses in today's word.

In India several private, public and government companies are

producing li4uor and making huge profits. 3ut this li4uor consumption

is in%urious to human body. It will spoil the life of young generations

of a country. The government cannot stop the production and

distribution of li4uor because it accelerates the revenue in the form of

ta". The turnover ta" of li4uor ?

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consumable item containing potable Alcohol and other chemicals. The

role the -!3+ is channelizing all kinds of li4uor @beer@wine from

manufacturers throughout the country for the consumers in -erala.

Any nonavailability of any item is the decision of the respective

manufacturer not to sell the items in -erala. As such -!3+ is not

restricting purchase of li4uor from any manufacturer who is prepared

to enter into a valid contract. -!3+ performs the role of procuring

li4uor and take ade4uate steps to ensure the 4uality standards of li4uor

and place them to the consumer through the various channels of

distribution enabling the consumer to take his preference. The li4uor

brought through -!3+ contains the holographic stickers pasted on the

bottle caps. The activity of -!3+ confines to contracts for

procurement and distribution. +onsumer has to know his health

condition while deciding to drink. Alcohol is not a freely marketable

item like any other consumable but can be sold only through license.

In this point of view there is massage that consumer has to check his

health while consuming li4uor.

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The %udicial commission of in4uiry appointed by the overnment to

streamline the li4uor trade in the state recommended.

To providing genuine li4uor at reasonable price, through overnment

agencies.

/"ploitation through increased ta"ation and e"ploitation by middleman

should be stopped and consumer protection must be the guiding policy.

#or achieving the above, nationalization of entire li4uor trade was

suggested. In line with the suggestion the overnment decided to set up

a 1ublic !ector +orporation to procure spirits and arrange blending,

botting, sealing and distribution of arrack and also for dealing with the

sale of I2#. An amendment was made in the Abkari Act in >BC to

give effect to the same.-!3+ was formed on DE.D.>BC to take over the

wholesale distribution of li4uor in phased manner and to eventually set

up distilleries and blending units to produce spirit, arrack and I2#.

!ince then the distribution of li4uor has been brought under the control

of the +orporation. 3y a decision in DFF the ma%ority of the retail

outlets also have been entrusted to the corporation. As at present the

whole activity of I2# from

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procurement to distribution and sale to the consumer is controlled by

the corporation e"cept for loose vending of li4uor by 3ars@ +lubs and a

small portion of the retails by +onsumer #ederation.

O)*ECTI+ES

To provide genuine 4uality li4uor to consumers at reasonable prices.

To make available supplies of li4uor commensurate to demand.

To evolve a proper system to prevent misuse, distribution of spurious

li4uor through unauthorized source and evasion of duties and ta"es by

middlemen

+onsumer protection and satisfaction.

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CHAPTER 6

CO,PANY PROFILE

CO,PANY PROFILE

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The Travancore !ugars and +hemicals ltd HE with an authorized share capital of 5s.?F,

FF.FFF with an ob%ective to ac4uire carryon and transact the trades and

business of planters, general merchants and importers, manufactures of

dealers in sugar, wine and spirits. :ow the company is concentrating

on Indian made fine li4uor F.

2anpower of company is DB employees at present and turnover

appro"imately for the years ended DFFHDFFB is lakhs. The operations

of the company are highly sophisticated over the year and the

company has developed very high reputation for the 4uality of its

products. The products are resilient, ine"pensive and hygienic. The

company's products are successfully accepted in all over -erala

because the company follows strict 4uality control measure. !election

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of proper location for a new plant is essential for the smooth

functioning of the company. Travancore sugars and chemicals td is

situated at the place called valan%avattom near Thiruvalla. 2a%or

reason for the selection of this location is availability of transportation

facilities, banking facilities and well skilled labor force etc.

FUNCTIONS OF )OARD OF DIRECTORS

+ontroller and Auditor eneral of India !hall are appointed as

statutory auditors. 3oard of directors approved the account and

submitted to statutory auditors. The statutory auditors as and when

complete the audit assignment and audit issue the auditor's report.

Afterward the accounts and reports submitted to controller and Auditor

eneral of India and finance !ecretary ovt. of -erala for getting

their commencement as and when receive the above commence. )e

shall present the same along with account to the shareholders for their

approval.

STRENGTH OF )OARD OF DIRECTORS

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3oard of directors includes seven members. Two directors nominated

by ovt. 5emaining five appointed by shareholders. One third

directors retiring by rotation but he is eligible for reappointment

4uorum of the board include two members.

THE ,ANAGE,ENT

)hile considering their responsibilities and nature of activities, the

organization is having all the three levels of management. They are,

T%# ,anag#r

The managers are entrusted with and responsibilities to their

respective departments. They are obtaining directors from the top level

and giving directions to the lower levels especially to supervisors.

/ach manager is in charge of one or two organizational activities. The

day to day administration and management under their field are

conducted by them. 3ut matters are of high importance and casual in

nature cannot be done without obtaining the advice from the top.

Su-#r!i$or$

The supervisors are responsible for the work of operating the

employees. It is by getting things done through the staff. They are

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receiving orders from the managers and implement through the staff.

As motivators and energy providers to the employees their role is very

important. They are

capable of maintaining a friendly and harmonious relation among the

employees.

Sta//

The managers may be the goal setters where as the staff members are

the real e"ecutors. The success of the organizational is mainly

depending upon the deficiency and effectiveness of the staff. They are

doing the work under the directions of the managers. The skill and

e"perience have an impact on their performance. The understanding

and understandable character of the staff is essential for the synergic

group dynamism. They are trustworthy and loyal to the organization.

ORGANI2ATIONAL PROFILE

3roadly, the activities in the organization


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8uring the yearDFF>DFF as per the sale report this is the most profit

making brand of company. These brand targets mainly on middle class

segment. 1rice of those products is around BF 5s for HFml bottle.

The main ingredients are chromic color, essence, /"tra >?J neutral

alcohol K food flavor.

C%##r$ 555 Ru&

This is special brand for low class segment, these brand also keep

good sales report, but low compared to others.

DENATURED AND ,UTILATED SPIRIT

8uring the year DFF>DFF the company sold DFH bulk liters of

2etylated !pirit valuated >EFH 5s. and DF? liters of 8enatured

!pirit costing 5s.>??F. The earnings from these were much high

compared to its previous years. In the year DFF>.DFF total earnings

from both was around B. lakhs.

RECTIFIED SPIRIT

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8uring the year DFF>DFF the company sold D? liters of rectified

spirit valued BD lakhs. It contains >CJ alcohol.

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CHAPTER ;

ORGANI2ATIONAL STRUCTURE OF THE

CO,PANY

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PRODUCTION DEPART,ENT

1roduction department is divided into two section that are li4uor

production section and packing and dispatching section. The li4uor

production section working in three shifts and packing and dispatching

section in one shift. The capacity of production is FF of HFml

bottles or EFFF of EHml bottle per day. i4uor production section

includes following steps.

RECEI+ING THE 4OR< ORDER

On receiving the work from the production planning department the

production in charge will mention the necessary raw materials re4uired

to the store department. As the production can start only after the

receiving the raw materials from the store is should be provided by

store as soon as production planning department inform them.

RECEI+ING THE RA4 ,ATERIALS

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On getting the order, the raw material will be received from the store

department. 3ecause of the proper functioning of this department of

production is working properly and on time.

PRODUCTION PROCESS

There are stages for production process;

1= )LENDING PROCESS

3lending machine is used blending the ingredients


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On this stage li4uor bottles are checked by screening machine, to make

sure that bottle doesn't contain any dust or another items. It is done as a

matter of safety measure and 4uality assurance.

>= CAP SEALING PROCESS

+ap sealing machine are used for putting caps on bottles. It is a process

through which bottles are capped and sealed.

?= LA)ELING PROCESS

On this stage different brand labels are pasted on different brands of

bottles abel printing machines are used for printing the brand labels.

@= PAC


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1roduction planning department is under the supervision of planning

engineer. The department is responsible for the entire production.

1lanning in constitution which various departments' proper

communication with the department is necessary for the success of the

production. This mainly because every activity in the plant in some

way or the other way related to this department. This department plans

monthly as well as daily the production planning and monitors the

same.

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At the end of each month store will provide the closing stock of

various type brands of li4uor and department will collect the estimated

re4uirement

#or the ne"t month from material department. 3y analyzing these

reports, planning engineer will prepare monthly production schedule

and set the copies to all other departments for making comment and

necessary arrangement to fulfill the production.

The material department will break this schedule in to daily targets.

/very day morning planning engineer will break daily production

order to the production floor superintendent and copy of the same will

be given to all other department concerned.

CO3ORDINATION

+oordination with various departments is also a tedious task

performed by the planning department. They ensure the smooth

production and in time delivery of the product. 1roper coordination

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with departments always helps to maintain a healthy relationship

between employees, which will help to produce better output.

,AINTENANCE ,ANAGE,ENT

2aintenance is an important function in a manufacturing organization

and keeping the machine in perfect operating condition is not only

necessary to avoid interruption but also to keep production cost low, to

keep the product 4uality high and maintain safe working conditions,

and to avoid late shipments to customers.

TYPES OF ,AINTENANCE FUNCTION IN T= S C LTD

2aintenance department is working under the production engineer.

6nder him there is maintenance superintendent and a maintenance

work shop. In maintenance work shop, there are four members of

technicians the work shop will undertake shop level repairs.

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R#-air or 0r#aB don &aint#nan"#

Traditionally manufacture has applied the principles specialization to

maintenance workers. 3ut in T.! *+ td workers are being given the

responsibility for repairing their own machines or assist their own

machines or assist repair specialist in market repair.

)hen break down occurs, the employee in the operation, himself

will try rectifying it. If he could not rectify it, he will inform the same

to the maintenance superintendent and he will inspect machine and if

re4uired, he may call the work shop technicians for repairing work.

These technicians with the help of the operators will make the repair

%ob. If more work force is re4uired the other workers help will be

utilized, the means, in this organization team maintenance concept is

using.

Pr#!#nti!# &aint#nan"#

1reventive maintenance is mainly re4uired to avoid machinery break

down. The organization believes in preventive maintenance. The

production in the firm is conducted only in three shifts. The firm

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employs two workers in third shift. They have to perform cleaning,

lubrication and minor repairing workers etc. 2a%or preventive

maintenance works are conducted in !unday and holidays.

,ATERIAL STORE DEPART,ENT

The T.! * + td has its own 2aterial department. The main function

of this department is;

1urchase raw materials at lowest price with high 4uality.

!tore these raw materials in their own warehouses.

!upply the necessary raw materials when re4uired in the production

department.

RA4 ,ATERIALS

The T. ! * + td. Are 8.2. )ater, /.:.A !pirit, and chemicals.

#ollowing are the raw materials used in T.! * + td.

8.2 )ater

/.:.A !pirits

+hemicals

/mpty glass bottles

ubricants@ oils

1acking materials

D= , 4at#r 7D#&inarali$#d 4at#r8

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8. 2 )ater is the most important raw materials and FJ of the total

raw material constitutes 8. 2 water. 8.2 )ater available locally, so

the company can reduce the cost for this purpose. Average monthly

re4uirement of 8.2 water is ?FFF proof liters.

E=N=A S-irit

/.:.A !prit is another important raw material and it is an e"pensive

raw material.EJ of the product is /.:.A sprits. #irm purchased /.:.A

!pirit from outside states likely -arnataka, 2aharashtra, Tamil :adu

and Andhra 1radesh.

C%#&i"al$

/ssence, 6rea, Least Turkey red Oil, 8enaturants and 2olasses are

different chemicals used for production, J of the product include

chemicals. These are purchased from the manufacture or their dealers.

)ottl#$

enerally HF ml bottle and EF ml bottle are used for filling the

li4uor. These bottles are purchased from -arnataka and Tamil :adu.

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specification. On getting this re4uisition materials department will start

the procurement.

HU,AN RESOURCE ,ANAGE,ENT

DEPART,ENT

$uman 5esource management is the planning organizing directing

controlling of procurement development, compensation, integration

and maintenance of human resource to the end that the individual

organizational and social ob%ectives are accomplished. It is a

management function that help the managers recruit, select, training

and development of members of an organization.

The main functions performed by the human resource 2anagement are

follows;

8ay to day functions

2anpower management

Industrial relations

/mployee welfare programmers

Time keeping

)age and salary administration

1ersonnel record maintenance

E,PLOYEE CO,POSITION

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There are CF workers, E staff and D e"ecutive staff and B security

staff


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workers, the vacancy will be filled from unskilled workers. 1romotion

will be on the basis of year of e"perience, e"pertise on the %ob,

character etc. 7acancies for e"ecutive and staff are advertised in

newspapers or company notice board.

SELECTION PROCEDURE

!election is done mainly through interview. #irstly there is preliminary

interview and then final interview with top management for selecting

the candidates sub%ect to the approval of 3oard of 8irectors and

overnment. This is applicable only in case of e"ecutive staff.

/mployees are selected from employment e"changes and this may be

only for a short period normally on contract basis.

TRAINING AND DE+ELOP,ENT PROGRA,,ED

Training and development programmed have given more importance in

the organization. 7arious training programmers like periodical safety

training, first aid training, computer training


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• Training 2ethods

o On the %ob training

o Induction training

o

Off the %ob training

This type of training takes place either in company class rooms or

in place which are owned or associated by the company. ecture and

conferences are the main training methods. There are mainly given for

the first and safety classes. !ome time the organization sends their

e"ecutives for training programmers conducted by outside agency.

4AGES AND SALARY AD,INISTRATION

8oing term agreement regulates the service condition salary and

wages of the staff and workers e"cluding supervisory and managerial

category. Their unions will represent the employees. At present E

approved unions such as T.!.+ /mployees union

parties. The agreement specifies the wages and other benefits payable

to the workers as well as the work load of workers. These agreements

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will be revised every E years. 3efore the e"piry of each agreement

management will start the negotiation with approved trade unions.

8uring the e"istence of the agreement no union can demand anything,

which will increase the financial obligations to the management and in

the same way management cannot increase the workload of workers..

The main ob%ective of this agreement is to ensure peaceful atmosphere

in the organization. As per the present agreement the employee will

get basic salary and 8.A. In addition to this company providers /!1.

to employees. The company will give salary monthly.BFJ of

employees were drawing

5s.DFF to EFF as salary and J of them were drawing 5s.CFFF to

FFF and J of the employee were drawing above 5s. FFF.

INCENTI+ES

+ompany follows a group incentives scheme on the basis of daily

production. If the production e"ceed additional incentive will be

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given. This increases the productivity and encourages people to

enhance the production.

$olidays

There are E public holidays in a year.

6niform

+ompany provides uniform to all production employees, but there no

uniform for the other staff other than security staffs.

/mployee 1rovident #und

/mployee and employer contribute DJ of the basic salary and 8.A

towards 1.#.

5etirement

At the age of ?F employees are retired from the service. 5etirement

benefits include providing schemes for 1.# and gratuity.

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• 5etirement 3enefits

° 8eferred benefit plan

1rovision for gratuity is being accounted for on the basis of actuarial

valuation made at the end of period on the assumption the scheme will

be ongoing.

° 8eferred contribution plans

+ontribution to provident fund is made on monthly accrual basis at the

applicable rates. 1rovision for Terminal eave /ncashment has been

calculated on the basis of actuarial valuation.

)onu$

3onus is decided each year during Onam season after negotiation with

the unions as per the bonus Act.

Fir$t Aid Fa"ilit

+ompany keeps first inside the premises but there is no medical staff to

handle the system. If any accident happens, in%ured will be taken to the

nearest hospital along with an employee. The person company will

meet all the e"penses there by.

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Di$"i-linar ,#"%ani$& in T=S= C Ltd

)henever supervision or management notices any in disciplinary

action, first they will advice the concerned employee to rectify it. If

the misbehaviors is repeating the management will give warning,

suspension.

FINANCE DEPART,ENT

#inance is the life blood of the business. 2anaging the finance is a

tedious task in any organization. The ambitions and plans of a

businessman would remain a merge dreams unless ade4uate money is

available to cover them into reality. #inancial management is

concerned with the planning and controlling of the firm's financial

resources. The financial management includes deciding upon the

investment, source of fund, dividend, financing fund allocation etc.

FINANCIAL ,ANAGE,ENT IN T=S C=Ltd=

!enior finance manager manages the finance department and he

reports to the 2. 8 directly, about the functions of the department.

)ASIC FUNCTION OF ACCOUNTS DEPART,ENT

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1lanning and allocating works to accounts staff.

!alary and wages administration

Incentives and overtime payment etc.

5etirement, gratuity and other personal matters.

7erifying cash books.

7erifying debtor's statement.

7erifying stock statement.

Attending legal and departmental statement.

7erifying bank reconciliation statement.

!crutinizing of periodicals to 1#, /!I sales Ta".

egal !ecurity.

2onthly closing accounts.

8ebit and credit note preparation.T8! deduction and returns.

5enewal of various licenses.

ACCOUNTING PROCEDURE

T. ! * + ltd follows the double entry system of accounting. 7arious

books of accounts department and also by other departments. In

recording the day to day transactions, cash receipt, rough cash books

are maintained manually. #inally the fair cash books are prepared on

the basis of these in a computerized method. 8uring the year, personal

ledger, administration ledger and agent's ledger are prepared. These

sales reports are also prepared. The %ournal entries are recorded in the

%ournal register. )orking capital recorded by the sale of goods. The

accounts of the company are fully utilized.

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Accounts of the company are based on companies Act >?. Accounts

work is based on the software package tally. 2@s 3astin and !wami do

the company's Accounting. $owever there is company's statutory

audit. $alf year and yearly audit is done. ong term loan are raised

from term loans.

SOURCE OF FINANCE OF T= S C=LTD

Advance paid by the dealers for booking the product consignment8eposits by the booking agents

+apital

3ank loans

!hareholders fi"ed deposit

SIGNIFICANT ACCOUNTING POLICIES

3asis of preparation of financial statement

The financial statement are prepared on an accrual basis of accounting

and accordance with the generally accepted accounting principles in

India, provisions of the company's Act, >?


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/"penses charged by the -erala !tate 3everages +orporation have

been accounted on receipt of the account statement from them.

U$# o/ E$ti&at#$

The preparation of the financial statements is conformity with the

accounting standards generally accepted in India, re4uires the

management to make estimates that affect the reported amount of

assets and liabilities, disclosure of contingent liabilities as at the date

of the financial statement and reported amounts of revenues and

e"penses for the year. Actual result could differ from these estimates.

+aluation In!#ntori#$

• #inished goods are valued at cost or net realizable value whichever is

lower. +ost includes direct cost and production overheads.

• !tores and !pares are valued at average cost.

• 5aw materials at average cost.

Fi5#d A$$#t$

#i"ed assets are stated at original cost of ac4uisition less accumulated

depreciation provided on written down value basis.

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D#-r#"iation

8epreciation on fi"ed assets is provided under )ritten down 7alue

2ethod at the rate specified in !chedule MI7 of the +ompanies Act,

>?. 8epreciation on addition is provided from the date on which the

asset is put to commercial use and on deletion up to the date of sale.

I&-airnt o/ A$$#t$

Impairment loss on #i"ed Assets has not been considered in the

preparation of financial statements.

E5"i$# Dut

+entral e"cise duty payable on production of /thylated and 8enatured

!pirit is accounted on the removal of goods from the factory and

provision is made for /"cise 8uty payable on closing stock of finished

goods in hand at the 3alanced !heet date.

The incidence of state /"cise 8uty on sales of I2# has been paid by

the -erala state 3everages +orporation and hence it is not reflected in

the accounts.

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R#!#nu# R#"ognition

5evenue from sale is recognized on dispatch of goods and is net of

trade discount and 7AT.

Ta5#$ on In"o

+urrent ta" determined as the amount of ta" payable in respect of

ta"able income for the period as per the provisions of the income Ta"

Act, >?

8eferred ta" is recognized, sub%ect to the consideration of prudence,

on timing differences, being difference between the ta"able incomes

and accounting income that originate in one period and are capable of

reversal in one or more subse4uent periods. 8eferred ta" assets are

recognized and carried forward only to the e"tent there is reasonable

certainty that sufficient future ta"able income will be available against

which such asset items can be realized.

Earning$ -#r $%ar#

3asic and diluted earnings per share are computed in accordance with

Accounting !tandards DFNearning per share'. 3asic earnings per share

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are computed by dividing the net profit after ta" by the total number of

e4uity share outstanding at the year end.

Pro!i$ion$

A provision is recognized when there is a present obligating as a result

of a past event, it is probable that an out flow of resources will be

re4uired to settle the obligation and in respect of which reliable

estimate can be made.

DISPATCHING DEPART,ENT

The planning department will prepare the daily dispatch schedule and

copy will be forward to dispatch section. On getting the dispatch

schedule the dispatch superintendent will contact the finishing section

and make sure that the production will be completed within the

mentioned time and they will also ensure that the inspection will

complied in the same time. They will also arrange the packaging.

The main aim of loading and dispatching section is to make task

simple and easy. The purpose of this is to make sure that the unloading

of items at dealers shop is also made. 1acking and dispatching process

will start only after getting delivery schedule from the planning

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department. 8ispatching of products is made on the basis of delivery

order.

!imple and the driver should be able to handle 4uite easy and without

time wastage and to avoid confusions when the lorry reaches the shop,

all items are to be unloaded are automatically seen on the top and in

se4uence.

LOGISTICS

Int#rnal ,o!#ntTrolley and vehicles are used to move semifinished goods from one

process station to another process station.

E5t#rnal ,o!#nt

In the case of road transport T!+ has made contract with various

transport companies like -.5.!


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OTHER DEPART,ENTS

,ATERIAL HANDLING DEPART,ENT

This department carries out the process of loading and unloading of

raw material. The department also conveys the raw materials to

various sections. oading and unloading of raw materials help the

movement of raw materials to and fro from the organization. In the

first case raw materials reaches organization for production process

and after the production it is unloaded from the organization to where

it is needed to go.

CI+IL ENGINEERING DEPART,ENT.

The function of this department includes civil engineering works,

maintenance function and control of various machines etc. small works

like painting of certain portions, replastering etc are done by this

department. This department mainly includes maintenance works. They

are very much concerned about completing the assigned task with

perfection.

LA)ORATORY DEPART,ENT

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The company has its own lab which is continuously striving to

maintain the 4uality of the products. These are three levels of testing

conducted in the laboratory. They are;

5aw material testing

1rocess testing

Intermediate testing

The sample should be given to the government laboratory for getting

the approval for further production.

SECURITY DEPART,ENT

This department is concerned with the security and control of the

company. There are B employees working in security department on

shift basis. They are employed on E shifts i.e. ?am Dpm, DpmFpm,

and Fpm

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CHAPTER 3 >

S4OT ANALYSIS

STRENGTH

Travancore !ugar * +hemicals td


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They have a high market share.

/mployees are the strength of any organization0 it is so for T.!

* + ltd also. !killed employees are the greatest strength of T.!

* +.td.

They have a very good training system.

Trade unions are a vital part of any organization. T.!. * +. td

e"perience good cooperation from the various trade unions

present there.

ood organizational climate also adds to the strength of T.!. *

+ td.

/fficient 4uality control systems also add to its strength.

/mployees are maintaining good relation with each other

2a"imum utilization of resources.

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As the finished products are directly given to -!3+, company

cannot en%oy the full benefit derived from the products.

6nnecessary influence on the part of government and political parties.

$igher cost of the products compared to the competitors product.

There is no proper mechanism to handle the grievances of the

customers.

Absence of computerization is also another weakness of the company.

6nnecessary formalities cause a delay in business decisions.

ack of raw materials cause a disruption in the production process.

Outdated salary package.

esser change of promotion for employees.

OPPORTUNITIES

The budget amount should be used wisely so as to get ma"imum

visibility for the product.

+ompany introduces promotional programmes.

The company should opt for psychographic segmentation of the

market. )here more stress should be given for the 4uality and

fitness of the product

It should e"pand the distribution network to that place where the

product is less available.

It should e"pand the distribution network to that place where the

product is less available.

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It should switch on to newer technologies in order to reduce its

cost price

/"porting and e"panding to north Indian markets can consider

once it increases production

THREATS !carcity of raw materials is the ma%or threat faced by the company.

Outdated techni4ues are still following.

od replacement facility of other brands.

$ike in price of raw materials.

Time to change government policies.

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CHAPTER ?

FINDINGS' SUGGESTION CONCLUSION

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FINDINGS The public sector company is now running successfully but has

accumulated loss of the previous year's which are now

written off with the current year's profit.

The main reason for this crisis is the e"cess manpower supply.

2ore labor and less work to be done is the problem faced by the

company. The company which is facing financial problem has to

pay these labours also. An e"cess burden to the carried on.

:othing can be done to these e"cess labours. If anything done

these will be the interference of political parties and the trade

unions.

The employees of T.!. * + td are sincere and hardworking in

putting this again at profitmaking company back on track.

/mployees are highly helpful and supportive most of the

employees are satisfied with the labor welfare measures.

Apart from the earning from organization, the company has

earnings from company 4uarters. /arlier it was provided only

for its employees only. 3ut now it is provided for others also.

:ow it is 1rovided on rent basis. The 4uarters are well furnished with all

facilities.

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this company and they are production, 4uality, control, production

planning, material, finance, human resource and personnel *

administrative department. T.!. * + ltd is trying to provide better

products0 to satisfy its consumer's needs. The firm is committed to

professional management and provides a decent living to its

employees and is really a leader in this part of the word. I believe that

in the era of globalization this firm will glorify our nation by

concurring the global market by satisfying the needs of the global

consumers. The organization study done at T.!. * + td gave me

practical e"posure to the theory that I have learned. I have undergone

the training sincerely and satisfactorily. The firm also was so co

operative to complete the training. I am concluding the study in a

satisfactory manner.

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)I)LIOGRAPHY

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)I)LIOGRAPHY

-othari +.5 5esearch 2ethodology, :ew 8elhi, 2craw $ill >BC

T.: +hhabra, $uman 5esource 2anagement, 8hanpat 5ai * +o

1vt td.

I.2 1andey, #inancial 2anagement, 7ikas 1ublishing $ouse 1vt td.

Annual report DFFBDFF>.

travancore os

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