CHAPTER 1

INTRODUCTION

INTRODUCTION TO THE STUDY

An organizational study is the systematic study about how people as individuals and as
groups act within organizations. It involves the study of the structure and functioning of
its departments. Organizing or organizing is one of the important functions of
management. Almost all the organizations are different but they have certain common
features. All are collection of people, linked together by formal and informal relationships.
They have hierarchical orders that are engaged in co-operative activities and they all have
identical boundaries. So the study of people in organization is important for future
managers. Structure of an organization is very important for its functioning and growth. It
provides the basic frame work for its progress and expansion. For future managers, it is
imperative to study the organizational structure and functioning of successful organizations
so that they as future managers may guide organizations towards success and profitable
functioning.

SIGNIFICANCE OF THE STUDY

Having become one of the most prevalent debates in recent years, organizational related
studies have became a major topic of study nowadays. Organizations as defined as a
consciously coordinated social unit, composed of two or more people that functions on a
relatively continuous basis to achieve a common goal or set of goals. So we can see that
individuals, walking under the flag of organization are valuable resources to the firm. It is
totally impossible to find an organization without any manpower. So, as long as
organizations are consisted of individuals, it is very important to know and learn about
these fundamental elements of the firm. And that is the reason the concept of
organizational behavior is a major field of study these days. Organizational behavior is
defined as a Field of study investigates the impact that individuals, groups, and structure
have on behavior within organizations effectiveness. Or in other Words, it is the study
of what people think, feel, and do in and around organizations.

SCOPE OF THE STUDY

The organization selected for purpose of the study was Travancore Sugar & Chemicals Ltd
Thiruvalla. It is Kerala Government undertaking company. The organization study was
aimed at covering the functional departments of the organization. It was to make aware
about the various operations in the organizations. The study helps in understanding what
all activities are done in an organization. The study is mainly based on details collected
from each department. Each and every activities of the company is studied carefully with
the data available. The data is available from various sources like past records of the
organization, direct interaction with concerned persons or by personally visiting each
department. The study helps in obtaining practical experience of the operations in an
organization.
The organizational study covers the following aspects. They are to study the;
Present position of the company
Overall functioning of the company
Performance of the company
Management & employee relationship
Profit of the company as well as industry

TITLE OF THE STUDY

An Organizational Study at Travancore Sugars and Chemicals Ltd,
Thiruvalla
As a part of our MBA curriculum, organizational study is the area
where we put our theoretical knowledge under study with an organization to find
out his overall working learn about the origin, growth and development of the
company, understand and analyze about the quality policy of the organizational and
the role of each department in an organization dealing industrial products and also
of the working culture of executives and the workers. The organization study about
TSC, THIRUVALLA has provided me with information of various aspects and has
been of in valuable help and assistance to me.

OBJECTIVES OF THE STUDY

The study was aimed at understanding the organizational structure of a typical organization
indulged in making profit through production and functions each of its components namely
the functional departments, the various policies, standards, practices, work culture
followed there, and so on. The objective of study was to make a student aware about what
all operations are taking place in an organization and also to understand directly how the
organization face their problems without affecting their function. The study was also aimed
in getting and insight into the day-to-day operations of typical firm. The study helps to gain
practical knowledge.
The main objective of the organizational study conducted at Travancore Sugars and
Chemicals Ltd is as follows;

PRIMARY OBJECTIVES

The primary objectives of organizational study were to get an integrated understanding of

the organization.

SECONDARY OBJECTIVE
Various secondary objectives of organizational study are;

To have an overview of the structure of company.

To analyze the external and internal environment of the organization.

To understand the functions of each department.

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

To conduct a SWOT analysis of the firm.

LIMITATIONS
The study had its own limitations too. Following are some of the limitations of study.

Even through the workers rendered their helping hand in assisting me to collect

data; I had to be cautions in seeing that their work was not affected for my sake. This
limitation has affected my elaborate study.

Time constraint prevented the complete collection of data.

The inability to obtain confidential datas.

Since permission was required for entering the production department, I was not

able to enter there always. It was allowed only when guide would be free.

Even through employees co-operative because of their busy time schedule they

were not able to contribute more.

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

Absence of enough journals and publications about the industry.

The study relies largely on secondary data and hence the limitation.

RESEARCH METHODOLOGY OF THE STUDY

METHODOLOGY
Research means search for knowledge. It aims at discovering the truth. It is an essential
and powerful tool for leading men towards progress. It is an essential contribution to the
existing stock of knowledge. It is undertaken to discover answer to the questions by
applying scientific method. It is the search for knowledge through objective and
systematic methods of finding solutions to problems. There for research is the systematic
and in depth study or search of any particular topic, subject or area of investigation
backed by collection, computation and interpretation of relevant data.

SOURCES OF DATA COLLECTION

The data collection for the present study obtained from primary and secondary sources.

PRIMARY DATA COLLECTION

Primary data are those collected by the researcher himself for the first time and thus are
original in character. Primary data is collected by Personally interviewing and interacting
with the staff and other employees of various departments. The data has been collected
from the direct interaction, discussions, and interviews with the employees of the various
departments in the organization. This helped in getting a great deal of information
functions & inter-dependence of various departments in the organization

Sources of primary data

The primary sources are direct observation, questionnaire methods and interviews.

FUNCTIONS OF THE MANAGEMENT

The following are the various functions of the management:

Planning

Planning is the basic management function. Planning help in determining the course of
action to followed for achieving various organizational objectives. Planning is the process
of looking ahead. The primary of planning is to achieve better results.

Organizing

Organizing is the part of managing that involves establishing and international structure of
role for the people in an enterprise to fill. Organization provides the necessary work with
in which people associate for the attainment of the business objectives.

Staffing

The function involves manning the position created by the organization process. It is
concern with human resources of an organization.

Directing

Directing is concern with carrying out the desired plans. It initiates the organized and
planned action and ensures effective performance by subordinates towards the
accomplishment of group activities.

Controlling

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

performance, if necessary, applying the corrective measures so that the performance takes
place according to plans.

ORGANIZATION
An entrepreneur organizes various factors of production like land, labor, capital,
machinery, etc. for channelizing them in to productive activities. The product finally
reaches consumers through various agencies. Business activities are divided in to various
functions and are assigned to different individuals. Various individual efforts must lead to
the achievement of common business goals. Organization is the structural frame work of
duties and responsibilities required of personnel in performing various functions with a
view to achieve business goals through organization.

Organization is process of identifying and grouping work to be performed, defining and

delegating responsibility and authority and establishing relationship for the purpose of
enabling people to work most effectively together in accomplishing objectives

CHARACTERISTICS OF ORGANISATION

Division of work

Co-ordination

Common objectives

Co-operating relationships

Well-defined authority-responsibility relationships

OBJECTIVES OF ORGANIZATION
The organization aims at the achievement of the following aims:

To help management: - The organization help management to have a control over

various business functions. The work is divided properly and control centers are
established. The authority is delegated and responsibilities are fixed. It helps management
to have a co-ordinate administration.

To increase production: - The duties are assigned according to the principle of

division of labor. The efficient system of organization encourages every employee to

make his best contribution in raising output

the increase in output and control of wasteful expenditure helps to decrease the cost

of production. The profitability of the concern will also go up.

Co-ordination of employees:-

The organizational structure will succeed will only if employee co-operate with others.
The manager introduces various incentives schemes and gives monetary and other
benefits to the employees so that they work in a team spirit.

TYPES OF ORGANIZATION

Line organization

Functional organization

Line & staff organization

Line & Staff organization

REVIEWS ABOUT THE RESEARCH METHODOLOGY

Research can be defined as: A systematic, self-critical enquiry. The enquiry is
aimed at understanding a thing or phenomenon or solving a problem. When an enquiry is
aimed at understanding, it is termed as basic or fundamental research, which pursues
knowledge & may or may not have
Practical or commercial use. When the enquiry is aimed at applying the available
knowledge for practical or commercial use, or for solving a problem faced in practice, its
termed as Applied Research.
Research is a systematic enquiry, whether scientific or otherwise. Scientific research on
the other hand, employing Scientific Method has well defined objectives & methods,
generates dependable data, reliable & unambiguous findings & justifiable conclusions.

Reporting Research

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

skill in obtaining data from sources, abstracting the information from it & evaluating the
information thus obtained.

Descriptive Research

In this researcher may try to describe a single event or characteristic through distributions
or may try to relate a few events or variables through statistical analysis. The results cater
to broader decisions interests in the organization, relating to policy, administration etc.

Explanatory Research

This research explains the phenomenon. Hypothesis & Theories mark this kind of
research. Statistical or Operations Research modeling may be used in analysis.

Predictive Research

It uses the type of modeling done in Explanatory Research to forecast the occurrence of an
event or event under certain condition arising in the future.

10

OBJECTIVES

To provide genuine quality liquor to consumers at reasonable prices.

To make available supplies of liquor commensurate to demand.

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

through unauthorized source and evasion of duties and taxes by middlemen

Consumer protection and satisfaction.

11

CHAPTER 2
INDUSTRY PROFILE

12

INDUSTRY PROFILE
Liquor production is one of the profitable businesses in todays word. In India several
private, public and government companies are producing liquor and making huge profits.
But this liquor consumption is injurious to human body. It will spoil the life of young
generations of a country. The government cannot stop the production and distribution of
liquor because it accelerates the revenue in the form of tax. The turnover tax of liquor
(IMFL) sales is 96
KSBC (Kerala State Beverages Corporation) has the monopoly right to distribute the
liquor throughout the state by KSBC and any other selling activities within the state are
illegal and are subject to severe punishment including imprisonment.
The Kerala State Beverages (M&M) Corporation handles potable liquor made out of
Extra Neutral Alcohol. Potable liquor is a consumable item containing potable Alcohol
and other chemicals. The role the KSBC is channelizing all kinds of liquor /beer/wine
from manufacturers throughout the country for the consumers in Kerala. Any nonavailability of any item is the decision of the respective manufacturer not to sell the items
in Kerala. As such KSBC is not restricting purchase of liquor from any manufacturer who
is prepared to enter into a valid contract. KSBC performs the role of procuring liquor and
take adequate steps to ensure the quality standards of liquor and place them to the
consumer through the various channels of distribution enabling the consumer to take his
preference. The liquor brought through KSBC contains the holographic stickers pasted on
the bottle caps. The activity of KSBC confines to contracts for procurement and
distribution. Consumer has to know his health condition while deciding to drink. Alcohol
is not a freely marketable item like any other consumable but can be sold only through
license. In this point of view there is massage that consumer has to check his health while
consuming liquor.
The judicial commission of inquiry appointed by the Government to streamline the liquor
trade in the state recommended.

To providing genuine liquor at reasonable price, through Government agencies.

Exploitation through increased taxation and exploitation by middleman should be

stopped and consumer protection must be the guiding policy.

For achieving the above, nationalization of entire liquor trade was suggested. In line with
the suggestion the Government decided to set up a Public Sector Corporation to procure
spirits and arrange blending, botting, sealing and distribution of arrack and also for dealing
13

with the sale of IMFL. An amendment was made in the Abkari Act in 1984 to give effect
to the same.KSBC was formed on 23.2.1984 to take over the wholesale distribution of
liquor in phased manner and to eventually set up distilleries and blending units to produce
spirit, arrack and IMFL. Since then the distribution of liquor has been brought under the
control of the Corporation. By a decision in 2007 the majority of the retail outlets also have
been entrusted to the corporation. As at present the whole activity of IMFL from
procurement to distribution and sale to the consumer is controlled by the corporation
except for loose vending of liquor by Bars/ Clubs and a small portion of the retails by
Consumer Federation.

A SUGAR INDUSTRY PERSPECTIVE & ETHANOL PRODUCTION

India is the largest producer of sugar in the world. In terms of sugarcane production, India
and Brazil are almost equally placed. In Brazil, out of the total cane available for crushing,
45% goes for sugar production and 55% for the production of ethanol directly from
sugarcane juice. This gives the sugar industry in Brazil an additional flexibility to adjust its
sugar production keeping in view the sugar price in the international market as nearly 40%
of the sugar output is exported.
The annual projected growth rate in the area under sugarcane at 1.5% per annum has
doubled during the last five years. This is because it is considered to be an assured cash
crop with good returns to the farmers vis-a-vis other competing crops.
India is currently passing through a glut situation with closing stocks at the end of the year
of over 100 lakh tons since 2006-2007. Correspondingly, molasses production has also
increased. The table below gives the production of molasses, alcohol utilization by the
alcohol-based chemical industry, potable sector and the surplus at the end of each year. It
is therefore evident that along with sugarcane production, phenomenal growth is also
taking place in the production of molasses, the basic raw material for the production of
ethanol from sugarcane. Of course, there are also other agro routes available to produce
ethanol.
According to MPNG, 5% ethanol blends on an all-India basis would require 500 million
liters. The current availability of molasses and alcohol would be adequate to meet this
requirement after fully meeting the requirement of the chemical industry and potable
sectors.
14

AVAILABILITY
In the absence of a well knit policy in the past for purchasing and blending ethanol, not
many distilleries have been producing ethanol. Only three distilleries attached to sugar
mills had war years experience, and were able to gear themselves up to supply ethanol
immediately. Now, about 11 factories in Uttar Pradesh will be adding facilities to produce
about 75 million liters of anhydrous alcohol by end-September; 7 units in Tamil Nadu
(production capacity of 62.5 million liters of anhydrous alcohol); 8 in Karnataka
(anhydrous alcohol production capacity of 66.5 million liters); and 4 units in Andhra
Pradesh (capacity of over 40 million liters). Similar steps have also be taken up by the
cooperative sector units in Maharashtra, Punjab and UP. By the end of the year it is
estimated that about 300 million liters capacity would have been created for the production
of anhydrous alcohol.
As capacities are built up, the oil sector should also be able to generate that much demand
for ethanol to guard against any idling capacity. The Petroleum Ministry may therefore like
to look into this matter and ensure that the oil sector speeds up the creation of requisite
facilities for blending ethanol with petrol. So far generation of demand for ethanol has
been very low and it takes considerable time for IOCs units to finalize purchase of ethanol
against offers made by distilleries in response to their tenders.
In the Indian Sugar Mill Association, this matter was recently examined and it was
concluded that instead of taking up the scheme on a state-wise basis, it would be
appropriate to take it up in metropolitan and other cities where environmental pollution is a
major concern. The blending should be taken up to 10% and introduced selectively to
make a better impact on the environment, as no changes in the engine or carburetor are
required, and other countries are already carrying this out successfully.
COST
There is considerable scope for further reduction in the cost of production of both
sugarcane and sugar in India with liberalization of controls on the sugar industry.
Consolidation of land holdings and corporate farming on the raw material side and
expansion of capacity on the unit size are important developments and would lead to
substantial improvements in productivity, thereby rendering India a cost-effective producer
of sugar in the world.
15

The area under sugarcane is presently less than 2% of total cultivable area in the country
and about 3% of the irrigated area. There is considerable scope for increasing the area
under sugarcane considering the fact that it is more profitable compared to other crops. The
Planning Commission has visualized a conservative increase in area under sugarcane by 6
lakh hectares during the 10th Plan period, but considering past trends, the area under cane
is likely to exceed 5 million hectares .
During the 10th Plan period, the annual incremental growth in consumption has been
estimated at 9 lakh tons per annum. For the first time the Indian Government has fixed a
target of 15 lakh tons per annum for export for this period. However, the production target
was fixed at 21.3 million tons keeping in view the large carry forward stocks at the
beginning of the period and to correct the demand-supply distortions presently caused.
These targets are achievable looking at the performance of the industry in the past with a
production of 18.5 million tons achieved in 2007-08.
CONCLUSION
In conclusion, the sugar industry will not be lacking in meeting the requirement of ethanol.
In a market economy, there would be a considerable shift from the gur and khandsari
sectors which are inefficient producers with poor quality. In the current scenario of glut in
sugar production, it may be advisable to divert such additional cane for the production of
alcohol after meeting the sweetener requirement. The additional availability of alcohol on
the assumption that the entire cane is utilized for the production of sweeteners will be
about 200 million liters over and above that indicated in the table. Alternatively, if
additional cane available is utilized for the production of alcohol to bring in a balance in
the demand and supply of sugar, the alcohoI production at the end of the 10th Plan would
be around 1,485 million liters.
Such a flexibility has become very relevant in the current scenario of economy
liberalization and more particularly as a means to correct the aberrations in sugar
production.
The task force on the sugar industry for the Tenth Five Year Plan has suggested the
evolution of a national policy on alternative fuels, which would include the use of ethanolblended gasoline.

16

Until such a policy is evolved, sugar factories and distilleries should be encouraged to
produce ethanol from the surplus alcohol available with them, a report of the task force
says. For this, it suggests providing loans from the Sugar Development Fund at 6 per cent
per annum for up to 60 per cent of the project cost.
The ministry of petroleum and natural gas and the oil companies, in consultation with the
department of food and public distribution, the All-India Distilleries Association and the
apex bodies of the sugar industry, can set a reasonable price for ethanol produced by
distilleries for the purpose of blending with gasoline.
There is a need to compare ethanol prices with other oxygenates-cum-octane boosters such
as MTBE, and not with gasoline, the report states. As an oxygenate, ethanol contains
oxygen, which naturally reduces its calorific value but improves the combustion efficiency
and

significantly

reduces

air

pollution.

Considering

the

environment-friendly

characteristics of ethanol-blended gasoline as an automobile fuel, the pricing of ethanol

needs to be viewed not only in terms of a financial cost-benefit analysis, but also in terms
of an economic cost-benefit analysis, the report adds.
In Brazil 20-24 per cent of ethanol is blended in gasoline. In the US, 10 per cent of ethanol,
produced mainly from maize, is blended with gasoline. There has been a steady increase in
the production of alcohol in India, with the estimated production rising from 887.2 million
litres in 1999-2000 to nearly 1,654 million litres in 2006-2007. Surplus alcohol leads to
depressed prices for both alcohol and molasses.
According to the task force, the projected alcohol production in the country will increase
from 1869.7 million litres in 2002-03 to 2,300.4 million litres in 2013-14. Thus the surplus
alcohol available in the country is expected to go up from 527.7 million litres in 2002-03 to
822.8 million litres in 2013-14. Utilization of molasses for the production of ethanol in
India will not only provide value-addition to the byproduct, it can also ensure better price
stability and price realization of molasses for the sugar mills. This will improve the
viability of the sugar mills, which will in turn benefit cane growers.
With gasoline demand expected to increase from 7.9 million tones in 2008-09 to 11.6
million tones in 2013-14, the requirement of ethanol at 5 per cent blending is expected to
rise from 465 million liters to 682 million liters.

17

CHAPTER 3
COMPANY PROFILE

18

COMPANY PROFILE
The Travancore Sugars and Chemicals ltd (T.S. & C Ltd) was incorporated in June 1973
with an authorized share capital of Rs.60, 00.000 with an objective to acquire carryon and
transact the trades and business of planters, general merchants and importers,
manufactures of dealers in sugar, wine and spirits. Now the company is concentrating on
Indian made fine liquor (IMFL) production. There is no marketing department in this
company because the sales of IMFL products are only done through the Kerala State
Beverages Corporation (KSBC) Ltd. This government company registered under the joint
stock Companies act 1956 and its share capital as at 2014 is Rs.2, 4267,901.
Manpower of company is 146 employees at present and turnover approximately for the
years ended 2013-2014 is 7crores 80 lakhs. The operations of the company are highly
sophisticated over the year and the company has developed very high reputation for the
quality of its products. The products are resilient, inexpensive and hygienic. The
companys products are successfully accepted in all over Kerala because the company
follows strict quality control measure. Selection of proper location for a new plant is
essential for the smooth functioning of the company. Travancore sugars and chemicals
Ltd is situated at the place called Valanjavattom near Thiruvalla. Major reason for the
selection of this location is availability of transportation facilities, banking facilities and
well skilled labor force etc.

FUNCTIONS OF BOARD OF DIRECTORS

Controller and Auditor General of India Shall are appointed as statutory auditors. Board
of directors approved the account and submitted to statutory auditors. The statutory
auditors as and when complete the audit assignment and audit issue the auditors report.
Afterward the accounts and reports submitted to controller and Auditor General of India
and finance Secretary Govt. of Kerala for getting their commencement as and when
receive the above commence. We shall present the same along with account to the
shareholders for their approval.

19

STRENGTH OF BOARD OF DIRECTORS

Board of directors includes seven members. Two directors nominated by Govt. Remaining
five appointed by shareholders. One third directors retiring by rotation but he is eligible
for reappointment quorum of the board include two members.

THE MANAGEMENT
While considering their responsibilities and nature of activities, the organization is having
all the three levels of management. They are,

The Manager

The managers are entrusted with and responsibilities to their respective departments. They
are obtaining directors from the top level and giving directions to the lower levels
especially to supervisors. Each manager is in charge of one or two organizational
activities. The day to day administration and management under their field are conducted
by them. But matters are of high importance and casual in nature cannot be done without
obtaining the advice from the top.

Supervisors

The supervisors are responsible for the work of operating the employees. It is by getting
things done through the staff. They are receiving orders from the managers and implement
through the staff. As motivators and energy providers to the employees their role is very
important. They are capable of maintaining a friendly and harmonious relation among the
employees.

Staff

The managers may be the goal setters where as the staff members are the real executors.
The success of the organizational is mainly depending upon the deficiency and
effectiveness of the staff. They are doing the work under the directions of the managers.
The skill and experience have an impact on their performance. The understanding and
understandable character of the staff is essential for the synergic group dynamism. They
are trustworthy and loyal to the organization.

20

ORGANIZATIONAL PROFILE
Broadly, the activities in the organization (T.S & C Ltd) may include

Manufacturing activities, i.e., more on physical capacity and skill.

Non manufacturing activities, i.e., more on mental ability and knowledge.

PRODUCT PROFILE
Travancore Sugars and Chemicals Ltd produce variety of products which are given below.

INDIAN MADE FINE LIQUOR (IMFL)

During the financial year 2013-2014 the company sold 47996993 bulk liters of IMFL
valued Rs.251416074. Now the company produces so many brands of liquor which are
given below.

Major Premium Brandy

This brand is specially produced for high class segment. Normally this brand is costlier
than other products. It is one of the brands which have great move in the market. This
product is an advancement of its earliest product named Commander VSOP Brandy.

Festival XXX Rum

Festival xxx rum is a leading brand in middle class segment. During the year 2013-2014
as per sales report this brand makes good sales.

Jawan xxx Rum

During the year2013-2014 as per the sale report this is the most profit making brand of
company. These brand targets mainly on middle class segment. Price of those products is
around 290 Rs for 750ml bottle. The main ingredients are chromic color, essence, Extra
96% neutral alcohol + food flavor.

Cheers xxx Rum

This is special brand for low class segment, these brand also keep good sales report, but
low compared to others.

21

DENATURED AND MUTILATED SPIRIT

During the year 2012-2013 the company sold 20755 bulk liters of Metylated Spirit
valuated 953075 Rs. and 2065 liters of Denatured Spirit costing Rs.95660. The earnings
from these were much high compared to its previous years. In the year 2013.2014 total
earnings from both was around 14.6 lakhs.

RECTIFIED SPIRIT
During the year 2012-2013 the company sold 215565 liters of rectified spirit valued 82
lakhs. It contains 94% alcohol.

22

CHAPTER 4
DEPARTMENTAL ANALYSIS

23

PRODUCTION DEPARTMENT

PRODUCTION
DEPARTMENT
SUPERVISOR-1
SUPERVISOR-2

CHIEF
TECHNICIAN
QUALITY
CHECK-1

SUPERVISOR-3

Production department is divided into two section that are liquor production section and
packing and dispatching section. The liquor production section working in three shifts and
packing and dispatching section in one shift. The capacity of production is 1500 of 750ml
bottles or 3000 of 375ml bottle per day. Liquor production section includes following
steps.
RECEIVING THE WORK ORDER
On receiving the work from the production planning department the production in charge
will mention the necessary raw materials required to the store department. As the
production can start only after the receiving the raw materials from the store is should be
provided by store as soon as production planning department inform them.
RECEIVING THE RAW MATERIALS
On getting the order, the raw material will be received from the store department. Because
of the proper functioning of this department of production is working properly and on
time.

24

PRODUCTION PROCESS
There are stages for production process:1.

BLENDING PROCESS

Blending machine is used blending the ingredients (raw materials) of liquor. Blending
machine uses three large tanks for blending purpose. These tanks are in huge size which
helps to mix bulk quantities of liquor. The process of blending is an important thing in
making of quality product.
2.

FILING PROCESS

After the blending process the liquor come into the filling machine. With the help of this
machine liquor is filled into the empty bottles. This process help filling process with great
speed and effectively.
3.

SCREENING PROCESS

On this stage liquor bottles are checked by screening machine, to make sure that bottle
doesnt contain any dust or another items. It is done as a matter of safety measure and
quality assurance.
4.

CAP SEALING PROCESS

Cap sealing machine are used for putting caps on bottles. It is a process through which
bottles are capped and sealed.
5.

LABELING PROCESS

On this stage different brand labels are pasted on different brands of bottles Label printing
machines are used for printing the brand labels.
6.

PACKING PROCESS

After labeling, various brand liquor bottles are packed with various card board boxes, and
make a seal on each boxes; and kept in go down.
MANPOWER DEVELOPMENT
Production section has two types of workers, that operator and general workers. Operations
are skilled workers and general workers are unskilled workers. One operator and two
general workers will operate each machine. Every week this shift will be changed and
25

rotation policy is the key factor to the production policy. This means that the duty of every
worker except the operator will be changed every week. This policy will reduce the work
load related disputes.
QUALITY CONTROL DEPARTMENT

In Travancore Sugar and Chemicals ltd strict quality control measure are implemented. It
starts from taking of raw materials for the production on words. Production quality and
customer satisfaction are the priorities of the company always. Quality begins right from
the raw materials. It is the degree to which set of internet characteristics fulfills the need
on expectations. The company ensures strict quality control measures in their factory due
to which their liquor productions are well accepted all over Kerala.

QUALITY POLICY
T.S &C. Ltd is committed to manufacture and supply high quality products in Kerala
markets by focusing on.

Customer satisfactory and regulatory requirements.

Upgrading the skill of workers and employees by providing training.

Continuous up gradation of manufacturing facilities.

STRUCTURE
Quality control department is under the control of Quality Control Manager. Under
quality control superintendent there are two inspectors and lab assistants. Lab in the
factory is BIS approved. One quality inspector will be present in a shift. He will check the
quality of the products at different stages of production and advise the workers whenever
there is some quality related matter occurs at the production unit after the passing of the
stringent examination only the products will be after pulling quality control seal.
PRODUCTION PLANNING DEPARTMENT
Production planning department is under the supervision of planning engineer. The
department is responsible for the entire production. Planning in constitution which various
departments proper communication with the department is necessary for the success of
the production. This mainly because every activity in the plant in some way or the other

26

way related to this department. This department plans monthly as well as daily the
production planning and monitors the same.
WORKING OF PLANNING DEPARTMENT
Planning department plans the liquor production and working of packing and dispatching
unit. Planning department plays a major role in efficient working of the organization. The
department makes decision about when and how activities in organization should be done.
PROCEDURE FOR LIQUOR PRODUCTION PLANNING
At the end of each month store will provide the closing stock of various type brands of
liquor and department will collect the estimated requirement
For the next month from material department. By analyzing these reports, planning
engineer will prepare monthly production schedule and set the copies to all other
departments for making comment and necessary arrangement to fulfill the production.
The material department will break this schedule in to daily targets. Every day morning
planning engineer will break daily production order to the production floor superintendent
and copy of the same will be given to all other department concerned.

CO-ORDINATION
Co-ordination with various departments is also a tedious task performed by the planning
department. They ensure the smooth production and in time delivery of the product.
Proper co-ordination with departments always helps to maintain a healthy relationship
between employees, which will help to produce better output.

MAINTENANCE MANAGEMENT
Maintenance is an important function in a manufacturing organization and keeping the
machine in perfect operating condition is not only necessary to avoid interruption but also
to keep production cost low, to keep the product quality high and maintain safe working
conditions, and to avoid late shipments to customers.

27

TYPES OF MAINTENANCE FUNCTION IN T. S & C LTD

Maintenance department is working under the production engineer. Under him there is
maintenance superintendent and a maintenance work shop. In maintenance work shop,
there are four members of technicians the work shop will undertake shop level repairs.

Repair or break down maintenance

Traditionally manufacture has applied the principles specialization to maintenance

workers. But in T.S &C Ltd workers are being given the responsibility for repairing their
own machines or assist their own machines or assist repair specialist in market repair.
When break down occurs, the employee in the operation, himself will try rectifying
it. If he could not rectify it, he will inform the same to the maintenance superintendent and
he will inspect machine and if required, he may call the work shop technicians for
repairing work. These technicians with the help of the operators will make the repair job.
If more work force is required the other workers help will be utilized, the means, in this
organization team maintenance concept is using.

Preventive maintenance

Preventive maintenance is mainly required to avoid machinery break down. The

organization believes in preventive maintenance. The production in the firm is conducted
only in three shifts. The firm employs two workers in third shift. They have to perform
cleaning, lubrication and minor repairing workers etc. Major preventive maintenance
works are conducted in Sunday and holidays.

28

MATERIAL & STORE DEPARTMENT

GENERAL MANAGER

STORE MANAGER

STORE INSPECTOR

STORE IN CHARGE

The T.S & C Ltd has its own Material department. The main function of this department
is:

Purchase raw materials at lowest price with high quality.

Store these raw materials in their own warehouses.

Supply the necessary raw materials when required in the production department.
RAW MATERIALS

The T. S & C Ltd. Are D.M. Water, E.N.A Spirit, and chemicals.
Following are the raw materials used in T.S & C Ltd.

D.M Water

E.N.A Spirits

Chemicals

Empty glass bottles

Lubricants/ oils

Packing materials

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D. M Water (Deminaralised Water)

D. M Water is the most important raw materials and 50% of the total raw material
constitutes D. M water. D.M Water available locally, so the company can reduce the cost
for this purpose. Average monthly requirement of D.M water is 65000 proof liters.

E.N.A Spirit

E.N.A Sprit is another important raw material and it is an expensive raw material.35% of
the product is E.N.A sprits. Firm purchased E.N.A Spirit from outside states likely
Karnataka, Maharashtra, Tamil Nadu and Andhra Pradesh.

Chemicals

Essence, Urea, Yeast Turkey red Oil, Denaturants and Molasses are different chemicals
used for production, 15% of the product include chemicals. These are purchased from the
manufacture or their dealer

Bottles

Generally 750 ml bottle and 350 ml bottle are used for filling the liquor. These bottles are
purchased from Karnataka and Tamil Nadu.

Lubricants and oil

Lubricants and oil used for smooth running of machines. These are available in local
market.
PACKING MATERIALS
Packing materials include politeness covers and card board boxes. These are available in
local market.

PURCHASE FUNCTION
A minimum quality of safety stock is fixed for each raw material. On reaching this level
purchase department start the procurement process.

30

PROCUREMENT PROCESS
At the beginning of each month the planning department will prepare a production
schedule and one copy will be forward to the material department. From this schedule the
raw materials requirement for the month will be known and accordingly the purchase will
be schedule and one copy of schedule will be given to finance department for arranging the
finance. In case of non- routine items the department which required the material, has to
make the purchase requisition and forward it to material department with proper
authorization as well as proper specification. On getting this requisition materials
department will start the procurement.

31

HUMAN RESOURCE MANAGEMENT DEPARTMENT

HR MANAGER

ASSISTANT MANAGER

OFFICE ASSISTANTS

Human Resource management is the planning organizing directing controlling of

procurement development, compensation, integration and maintenance of human resource
to the end that the individual organizational and social objectives are accomplished. It is a
management function that help the managers recruit, select, training and development of
members of an organization.
The main functions performed by the human resource Management are follows:

Day to day functions

Manpower management

Industrial relations

Employee welfare programmers

Time keeping

Wage and salary administration

Personnel record maintenance

32

EMPLOYEE COMPOSITION

There are 140 workers, 35 staff and 25 executive staff and 18 security staff (on contract
basis). The workers here are considered to be the true asset of the firm. Considering their
work load work time are arranged in three shifts. The shift time start from 6am-2pm, 2pm10pm, and 10pm-6am. But the thing is that shift is provided only for workers and not for
staff. All the workers are recruited on contract basis.
ORGANIZATIONAL POLICIES AND PROGRAMMERS

RECRUITMENT POLICY

The recruitment takes place in the organization due to vacancies created by various causes
like retirement, promotion etc. The nature of recruitment includes the internal and external
sources of recruitments.

Internal source of Recruitment

It consists of already existing employees. Whenever vacancies occur in the organizational

the company promotes somebody within organization.

External Source of recruitment

It is the process of recruiting people from outside the organization. It is done mainly
through the advertisement. Production labor force is two types i.e. skilled workers and
unskilled workers. Operators are skilled workers. As per the existing procedure if any
vacancy of skilled workers, the vacancy will be filled from unskilled workers. Promotion
will be on the basis of year of experience, expertise on the job, character etc. Vacancies
for executive and staff are advertised in newspapers or company notice board.

SELECTION PROCEDURE

Selection is done mainly through interview. Firstly there is preliminary interview and then
final interview with top management for selecting the candidates subject to the approval of
Board of Directors and Government. This is applicable only in case of executive staff.
Employees are selected from employment exchanges and this may be only for a short
period normally on contract basis.

33

TRAINING AND DEVELOPMENT PROGRAMMED

Training and development programmed have given more importance in the organization.
Various training programmers like periodical safety training, first aid training, computer
training (staff) etc. are given to employees. These training programmers help them to give
better out of them. Also it provides an opportunity for self evaluation.

Training Methods

On the job training

Induction training

Off the job training

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

owned or associated by the company. Lecture and conferences are the main training
methods. There are mainly given for the first and safety classes. Some time the
organization sends their executives for training programmers conducted by outside
agency.
WAGES AND SALARY ADMINISTRATION
Doing term agreement regulates the service condition salary and wages of the staff and
workers excluding supervisory and managerial category. Their unions will represent the
employees. At present 3 approved unions such as T.S.C Employees union (I.N.T.U.C),
P.R.F worker union (C.I.T.U), P.R.F Labor Union (S.T.U). Most of them are affiliated to
national or state level trade unions and backed by political parties. The agreement
specifies the wages and other benefits payable to the workers as well as the work load of
workers. These agreements will be revised every 3 years. Before the expiry of each
agreement management will start the negotiation with approved trade unions. During the
existence of the agreement no union can demand anything, which will increase the
financial obligations to the management and in the same way management cannot
increase the workload of workers.. The main objective of this agreement is to ensure
peaceful atmosphere in the organization. As per the present agreement the employee will
get basic salary and D.A. In addition to this company providers ESP. to employees. The
company will give salary monthly.80% of employees were drawing Rs.2500 to 3500 as
salary and 5% of them were drawing Rs.4000 to 5000 and 15% of the employee were
drawing above Rs. 5000.
34

INCENTIVES
Company follows a group incentives scheme on the basis of daily production. If the
production exceed additional incentive will be given. This increases the productivity and
encourages people to enhance the production.

Holidays

There are 13 public holidays in a year.

Uniform

Company provides uniform to all production employees, but there no uniform for the other
staff other than security staffs.

Employee Provident Fund

Employee and employer contribute 12% of the basic salary and D.A towards P.F.

Retirement

At the age of 60 employees are retired from the service. Retirement benefits include
providing schemes for P.F and gratuity.

Retirement Benefits

Deferred benefit plan

Provision for gratuity is being accounted for on the basis of actuarial valuation made at
the end of period on the assumption the scheme will be ongoing.

Deferred contribution plans

Contribution to provident fund is made on monthly accrual basis at the applicable rates.
Provision for Terminal Leave Encashment has been calculated on the basis of actuarial
valuation.

Bonus

Bonus is decided each year during Onam season after negotiation with the unions as per
the bonus Act.

35

First Aid Facility

Company keeps first inside the premises but there is no medical staff to handle the system.
If any accident happens, injured will be taken to the nearest hospital along with an
employee. The person company will meet all the expenses there by.
Disciplinary Mechanism in T.S. & C Ltd
Whenever supervision or management notices any in disciplinary action, first they will
advice the concerned employee to rectify it. If the misbehaviors is repeating the
management will give warning, suspension.

36

FINANCE DEPARTMENT

FINANCE MANAGER

ACCOUNTANT

CAHSEIR

Finance is the life blood of the business. Managing the finance is a tedious task in any
organization. The ambitions and plans of a businessman would remain a merge dreams
unless adequate money is available to cover them into reality. Financial management is
concerned with the planning and controlling of the firms financial resources. The
financial management includes deciding upon the investment, source of fund, dividend,
financing fund allocation etc.
FINANCIAL MANAGEMENT IN T.S & C.Ltd.
Senior finance manager manages the finance department and he reports to the M. D
directly, about the functions of the department.
BASIC FUNCTION OF ACCOUNTS DEPARTMENT

Planning and allocating works to accounts staff.

Salary and wages administration

Incentives and overtime payment etc.

Retirement, gratuity and other personal matters.

Verifying cash books.

Verifying debtors statement.

Verifying stock statement.

Attending legal and departmental statement.

37

Verifying bank reconciliation statement.

Scrutinizing of periodicals to PF, ESI sales Tax.

Legal Security.

Monthly closing accounts.

Debit and credit note preparation.

TDS deduction and returns.

Renewal of various licenses.

ACCOUNTING PROCEDURE

T. S & C ltd follows the double entry system of accounting. Various books of accounts
department and also by other departments. In recording the day to day transactions, cash
receipt, rough cash books are maintained manually. Finally the fair cash books are
prepared on the basis of these in a computerized method. During the year, personal ledger,
administration ledger and agents ledger are prepared. These sales reports are also
prepared.

The journal entries are recorded in the journal register. Working capital

recorded by the sale of goods. The accounts of the company are fully utilized.
Accounts of the company are based on companies Act 1956. Accounts work is based on
the software package tally. M/s Bastin and Swami do the companys Accounting.
However there is companys statutory audit. Half year and yearly audit is done. Long term
loan are raised from term loans.

SOURCE OF FINANCE OF T. S &C.LTD

Advance paid by the dealers for booking the product consignment

Deposits by the booking agents

Capital

Bank loans

Shareholders fixed deposit

SIGNIFICANT ACCOUNTING POLICIES

Basis of preparation of financial statement
The financial statement are prepared on an accrual basis of accounting and accordance
with the generally accepted accounting principles in India, provisions of the companys
Act, 1956(the act) and comply in material aspects with the accounting standards notified

38

under Section211(3C) of the Act, read with the Companies (Accounting Standards)
Rules,2006.
Expenses charged by the Kerala State Beverages Corporation have been accounted on
receipt of the account statement from them.

Use of Estimates

The preparation of the financial statements is conformity with the accounting standards
generally accepted in India, requires the management to make estimates that affect the
reported amount of assets and liabilities, disclosure of contingent liabilities as at the date
of the financial statement and reported amounts of revenues and expenses for the year.
Actual result could differ from these estimates.

Valuation Inventories

Finished goods are valued at cost or net realizable value whichever is lower. Cost

includes direct cost and production overheads.

Stores and Spares are valued at average cost.

Raw materials at average cost.

Fixed Assets

Fixed assets are stated at original cost of acquisition less accumulated depreciation
provided on written down value basis.

Depreciation

Depreciation on fixed assets is provided under Written down Value Method at the rate
specified in Schedule XIV of the Companies Act, 1956. Depreciation on addition is
provided from the date on which the asset is put to commercial use and on deletion up to
the date of sale.

Impairment of Assets

Impairment loss on Fixed Assets has not been considered in the preparation of financial
statements

39

Excise Duty
Central excise duty payable on production of Ethylated and Denatured Spirit is accounted
on the removal of goods from the factory and provision is made for Excise Duty payable
on closing stock of finished goods in hand at the Balanced Sheet date.
The incidence of state Excise Duty on sales of IMFL has been paid by the Kerala state
Beverages Corporation and hence it is not reflected in the accounts.

Revenue Recognition

Revenue from sale is recognized on dispatch of goods and is net of trade discount and
VAT.

Taxes on Income

Current tax determined as the amount of tax payable in respect of taxable income for the
period as per the provisions of the income Tax Act, 1961
Deferred tax is recognized, subject to the consideration of prudence, on timing
differences, being difference between the taxable incomes and accounting income that
originate in one period and are capable of reversal in one or more subsequent periods.
Deferred tax assets are recognized and carried forward only to the extent there is
reasonable certainty that sufficient future taxable income will be available against which
such asset items can be realized.

Earnings per share

Basic and diluted earnings per share are computed in accordance with Accounting
Standards 20-earning per share. Basic earnings per share are computed by dividing the
net profit after tax by the total number of equity share outstanding at the year end.

Provisions

A provision is recognized when there is a present obligating as a result of a past event, it is

probable that an out flow of resources will be required to settle the obligation and in
respect of which reliable estimate can be made.

40

DISPATCHING DEPARTMENT

STORE MANAGER

DISPATCHING ASSISTANT

STAFF MEMBERS

The planning department will prepare the daily dispatch schedule and copy will be
forward to dispatch section. On getting the dispatch schedule the dispatch superintendent
will contact the finishing section and make sure that the production will be completed
within the mentioned time and they will also ensure that the inspection will complied in
the same time. They will also arrange the packaging.

The main aim of loading and dispatching section is to make task simple and easy. The
purpose of this is to make sure that the unloading of items at dealers shop is also made.
Packing and dispatching process will start only after getting delivery schedule from the
planning department. Dispatching of products is made on the basis of delivery order.
Simple and the driver should be able to handle quite easy and without time wastage and to
avoid confusions when the lorry reaches the shop, all items are to be unloaded are
automatically seen on the top and in sequence.

41

LOGISTICS
Internal Movement
Trolley and vehicles are used to move semi-finished goods from one process station to
another process station.
External Movement
In the case of road transport TSC has made contract with various transport companies like
K.R.S (Kerala Service Ltd) and A.C cargo management. Other mode of transportation is
rail.

OTHER DEPARTMENTS
MATERIAL HANDLING DEPARTMENT
This department carries out the process of loading and unloading of raw material. The
department also conveys the raw materials to various sections. Loading and unloading of
raw materials help the movement of raw materials to and fro from the organization. In the
first case raw materials reaches organization for production process and after the
production it is unloaded from the organization to where it is needed to go.

CIVIL ENGINEERING DEPARTMENT.

The function of this department includes civil engineering works, maintenance function
and control of various machines etc. small works like painting of certain portions,
replastering etc are done by this department. This department mainly includes maintenance
works. They are very much concerned about completing the assigned task with perfection.

LABORATORY DEPARTMENT
The company has its own lab which is continuously striving to maintain the quality of the
products. These are three levels of testing conducted in the laboratory. They are:

Raw material testing

Process testing

Intermediate testing

The sample should be given to the government laboratory for getting the approval for
further production.
42

SECURITY DEPARTMENT
This department is concerned with the security and control of the company. There are 18
employees working in security department on shift basis. They are employed on 3 shifts
i.e. 6am -2pm, 2pm-10pm, and 10pm-6am. These security staff is working on contract
basis. Most of the security staffs are ex-military persons.

WORKSHOP DEPARTMENT
The company has a workshop under the control of the mechanical maintenance
department. All machinery works and repairs are undertaken in the workshop. These are
85 employees in the workshop.

ELECTRICAL DEPARTMENT
This department deals with all the works concerned with the electrical equipments, power
linker and other allied activities.

CAMP & SANITATION DEPARTMENT

Activity of this department includes cleanliness and good maintenance of the premises of
the company. A hygiene atmosphere is created for the employees to work

ADMINISTRATIVE DEPARTMENT
This department is carrying out the general administration of the company. All other
clerical works are done here.

43

CHAPTER 5
SWOT ANALYSIS

44

SWOT ANALYSIS
STRENGTH
Travancore Sugar & Chemicals Ltd (T.S. & C Ltd) is the only IMFL manufacturer
in the central Travancore.
As T.S & C ltd is a government owned firm, it enjoys all privilege granted by the
government
The standard quality of their products is their great strength.
They have a high market share.
Employees are the strength of any organization; it is so for T.S & C ltd also.
Skilled employees are the greatest strength of T.S & C.Ltd.
They have a very good training system.
Trade unions are a vital part of any organization. T.S. & C. Ltd experience good
cooperation from the various trade unions present there.
Good organizational climate also adds to the strength of T.S. & C Ltd.
Efficient quality control systems also add to its strength.
Employees are maintaining good relation with each other
Maximum utilization of resources.

45

WEAKNESS
Excess manpower is the major weakness of the company. The company at present
has more employees than required. Wastage of money through the payment of
salary and other things to this excess supply of manpower.
Lack of modern technology is another weakness of the company. They are still
using the out dated machinery and technology. The technology now followed by
them is 24 years old.
As the finished products are directly given to KSBC, company cannot enjoy the
full benefit derived from the products.
Unnecessary influence on the part of government and political parties.
Higher cost of the products compared to the competitors product.
There is no proper mechanism to handle the grievances of the customers.
Absence of computerization is also another weakness of the company.
Unnecessary formalities cause a delay in business decisions.
Lack of raw materials cause a disruption in the production process.
Outdated salary package.
Lesser change of promotion for employees.

46

OPPORTUNITIES
The budget amount should be used wisely so as to get maximum visibility for the
product.
Company introduces promotional programmes.
The company should opt for psychographic segmentation of the market. Where
more stress should be given for the quality and fitness of the product
It should expand the distribution network to that place where the product is less
available.
It should expand the distribution network to that place where the product is less
available.
It should switch on to newer technologies in order to reduce its cost price
Exporting and expanding to north Indian markets can consider once it increases
production

THREATS

Scarcity of raw materials is the major threat faced by the company.

Out-dated techniques are still following.

God replacement facility of other brands.

Hike in price of raw materials.

Time to change government policies.

47

CHAPTER 6
FINDINGS, SUGGESTION
CONCLUSION

48

FINDINGS
The public sector company is now running successfully but has accumulated
loss of the previous years which are now written off with the current years profit.
The main reason for this crisis is the excess manpower supply. More labor and less
work to be done is the problem faced by the company. The company which is
facing financial problem has to pay these labours also. An excess burden to the
carried on. Nothing can be done to these excess labours. If anything done these
will be the interference of political parties and the trade unions.
The employees of T.S. & C Ltd are sincere and hardworking in putting this again
at profit-making company back on track. Employees are highly helpful and
supportive most of the employees are satisfied with the labor welfare measures.
Apart from the earning from organization, the company has earnings from
company quarters. Earlier it was provided only for its employees only. But now it
is provided for others also. Now it isProvided on rent basis. The quarters are well
furnished with all facilities.
The service provided by canteen is efficient. The employees are given concession
for the food which they consume.
The management has informed the employees that it would have to resort to layoff if the downward trend in raw material realization prevails.
The company which is still using older techniques of production is now under
heavy loss.
The company has to spend a huge amount in obtaining raw materials. Thus the
cost of production has increased. Thereby causing the price of the product to be
much higher than its competitors.
There is good co-ordination between the different departments of the organization.
Huge buildings kept unused. Most of the land buildings are held without any
working. If these can be utilized effectively company can turn into different level.

49

SUGGESTIONS

Management should take essential steps to explore new areas concerned with the

industry.

Management should provide necessary step for the stress and mental tension faced

by the higher officials in the organization.

Modern technique should be adopted for production and also for good record

keeping of employees.

Better strategies for maintaining work principle should be observed.

Company should try to reduce cost of production.

Management should take firm decision regarding procurement of raw materials at a

cheaper rate.

Complaints should be rectified in the shortest possible time. For this customer

satisfaction cell should be organized.

Management should go for implementing IT Measuring HRM duties and

contributions.

50

CONCLUSION
T.S. & C. Ltd is public limited company under the control of state
government. There are mainly seven departments in this company and they are
production, quality, control, production planning, material, finance, human resource and
personnel & administrative department. T.S. & C ltd is trying to provide better products;
to satisfy its consumers needs. The firm is committed to professional management and
provides a decent living to its employees and is really a leader in this part of the word. I
believe that in the era of globalization this firm will glorify our nation by concurring the
global market by satisfying the needs of the global consumers. The organization study
done at T.S. & C Ltd gave me practical exposure to the theory that I have learned. I have
undergone the training sincerely and satisfactorily. The firm also was so co- operative to
complete the training. I am concluding the study in a satisfactory manner.

51

BIBLIOGRAPHY

52

BIBLIOGRAPHY

Kothari C.R Research Methodology, New Delhi, McGraw Hill 1984

Chhabra T.N, Human Resource Management, Dhanpat Rai & Co Pvt Ltd,1994

Pandey I.M, Financial Management, Vikas Publishing House Pvt Ltd,1994

Annual report 2013-2014.

53