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RALA STATE CASHEW DEVELOPMENT CORPORATION

REPORT

Submitted by
RAHUL.B.RAJ

In partial fulfillment for the award of the degree Of


MASTER OF BUSINESS ADMINISTRATION
Under the Guidance of Seema Chakrabarthi

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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COMPANY PROFILE AND HISTORY ORGANISATION STRUCTURE FUNCTIONS OF DEPARTMENT HRD MEASURES ACCOUNTING SYSTEM OF PURCHASE SWOT ANALYSIS FINDINGS SUGGESTIONS CONCLUSION

COMPANY PROFILE & HISTORY


The Kerala State Cashew Development Corporation Limited was incorporated in July 1969 and started Commercial activities in the year 1971 as a company fully owned by the Government of Kerala. From the modest beginning in 1969 Corporation has now grown into a large organization playing a pivotal role in cashew industry in the world. Corporation has now more than a turnover of Rs. 250 crores. Now KSCDC is running 30 cashew factories all over the Kerala State. In these factories more than 20000 workers and 1500 staff members are working. Corporation is a model employer in the field of cashew industry mainly to protect the interest of workers and to provide maximum employment to its workers and to give statutory benefits like minimum wages, bonus, etc. prevaling in the cashew industry. To increase the production of indigeneous raw nuts cashew corporation has started cashew plantation in the State. Corporation has also introduced four value added cashew products in the market. KSCDC was started in 1969 mainly to protect the interest of cashew workers who were exploited by private processors. In the initial stage, it was a success, but later, problems began to crop up with accumulated losses mounting and consequently, the Corporation was closed for two years from 2002 to 2004. In 2004-05, the Government took the initiative to re-open the factories by entering into a settlement with banks. The first attempt was to give continuous employment. It was a success and yielded 235 days in 2005.

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.

Value added products in the market:

1) Cashew vita 2) Cashew soup 3) Cashew powder 4) Cashew Bits

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

Chairman Managing Director

Personal Manager

Finance Manager

Production Manger

Commercial Manager

Material Manager

Company Manager

Asst personal manager Assistants

Asst finance manager Superintend

Asst production manager Superintend

Asst commercial manager Superintend

Asst materials manager Superintend

Computer Assistant

Peon

Assistants

Assistants

Assistants

Assistants

Assistants

Assistants

Functions of various dept: and managers


PERSONAL DEPARTMENT STRUCTURE
PERSONAL MANAGER

Asst personal manager

Assistant personal officer

Assistant personal officer

Assistant personal officer

Assistant personal officer

Assistant personal officer

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 DEPARTMENT STRUCTURE

Finance Manager

Asst 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

unit factories. Tallying statement of kernels(production, dispatch receipts, filling and

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

Steno(all typing works re;ating to production department)

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PRODUCTION PROCESS

Raw Material

Roasting

Shelling

Peeling

Grading

Packing

Finished cashew and its by-products

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STORES AND MAINTANENCE DEPARTMENT STRUCTURE

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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Commercial department STRUCTURE


Commercial Manager

Assistant commercial manager

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.

A.C.M is entrusted with the following works

1. All work connected with local sales of plain and value added kernals, Indian

grade, rejection CNSL.

2. Sale of cashew shell

3. Maintanence of out agency register.

Payment of C&F bills import-export commission bills, call refund, draw back

government correspondence, legal matters.

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Superintendant

1. Verification of contract of export

2. Preparation of export bill, after recording in the respective register.

3. Maintaining of export register, month war register, invoice register.

4. Shipment advice to buyers agents

5. Forwarding of foreign invoices and other docu. To bank and follow up.

6. Posting of copy docu. To buyers and agents

7. Issue of shipping marks to all packaging centers

8. Any other work entrusted by CM/ACM the main function of this department

come under sir heads.

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Head 1

Make available of LC in time and enter it in register, verification of LC and

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

RBI, RCMN, third party exports.

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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

AITUC INTUC UTUC CITU

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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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E.S.I facilities Cashew workers relief and welfare fund

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

Lack of competetiveness OPPURTUNITY


Expets further growth by introducing innovative value added products. Customer friendly packets to capture market easily Salted and roasted cashew has good demand in foreign and in local markets

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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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The Corporation is running 30 factories throughout the state:

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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