Submitted in partial fulfillment of the requirements for the award of the degree of
Under the guidance of Dr. JAMES MANALEL Professor School of Management studies, CUSAT
2O11-2013 SCHOOL OF MANAGEMENT STUDIES COCHIN UNIVERSITY OF SCIENCE AND TECHNOLOGY COCHIN 22, KERALA
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CERTIFICATE
This is to certify that the report entitled Report of organisation study conducted at The Travancore Cochin
Chemicals Ltd is a bona fide record submitted by Aysha mol Reg. No.85211008, in partial fulfillment of the
requirements for the award of the Degree of Master of Business Administration (Full Time) during the academic years 2011-2013.
Dr.M.Bhasi DIRECTOR
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ACKNOWLEDGEMENT
I am indebted to many in the preparation of this report. Allow me to express my honest thanks to all of them for the valuable help and assistance they have given. First of all, I place my heart full thanks to God Almighty for his blessings showered upon me to complete this Organizational Study. I express my gratitude to our Director, Dr.M.Bhasi, SMS, CUSAT .I I would like to
express my sincere gratitude to my faculty guide Dr.James Manalel Professor, CUSAT, who supported me to complete this Organizational Study. I am indebted to gratitude to Human resource Manager and all other Senior Managers of the organization. Last but not the least I wish to extend my sincere gratitude to my parents and friends, for the support and co-operation they rendered to me to make this project perfect in its total. Finally, I convey my thanks to all who helped me directly or indirectly to carry out this project successfully.
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DECLARATION
I hereby declare that the Organization Study Report entitled an ORGANIZATION STUDY AT TCC LTD, is a record of bona-fide work done by me in TRAVANCORE COCHIN CHEMICALS LTD, during June 2012 under the supervision of Mr. Philip Mathew, HR Manager, TCC LTD, and Dr. James Manalel,SMS, CUSAT, and that no part of this report has formed the basis for award of any degree, diploma, associate ship, fellowship or any other similar title or recognition in any other institution.
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Contents
1 2 3 4 5 Introduction Industry Profile Company Profile Product Profile Organization Structure & Departmental Study Financial Analysis Swot Analysis Findings, Suggestions & Conclusions Bibliography Annexure 1 7 11 21 26
6 6 7
62 73 76
8 9
80 81
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ABBREVIATIONS:
MD - MANAGING DIRECTOR GMT GENERAL MANAGER TECHNICAL DF DIRECTOR FINANCE DGM (PJ) DEPUTY GENERAL MANAGER PROJECTS AGM (HR) ASSISTANT GENERAL MANAGER HUMAN RESOURCE AGM (MT) ASSISTANT GENERAL MANAGER MATERIALS AGM (M) - ASSISTANT GENERAL MANAGER MARKETTING AGM (R) - ASSISTANT GENERAL MANAGER RESEARCH AGM(S & PJ) - ASSISTANT GENERAL MANAGER SYSTEMS AND PROJECTS AGM (CP) - ASSISTANT GENERAL MANAGER CAPACITY PLANNING AGM (TS) - ASSISTANT GENERAL MANAGER TECHNICAL SERVICE AGM (E&I) - ASSISTANT GENERAL MANAGER ELECTRICAL & INSTRUMENTATION AGM (E) - ASSISTANT GENERAL MANAGER ENGINEERING AGM (OP) - ASSISTANT GENERAL MANAGER OPERATIONS M (HR & W) MANAGER HUMAN RESOURCE & WELFARE M (P) MANAGER PURCHASE M (S1) - MANAGER STORE 1 M (S2) MANAGER STORE 2 M (IC) MANAGER INVENTROY CONTROL SM SALES MANAGER
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DM (CS) DEPUTY MANAGER CATERING SERVICE DM (P) DEPUTY MANAGER PURCHASE DM (M) DEPUTY MANAGER MARKETING DM (SY) SEPUTY MANAGER SYSTEMS CE (PJ1) CHIEF ENGINEER PROJECT 1 CE (PJ2) CHIEF ENGINEER PROJECT 2 APO ASSISTANT PERSONAL OFFICER PRO PUBLIC RELATIONS OFFICER ASO ASSISTANT SALES OFFICER M (T & D) MANAGER TRAINING AND DEVELOPMENT CE (TS) CHIEF ENGINEER TECHNICAL SERVICE CE (FS) CHIEF ENGINEER FIRE AND SAFETY CE (E &MO) CHIEF ENGINEER ELECTRICAL AND MODERNIZATION CE (E&M) CHIEF ENGINEER ELECTRICAL AND MAINTENANCE CE (I) CHIEF ENGINEER INSTRUMENTATION CE (MP) CHIEF ENGINEER MANAGING PLANT M (PL1) MANGER PLANT 1 M (PL2) MANAGER PLANT 2 DM (E&M) DEPUTY MANAGER ELECTRICAL AND MAINTENANCE DM (E&MO) DEPUTY MANAGER ELECTRICAL AND MODERNIZATION DM (I) DEPUTY MANAGER INSTRUMENTATION
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DM (PJ1) DEPUTY MANAGER PROJECT 1 DM (PJ2) DEPUTY MANAGE PROJECT 2 DM (MP) DEPUTY MANAGER MANAGING PLANT DM (M) DEPUTY MANAGER MARKETING DM (U&S) DEPUTY MANAGER UTILITY AND SERVICE SE SENIOR ENGINEER PE PLANT ENGINEER ASS (PE) ASSISTANT PLANT ENGINEER CS&IA CO-SECRETARY AND INTERNAL AUDITOR EX.TR. EXECUTIVE TRAINEE
INTRODUCTION
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The organizational study is limited to acquire the knowledge regarding the function as well as the managerial aspects of THE TRAVANCORE COCHIN CHEMICALS LIMITED
,UDYOGAMANDEL,KERALA. Organizational study is the systematic study and careful application of knowledge about how the people as individuals and as groups act within an organization. An organizational study encompasses the study of organizations from multiple view point methods, and levels of analysis. Whenever people interact in an organization many factors come into play. like all modernist social sciences organizational studies seek to control predict and explain.
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The organizational study was done as partial fulfillment of the requirement for the award of Master of Business Administration(MBA). The chief objective of the study to understand the working of various department functions during a particular period and the concept of organization.
The study was limited to Travancore-Cochin Chemicals Limited.,Udyogamandal. The study was to get a general awareness of the function of the various departments and management of TCC Ltd. The period available for the study was limited .There are many departments like marketing, materials, finance, operations and technical services Etc. the attaining of information about different departments helped to analyze the strengths , weakness ,opportunities and threats of the company.
The objective of the organization study includes the following: To understand the organizational structure and the working of the various functional departments. To have an exposure to the work environment. To understand the overall performance of the company. To make an analysis of the organizations performance. To study the relevance of TCC on chemical industry field in Kerala.
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The main significance of the study are; The study attempt to understand the performance of different departments. To understand the quality assurance of the organization. To understand financial position of the organization. Getting an organizational exposure. To understand the market position of the organization.
1.4 METHODOLOGY
It is an overall operation framework, which help to collect the required data. The methodology used in the study involves the collection data through primary and secondary means within the given time period. PRIMARY DATA
It refers to the first data collected from primary sources .The primary sources of data collection were direct personal interview with managers of concerned department,official staff and workers of the company. SECONDAY DATA
Data which are not originally collected but rather obtained from published or unpublished sources includes: 1. Company records 2. Annual records
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3. Official sites of the company 4. Internet The collected primary data and secondary data were used in the preparation of this organizational report. 1.5 PRINCIPLES OF ORGANIZATION
Principles means the theoretical basis on which something is built up.The theoretical basis is formulated from fundamental truth. Some of the important principles to be followed for developing efficient organization are: Principles of unity of objective Principles of specification Principles of coordination Principles of unity of command Principles of span of control Principles of exception Principles of flexibility Principles of simplicity Principles of communication Principles of efficiency
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The organizations are born out of a necessity for clear well defined system or structure, which people require for execution of their responsibilities. It helps them to relate to each other,coordinate their activities and achieve the organizational goals . it minimizes confusion natures suitable and maximizes effectiveness. For proper function of the organization certain requisites are to be fulfilled .They are as follows. The objectives are to be clear, candid and well defined and the organization must have a capacity to achieve it. All activities therein must be properly coordinated. Organization must be complete, it should include all essential activities. The communication system within the organization must be effective. The span of controls at all levels must be reasonable. There should be a provision for future expansion. All activities and functions should follow strict procedures. There should be proper diversion of authority and responsibility.
1.7 LIMITATIONS OF STUDY The limitations of the study are the following: As a vast coverage is needed for getting the desired results time is a limiting offer.
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INDUSTRY PROFILE
INTERNATIONAL SCENARIO
The world chlor-alkali industry is growing faster as any other industries in the world. The chemical Industry plays a vital role in the production of many manufactured goods. The industry provides a tremendous variety of materials to other manufactures. Major products of the industry includes detergent drugs, fertilizers, food preservatives, flavoring and paper, fine chemicals .etc. Most major chemicals are basic chemicals used in many countries. It is used to produce fertilizers and chemicals. The basic chemicals include chlorine and sodium hypochlorite. The production has become increasingly concentrated in multinational corporations which have plants and offices in a number of countries. To achieve low cost of production, the companies
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locate their factories in developing countries, where raw materials are readily available. Many basic chemicals are produced in developing countries by factories of multinational firm. But chemicals requiring advanced production methods are made in industrialized countries. In International scene, increased production of papers, aluminum, soap, and detergent naturally leads to increased requirements of caustic soda. In the world scenario, the Green Peace movement was seeking the phase out of chlorine usage, especially the CFC compounds. This has resulted in closing down in Europe and restricted the production in North American Plants. With the drops in international production, the international price of caustic soda was steadily rising. The caustic soda which was sold for a more 50 $ per tones has gone up to 300 $ per tones. The International market operates in the context of demand and supply prevailing from time to time, situation of surplus and shortage are cyclical as a result of which International price is common and drop in import duty often followed by steep drop in price of the chemical. Though the demand for chlorine is growing fast the demand of caustic soda is not so promising. Hence the units in the gulf and western countries are selling caustic soda at a cheaper price.
MAJOR COUNTRIES PRODUCING CAUSTIC SODA The countries producing caustic soda are USA RUSSIA FRANCE GERMANY INDIA CANADA CHINA JAPAN
INDIAN SCENARIO
In India, caustic soda is produced by electrolysis process. The manufacture of caustic soda started during 1940 in the country. The growth was rather slow during 1960s and after the growth picked up substantially. Today there are about 38 chlor- alkali units in India.
Kothari Petro Chemicals Ltd, Chennai Sree Royal Seema Alkalies & Allied Chemicals, Andra Predesh BILT, Karnataka DCW Ltd, Mettur TCC Ltd, Kerala
STATE SCENARIO
Caustic Soda is one of the basic inorganic chemicals manufactured from common salt Caustic soda, Hydro chlorite acid and Sodium hypochlorite is the products. In the Kerala state, TCC is the only Chlor-alkali Industrial Unit and has a production capacity of 175 MT Caustic soda per day. There are many small scale Industries in the state which consumes caustic soda for the production of soap, detergent, etc. Because of the high transportation cost, it is not possible to export caustic soda in large volume from the state. TCC is the only one chlor alksali unit in the state and it is employing environment friendly and energy efficient technology. The chlorine industry is working properly. Chlorine is a basic material required for water purification and without chlorine the water workers will not be able to supply drinking to the public.
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COMPANY PROFILE
CORPORATE HISTORY
INTRODUCTION
The Travancore Cochin Chemicals Ltd, popularly known as TCC Ltd is a state public sector undertaking owned by the government of Kerala.TCC is situated at Udyogamandal in Cochin Industial belt. Incorporated in 1951, TCC is one of the oldest chlor-Alkali unites in the country.TCC is a large chemical industry engaged in the manufacture and marketing of caustic soda, chlorine, Hypochlorite acid, soda bleach and related chemicals. TCC is an ISO 9001-2000 certified company. The company supports a large number of Industrial units of strategic importance by supplying basic chemicals.
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PRESENT SITUATION
TCC is the only one chlor-alkali unit in Kerala. In India, there are approximately 40 Chlor-Alkali units as competitors. TCC owns 109 acres of land and around 786 employees are working in three shift plants are functioning by utilizing full capacity. The company has helped in attracting new industries to Kerala in past like Indian Rare Earth Ltd, Hindustan Insecticides Ltd, Hindustan News print Ltd , Kerala minerals & Metals Ltd etc.though assurancing the availability of raw materials.
INDUSTRIAL INFRASTRUCTURE
The company is conveniently situated at Udyogamandal Industrial area in Kerala state on the river bank of Periyar. Out of the 109 acres of land which the company owns include 20 acres leased out of M/s BSES Kerala power Ltd on which company receives lease rent. In addition to the plant and building it has a full-fledged housing colony for accommodation of employees. The company is having a water treatment plant which draw from Periyar river with a capacity of 5 mgel.
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BOARD OF DIRECTORS
The efficient director board at Travancore-Cochin Chemicals Limited ensures the smooth running of the company affairs. In their able hands, the operations at TCC go well-oiled
DIRECTOR
DIRECTOR
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COMPANY SECRETARY Smt Susan Abraham BANKERS State Bank of Travancore AUDITORS M/s Menon & ayyar REGISTERED OFFICE & WORKS Udyogamandal Cochin Kerala State
Mission
TCC is committed to supply quality chemicals at competitive prices to customers. Customer satisfaction, concern for environment and safety are their priorities.
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Vision
Utmost level of conservation of all resources including energy Cost effectiveness in all operations. Regular up gradation of technologies used in processing Compliance with laws and statutory regulation.
Share holder Govt. of Kerala KSIDC FACT Sanmar properties &Investments Ltd. Total
Fig 3.2
100
30009995
30.01 crores
CORPORATE OBJECTIVES
The corporate objectives of TCC Ltd are the following To produce & Market Caustic Soda and allied chemicals economically and in an environmentally sound manner. To maintain optimum use level of efficiency and productivity and to secure optimum returns on investment. To maximize profits from projects taken up. To continuously improve the plant and operational safety and to work within the emission limits set up by pollution control board.
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To continuously up grade the quality of human resources of the company and to ensure organizational development. To ensure corporate growth by expansion and diversification. To care for the community around.
ENERGY POLICY
TCC Ltd is always committed to conservation of energy by all possible means. To accomplish our mission we strive for: Technological up-gradation reduce specific energy consumption Conducting energy conservation studies including energy audit & adopting the apt measures for conserving energy Contacting other organizations & enriching our experience on energy conservation Using renewable energy sources to the external possible Disseminating knowledge &information on energy conservation to our employees Low energy fuels also to be tried depending up on feasibility.
measure are incorporated in the operating and maintenance procedure as well as in any process technology changes in the plant / infrastructure. Consideration of health & safety will be given proper weightage in selection and deployment of the personnel. The company will ensure that health and safety aspects are given due consideration in decision regarding purchase of plant equipments machinery and materials. Every employee of the company shall perform his / her job adopting safety and proper work methods and using appropriate safety equipments understanding that their career advancement is linked with safe performance. Contractors, sub-contract workers, transporters and visitors entering the factory shall be required to observe health & safety practices of the company in all their activities All contract jobs will be carried only through the laid down procedures with appropriate supervision The company will carry out safety audits, risk assessment studies, emergency mock drills, periodic assessment of health of its employee as well as status of environment & implement remedial measures. Employee, consumer & public awareness where necessary will be imparted with the required education, training & returning on safety & health aspects related to the process and products. The company will include a resume of its health & safety performance in its annual reports. Since the success of the company depends on the health & safety of its imperative that work place hazards be identified appropriately evaluated and effectively controlled to achieve this goal whole hearted co-operation of its is solicited for this.
1958
A chlorine liquefaction plant was added mainly to meet Demand from the newly set up plant of Hindustan
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1960 1963
Insecticides Ltd, Udyogamandal Production of caustic soda was raised to 30 tones per day The caustic soda capacity was raised to new level of 40 tones Per day. The company established a new unit for the Manufacture of sodium hydrosulphate with rated capacity of 30 per day raised to 60 tones per day.
1967 1970
The third stage of expansion capacity was raised to 60 TPD A 60 TPD CCF plant was set up. The sets its own water Treatment plant.
1975
Fourth stage expansion a new 100 TPD caustic soda plant employing Mercury cell Technology which was installed from Germany.TCC started its own water treatment plant.
1975-80 1983
Exported commercial Hydrochloric acid to gulf countries Installed indigenously developed plant to recover mercury from Effluents.
Installed Hydropgen firing system Replacement of Graphite anodes by titanium anodes Brine dechlorination unit commissioned A research and development section was set up The company commissioned 100 TPD caustic soda plant in technical collaboration with ASAHI GLASS company of Japan using
Membrane cell technology. The advantage of membrane cell technology was that the energy consumption got reduced 30% and avoided the use of Mercury. 2000 2002-03 The company set up a brine purification plant The company was increased its production capacity of membrane cell Plant 125TPD. 2004-05 25 TPD caustic soda plant employing membrane cell
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technologies from M/s Uhde Germany was commissioned 2005-06 25 TPD caustic soda plant employing membrane cell technology from M/s UHDE , Germany was commissioned. 2006-07 Production capacity of caustic soda was again raised to 175 another 25 TPD unit from Ms Udhe Germany. TPD by adding
1981 Best performance award for safety in the state from directorate of Factories and boilers, Government of Kerala. 1988-89 Best pollution control award under group Heavy Inorganic Industries in Kerala from Kerala state pollution control board 1989 Award for best performance in safety in india under :chemical Industries group from national safety council.
1989-90 Prize for productivity from Kerala state productivity council 1993 Best performance award for energy conservation in the state of Kerala under group Chemical and Fertilizers above 3000 KVA from government of Kerala 1994-95 Best performance awards for the productivity in the state of Kerala under group Large Industries from Kerala state council
Productivity
1998 Best performance award for energy conservation in the state of Kerala under group Major Industries from energy management centre, Government of Kerala 1998 Performance award for energy conservation under group
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Chlora-Al kali Sector Ministry of power, Government of India 2003 Kerala state energy conservation award in the category of large Scale Industries. 2005 National Energy Conservation Award Chlor Alkali Sector. 2006 Kerala State Energy Conservation Award. 2008 Pollution ControlAward from Kerala State Pollution Board
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PRODUCT PROFILE
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MAJOR PRODUCTS AND PRODUCTION CAPACITY PRODUCTS PRODUCTION CAPACITY (TONES PER ANNUM) Caustic Soda Lye Liquid Chlorine Commercial Hydrochloric acid Caustic Soda Flakes Sodium Hypochlorite Fig: 4.1
TCCs main raw materials are common salt (sodium chloride), electricity and water. The company requires about 2650 units of electricity and 1.72 tones of raw salt per tones of caustic soda produced common salt is mainly produced from Kacch in Gujarath and Tamilnadu.
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Uses
Industries served
A chemical industry for dissolving out Rayon & Rayon pulp extraneous matter from wood for preparing pure cellulose and for the preparation of alkali cellulose and for the production of viscose solution. A chemical for preparing pure cellulose by Paper, News print & pulp dissolving out extraneous matter As saponification Agent In bleaching, dyeing and mercerizing A cleaning Agent For cleaning petroleum fractions Reagent for Production of various Organic chemicals Fig: 4.2 PRODUCT: 2 Chlorine (C12)
Chlorine, a co-product obtained in the manufacture of caustic soda is an equally important basic chemical. It is a renowned water purifying chemical. It is a greenish yellow gas. Chlorine is sold after liquefying. Chlorine has got a pungent smell and liquid chlorine is amber in colour.
Soap Textiles Heavy chemicals Petroleum refining Minerals and rare earth elements
Uses Producing insecticides (DDT,BHetc) and pesticides Purifying drinking water and sterilizing sewage effluents
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As a bleaching Agent For manufacturing PVC and allied copolymers For producing a variety or organic chlorine compounds For upgrading titanium content Fig: 4.3
Sugar, Paper & pulp, Textiles Plastics Fine chemicals Mineral Processing
Uses For the production of Ammonium chloride and in manufacture of phosperic acid A cleaning agent in galvanizing For hydrolyzing starch in to sugar In monazite processing for the separation of rare earths as chlorides from thorium Fig: 4.4 PRODUCT: 4 Sodium Hypochlorite
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Sodium Hypochlorite, Commonly known as soda bleach, finds its application in bleaching, as a disinfectant and also in the extraction of rare earth elements. It is a pale yellowish colour liquid. Soda bleach is the only branded product of TCC. TCC is producing soda bleach under the brand name Ekoclean
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ORGANIZATIONAL STRUCTURE
The organizational structure involves arrangement of activities and assignment of personnel to these to achieve the organizational goals. It is a way by which various parts of an organization are tied together in a co-ordinate manner and it illustrates the various relationship among various levels of the hierarchy within the organization as well as horizontal relationship among various aspects of the organizational operations. A Well planned organizational structure results in better use of resources. An organizational structure is mostly hierarchical concepts of subordinates are a number of clusted entities. The structure of an organization is usually set up in a one a variety of styles, dependent on their objectives and ambience organizational structure allows the expressed allocation of responsibilities for different functions and process to different entities.
The organizational structure of TCC is shown in figure. The present organizational structure of the company has proven to be effective in conducting operations at its optimum level. The staff structure encourages team work and good internal relationship. Unity of command is maintained through out the organization.
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ORGANIZATION CHART
MD
GMT
DGM(PJ) DFC
CS & IA
AGM (OP)
AGM (E)
AGM (T)
AGM (M)
AGM (HR)
AGM (MT)
AGM (PJ)
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MD
DGM (HR)
M(HR & W)
DM(CS) APO
M(T & D)
PRO
CSO
MO
Fig: 5.1
Human resource is considered as the most vital asset of an organization. TCC has a well defined employee power which helps the organization to perform well in the markets. Human resource department is headed by manager (HRD). He is responsible only for training and development M (HRD) id reporting to Assistant General Manager (HR).
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Human resource is considered as the most vital asset of an organization. TCC has a well defined employee power which helps the organization to perform well in the markets. Human resource department is headed by manager (HRD). He is responsible only for training and development M (HRD) id reporting to Assistant General Manager (HR).
The functions of HR/Training department are Identifying training needs Arrangement requirement training Maintaining the training record
SCOPE
1. The procedure covers all aspects of training. Arrange suitable training for employees for updating skills based on the identified training needs. 2. Training advisory commitment is responsible for suggesting training requirements of the various department and disciplines 3. Formulating training programs on yearly basics. 4. The committee propose a training calendar every year 5. Training needs for the years are identified and recorded by the department the head.
GENERAL TRAINING
In order to provide this type of training, one has to determine what is the trainees growth potential, up to what level to be done and requires evaluation of his present performance.
Need based training will be done on the basis of determining the level of knowledge and skill one requires for a job. Next is to find out how many employees have to be given this training. On the basis of these needs training is given to the employees.
CUSTOMER TRAINING
Customers are given training on handling of chlorine and other products in various situations.
INDUCTION TRAINING
It is the training provided to the newly recruited employees to familiarize them with the activities, rules and policies of the organization. It is also done to introduce the new employees to the other employees of the organization.
TECHNOLOGY TRAINING
Company provides advanced training for workers to cope up with the technological changes. Feedback is obtained from employees and effectiveness of the training program is ascertained after a period of 2-3 months.
INTERNAL TRAINING
Every month three day training program is held for workers. The workers education center, under the central labor industry conducts it. These programs are conducted on a contract basis and are recorded annually 20-25 workers from various sections are selected every month and 4-5 officers from WEC conduct the training programs. The topics covered include personality, management development; inter personnel relations, impact of globalization effective communicationetc. Other in house programs are conducted by agencies like Kerala state productivity council. In such programs company can decide upon faculties and topics for training. During the installation of membrane cell plant, officers were sent to Japan for training. So on the job training is prevalent in all sections of the company.
training need. On an average TCC spends more than 11 lakh rupees on the training needs every year.
OBSERBVATION OF HRD
HRD department organizes training programs using internal faculty or engineering faculties from reputed organization. TCC should see to it that training needs of the works, supervisors and executives are recognized and separate training program should be developed for each groups.
PERSONNEL DEPARTMENT Managers Others Total Table: 5.1.1 FUNCTIONS OF PERSONAL DEPARTMENT
The functions of personnel department are the following 1. Recruitment: through professional and executive employment exchange and P.S.C 2. Manpower planning: ascertaining the number of vacancies 3. Welfare functions: including statutory and non statutory welfare measures. 4. Grievance handling: as per the provisions of Industrial Disputes Act & factories act 5. Maintaining company discipline: as per standing order act 6. Industry relations 7. Public relations 8. Job descriptions (Techniques) 9. Job specifications (Techniques) 10. Job analysis (Techniques) 11. Performance appraisal 12. Training 13. Staffing
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14. Formulates and implements personnel 15. Wage and salary administration 16. Filing various returns relating to employees
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OFFICE TIMING
The office timing and administration department of the company work from 9.00AM to 4.00PM, expect on Sundays, 1st&3rd Saturdays and a number of other national and festival holidays. The production operation is carried out continuously in three shifts for employees.
OVERTIME ALLOWANCE
Wage covered under the Factories Act will be given as overtime wages. According to the provision contained in the Factories Act and the ruler framed thereafter. The overtime wages for workers will be two times of effective wages.
SHIFT ALLOWANCE
There are namely 3 shifts. Shift allowances to workers, who are working in shift are
GRIEVANCE REDRESSAL
Grievance Redressal committee is statutory. It is to be legally maintained. Trade unions are satisfied with the present condition. Hence in TCC Grievance Redressal Committee is not there,
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as here exist a good employee-employer relationship. Grievance Redressal committee consists of an experienced and efficient team of personnel department. And also the moral level of employee is very good.
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MD
CS & IA
DFC
SAO(GA & F)
DM(C)
SAO(C)
DM (MA)
ASO
DM(PF) (3)
SAO(PF)
PFS
ASO
Fig: 5.2.1
Deputy finance controller is having the overall responsibility of the finance department, which include co-ordination of audit, Board meeting and company taxation. Deputy finance controller co-ordinates the function of bill passing establishment section, debt collection, cash and bank.
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The internal audit system is carried out in the company by the initial audit section headed by the chartered accountant. Regular reports are given to the department heads of taking corrective actions where necessary, which is submitted to the MD. The company has an effective budgetary control system. The budgets are reviewed, deviations analyzed and necessary corrective actions is initiated. Important variations relating to raw materials, furnance oil, electricity etc are analyzed and furnished to various levels of management for corrective actions. The key budget factor is the power availability which is estimated and a rough picture of anticipated power shortage is drawn up. The main function of bill section is passing of bills, which is done after checking quotation, order and production receives/ work achieved. Bills are passed after seeing that materials received is in conformity with the purchase order. Finance is considered as the valid part of any business organization. It is the function which controls the procurement of allocation of funds in the business operations. In TCC a well developed and effective functional department is functioning. Deputy finance is the head of the finance department.
SOURCES OF FUNDS
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To produce and sell there must be adequate finance for raw-material and other supplies and also to meet day to day expenditure of the enterprise. The company raises funds by means of equity funds and borrowed funds. The share capital include authorized, issued, subscribed and paid up capital. Loans are obtained as term loans from SBI, IOB, UBI, IDBI and material loans from Government of Kerala
2008-2009 2009-2010
12063 10748
Table: 5.2.2
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d. All fixed assets are carried at cost less depreciation. Interest on loan during the period is added to the cost of fixed assets. e. Depreciation For plant and machinery depreciation is calculated on a straight line basis specified in schedule XIV to the companys Act, except for the membrane whose life is only 4 years. For buildings, service equipments, furniture, fixture, office equipments, electrical installation etc depreciation is calculated on a written down value basis at the rates specified in the Act. f. In foreign exchange transaction all assets and liabilities are translated at the relevant exchange rates at the end of the financial year. g. Sales of goods are recognized on accrual basis.
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DGM(OP)
M (PL1) DM (PR1)
M (PL2)
SE
SE
PE
PE
Ex. Tr.
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Operations department carries out the manufacturing of all the products. The company carries out continuous productions and hence this department plays a very crucial role in TCC. This department is headed by Assistant General Manager Operations who is reporting to General Manager Technical. DUTIES & RESPONSIBILITIES OF ASSISTANT GENETAL MANAGER OPERATIONS:
Head of the operations department He fixes the monthly target of the product based on the market requirement He is responsible for modification in the production process and responsible for the affluent discharge He is the designated emergency controller during any hazardous incident of leakage & emission of toxic gasses/ fluid etc.
PLANTS IN TCC
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There are three plants involved in the electrolytic production process of the company.
PRODUCTION Caustic Soda Lye Liquid Chlorine Commercial HCL Soda Bleach Caustic Flakes Table: 5.3.1 Soda
2. UHDE 1 Plant The plant is designed by UHDE, Germany. The plant was
commissioned in 2005. The plant has a production capacity of 25 TPD of Caustic Soda. It consists of one electrolyze with 54 elements. 3. UHDE 2 Plant This plant is also designed by UHDE, Germany. The plant was commissioned in 2006. The plant has a production capacity of 25 TPD of Caustic Soda. It consists of one electrolyze with 54 elements.
PROCESS FOLLOWED
The process followed in production by TCC is electrolysis of Brine.
PROCESS DESCRIPTION
Brine (solution of raw salt & water) saturation & purification process are common for AGC, UHDE 1 and UHDE 2 plants.
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then reused. The purity of the feed Brine in the membrane cell process is very important as it affected the performance and life of the membrane. 3. Electrolysis The secondary purified Brine is passed through a heat exchange, fed to Brine head tank and is admitted to the anode compartments of the electrolysis. Dematerialized water is also admitted to the cathode compartment of the electrolysis. Direct current (DC) supply is connected to the anode and cathode. During electrolysis Caustic Soda Lye is produced at cathode which is 32% concentration. Hydrogen gas is also formed at the cathode chamber. Chlorine is formed in the anode where the depleted Brine solution comes out. Caustic Soda is pumped into storage tank and Hydrogen and Chlorine gas goes to their respective treatment section. 4. Chlorine treatment & liquefaction Chlorine treatment and liquefaction involves cooling, washing filtration, drying, compression liquefaction, storage and liquid Chlorine filling in the cylinders, the Chlorine from anode chamber of the electrolysis is first cooled at 30 degree celcious with the cooling tower water. Final traces of salt is removed by using a wet Chlorine filter, it is then again cooked using chilled water. After this the Chlorine gas is divided into two streams for the HCL synthesis and for liquefying. The Chlorine for liquefaction is dried using 98% Hydrochloric acid in drying tower. The dried Chlorine is compressed using acid ring compressors. The compressed Chlorine gas turns into liquid Chlorine storage tanks. Chlorine for the HCL synthesis unit is fed by using chlorine blower. 5. H2 treatment and HCL analysis Hydrogen gas from the electrolyser is washed with water in washing chamber, cooled using tower water and admitted directly to Hydrogen blower, after separating the condensate. The Hydrogen gas is used for the HCL synthesis and also as a fuel in the CCF plant. Hydrogen for HCL synthesis is fed to the oven using Hydrogen blowers. Here it is burned in the presence of Chlorine. The resulting HCL gas is absorbed in the water flowing down the oven to produce 31% commercial HCL gas. 6. Continuous Caustic fusion It is done in CCF (continuous caustic fusion) plant. CCF plant is mainly for concentrating 32% NaOH lye to 50% NaOH lye and then to 98%-99% NaOH melts which is converted as flakes. The 32% NaOH lye is stored in the
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main storage tank, as a part of which goes for sale. The remaining part of 32% lye is passed through three evaporators Ev1, Ev2, Ev3. In the first evaporator the Caustic Soda lye is heated using vapours generated in Ev2 and Ev3.the steam generated in Ev1 is then drawn by a vaccum pump through a condenser and thus Ev1 is working under vaccum and at 70-80 degree celcious. The outlet from Ev1 is 40% Caustic Soda lye which is passed through Ev2 where it is evaporated to 50% Caustic Soda lye using 9 kg/-cm2 steam from boiler. A portion of 50% Caustic Soda lye cooled and sold. The remaining portion of 50% Caustic Soda lye is pumped to Ev3 where it is heated using heat transfer salt which is a mixture of 53% Potassium Nitrate, 40% Sodium Nitrate and 7% Sodium Nitrate. In Ev3 the 50% Caustic Soda lye is concentrated to 98%-99% Caustic Soda melt which is converted as Caustic Soda flakes in a flakers drum. 7. Soda Bleach preparation Excess of waste Chlorine cant be disposed as a waste gas. But it has to be absorbed in dilute Caustic Soda lye to produce Soda bleach. Thus the Soda bleach plant serves also as a pollution control system. A part of 32% Caustic Soda lye, chlorine is used for the preparation of Soda bleach. The excess Chlorine at the time of plant shutdown or startup and also from cylinder filling station goes for Soda bleach preparation, 32% Caustic soda lye is diluted using demineralized water. The solution is passed through two absorbing towers, where it reacts with Chlorine gas so as to produce Soda bleach.
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MD
DM (M1)
DM (M2)
NATURE OF MARKET
ASO
TCC is the only Chlor-Alkali unit in Kerala and the only one under public sector has more or less monopoly in Kerala market. However nationwide there are about 38 competitors. TCC regards customer satisfaction as the main factor, which is given prime importance. The company maintains close contact with the customers and collects their views about the product.
2. Office Section
Preparation of sales budget, sales plan and monthly allotment, correspondence with parties, issues of sales offers and follow up of routine and regular matter Preparation of sales quotation and letter and amendments, maintenance of sales offers, register book and other necessary information
Activities of Department
Whenever a company places advertisements requiring chemicals like caustic soda, lye or flakes and chlorine products with the specification for the chemicals, payment terms, quantity required, validity period and if TCC is ready to supply it will send tenders to the required company. This is also known as tender document where mainly two facts are specified
1. Technical Bid
This means specification about the products, quality aspect of product, how much can be given within a period as specified by the customer company. These terms are well explained in the technical bid
2. Price Bid This is the part of tender document, which specifies the basic price of the company products.
Products
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The products of TCC include Caustic Soda lye, Caustic Soda Flakes, chlorine, hydrochloric acid and sodium hypochlorite. The industries served are soap, insecticides, pharmaceuticals, chemicals, mineral processing, disinfectant, textile, rubber, water purification and petroleum. The only branded product is soda bleach and the brand name is Eko-clean.
Direct Marketing
Direct Marketing is done through Govt. Agencies
Price
The company has a differential pricing policy. The price is fixed through negotiation for long term contracts. For small customers price is fixed from time to time. Approximately price for the product are as follows
Product Caustic soda Caustic soda flake Liquid chloride HCl acid Sodium Hypochlorite Place
price/tone 25,500/26,500/9,800/3,000/4,500/-
Channels include direct selling to customers. For caustic soda, there are agencies outside Kerala for marketing. The entire marketing function is done from company headquarters at Udyogamandal and not by any marketing office outside company. All payments take place through SBT.
Promotion
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All the products of TCC are industrial products. TCC is the only chlor-alkali unit in Kerala. There is no real competition in the local market. The customers are aware of the existence of the company and the availability of the product. Hence there are not much promotional activities. Marketing factors is the price, which depends on the national and international price. The company does advertisement in some academic and trade journals like chemical magazine, etc. Promotional activities are done also through company website (www.tcckerala.com).
Pricing Policy
The company has adopted a differential pricing policy. An open body named Alkali Manufactures Association of India (AMAI) fixes selling price for a particular period, price of the product is fixed by adding the production cost, excise duty, vat and freight charges. Tenders are issued to the customers with a price quoted and if it turns to be the lowest bid and satisfies the customers, the sales are done. The major markets are Kerala, Karnataka and Tamil Nadu. Except caustic soda all other products are sold in South India. Long term contracts are being entered with customers. Price concessions are given for long distance customers, and also take freight element into account. The contract is placed for each material and that is done on an annual basis.
GMT
DGM (TS)
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There are two main sections in this department: 1. The Technical Service section
The technical service department is concern with the monitoring of production process. This includes making a comparative analysis if any deviations are found. Reports are maintained on daily as well as monthly basis and internal as well as external basis. The reports are sent to all other departments. I. Daily report includes the following: Daily production details Material consumption details Sales Stock Power consumption Over time reporting etc. Monthly internal reports include the following Production process report Material balance Chlorine utilization Raw salt analysis etc.
II.
III.
Monthly external report includes reports to various Government department and other agencies, production calculation and reporting.
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The safety policy of the company states that: TCC is committed to provide every one of its employees & the related public an accident free and healthy environment in its efforts to manufacture high quality products with all stationary requirements in this regard. The company will provide a work environment in which identified hazards & controlled if eliminations not feasible and will provide personal protection requirements like gloves, file mask welding shield, safety shoes, helmets, safety belt, skin protective ointmentsetc .whenever necessary. Accident prevention is the direct responsibility of the line management and will be an important criterion for performance appraisal. Line management will ensure that all safety measures are incorporated in the operating and maintenance procedure as well as in any process technology changes in the plant. The company will ensure that health & safety aspects are given due consideration in decision regarding purchase of plant equipments machinery & materials. All contract job will be carried only through the laid down procedures with appropriate supervision. The company will carry out safety audits, risk assessment studies, emergency mock drills, and periodic assessment health of its employees as well as status of environment & implement remedial measures. Employee, consumers & public awareness where necessary, will be imparted with the required education, training & retraining safety and health aspects related to the process and products. Contractors, sub-contractors, workers, transports & visitors entering the factory shall be required to observe health and safety practices of the company in all their activities. The company will include a resume of its health and safety performance in its annual reports.
4. Preparation of monthly raw materials and input output details. 5. Give suggestions on corrective action to avoid downtime of equipment. 6. De bottle necking to improve production and efficiency of operation. 7. Organizing energy audit and implementation of energy saving schemes. 8. Preparation of schemes for improvements or modification of process, plant and machinery. 9. Vetting of proposal originated by other department. 10. Inspecting or testing of equipment for the plant.
POLLUTION CONTROL
The company is fully aware of its social responsibility and committed to protecting and conserving the environment. In line with this, the company is carrying out various schemes including extensive pollution control measures, on site emergency planning, training of employees and customers on accident prevention and safe handling of chemicals. The company aims to minimize all adverse environmental and health. Impact arising out of its operation, converse all kinds of resources and to obey all statutory and legal regulation. Acidic and alkaline effluent steams are collected in pits. If the Sodium Chloride content in the acidic stream is within limit. It is used in Hydrochloric acid. The remaining effluent are mixed and neutralized. The PH is corrected to 7 with extra acid/alkali addition. It is then fed to the lagoon where better homogenization of effluent takes place. Also Sodium Bisulphate solution is added to the Chlorine content. Thus the effluent let out to the river is neutral and free of Chlorine content. Also the Chlorine gas during plant start-up and shutdown tripping of Chlorine compressor, from Chlorine cylinder filling station is collected and absorbed in dilute Caustic Soda lye to produce Soda Bleach which is sold to the consumers. Thus the Soda Bleach plant helps in avoiding pollution.
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AGM (E & I)
AGM (U )
CE (E)
CE (M)
CE (MP)
CE (M)
DM (E)
DM (M)
DM (MP)
DM (M)
SE (E)
SE (E)
SE (MP)
SE (M)
Ex. Tr
Ex. Tr
The Engineering department has been divided into four sections. 1. Electrical Department 2. Mechanical Department 3. Instrument Department 4. Civil Department
School of Management Studies,CUSAT Page 63
ELECTRICAL DEPARTMENT
There are two functions for this section. They are as follows:
a) OPERATIONS
Electrical supply is received from KSEB through substations. Direct Current (DC) is needed for electrolysis and Alternating Current (AC) is converted into DC in rectifier plants. AC is used for auxiliary purpose. The following are the function of the operational section. Ensuring uninterrupted power supply
Man management. b) MAINTENANCE This section is headed by chief engineer in planning and implementing on engineering
works. This section also provides assistance to project development of new project.
MECHANICAL DEPARTMENT
Mechanical section found to be the back bone of TCC. All types of annual maintenance is handled by this section and look forward to maintain the machinery in the best possible manner and ensure healthy and sound flow of workers within the organization. Following are some of the objectives: To ensure all equipment engaged in production are in good condition To cut down tine of critical equipments To reduce cost due to inefficiency in equipment handling.
INSTRUMENTATION DEPARTMENT
The main functions of this section are as follows: Plant processing operation and control of plant and equipment. Keeping record for it The maintenance of up keep of equipments.
CIVIL DEPARTMENT
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Civil section is an independent department heaSded by chief engineer. The main role of this section is the construction of the building and other premises of the company. It is also engaged with the social task to ensure the smooth flow of industrials activities. The main functions of this section are as follows: Maintenance of existing building. Painting and insulation Tender issue for civil workers.
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GMT
DGM (PJ)
CE (PJ1)
DM (S/M)
SE (S/M)
The main function of the projects and systems department is capacity addition and implementation of new technologies. It is an independent unit with a different function. Their main functions to prepare feasibility reports and to invite tenders for execution of new projects.
MAIN FUNCTIONS OF PROJECT DEPARTMENT Involves planning, feasibility study and implementation of ne technologies Preparation of detailed reports Preparation of feasibility reports Evaluation of tenders Invitation of tenders through advertisements Agreements
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Execution Hand over the new projects to operations department FUNCTIONS OF SYSTEMS DEPARTMENT
Implementation of new ERP system Maintenance of website Maintenance of all computers Maintenance of all printers and peripherals Maintenance of all networking systems Management of broad band and internet connections
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MD
AGM (MT)
DM (P1)
DM (P2)
Duties and Responsibilities of AGM (MT) AGMMT is the head of the department AGMMT is responsible for all functions relate to purchase AGMMT is responsible for all functions related to stores and inventory control. Materials department is divided into three sections
Purchase Section Stores Section Inventory Control Section
1. Purchase Section
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Sending tenders to the originators of MPR for recommendation Purchase section details with
Purchase of stock items revealed by inventory report The planning for purchase of maintenance items required by maintenance planning department Purchase of raw material required for the process Purchase of bulk consumable for the process Follow ups of demand items Payment against delivery through bank
2. Store Section
Inventory control:-It is a useful tool to avoid surplus and scarcity of materials. The inventory items are classified based on value contributed by each items depending on the cost of and turnover of materials.
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Objectives of Inventory Control Avoided unwanted pilling up of inventory Material codification to avoid duplication To maintain records To dispose scrapped items To determine when and how much to replenish To determine the items to the stored Stores Section deals with Maintaining a minimum stock of items required by various departments Issuing of stock items required by various departments according to the Material Request(MR)
Preparation of Various Reports Like Receiving Report Inventory Control Inspection Report Evaluation of MPR for purchase of new items Preparation of material code system (10-digit system)
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5.9
Departmental Structure
MD
GMT
AGM (CP)
Functions 1. Take energy conservation measures and gets implemented 2. Doing statutory energy auditing 3. Liaison works with central and State Govt. Departments, in connection with statutory matters regarding energy utilization and conservation
4.
Long term planning for the company regarding new projects taking into consideration the technological development and market scenario
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FINANCIAL ANALYSIS
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I.
1. Net Working Capital
ACTIVITY RATIOS
2010(Rs in lakhs) Current Assets Current Liabilities Working Capital School of Management Studies,CUSAT 4006.67 4898.03 -891.36
INTERPRETATION AND INFERENCE: From the above table, networking capital of the TCC shows negative trend that means for the last 2 years current asset is less than current liabilities. It reveals that the company not in a position to meet its day to day obligations. Management must take adequate interest in increasing the working capital of the company for the coming years by increasing current assets of the company.
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INTERPRETATION AND INFERENCE: Here all the working capital turnover ratio of TCC is found to be negative, because of the negative working capital. In all years the current liabilities exceeds the current assets. If we ignore the negatives all ratios are found satisfactory. From this, we can understand that the working capital turn over ratio is showing decreasing trend.
II.
3. Current Ratio
LIQUIDITY RATIOS
2010(Rs in lakhs) Current Assets Current Liabilities Current Ratio 4006.67 4898.03 0.818016631
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Current Ratio
0.85 0.8 0.75 0.7 0.65 0.6 4898.03 5679.3 Current Ratio
INTERPRETATION AND INFERENCE: Standard current ratio of a sound business is two and TCCs current ratio is below one for the last 2 years Therefore, we can interpret that the company is suffering from inadequate working capital. That is they cannot meet their short-term obligations in time. The main reason for the decrease in current ratio is that, in all the 2 years the current liabilities of the company are more than the CA. 4. Quick Ratio
2010(Rs in lakhs) Current Assets Current Liabilities Inventory Quick Ratio 4006.67 3890.4 -337.81 0.886985176 2011(Rs in lakhs) 3890.4 4006.67 486.71 0.599315
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Quick Ratio
1 0.9 0.8 0.7 0.6 0.5 0.4 0.3 0.2 0.1 0 2010 2011 Quick Ratio
INTERPRETATION AND INFERENCE: In most cases, the quick ratio of TCC could not achieve the standard quick ratio of 1:1. The greater amount of current liability is the main reason for the low Quick Ratio of the company.
III.
5. Gross Profit Ratio
Net Sales Profit Before tax profit/loss after tax secured loans unsecured loans net profit Gross Profit sharecapital reserves and surplus Net Profit ratio Gross Profit Ratio
PROFITABILITY RATIOS
2010(Rs in lakhs) 11517.63 264.34 -249.17 5248.91 497.45 249.17 -245.73 2131.91 0 0.455728 -0.02134 2011(Rs in lakhs) 14179.34 -444.4 471.43 4638.74 576.96 -471.43 471.43 2131.19 0 0.327148 0.033248
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INTERPRETATION AND INFERENCE: Gross profit ratio indicates the degree to which selling price per unit may decline without resulting in losses from operations to the firm. An increase in the gross profit ratio may be due to an increase in the selling price without a corresponding increase in the cost of goods sold or due to a decrease in the cost of goods sold without a corresponding decrease in the selling price of goods. 6. Net Profit Ratio
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INTERPRETATION AND INFERENCE: Net profit ratio is used to measure the overall profitability of the organization. Here the company is running at a loss The cost of raw material is increasing day by day and the company could not increase the selling price.
IV LEVERAGE RATIOS:
Many financial analysts are interested in the relative use of debt and equity in the firm. These ratios measure the long- term solvency position of the firm. Following are the important leverage ratios:
7. Debt-Equity Ratio The relationship between borrowed funds and owners capital is a popular measure of the long-term financial solvency of a firm. This relationship is shown by the debt-equity ratio. This ratio indicates the relative proportion of debt and equity in financing the assets of a firm. An acceptable norm for this ratio is considered 2:1. This ratio is computed by dividing the total debt of the firm by its net worth.
Debt-equity ratio =
Debt Equity
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The term debt refers to the total outside liabilities. It includes all current liabilities and other outside liabilities like loan, debentures, etc. The term equity refers to net worth or shareholders fund. Equity or shareholders fund = Share capital + Reserves and surplus Fictitious assets
Particulars secured loans unsecured loans Total Debt sharecapital reserves and surplus Net Worth Profit Before tax interest and financial charges Debit Equity Ratio Interest Coverage Ratio Capital Networth Ratio 2010(Rs in lakhs) 5248.91 497.45 5746.36 2131.91 0 2131.91 -264.34 660.01 2.695405 -0.40051 3.695405 2011(Rs in lakhs) 4638.74 576.96 5215.7 2131.19 0 2131.19 -444.4 721.04 2.447318 -0.61633 3.447318
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INTERPRETATION AND INFERENCE: An acceptable norm for this ratio is considered 2:1. A high ratio shows that the claims of creditors are greater than those of owners. A very high ratio is unfavorable from the point of view of the firm. A high debt company is able to borrow funds on very restrictive term and conditions. A low debt-equity ratio implies a greater claim of owners than creditors. From the point of view of creditors, it represents a satisfactory capital structure of the business. In debt-equity ratio; also, the company is not coming to the satisfactory level. The entire debt-equity ratio is higher than the standard level of 2. There by we can interpret that the claim of creditors of TCC are much above than of owners. 8 Interest Coverage Ratio It used to test the firms debt-servicing capacity. It shows the number of times the interest charges are covered by funds that are ordinarily available for their payment. Equation is Interest Coverage ratio= EBI ___________ Interest
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Here, the Interest coverage ratio negative. An interest coverage ratio below 1 indicates the company is not generating sufficient revenues to satisfy interest expenses.
The present business world is becoming more complex because of its dynamic nature. The chemical industry provides an assured market for manufacture of pulp, textiles, soaps, and detergents, pesticides, aluminum, petrochemicals, drugs& pharmaceuticals, oil refining, etc.
The industry had to be rejuvenated and diversified to produce chemicals viz. caustic soda lye and flakes, liquid chlorine, hydrochloric acid and sodium hypochlorite. It is unfortunate that there has been no measure spelt by the government to save the industry. To conclude the management of the the Travancore-cochin chemicals should strive to improve the liquidity position by reducing the investment. The company should adopt necessary and relevant steps for curtailing the cost to improve the profitability.
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SWOT Analysis
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SWOT ANALYSIS
The following are the strengths, weaknesses, opportunities and threats of TCC Ltd,
STRENGTH
Only Chlor alkali unit in the state Good record of physical and financial performance in the past. Qualified work force, brilliant engineers, managers and skilled workers. No strike reported for the last few years. Companys products are basic chemicals and are considered to be the building blocks of chemical industry. The company has 80% market share for its products in Kerala. The company is a feeding industry to other companies. Excellent management labour relation. Strategic location with no other competitors around at present. Availability of water in abundance as TCC is situated in the banks of river Periyar. Excellent transport facilities and proximity to national highway, railway line, seaport, and airports as well.
WEAKNESS
TCC is a public undertaking. The major decisions of the company have to be approved by the government which delays the implementations of plans and there by causing organizational inflexibility. The major weaknesses are; Lack of profit motive leads to poor performance
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Employee cost is high compared to other firms (competitors) Large consumption of energy , 60% of manufacturing cost is electricity Raw salt is not available in vicinity so transportation cost is very high
OPPORTUNITIES
New project of synthetic rutile plant. Rutile companies are reaping big profit in the state due to the availability of raw material within the state. There is a high price in the international market for rutile and related products. Economic development of the country may results in higher demand for the product especially for chlorine in near future Proposal for a hydel project will benefit TCC and the power so obtained can be utilized for running the plants of TCC. Thus reducing the cost incurred on electricity.
THREATS
The following are the main threats faced by TCC Ltd, Competition from foreign countries High cost of production Higher in price of electricity The infra structure of the company is obsolete compared to others The import duty of central government is not fair and it caused periodic fluctuations in the price of the companys product
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FINDINGS
No strike report for last ten years The major customers of TCC Ltd are pharmaceutical companies, insecticides and pesticide industries ,paper industries and rayon industries TCC Ltd has flexible credit policy up to 45 days Company faces larger competition Company maintaining 0% wastage Still the company is not computerized fully Company concentrate all over the market Due to the high standard of quality maintained by the company, its production costs are relatively high so that company facing a serious problem and wants to reduce the price. Maximum utilization of resources Products are globally accepted High quality products are produced WIP had both internal and external audit system Because of the increasing demand , now the company has changed their distribution system in order to reach more parts of the state Promotional expense is very less. WIP focus on quality Marketing system is inefficient Less care is given for the safety measures of the workers. Less importance is given for advertisement and hence advertisement budget is low.
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SUGGESTIONS
The following are the suggestions for the improvements of TCC Ltd: It is desirable to launch an advertising campaign to attract more customers It is advisable to maintain and efficient market intelligence system and advice mgt of the changing needs of the market Management should try to improve labour welfare facilities. The company may introduce more measures such as fencing of machineries, which will protect the workers from accidents. The company may prepare budgets for each activity which will provide it a better control and coordination mechanism. This will aid in reduction of production costs. The company can save time and cost through the computerization. It is advisable to maintain more young persons with in the factory
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CONCLUSION
Travancore Cochin Chemicals Ltd , Udyogamandal is a state owned undertaking engaged in manufacture of basic chemicals like caustic soda, HCL, Chlorine, Sodium Hyptochlorine etc. These are required by various industries within and outside the state. TCCs products have national reputation for quality and the company gives high priority to customer satisfaction. It is an organic chemical company. TCC takes vital steps at the right time to make innovations in technological up gradations as well as organizational improvements, which helped it to face problems quite effectively and efficiently. Till 1995- 1996, company had recorded a steady growth in production as well as in sales. After that period even through the sales remain on an average. The company could not make any profits. This was due to the implementation of membrane cell technology in place of mercury cell technology. The higher electric charges compared with other states also affected the profits of the company. TCC enjoys a lions share of the market in kerala and would continue to do so. As per the study conducted in the organization, the capacity of production is increasing and the company is moving in to more profitable stages. The days I spent at TCC and created a concrete impression in the development of my career.
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BIBLIOGRAPHY
KOTHARI C.R, Research Methods And Techniques,2nd edition, New age International(p)Ltd Publications, New Delhi KOTLER PHILIP and LANE KELLER KEVIN, Marketing Management , 12th edition PANDAY I.M, Financial Management ,9th edition, New Delhi. K.Gupta Shashi & Joshi Rosi ,Human Resource Management, http://www.tcckerala.com/content/viewcontent
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ANNEXURE ANNEXURE
Profit and loss account for the year ended 31st March 2011
INCOME
Sales Less:exicse duty Net Sales Trading Sales Other income TOTAL 14179.34 1273.12 12906.22 4.81 360.12 13271.15 1932.32 1.03 6963.96 2558.86 94.39 0.81 721.04 948.43 13228.84 (Increase)/decrease in stocks TOTAL Profit Before tax prior period items(net) Profit Before tax provision for taxation net profit/loss after tax balance of loss b/f from last year balance loss carried to balance sheet earnings per share 471.43 0.00 471.43 4057.49 4528.92 2.21 486.71 13715.35 444.4 27.03
EXPENDITURE
Raw materials consumed Trading purchases power ,fuel,stores repairs Employee cost selling and administration expenses Other expenditure and losses interest and financial charges Depreciation
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BALANCE SHEET
(Rs in lakhs) 2011 SOURCES OF FUNDS share holders funds sharecapital reserves and surplus loan funds secured loans unsecured loans 4638.74 576.96 5215.70 7346.89 5248.91 497.45 5746.36 7877.55 2131.19 0.00 2131.91 0.00 2010
TOTAL
APPLICATION OF FUNDS fixed assets gross block less:depreciation net block CAPITAL WORK-IN-PROGRESS INVESTMENTS current assets,loans and advances less:current liabilities and provisions net current assets profit & loss acount
17118.54 9936.98 7081.56 165.45 2.30 3890.40 5679.30 1788.90 1786.48 7346.89
16485.75 9264.12 7221.63 228.93 2.30 4006.67 4898.03 (891.36) 1315.09 7877.55
TOTAL
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