REPORT
Submitted by
RAHUL.B.RAJ
CHRIST UNIVERSITY-BANGLORE
(2012-14)
DECLARATION
I hereby declare that the project work done on the KERALA STATE CASHEW DEVELOPMENT CORPORATION .For 30 days under the guidance and supervision ofMR. Gopa kumar(Personnel Dept.), is an original and bonafide Work done by me in requirement of the award of Master of Business Administration at CHRIST UNIVERSITY.
(Signature)
RAHUL B RAJ
ACKNOWLEDGEMENT
First of all I thank GOD the Almighty, who blessed me with courage and determination to cope up with all the problems in my life and to complete this project successfully. I am greatly indebted to many people who have extended their kind help and valuable cooperation directly or indirectly in completion of this project work.
We thank the management of WIP Ltd. For giving me permission for conducting the project work in their esteemed organization am extremely greatful to Dr K A RATHEESH,the managing director of WIP Ltd. For helping me in the completion of this project work.
I express my gratitude to Mr.Gopa Kumar (Personal Dept.) for his valuable Advices and cooperation.
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CONTENTS
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1 2 3 4 5 6 7 8 9 10
COMPANY PROFILE AND HISTORY ORGANISATION STRUCTURE FUNCTIONS OF DEPARTMENT HRD MEASURES ACCOUNTING SYSTEM OF PURCHASE SWOT ANALYSIS FINDINGS SUGGESTIONS CONCLUSION
As usual, the operation ended in loss. The reasons are fluctuation in prices, no parity in workers (shelling, peeling and grading), interest burden in the old dues, big overheads, etc. Bankers were reluctant to give further financing. At this juncture,the company should have been closed but professionalism helped the company to survive. Using the negative working capital strategy, the corporation continued the work. It created an impression in the market that it was working continuously, which in turn helped it secure funds from market as advances for the purchases. Meanwhile, bankers stopped transactions. In 2006-07, the Government took another initiative to discuss the issue with the bankers. However, time-bound settlement has not happened so far. In order to get good price for the end product, KSCDC introduced new products in the brand name CDC Cashews. This was the first time in the history of the cashew industry that true value-added products such as Cashew Soup, Cashew vita, Cashew Powder and Bits, developed by the CFTRI were introduced. The Kerala State Cashew Development Corporation Limited locally purchase and import raw cashew nuts and export the kernels in large quantities. 80% of sale is by way of export. Indian Grade Kernels, Rejection Grade Kernels, Cashew Shell, Cashew skin, Shell Oil etc .are the byproducts of raw cashew nut. The Kerala State Cashew Development Corporation Limited has a capacity to process 150MT of raw cashew nuts per day.
1) Cashew vita
An instant beverage mix suitable for all age groups consisting naturally occurring materials such as cashew powder, sugar, milk solids, cereal flour, etc. 2) Cashew soup
Cashew soup mix is a purely a vegetarian mix for preperations of ready to serve instant soup. Main ingredients are cashew powder, edible starch, cereal flour, milk solids, dried vegetables, pepper salt and sugar along with MSG. 3) Cashew powder
Plaincashew in powder form made suitable for cooking by blending with cornstarch. It provides astonishing taste and thickening of cashew in prepeations such as desserts, ice creams. Payasams, vegetable and nonvegetable curries by avoiding grinding or pasting of cashew kernels.
4) Spiced cashew bits Dry roasted cashew bits with chilly and salt coating. It is free from frying oils and is an ideal snack for any time.
The chocolate-coated cashews are the new addition to the innovative range of products by the KSCDC. The latest addition is going to be cashew noodles aimed at domestic metros and overseas markets in Asia where this product is popular. The Mysore-based Central Food Technology Research Institute of India, CFTRI, is working on to develop this product, he said. The Indian Institute of Foreign Trade is carrying out a market study for the corporation in China and Russia and its report is expected early next year The technology for the cashew chocolates has been developed by the Central Food Technology Research Institute (CFTRI), Mysore, and the product is poised to be launched by the end of this financial year. They would be available in milk chocolate and brown chocolate varieties and the production will begin at the Kottiyam and Ayathil units of the KSCDC once the machinery is installed. Another product in the pipeline is cashew noodles. Marketed as CDC cashews
ORGANISATION STRUCTURE
Board of Directors
Personal Manager
Finance Manager
Production Manger
Commercial Manager
Material Manager
Company Manager
Computer Assistant
Peon
Assistants
Assistants
Assistants
Assistants
Assistants
Assistants
Assistant s
Assistant s
Assistant s
Assistant s
Assistant s
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To activate association and employment to take part in HR Activities which are beneficial to both employer and management To monitor the utilization and effectiveness of HRD training To act for the welfare of employer To provide healthy, and safety environment for employees to work with To act as a centre for appointment, transfer and promotion of employees Government correspondence To prepare and submit L.A report To take disciplinary measures in the organization To engage in the work related to P.F, E.S.I and gratuity
Personal manager
Formulating of HRD functions and suggesting the HRD needs of the organization To find out ways and means of implementation of HRD functions Monitoring the HRD activities of the organization To bridge the gap between the management and the employees in relation to human resource development Total commitment towards implementation of HRD
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Finance Manager
Superintend
Senior Assistant
Peon
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Recordings of the day today business transactions that is accounting control all the mental activities in the organization planning and controlling expenses funds for operation. Approving and making payment to different parties i.e creditors, suppliers receiving payments from customers dealers and through banks and accounting their funds preparation of sales budgets and remove budgets and expenditure budgets and expenditure budgets on yearly basis at the end of February every year.
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Production department
STRUCTURE
Production Manager
Superintend
Checker
Assistant
Peon
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Total number of employees in production department Employees in 30 factories 1500nos Workers in factories-25000nos The working hours in factories 8:00 am-5:00 pm Office timing- 10:00-5:00 pm Functions of department Head I (15 factories)
Verification of processing sheet Preparation of review statement Verification of raw materials stock statement and maintaining stock Verification of finished goods statement Verifying and dispatch of kernels from branch factories and its receipts and
filling centers Maintains of stock register of factory kernels and raw materials Verification of production statement
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Head 2
Verification of processing sheet Preparation of review statement Verification of raw materials stock statement and maintaining stock Verification of finished goods statement Verifying and dispatch of kernels from branch factories and its receipts and
filling centers Maintains of stock register of factory kernels and raw materials Verification of production statement
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Head 3
Maintenance of outturn register Consolidation of products statement of per bag statement. Raw null allotment. Consolidation of raw statement and comparative report. Assisting A.Gs audit. Preparation of consolidation statement of local African raw material notes in
filling balance)
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Head 4
General correspondence. Verification of various statements received from factory. Disciplinary actions. Verification of checkers inspection report Accounts relating to filling kernels in consumers packets, stocks and
dispatch.
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Head 5
Indian grade stock register. Rejection stock register Tin factory product statement Raw nuts stock register and consolidation of cashew shell Production statement and cashew still stock statement.
Head 6
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PRODUCTION PROCESS
Raw Material
Roasting
Shelling
Peeling
Grading
Packing
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Production Manager
Superintend
Assistants
Peon
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Stores department
The main functions of this department is to purchase of all stationeries plants, machinery and other allied items and store properly and make it available for factory of advertising and promotion of cashews. Purchase of plants and machinery for the factory Purchase of furniture and stationeries. Proper maintanence of plant machinery. Sale of scraps Purchase of motor vehicle for the office Advertising the cashew kernels
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Superintendent
Senior Assistant
Junior Assistant
Peon
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The main functions of the department are to purchase raw nuts from the local and forign market and sale of cashew kernels, shell and skin. The KSCDC ltd export 80% of their purchase. Commercial manager Commercial manager will overall charge of commerce section and will attend any other work entrusted by the MD.
1. All work connected with local sales of plain and value added kernals, Indian
Payment of C&F bills import-export commission bills, call refund, draw back
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Superintendant
5. Forwarding of foreign invoices and other docu. To bank and follow up.
8. Any other work entrusted by CM/ACM the main function of this department
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Head 1
follow-up action rectify the discrepancy if any. Arrangement of inspection and intimation to C&F agent. Transportation to part of shipment. Maintenance of EIA label register. Supply of EIA label adhesive to factories,
maintenance of pass book and EIA and expenditure statement Preparation of shipping instruction. Any other work interested by the management.
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Head 2
All work connected with DEPB license Advance license Sale of DCPB and other kicense Correspondence with CEPC grant in aid Implementation with cepc grant in aid Implementation of ISO, HACCP Trading house star house, FIEO,CEPC. Foreign tour correspondence with
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Head 3
All works connected with import of raw nut, tin sheets, packing machine Proper maintanence of import register and files Invitation for tenders for C&F work and payment of C&F bills for import Daily foreign exchange collection and follow up operation of telephone, fax,
photo copier computer LA interpellation Any other work interested by the management
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Head 4
Local sales of cashews kernals, CNSL, shell. Indian grade rejection tanning
value added products Maintanence of foreign claim, rtegister file and follow up action Inviting tenders for C&F work of export, submission of returns to
departments , CEPC etc Preparation of price for local sales including consumers society
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Head 5
Maintanence of commission registers Payment of commission bills Entering of export sales of month war register. Oreperation of export fire Advertising
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Typists
All typing work and computer operation Maintenance of daily register showing the letter number typed every day Any other work instructed by management
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Trade union
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HRD Measures
BONUS SYSTEM Usuallay the organization provide 20.5% bonus to factory workers. Employees are also eligible for bonus (salary below Rs. 3500). The bonus provided in a way of month and 3 days salary(Rs.2500). WAGE AND SALARY Wage to workers are find by the minimum wage committee which is appointed by the government. Salary to staff is determined by the industrial relations committee which also is appointed by the government. RECRIUTMENT AND SELECTION PROCESS Recruitment of employees are done through PSC under KPSC Act. Staff including factory watchmen is selected through employment exchange other workers are selected directly. PERFORMANCE APPRAISAL It is done through annually Productivity training to workers by way of selecting representatives from workers. Refreshment training course often conducted. LABOUR WELFARE BENEFITS Provident fund Leave with wages Canteen facilities
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DEATH RELIEF SCHEME AND MEDICAL CASE In case accident sickness inside the factory the necessary arrangement will be made for taking the sick person to the hospitals provision are made for giving first aid. RETIREMENT BENEFITS Retirement benefits to employees like provident fund and family pension. GRIEVANCE HANDLING PROCEDURE An effective system of grievance handling exist when any conflicts arise MO calls a meeting of trade unions and it is solved through discussion and the decision is forward to board of directors for approval.
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ACCOUNTING
The accounts are prepared under the historical cost convention on accrual basis with applicable accounting standards. The mercantile system of accounting is followed in the organisation. Inventories valuation (a) Raw materials at cost. (b) Factory stores and spares are valued at cost. Empty gunnies at net realizable price. (c) By-product and finished goods at net realizable price.
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SYSTEM OF PURCHASE
The system of purchase followed in KSCDC is by issuing quotation. They issue notices through their website, news paper, etc.
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SWOT ANALYSIS
STRENGTH
Larger export of cashew KSCDC has a capacity to process 300mt of raw cashew nut per day The corporation provides large volume of employment oppurtunities corporation has more than 2500skilled labours the availability of rare grades of cashews(W180 of W210)
WEAKNESS
comparitively low degree of promotional policies low degree of performance appraisal programs KSCDC has no own franchises and distribution channels 10% of total product losses due to moisture
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THREATS
They face extremecompetition in the market Arrival of MNCs in this industry cause threats tomthe existing firms Better promotional strategies introduced by the competitors Rigidity of the firm finds difficult to adjust with the prevailing market situation
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1. Factory No.1, Kottiyam (Kollam District) (Ph: 0474-2530033) Email: f1@cashewcorportion.com 2. Factory No. 2, Kilikolloor (Kollam District) (Ph: 0474-2731277) Email: f2@cashewcorportion.com 3. Factory No. 4, Kayamkulam (Alappuzha District) (Ph: 0479-2442250) Email: f4@cashewcorportion.com 4. Factory No. 5, Mynagappallay (Kollam District) (Ph: 0476-2847726 ) Email: f5@cashewcorportion.com 5. Factory No.6, Ayathil (Kollam District) (Ph: 0474-2729023) Email: f6@cashewcorportion.com 6. Factory No. 7, Nooranad (Alappuzha District) (Ph: 0479-2386323) Email: f7@cashewcorportion.com 7. Factory No. 8, Puthoor (Kollam District) (Ph: 0474-2415532) Email: f8@cashewcorportion.com
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8. Factoy No. 9, Kilimannoor (Thiruvananthapuram District) (Ph: 04702672224) Email: f9@cashewcorportion.com 9. Factory No. 10, Irinjalakuda (Thrissur District) (Ph: 0480-2820204) Email: f10@cashewcorportion.com 10. Factory No. 11, Edamulakkal (Kollam District) (Ph: 0475-2273273) Email: f11@cashewcorportion.com 11. Factory No. 12, Chathannoor (Kollam District) (Ph: 0474-2593381) Email: f12@cashewcorportion.com 12. Factory No. 13, Thalassery (Kannur District) (Ph: 0490-2352609) Email: f13@cashewcorportion.com 13. Factory No. 14, Bharanikkavu (Kollam District) (Ph: 0476-2830357) Email: f14@cashewcorportion.com 14. Factory No. 15, Chittumala (Kollam District) (Ph: 0474-2585227) Email: f15@cashewcorportion.com 15. Factory No. 16, Adinad (Kollam District) (Ph: 0476-2897531) Email: f16@cashewcorportion.com
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16. Factory No. 17, Kannanalloor (Kollam District) (Ph: 0474-2501035) Email: f17@cashewcorportion.com 17. Factory No. 18, Meikone (Kollam District) (Ph: 0474-2710995) Email: f18@cashewcorportion.com 18. Factory No. 20, Elampalloor (Kollam District) (Ph: 0474-2522398) Email: f20@cashewcorportion.com 19. Factory No. 21, Palkulangara (Kollam District) (Ph: 0474-2710253) Email: f21@cashewcorportion.com 20. Factory No. 22, Nedumpaikulam (Kollam District) (Ph: 0474-2522368) Email: f22@cashewcorportion.com 21. Factory No. 24, Karimulakkal (Alappuzha District) (Ph: 0479-2382332) Email: f24@cashewcorportion.com 22. Factory No. 26, Thettikkuzhy (Kollam District) (Ph: 0474-2530014) Email: f26@cashewcorportion.com 23. Factoy No. 27, Eravipuram (Kollam District) (Ph: 0474-2728143) Email: f27@cashewcorportion.com 24. Factory No. 28, Parippally (Kollam District) (Ph: 0474-2572053)
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Email: f28@cashewcorportion.com 25. Factory No. 29, Paruthumpara (Kollam District) (Ph: 0474-2522497) Email: f29@cashewcorportion.com 26. Factory No. 30, Kunnathoor (Kollam District) (Ph: 0476-2856135) Email: f30@cashewcorportion.com 27. Factory No. 31, Kallumthazham (Kollam District) (Ph: 0474-2710228) Email: f31@cashewcorportion.com 28. Factory No. 32, Kanjamkadu (Kollam District) (Ph: 0474-2747384) Email: f32@cashewcorportion.com 29. Factory No. 33, Kadakkal (Kollam District) (Ph: 0474-2422023) Email: f33@cashewcorportion.com 30. Factory No. 34, Chengamanad (Kollam District) (Ph: 0474-2402554)
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FINDINGS
KSCDC is one of the largest exporter of cashew nuts in India In KSCDC lion share of workers is women. Most of the labors are skilled people. KSCDC is a model employer. Company focuses both on foreign and Indian market. Innovative value added products.
Lack of sophisticated equipment and facilities. Advertisement section is weak. All the factories are at good locations. A healthy relation between trade union and management. Recycling process is not doing well. An important thing I noticed was the number of working days it was 288 days last year.
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SUGGESTION
After my study at KSCDC I have some suggestions and some solutions for the well being and effective working of organization. Computerizing should be made effective. Advertisement of products is important for growth of organization. Training should be made effective. Reducing wastage will decrease cost of production. To purchase quality raw materials to avoid losses. To start their own distribution counters for direct sale. Give franchisees for getting income through commission. Campus recruitments should be made for more skilled workers.
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CONCLUSION
Kerala State Cashew Development Corporation is one of the leading cashew corporations in the world. It produces a large quantity of cashew nut and exports in India. As it is a government institution it is not a profit motive organization and it looks the welfare of the workers and they are fulfilling their aim. Now the company is in breakeven point but soon it will acquire profit and it is a fast growing organization. The workers are working hard for their growth. It is totally a workers oriented organization; workers are the backbone of the organization. As it is a government institution it is facing some limitations even though they tackle all those limitations and emerging into the lights of profit.
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