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 cooperative 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

RESEARCH
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.

TYPES OF RESEARCH
For the sake of perceiving the concept of research, let us briefly

classify the research on various head.

Research may be broadly classified as;
Fundamental research and applied research
Descriptive research and analytical research
Quantitative and qualitative research
Conceptual research and empirical research
Fundamental research and applied research
Fundamental research is mainly concerned with generalization with
the formulation of the theory. It is the research concerning with

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

truth. Need for such a research arias with the emergence of the new
problems and new situations in the Society. Fundamental research
aims at the attainment, increase and verification of knowledge. It tries
to find out cause and effect relationship in social phenomena.
Fundamental research in essentially a positive and not normative.
Applied research is concerned with the solutions of particular
problems. It aims at finding solution for the immediate problems
facing a society or an industrial organization. Applied research is
empirical and practical. It is concerned with applied aspects of the life.
Research to identify social, economic or political trends that may
affects a particular institution, or the marketing research, evaluation
research etc are the examples of applied research.
Descriptive research and Analytical research
Descriptive research includes survey and fact finding enquiries of
different kinds. The major purpose of descriptive research is
description of the state of affairs as it exists at present. The main
characteristic of this research is that the researcher has no control over
the variables. He can only report what has happened or what is

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

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

Quantitative research and Qualitative research

Quantitative research is applicable to phenomena that are measureable
so that they can be expressed in terms of quantity. Quantitative
research is concerned with qualitative phenomenon. Research
designed to find out how people feel or what that thinks about a
particular subject is a qualitative research. Quantitative research is
especially important in the behavioral sciences where the aim is to
discover underlying motives of human behavior.
Conceptual research and Empirical research
Conceptual research is that related to some abstract ideas or theory. It
is generally used by the philosophers and thinkers to develop new
concepts or to reinterpret existing ones.
Empirical research is relies on experience or observation alone. It is
data research coming up with conclusion capable of being verified by
the observation or experiment. It can be called experimental research.

10

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

guess
As to the probable results. He then works outs to gets enough facts to
prove or disprove his hypothesis.
RESEARCH APPROACH
There are two basic approaches to research namely quantitative
approach and qualitative research.
Quantitative research
In the research is based on measurable quantities. There for data in this
approach, are available in quantitative form. This approach can further
classified into inferential, experimental and simulation approach. The
inferential approach aims at forming a data base from which to infer
characteristics or relationship of population. In this approach a sample
is selected from the population and it is studied to determine the
characteristics of the sample. In this approach some variables are
manipulated to observe their effects on other variables.

Qualitative Research
Qualitative approach to research is concerned with subjective
assessment of attitudes opinions and behaviors. Research in such

11

situations is a function of researchers insight and impressions. Such

an approach, generates results either in non-quantitative from or in the
from which are not subjected to rigorous quantities analysis.
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.
Observation Method

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The observation method is the commonly used methods specifically in

studies relating to behavior sciences. In a way we all observe things
around us, but this sort of observation is most scientific observation.
Observation becomes a scientific tool and the method of data
collection for the researcher, when it servers a formulated research
purpose, is systematically planned and rewarded and it is subjected to
checks and control on validity and reliability.
The main advantage of this method is that subjective bias is
eliminated, if observation is done accurately. Secondly the information
obtained under this method relates what is currently happening. It is
not complicated by either the past behavior or future behavior or
attitudes. This method is particularly suitable in studies which deal
with subject who are not capable of giving verbal reports of their
feeling for one or the other.
Questionnaire Method
Questionnaire is the self administrated process whereby the responded
himself to read the questions and answering the entire question with
assistance of the investigator schedules are widely prepared their
question.
Personal Interview Method

13

It requires a person known as the interviewer asking questions

generally in a face- to face contact to the other person or persons to
collecting information. This sort of interview may be in the form of
direct personal investigation the interviewer has to collect the
information personally from the source concerned. But in certain cases
it may not be possible or worthwhile to contract directly the persons
concerned or on account of the
Existence scope of enquiry. The direct personal investigation
technique may not be used.
SECONDARY DATA COLLECTION
The data has been collection from the direct interaction, discussions,
and interviews with the employees of the various departments in the
organization. This helped in getting a great deal of information
functions & inter-dependence of various departments in the
organization. Secondary data means that are already available i.e., they
refer to the data which have the researcher utilizes secondary data, and
then he has to look into the various sources from where he can obtain
them. Secondary data may either be published data usually published
data are available in;

14

 Technical and trade journals

Book magazines & newspapers
Reports & Publication of various associations connected with business
and industry, bank, stock exchange etc.

Reports prepared by research scholars, universities, economist etc in

different field and public records and statistics, historical documents,
and other sources of published information.
MANAGEMENT
The term management has been used in different senses. Sometimes it
is used in the sense of managing the group of managing the personal in
an organization. At other times, management refers to the process of
planning, organizing, staffing, directing, co-ordination and controlling.
DEFINITION
According to George Terry, management is a distant process
consisting of planning, organizing, activating and controlling the
performance to determine and accomplish the objectives by the use of
human being and other resources.
FUNCTIONS OF THE MANAGEMENT

15

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.

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 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

17

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

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 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 cooperate 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

19

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.
MANAGEMENT RESEARCH
Research in Management is primarily applied research, in the sense
that it is directed towards aiding the manager in his decision making.
Research is carried out in the enterprise to solve mangers immediate
problems or help them in their predictive efforts for determining the
future course of action or tackling an anticipated problem.
Management research comprises of:
Reporting Research

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 Descriptive Research
Explanatory Research
Predictive Research

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

21

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.
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

22

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 non-availability 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.

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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 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 2001 the majority of the retail
outlets also have been entrusted to the corporation. As at present the
whole activity of IMFL from

24

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.
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.

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CHAPTER 2
COMPANY PROFILE

COMPANY PROFILE
26

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 2008 is Rs.1, 3156,890.
Manpower of company is 218 employees at present and turnover
approximately for the years ended 2007-2008 is 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

27

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.
STRENGTH OF BOARD OF DIRECTORS

28

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
29

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.
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.

30

PRODUCT PROFILE
Travancore Sugars and Chemicals Ltd produce variety of products
which are given below.
INDIAN MADE FINE LIQUOR (IMFL)
During the financial year 2009-2010 the company sold3688488 bulk
liters of IMFL valued Rs.140305963. 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 2009-2010as per sales report this brand makes good sales.
Jawan xxx Rum

31

During the year2009-2010 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 180 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.
DENATURED AND MUTILATED SPIRIT
During the year 2009-2010 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 2009.2010 total earnings
from both was around 8.5 lakhs.

RECTIFIED SPIRIT

32

During the year 2009-2010 the company sold 215565 liters of rectified
spirit valued 82 lakhs. It contains 94% alcohol.

33

CHAPTER 3
ORGANIZATIONAL STRUCTURE OF THE
COMPANY

34

PRODUCTION DEPARTMENT
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

35

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.
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

36

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

37

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 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.

38

 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

39

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 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

40

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

41

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.
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.

42

 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

43

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.

MATERIAL & STORE DEPARTMENT

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
D. M Water (Deminaralised Water)

44

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 dealers.

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

45

 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.
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

46

specification. On getting this requisition materials department will start

the procurement.
HUMAN

RESOURCE

MANAGEMENT

DEPARTMENT
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
EMPLOYEE COMPOSITION

47

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, 2pm-10pm, 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
48

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.
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.

49


o
o
o

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

50

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.
INCENTIVES
Company follows a group incentives scheme on the basis of daily
production. If the production exceed additional incentive will be

51

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.

52

 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.

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.

53

 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.
FINANCE DEPARTMENT
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

54

 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.
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.

55

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 under
Section211(3C) of the Act, read with the Companies (Accounting
Standards) Rules,2006.

56

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.

57

 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.
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.

58

 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

59

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.
DISPATCHING DEPARTMENT
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

60

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.
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.

61

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
62

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.

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-

63

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.

64

CHAPTER - 4
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.

65

 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.
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.

66

 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.
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.

67

 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.

68

CHAPTER 5
FINDINGS, SUGGESTION CONCLUSION

69

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 is
Provided on rent basis. The quarters are well furnished with all
facilities.
70

 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 lay-off 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.

SUGGESTIONS

71

 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.

CONCLUSION
T.S. & C. Ltd is public limited company under the
control of state government. There are mainly seven departments in

72

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 cooperative to complete the training. I am concluding the study in a
satisfactory manner.

73

BIBLIOGRAPHY

74

BIBLIOGRAPHY

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

T.N Chhabra, Human Resource Management, Dhanpat Rai & Co
Pvt Ltd.
I.M Pandey, Financial Management, Vikas Publishing House Pvt Ltd.
Annual report 2008-2009.

75