jithu internship

7/31/2019 Jithu Internship

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1. Introduction

Organization study refers to the study of organization in general and about itsorganizational goals, organizational structure, management system, technologies used in

organization and how an organization interacts with the environment. Each and every

organization has its own importance in the economic wealth of the nation. Different

organization meets different needs of people by effecting different product and services. As

a part of the academic curriculum, each student has to undertake an organizational study to

get practical exposure. This study was conducted at K.S.E Limited, VEDAGIRI. This study

was based on the different aspects and dimensions of different departments of the

company.

India is the largest milk producing country in the world with an annual yield 79 million

tone. Milk and milk products have a prominent position in human life. It provides the

primary source of nutrition for young ones before they are able to digest other types of

food. The exact component of raw milk varies by species, but it contains significant

amounts of situated fat, protein and fat as well as vitamin C. Cattles milk has a pH ranging

from 6.4 to 6.8, making it slightly acidic.

As time changed the cattle feed industry emerged as a booming one and product

diversification became necessity. As time changed the cattle feed industry emerged as a

booming one and product diversification became a necessity. Due to the fast growth of this

industry another industry also grows simultaneously; it is the cattle feed industry. In India

this industry is booming. It is hard to estimate the demand for cattle feed in our country.

K.S.E Limited is the major player in this field with a significant market share. The studyintends to get an overview of the K.S.Es organizational structure functional department

and their style of working.


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1.2 Objectives of the Study

The overall objective is to conduct a study on organizational structure

of K.S.E Ltd. The following are the specific objectives of the study.

To examine the developments of K.S.E

To understand about the functional areas of the company.

To understand the organization structure of K.S.E.

To understand the product profile of K.S.E.

To make a SWOT analysis of K.S.E.

To suggest measure for improvement in the context of the present

environment.

To get the practical experience regarding the working of the

organization.

With view to achieving the objectives given above, the study is carried out in the

following manner.

Methodology

Collection of data is the most important stage in the research process. Collection of data

means the methods that are to be employed for getting the required information from the

units under investigation. Both primary and secondary data are used for the purpose of the

study.


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Primary data are those collected for the first time. They are collected mainly through

personal interviews with the officials of the company and personal observation.

Secondary data were collected indirectly. They are collected from the records of KSE, the

companys website, organizations manuals and annual report.

MS word and MS excel are used for the analysis and the preparation of the study

report.

1.2 Scope of the study

Study covers the following aspects;-

The history of KSE Ltd

To know the present position and performance of the company.

Analyzing how K.S.E has utilized its strengths for tapping the opportunities,

avoiding the threats and overcoming the weaknesses.

Limitations of the study

Some of the limitations of the study are;

1. Time has been a major constraint in the conduct of this study. The given time was

not sufficient to make an in depth study of the organization.

2. The companys authorities could not disclose matters relating to some functional

areas. Hence some areas could not be studied extensively.


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3. As the report was based on direct interviews with the official and workers, cent

percent accuracy cannot be ensured as there is a chance of personal prejudice and

bias.

CHAPTER-II

INDUSTRY PROFILE


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INDUSTRY PROFILE

Cow had a significant place in ancient India. Since mans many essentials were met by the

cow; she was worked shipped as Gomatha.Eventually breeding of cows became one of

the most profitable jobs for man. India is the country which has the largest number of cows

but they produce considerably less amount of milk. The main reason is lack of nutrients.

In early days, grass was considered as the main cattle feed. But now the attitude is

changed. Initially cow was given grass and straw. Straw lacks many nutrients. Later cereals

were given to feed. Important cereals cultivated are traditional peas; bar seem,

luseen,clover etc.

As man became more and more civilized, he invented advanced cattle feed. As a

result mixture of cereals, pulses and other nutrients was started to be given to the cows. As

cattle feed industry flourished in the country, cattle feed started to be produced in bulk, in

factories. Cattle feed industry even though had initial teething troubles due to lack of

knowledge and indifferences from the part of authorities; now is in the growth phase.

Cattle Feed Industry in India


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The cattle feed industry in India about 37 years old. It is mainly restricted to dairy and

poultry farms; the beef and pork industry is almost nonexistent. The quality of standards of

Indian feeds is high and is up to international levels. There is an adequate availability of

raw materials in India. The industries production is about 3.1 million of tones, which

represents only5 percent of the total potential and the feed exports are not very high. Now a

days the cattle feed industry possesses modern computerized plants and latest equipments

of various procedures and employs latest manufacturing technology.

In India most research work on the animal feeds is practical and is focused on the

use of bye products and on the upgrading of ingredients and on the enhancement of

productivity.

Feed manufacturing on commercial and scientific basis was started around 30 years

ago with the setting up of medium-sized feed plants in northern and western India. Feed

was produced mainly to cater to the needs of dairy cattles. Today the Indian feed industry

is worth approximately 45 billion rupees.

India possesses largest population of cattle and buffalo in the world. In a total of 288

million, there are 10 million cross bread cows, 15 million good milk cows of local varieties

and 36 million buffalos of good milk varieties. The rest of the cattle population is of a non-

descriptive variety and a sizeable proportion consists of bullocks.

India is number one milk production, at 79 million tones per annum and the dairy

industry is spread across the whole country. Farms are located on the outskirts of the cities

and also within the cities.


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Growth in milk sector has occurred mainly through co-operative efforts. The milk

collection centers started through co-operative effort and collected milk from villagers in

quantities as small as litre and gradually started to provide other services to farmers,

including education, artificial insemination, veterinary health support and feeding. Small

farmers became prosperous, loan facilities were made available through banks, and

member farmers started to share the profits from co-operatives .Co-operative society also

set up there own computerized feed plant. They began to own modern computerized as well

equipped milk processing plants from whish they produce and market pasteurized milk,

butter oil, chocolate, ice-cream from milk, sweets, which are very popular with Indian

consumers. Today the feed production capacity of the co-operative society is about 0.7

million tones per year.

The National Dairy Development board(NDDP), which has excellent facilities for

research breeding, nutrition and health care, has played in vital role in setting up co-

operatives. Without NDDP and several of the existing dairy co-operatives, the milk sector

in India would have suffered.

There are as many as 25 well-defined breeds of cattle and six well defined breeds of

buffaloes in India. Well-defined breeds are found in dry parts of they country while cattle

in areas of heavy rainfall like south and east India usually do not belong to any defined

breed.

Cattle feeding routines are quite traditional. Farmers select their own ingredients and

make their own mixtures of cattle feed. The productivity of cattle is restricted because of

their poor genetic makeup. This means that even if such cattle were offered high quality

compound feed (industry feed), productivity may not see an increase.


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Oil cakes, maize and cereal by products are important ingredients of cattle feed. Coarse

grains and cottonseed are usually added to make a balanced feed mixture. Other products

like mango seed kernel, mahowa cake, neem cake, soya pulp, wheat bran, pollard, broken

rice, wheat germ and whey powder may also be used for feeding livestocks. Commercial

cattle feed consists of raw material such as cornstarch, liquid glucose, dextrose, surbitol,

fibrillose, malt dextrin, corn gluten meal, soy meal and rape meal. Intake of cattle

supplements improves the general health condition of cattle and leads to a high yield of

good quality milk that is rich in fat, protein and sweetness.

CHAPTER III

COMPANY PROFILE


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COMPANY PROFILE

History of K.S.E LIMITED

In the early 60s, when Kerala accounted for nearly 90 percent of copra in thecountry, oil millers in the state were finding in difficult to source copra as a good part of

this went to the northern markets. A group of millers in and around Thrissur district put

their heads together to form a company.

Kerala Solvent Extracts Ltd (KSE) was the brainchild of these millers who

established Keralas first solvent extraction plant of 40 TPD solvent extractions at

Irinjalakkuda on 25th

September 1963. The main objects of the company were extraction ofoils, rice brain oil and deoiled cakes.

Capital mobilizations were a major problem, especially since millers then were

doing badly. With support from the Kerala State Industrial Development Corporation

(KSIDC) and the IFC, they succeeded in raising the funds and from there it has been a


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success trail with the company diversifying and now having an annual turnover of Rs 200

crore which it hopes to double in the next two years.

During the 70s the cattle feed market was dominated mainly by multinationals and

companies from outside, cornering nearly 90% of the share. The directors then decided to

diversify into cattle field production using a portion of the extracted oilcake and set up a

unit. In 1976, the production of cattle feed began and in a few years others too followed

suit which resulted in shrinking the MNC market in Kerala to 25%. Tasting success, KSE

went on to set up more such units and has now four with a total capacity of 700 tones and

in a total 5 lakh tone market in the south, KSE has a 30% share.

Teething trouble

There were problems initially as farmers here were not accustomed to such a feed. The

company decided to have awareness campaigns across the state and set up a vast dealer

network across the state and slowly spread it to Tamil nadu and Karnataka and has a unit

each there.

KSE Ltd primarily manufactures ready-mixed cattle feed and feed supplement in

India. It also offers solvent extracted coconut oil, de-oiled coconut cake, and refined oil. In

addition, the company provides dairy products, such as milk and ice creams. KSE Ltd

supplies its products to customers through a network of dealer and retailers. KSE has

several brands which include KS cattle feed, KS supreme pellets, a bypass protein cattle

feed, KS forte, a feed supplement, and KS supreme, refined sunflower oil.

In 1987, the company introduced computers and microprocessors. In 1998 it started a

new 180-tonne cattle feed plant at Swaminadhapuram in Tamil Nadu. Alongside, it started

a solvent extraction unit there the next year. It opened yet another 240-tonne plant at

Kottayam in 1996 and its fourth 120-tonne factory at Palakkadu in 1998.


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There is a common thread running through all these products- no compromise on

quality. Only natural feel ingredients are being used in the feed formulations. Even urea is

not being used in any of the KS range of feeds. All required minerals and trace minerals

were manufactured in-house.

Diversifications

Finally, in 2003, the company entered in the business of ice creams and succeeded in

creating a market for itself in Thrissur and Palakkadu districts. It recently started marketing

its wide range of ice creams in ernakulam and was considering setting up a new production

unit in kottayam district to cater to the central and southern part of the state. The latest

among the ventures is a refining plant expected to go on stream from

November next year. The management hopes to set up at an investment of rs.12 crore for

which funds were raised from within, this plant and other allied activities to push the

company to Rs. 400 crore turn over level.

The latest three decades have seen KSE emerging as a leader in solvent extraction and

ready mixed cattle feed in the country. Today KSE commands the resources, expertise andinfrastructure to manufacture a range of livestock feed in high volumes, coconut oil from

coconut oil cake and refined edible oil.

The company came into existence with modest objective of helping coconut oil millers

through solvent extraction process. Achieving the same with remarkable success KSE over

the years has expanded considerably having ventured into other growth areas as well.

Driven by a commitment to high standards of quality, KSE has not only won customer

confidence but also national recognition through several awards and accolades. With

modern manufacturing facilities spread over three states, KSE caters to the vast belt

stretching across southern India and enjoys a significant presence in exports too.


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To face the emerging challenges, the company was negotiating with a leading

international firm for exchange of technology and improved feed formulations to launch

new varieties of cattle feed.

Spread across Kerala, Tamil Nadu and Karnataka, the company has five cattle feed

manufacturing plants with an aggregate capacity of 650 tons per day. It also manufactures

poultry and duck feed and enjoys a good share in the Kerala market. It had taken up rural

development as a major corporate task and responsibility and majority of the customers are

from rural belt.

VISION

Endeavour to maintain leadership through quality products, explore new avenue in product

development and marketing, create a stronger bond between the management, work force,

dealer and customers, contribute to social development and rural upliftment, and constantly

strive for excellence in all spheres of our activities.

CORPORATE GOVERNANCE DETAILS Company philosophy in corporate governance

In KSE Ltd, good governance is a systematic process which enables the company to

operate in a manner that meets with the ethical, legal and business expectations and

at the same time fulfils its social responsibilities. The company believed in a good

corporate governance, with utmost transparency in its operations achieved by

proper disclosure in its annual reports, Quarterly Results, Public Announcements,

Press Releases and all other communications to shareholders, so as to provide

shareholders and all other concerned with information about their companys

working, its strength, weakness, opportunities and threats and thereby enabling

them to develop a proper and balanced perspective on the working of their

company.


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Board of Directors

Board of KSE Limited consists of ten directors. Two of them, including the

managing Director, are whole time executive directors. The managing director hiself is the chairman of the board. The board invariably meets in every month and

evaluates the performance of the company. All major policy and business decisions

of the company are placed before the board and decisions are taken after due

deliberations and with mutual consensus. A management committee with five

directors as its members is functioning to assist the board, which is regularly

meeting, twice in a month, in order to review the operations of the company

And study the proposals that are to be placed before the board and make

recommendations thereon.

Name Designation

M.C Paul Chairman and Managing

A.P George Director

T.C Mathew Director

K.C Vijayaraghavan Director

T.R Regulal Director

P.K Varghese Executive DirectorK.P John Director

P.D Anto Director

John Francis K Director

Jose Paul Thaliyath Director

General share holder information:

Dividend Payment Date Within 20 days from the date of annual

- General meeting (if declared at the annual

General meeting)

Listing on stock exchanges - Cochin, Mumbai and madras stock exchange

Stock code


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Cochin stock exchange - KSE

The stock exchange, Mumbai - 519421

Madras stock exchange Ltd - KSE

Whistle Blower Policy

The company has not implemented any formal whistle blower policy, no

personnel has been denied access to the Audit Committee of the Company.

Means of communication

Regularly the company is publishing quarterly unaudited results and notices in

Business Line English daily and Mathrubhumi Malayalam daily. The company

has posted the latest quarterly results in the companys website

www.kselimited.com.

Details of Non-Compliance

No penalty or strictures were imposed on the company by the Stock Exchange

or SEBI or any authority on any matter related to capital market during the last

three years.

ISO Certifications:

KSE Limited has been certified by the International Standards organization with

ISO 9001:2000 for its factory at Irinjalakkuda that comprises solvent extraction, vegetable

oil refining and cattle feed manufacturing units. The company has also obtained ISO 9001

certification for its dairy units at Konnikkara in Kerala and Thalyuthu in Tamil Nadu

These units have also obtained hazard analysis and critical control points certification

that deals with food safety aspects involving well documented manufacturing process.

RECOGNITIONS

As pioneers in solvent extraction in the country, KSE has played a distinct role in

industrial development in the region. Apart from that , KSE has to its credit an array of

awards and recognition for its commendable initiative and performance in its field of
http://www.kselimited.com/http://www.kselimited.com/


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operations. The stature of KSE has kept pace with the rise in popularity of its products.

VEDAGIRI UNIT

Vedagiri unit commenced on 17th august 1996, with very modest objective to

provide the right product at the right time to the farmers particularly in rural areas. The

plant is the most sophisticated and the finest in the country.

Utilizing highly advanced technological features, this unit makes a new

chapter in the cattle feed manufacturing. Built on a spacious area of about 10 acres with

the capital of outlay of Rs.60 million fully generated from internal resources, the unit

commenced production in 1996.

Incorporating the latest development in technology, this units has the capacity

to produce cattle feed in both mash and pellet forms, with weekly production capacity of

1680 tones.

One of the sophisticated features of this unit is the computerized system using

microprocessors. A computerized control room for monitoring, homogenization, size

reduction, batching, pelletisation, pellet cooling respiration system and also has a well

equipped modern laboratory.

With the vedagiri unit commencing production, KSE is in a position to cater

fully to the demands of southern India. KSE gives importance to the needs of performance

of the customers.


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Since the early days, KSE has endeavored to supply its products to customers

through an extensive network of dealers and retailers, which form a dedicated force

behind the success of KSE. Its a matter of pride that KSE is a household name today.

With a strong commitment to customers and product quality and being cost competitive,

KSE stands poised to meet new challenges.

GROWTH CHRONICLE

1963 Kerala Solvent Extractions Ltd established.

1972 Solvent plant commences operation

1976 Mixed cattle feed production begins.

1987 Cattle feed production reaches 180 tones Introduction of

computers In the factory and office.

1988 A new mixed cattle feed plant starts operation at

Swaminathapuram, in Tamil Nadu with a daily production

capacity of 180 tones.

1989 A solvent unit with a capacity of 120 tones per day commences

operation at the Tamil Nadu plant.

1990 Introduction of KS supreme pellets, bypass protein cattle feed

in the market.

1991 Opens its Palakkadu branch.

1992 Cattle feed manufacturing begins in third party units.

1993 Enters export market.

1994 Introduction of feed supplement KS forte. Public issue and

listing of shares.

1995 New vegetable oil refining plant commissioned. Calicut branch

opened.


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DISTINCTIONS THAT MAKE KSE NO.1

Quality product.

Oriented to customer satisfaction.

Wide geographical coverage.

No:1 processing coconut oil cake through solvent extraction in India.

Winner of S.E.A. National awards and state productivity and safety awards for

many years.

Recognition from animal nutrition society for contributions in cattle feed

manufacturing.

KS brand cattle feed is made of natural feed ingredients and had no urea in it.

Keralas first export quality mixed cattle feed.

First in India to manufacture and distribute bypass protein cattle feed.


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1996

240 TPD cattle feed commences at Vedagiri, Kottayam Dist, Kerala.

1997 Company renamed as KSE limited

1998

A modern childrens park and information centre have been completed at

Irinjalakkuda for the benefit of the 1999 public.

Company introduces Ks Delux Plus the new pelleted feed in HDPE bags

for Kerala market.

2000

Company starts production and distribution of milk and milk products

from Konnikkara and Thalayuthu Dairy units.

2002

Cattle feed production at Irinjalakkuda unit increased to195 MTs per day.Ice cream VESTA launched.

2003

Started producing cattle feed in a leased plant at Edayar, Kalamassery.

Cattle feed production at the Swaminathapuram unit increased to 195 MTs

per day

2004

New project of 200 TPD solvent plant and 100 TPD oil physical Refining

plant started.

Acquired land from KINFRA for starting a new project at Kinfra park

koratty.

ISO 9001; 2000 Accreditation for Irinjalakkuda. Both the dairy units at

konnikkara and Thalayuthu have been accredited with ISO 9001 2000

ISO 14001:1996 and HACCP Registration.


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2005

Cattle feed production capacity at the irinjalakkuda unit increased to 210

MTs per day.

Started producing cattle feed in a leased unit at Erode.

ISO 9001:2000 accreditation for vedagiri and swaminathapuram unit.

2006

The 200 TPD solvent extraction plant at koratty commissioned 100 TPD

physical refining plant at koratty commissioned.

A branch at Coimbatore started for making vesta Ice cream.

2007 Decided to install 500 TPD cattle feed plant at irinjalakkuda unit.

2008 Ice cream production unit commissioned at Thalayuthu.

2009

Cattle feed production capacity at swaminathapuram increased to 200 MTs

per day.

Commissioned function action plant at koratty.

Commissioned 500TPD fully state of the Art German Technology animal

feed plant at irinjalakkuda.

2010 Ice cream production unit at vedagiri commissioned.

RESEARCH AND DEVELOPMENT

1. Incorporation of new technology and subsequent innovation.

2. Dairy farm attached to a unit of the factory.

3. Well equipped laboratories.

4. Introduction of new Vitaminised mineral mixture.


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PRODUCTION UNITS

UNITS IN KERALA

KSE Limited KSE Limited,

Irinjalakkuda, Dairy unit,Konikkara,

Solvent Road, Irinjalakkuda. Thrissur

KSE Limited, KSE Limited,

Vedagiri unit, Koratty unit, KINFRA Park,Kottayam. Koratty.

KSE Limited, KSE Limited,

Palakkadu unit, Muppathadam, Edayar,

Othugode, Palakkadu. Kochi.

KSE Limited,

NIDA, Menonpara Road,

Kanjikkodu, Palakkadu.

UNITS IN TAMIL NADU

KSE Limited, KSE Dairy unit,

Swaminathapuram unit, Dairy unit, Thalayuthu

Swaminathapuram.

Branch

KSE Limited,

Paropadi,

Kozhikode.


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ORGANIZATION CHART

Clerk

Board of Directors

Chairman and Managing Director

Chief General Manager

G.M

Finance

Chief

Marketing

Manager

Chief purchase

manager

Chief

Nutritionist

Chief personnel

manager Plant Man

eputy finance

manager

SeniorAssistant

Clerk

Sales officer

Clerk

Purchase

officer

Attenders

Senior Chemist

Veterinary

officer Engine

Personnel

officer

Chief shiftsupervisor

Godown o

Worke

Tally Cl

GodowAssista

Workers

SeniorAssistant

Boiler operator

Assistant

operator Electrician


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CHAPTER -IV

PRODUCT PROFILE


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PRODUCT PROFILE

K.S CATTLE FEED

KSE LIMITED primarily manufactures ready-mixed cattle feed and feed supplements

in India. It also offers solvent extracted coconut oil, de-oiled coconut cake, and refined oil,

the company provides dairy products, such as milk and ice creams.

Oil cakes, maize and cereal by products are important ingredients of cattle feed.

Coarse grains and cottonseed are usually added to make a balanced feed mixture. Other

products like mango seed kernel, mahova cake, neem cake, soya pulp, wheat bran, pollard,

broken rice, wheat germ and whey powder may also be used for feeding livestock.

Commercial cattle feed consists of raw materials such as cornstarch, liquid glucose,

dextrose, surbitol, fibrillose, malt dextrin, corn gluten meal, soy meal, and rape meal.

Intake of cattle supplements improves the general health condition of cattle and leads to a

high yield of good quality milk that is rich in fat, protein and sweetness.

KS brand cattle feed is made of natural feed ingredients and had no urea in it. A

special mixture containing all required minerals and trace minerals, manufactured by KSE

in house, is incorporated in all the range of feeds.

The products are available as mash and pellet types. The main ingredients of cattle

Feed is coconut cakes, minerals and brans. The source of energy in the feed is mainly

derived from the grains (maize/jovar/ragi), tapioca chips and oil from rice polish, wheat

bran oil cakes. K.S.E supreme pellet contains 26% meat and bypass protein.


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VESTA ICE CREAM

Keralas ice cream market is worth Rs 45 crore. The companys brand Vesta is available invarious speciality flavors and came in different sizes to suit the needs of individuals and

families. The product was priced on par with other known brands in the market. The

product is 100 per cent vegetarian and do not have gelatin or saccharin.

KSE products are given below:

K.S Special

K.S Super

K.S Deluxe Pellets

K.S Deluxe plus

K.S Supreme pellets

K.S Fortes

K.S Supreme sunflower oil

K.S Milk

K.S Ghee

K.S Curd

K.S Sambharam

Jersy

Vesta ice cream


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CHAPTER V

DEPARTMENT PROFILE


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DEPARTMENT PROFILE

1. FINANCE DEPARTMENT

2. PURCHASE DEPARTMENT

3. PRODUCTION DEPARTMENT

4. QUALITY CONTROL DEPARTMENT

5. MARKETING DEPARTMENT

6. HUMAN RESOURCE DEPARTMENT


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FINANCE DEPARTMENT

Finance is an important factor that directing the day-to-day activities of a business

firm. Finance is concerned with the cash and cash is the common purchasing power or

medium. Finance may be defined as, that administrative area or set of administrative

function in an organization which relate with the arrangement of cash and credit so that the

organization may have the means to carry out its objective as satisfactorily as possible.

Financial management is that managerial activity which is concerned with the

planning and controlling of the firms financial resources. Financial management is

concerned with raising and administrating funds for an enterprise. It examines how funds

are used and procured. The main objectives of financial management are: the maintenance

of liquid assets and maximization of the profitability of the firm. The financial manager is

concerned with the efficient allocation of funds within the enterprise and raising additional

funds when needed and investing funds in the projects.

DEPARTMENTAL STRUCTURE

General Manager Finance

Deputy Finance Manager

Senior Assistant

Clerks


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The main function of Finance Department is to have an overall control over both inflow

and outflow of financial resources. The Finance Department is divided into different

sections.

1. Establishment Section

This section is mainly concerned with the payment of employees. These

payments include:

Loans

Salaries

Advances

Leaves, Travelling Allowances

Major functions

Bill clearance of raw material purchase

Payment clearance related work

Tools and spares

Sales related bill clearance

Monthly dealing with distributors

Tax clearance, Licenses receiving works

Work order related works

2. General Finance Section

This section concerned with preparation of statements and other general

transactions like:

Cash

General Accounts

Taxes


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Insurance

government communication

Balance sheet

Fund Flow Statement

Cash Flow Statement

Capital Valuation

3.Rcords Section

In the records section the records are maintained properly. The main record

maintains here are:

Receipts Cash Book

Payments Cash Book

Receipt Voucher

Payment Voucher

Salaries and Wages

Purchase materials and services

Purchase of fixed assets

Claims Recoverable

Debit note

Miscellaneous Entries

Source of Finance

Long term finance, Medium term finance and short term finance are consider the

source of finance.

Sources of Long term Finance are:

Shares

Debentures


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Internal Finance

Public Deposit

Industrial Financial Institutions

Industrial Banks

Sources of medium term finance are:

Redeemable Preference Shares

Debentures

Bank loan

Hire Purchase and Installment Purchase

Public Deposit

Mortgage Loan

Internal finance

Sources of short term finance are:

Bank OD

Trade creditors

Money Lender

Customers Advance

Loan from MD and directors

CAPITAL STRUCTURE

KSE came a long way from the early days of its struggle for capital mobilization.

Today the paid up capital of the company stands at Rs 32 million and its shares are listed at

the leading stock exchanges of Mumbai,


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Chennai and Kochi. The companys maiden public issue, launched in 1994, has drawn a

massive response.

DIVIDEND

Since 1976, KSE Ltd has been making steady profit, paying uninterrupted dividend

and 20% yearly bonus to the employees. The turnover of the company has recorded a

continuous growth and will be crossing Rs.3000 million during 2007-08.

Prudent financial management and a futuristic outlook has been the abiding

principle which turned around the initial setbacks into strengths. The companys constant

investments in growth have been producing good returns. The financial future of KSE is

secure and bright.

OPERATIONS

During the year 2008-09 the turnover of the company improved from Rs.289 crores

to Rs. 350 crores, thus registering an increase of 21% over that of previous year. The

improvement in turnover is mainly due to increase in the selling price of cattle feed and

deoiled coconut cake, a portion of which is due to substitution of high quality feed in place

of low end products. Quality wise the sale of cattle feed improved marginally. The volume

of ice cream enhanced from 600 kl to 791 kl recording a growth of 32% in volume. Despite

the continuing adverse conditions in the animal feed front, the company could retain the

sales volume at same levels of earlier two years. The company performed well in terms of

profit after tax, which improved from Rs.258.32 lakhs in year 2007-08 to Rs.320.54 lakhs

in the year 2008-09, recording an increase of 24% over that of previous year, and

In the year 2011-12 the profit after tax increased 350.23 lakhs.

The cattle feed and solvent industries are passing through very challenging period

for the past three years due to steep hike in the ingredient prices and other overhead costs,

especially in the cost of labour. KSE is combating the situation, by improving operating


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efficiencies and passing on minimum effect of price increase to the customers, without

losing sales volume already achieved. The average cost of cattle feed ingredients registered

per ton increase of Rs. 740 and 750 in the year 2007-08 and 2008-09,which further went up

by Rs. 1529 per ton in the year 2010-2011.It is likely that the price situation of the cattle

feed ingredients will rule at these high levels in the next year also. As the company

judiciously adjusting the cattle feed selling price in ton with the ingredient prices, KSE

expect to their better performance in the coming year also.

The company could marginally improve the quantity of oil cake possessed during

the financial year 2008-09 in the oil cake processing division. In the early months of the

year 2008-09 the company had to depend on imported coconut oil cake as they could not

procure enough quantity locally. While the coconut oil price ruled at very low levels the

price of the coconut oil cake soared up to unexpected levels and thereby that division had

incurred considerable loss during the year 2008-09, along with this, as a result of

unprecedented depreciation in the value of the rupee against US dollars, on repayment of

buyers credit availed from bank to fund of import of coconut oil cake, the company had to

book foreign exchange loss to the turn of Rs.109 lakhs in oil cake processing division.

After the revamp of dairy division by cutting down the uneconomic milk operations andconcentrating on ice cream, that division has turned around and has started generating

profit. The companies have added 1000 lpd production capacity of ice cream in Thalayuthu

unit. Increasing the production capacity of ice cream by starting more production units

nearer to the identified potential markets also is on the anvil.

Significant Accounting Principle

1. Basis of Accounting:

The financial statements are prepared under historical cost convening on

accrual basis, except as otherwise stated, and are in compliance with the Accounting

Standards issued by the Institute of chartered Accountants of India referred to in section

211(3C)of the companies Act 1956.


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2. Use of Estimates

The presentation of financial statement in conformity with generally

accepted accounting principles required estimates and assumptions to be made that affect

the reported amount of assets and liabilities on the date of the financial statements and the

reported amount of revenue and expenses during the reporting period. Difference between

the actual results and the estimates are recognized in the period in which the results are

known /materialized.

3. Fixed Assets

a) Fixed asset are stated to cost of acquisition, less accumulated

depreciation.

b) In the case of fixed assets acquired for new projects / expansion,

expansion incurred during construction period are carried forward under pre-operative

expenses and are capitalized and allocated to the respected fixed assets on

commencement of financial production.

c) As of the balance sheet date an assessment Is done to determine

whether there is any indication of impairment in the carrying amount of fixed assets. If

any such indication exists, the assets recoverable amount is estimated. An impairment loss

is recognized whenever the carrying amount of an asset exceeds its recoverable amount.

4. Depreciation:

Depreciation on fixed asset has been provided on written down value method at

the rates prescribed in schedule 14 of the Companies Act, 1956, except on leasehold

which is amortized over the period of the lease.

5. Investments:

Long term investments are stated at cost less provision, if any, permanent

diminution in the value of such investments.


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6. Inventories

Investments as at the close of the year are valued at lower of cost or net

realization value. Cost includes cost of purchase, conversion and other costs, as the casemay be, incurred in bring the inventories to their location, determined on the following

methods.

a. Raw Materials :FIFO( first in first out)

b. Packing Materials : FIFO( first in first out)

c. Stores and Spares and

Consumables : Weighted Average Cost

7. Retirement Benefits:

a. Contribution to provident fund and employees welfare fund is

charged to profit and loss account.

b. Gratuity:-The accruing liability toward gratuity of employees is

covered by the group gratuity com assurance scheme of life insurance corporation of

India and the contribution due in accordance with the scheme is charged to P&L account.

Gratuity is respect of whole time directors is provided for on gross (undistributed) basis

and charged to P&L account.

c. Accruing liability for leave encashment benefit on retirement is

provided for on the basis of actuarial valuation.

8. Sales.

Sales are stated gross of excise duty as well as net of excise duty and are

exclusive of vat or sales tax.

9. Claims:

Claims are accounted for as and when finally determined or settled.

10.Grants/Subsidies related to capital assets:

Grants or subsidies received specifically related to capital asset, are

credited to the carrying cost of the respective asset. Other grants or subsidies received are

credited to capital reserve.


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11.Borrowing cost:

Borrowing cost that are attributed to the acquisition or constructionor production of qualifying assets are capitalized as part of the cost of such assets. A

qualifying asset is one that necessarily takes substantial period of fine to get ready

intended use. All other borrowing costs are charged to revenue.

12.Tax on Income:

Current tax is determined as the amount of tax payable in respect of taxable

income for the year.

Differed tax is required on timing difference; being the differences between taxableincomes and accounting income that originate in one period and are capable of one

reversal in one or more subsequent periods. Where there is unabsorbed depreciation or

carry forward losses, differed tax assets are recognized only if there is virtual certainty

of realization of such assets. Other differed tax assets are recognized only to the extent

there is reasonable certainty of realization in future.

13.Segment Reporting:

The companys primary segments(business segments) have identified

as:

a. Animal feed division

b. Oil lake processing division

c. Dairy division comprising milk and milk products including ice

cream.

There are no reportable geographical segments. Segment revenue, segment

results, segment assets and segment liabilities include the respective amounts identifiable to

each of the segments as also amounts allocated on a reasonable estimate. The expenses,

which are not directly attributed to any of the business segment, are shown as unallocated

expenses. The expenses, which are not directly attributed to any of the


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business segments, are shown as unallocated expenditure. Assets and liabilities that cannot

be allocated between the segments are shown as part of unallocated assets and

liabilities respectively. Inter segment transfer of processed materials are accounted

considering the estimated realizable value of such goods.

14.Foreign Exchange Transaction:

Monetary assets and liabilities relating to transactions involving

foreign exchange, currently remaining unsettled, as the end of the year, at the end rate.

Gains or losses due to such translations of foreign exchange, transactions (other than of

fixed assets) are recognized in the P&L account of gains/losses. Due to such transactions

of foreign exchange, transactions relating to fixed assets, if any, are adjusted the carrying

cost of such assets.


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Financial Highlights2011 2012

Sales and other income 54336.28 45436.07

Gross profit 2387.83 1446.98

Profit before tax 1587.04 667.31

Profit after tax 1044.93 449.81

Share holder equity 3971.18 3395.35

Capital employed 4998.67 4498.23

Gross fixed asset 7308.62 7194.27

Share holder

equity per share

124.10 104.23

EPS of Rs.10 each 32.65 14.06

Dividend Rate 110% 100%


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Market Price data 2011-2012 based on BSE data

Month High LowApril 219.95 163.30

May 217 170June 210.90 189.15

July 244.95 198.00

August 245.90 200

September 244 197

October 243 203.05

November 251 210

December 247.50 203

January 254.00 210.00

February 250.00 228.00

March 267.50 230.00

PUCHASE DEPARTMENT

Purchasing is the procuring of goods as per the need-either for future sale, use or

storage-against payment of an optimum price, Purchase management is the technique of

purchasing the right goods at the optimum price at right time from the reliable vendors. It

is a procedure for procurement of goods or service on cost-effective terms. The purchasing

procedure is a defined method of buying goods or hiring services to make them available

when they are required.


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The main objective of purchase management is to ensure availability of required

goods or services, as and when they are needed by the organization. Goods may be

purchased and kept in storage for future requirement, keeping in mind possible shortage

conditions in the future. The purchase department assures that the company should get

good quality raw materials at the right time.

The purchase department of KSE Ltd is performed successfully under the

supervision of chief purchase manager.


Functions of Purchase Department

The purchase department ensures right quantity and quality of goods at right time

from the right vendors. The main functions are:

1).Raw Material Purchase

Major importance is given to purchase of high quality raw materials. Raw

materials are purchased from permanent suppliers and purchase is done after sample test.

Chief Purchase Manager

Senior Assistant

Purchase Officer


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Rate has been fixed at the time of order. Because of lack of raw materials from Kerala,

most of the purchases are made from outside Kerala.

Purchase department has its own godown for keeping the raw materials. The

capacity of the godown is 5000 ton. A stock of 2000 ton raw materials is always stocked

in the godown. Safety stocks of the company is maintaining mostly for 10-15 days. The

manager visits the suppliers plant for checking the quality of raw materials.

Purchases of raw materials for purchase department are always on the basis of

three major factors.

Cost

Quality

Availability

2). Purchase of Packing Cover

Packing cover consist of

Polythene cover

Jute bag

Gunny bag

Jute bag and Gunny bags are supplied from

Calcutta in the form of bales containing 400 bags. Parameter for cover is length, breadth

and width. A separate godown is there to store bags.

3). Tools and Spares

Local vendors supplies tools and spares. Ordering is done by two ways.

1. Directly

2. Telephone

Delivery time is mentioned at the time of ordering.


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4). Uniform and shoe purchase

Permanent suppliers supply uniform and shoe for workers. Uniform and shoe

are given by the company to the workers every year.

5). Lab materials

Chemicals needs by the labs are supplied by the permanent suppliers according

to the order.

PRODUCTION DEPARTMENT

Production is the primary business of an organization. All other wings or

activities of an organization exist subject to the existence of production. Without

production or anything to sell, there is no organization at all. Production is the process by


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which the transformation of the range of inputs into the required output having the requisite

quality level. Production involves the greatest bulk of a companys employees and is

responsible for a large portion of its assets. It also has a major impact on the quality and

cost of goods and therefore is the visible face of the company.

In KSE warehousing is also under the purview of production department. Here

the production department is headed by the plant manager. He is supported by an engineer,

shift supervisor and godown officer for the effective working of the production department.


Functions of Production Department

The major functions of production department are:

Utilization of optimum level of raw materials

Controlling production

Ensure flexibility in production

Plant Manager

Chief Shift Supervisor Godown officer

Godown Assistant

Engineer

Workers

Tally Clerk

Workers

Electrician

Boiler

Operator

Assistant

Operator


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Standardization of production

Ensure quality in production

Minimization of cost of production

Raw MaterialsA wide variety of different cakes, brans and grains are used in the formulation of

KS cattle feed.

Major Cakes

Coconut cake

Cotton seed extraction

Rape seed

Sunflower

Jersey cake

Grains

Soya bean

Maize

Jowar

Ragi

Tippy

Brans

Rice bran(Both oiled and de oiled)

Wheat bran

Other Items


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Molasses is used to give palatability to the feed and also a source of energy. Sodium

chloride, calcium phosphate is also added.

Oiled cakes or de oiled cakes will always be a combination of at least four cakes

from: cotton seed, coconut cake, soya bean extraction, rape seed extraction, ground nut

cake, kardi extraction. In order to ensure the availability of minerals and trace minerals, a

modern unit of manufacturing mineral mixture was set up in 1985.

QUALITY FACTORS

General formulae as follows:

1 Oiled de oiled cakes 40%

2 Grains-maize, Jowar etc. 30%

3 Rice bran extraction/Rice polish/Wheat bran 20%

4 Molasses 7%

5 Minerals including trace minerals 2%

6 Salt 1%

7 Vitamin A,D3 50000/500 IU 200gm

Total 100.2

PRODUCTION PROCESS

The process of cattle feed manufacture is comparatively a simple process once

the formulation of feed mixture is arrived at. The main aim of the process is to ensure that


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the final mixture contains uniformly same proportion of the ingredients even in smallest

possible sample of, say, one gram is originally intended.

Obviously, to attain uniformity in concentration, a mixture of ingredients is to

be ground to fine mesh and mixed thoroughly. This mixed power can be used directly for

feeding. Alternatively, the mixed ground material can be pelletized.

In brief, various steps in the processing of cattle feed manufacture can be

enumerated as follows

Material receiving and proportioning,

Material grinding

Mollassifying and mixing

Pelletizing and cooling

Packing

Production is carried out by new technology using computers to increase the

quality of the product. This may avoid the presence of harmful things such

as urea in the cattle feed.

The various steps included in the production process are:

STEP: 1

16 bins are used to keep the different types of raw materials. When specific raw

materials are needed, then the lid of the bin will open and the materials pass through the

conveyer belt.

STEP: 2


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Chief nutritionist formulates the formulae for the feed and perfect programming is

done in the control room by the computer to get the best feed.

STEP: 3

Production is done in batches of 1000 Kg. each. The number of batches to be

produced for each brand should be determined by the concerned engineer.

STEP: 4

The materials send to the looper is automatically weighted and raw materials are put

to hammer mills.

STEP: 5

There are to hammer mills which powder the ingredients to produce a batch by

rotating each other.

STEP: 6

To enhance the quality and homogeneity of the products, the proper mixing is done

in the mixing unit.

STEP: 7

To increase the taste and smell of the feed, molasses is sprayed. Molasses is used to

give palatability to the feed an also as a source of energy.

STEP: 8

Final stage is the packing of the product in various quantities and pasting of labels

for each quantity product.


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Computerized Production

The most sophisticated feature of the unit is computerized system for the

production. The microprocessor controls the overall production procedure. A computerized

control room is situated near the plant. Then the experts can operate the production fromthe control room.

Environmental Aspects

A well equipped pollution control plant is maintained to ensure that the effluent

water is treated as per the conditions stipulated by the state pollution control board.

Pollution control unit is environmentally acceptable because an aspiration system (local

dust catching) prevents the chances of pollution.

QUALITY CONTROL DEPARTMENT


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The success of a company depends upon the quality of its product. Quality

is the totality. Quality is the totality of features and characteristics of a product and service

that bear on its ability to satisfy stated or implied needs. Total quality is the key to value

creation and customer satisfaction.

The quality control department has to play an important role in the success

of a company through innovating quality product. It aims at total quality control. It begins

right from the purchase of raw materials to after sales quality check. Uncompromising

quality is the main feature of KSE. It is with which the company maintains its reputation.

The quality control department ensures the quality of cattle feeds through testing the

products at different stages. Statistical sampling techniques are applied for quality control

tests. The quality control tests include the raw materials inspection, in process inspection,

finished products inspection and finally after sales quality control.


Steps in Quality Control

Chief Nutritionist

Attenders

Senior Chemist

Veterinary Officer


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In order to ensure total quality, tests are conducted right from the stage of

raw material acquisition to after sales. Payment of raw material is done on the basis of the

test results. There are four stages in the quality control:

1. Raw material quality verification

2. Quality verification during grinding and mixing

3. Product quality verification

4. After sales quality control

a) Raw material Quality Verification

Potential fat are the required context. The main impurities are moisture

and silica. The fat content in the raw material is verified by a test known as Crude fat test

apparatus used is known as soxtlete apparatus. There are three such apparatus in the lab.

Protein content is verified with the help of an apparatus termed as

fumes chamber. As protein is a Nitrogen compound, protein content can be verified using

this apparatus to measure nitrogen content. Only one apparatus is there in the lab for this

purpose.

Moisture content of raw materials should not be above a prescribed percentage

(usually 10%) the best tube for moisture is conducted to ensure that the raw materials are

properly dried.

In later concept in 5gms is tested by using an apparatus Hot Air Owen.

Silica content is verified using the test named as Acid Insoluble Test apparatus used is

muffle furnace.


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Other Apparatus Used

Distilled water unit

Vacuum pump

Hot plate

Electric weight machine

b) Quality Verification during Grinding and Mixing

In second stage there are two quality checks:

1) Check during grinding.

Check during grinding is done at the grinding stage to ensure

the proper size recommended.

2) Check during mixing.

Check during mixing is conducted to find out whether the

mixture is properly balanced. Alsop the weight is checked at this

stage.

c) Product Quality

It involves1) Calcium content verification.

2) Chlorine content verification

3) Phosphorous content verification


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Volumetric test is used. Product quality verification is done at 3 shifts by taking samples

and checking it at the lab. Then it is pat before the medical officer for approval.

4. after Sales Quality Control

Customers are given proper guidance and instructions. They are advised not to store

the feed in moist place, also labels put in each bag to ensure proper feedback.

Training:

Quality control personnel regularly undergo in service training at courses

conducted at control food Training and Research Institute (CFTRI), RRL, NDRI & other

national research organizations including various veterinary colleges in the southern states.

MARKETING DEPARTMENT


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Marketing is the process of understanding customer needs and fulfillingthem. It is important to minimize the cost of production and at the same time provide good

service along with the product. Effective marketing not only assures demand for the

product but also fulfils the consumers needs. Supplying the desired product at the

competitive price, promoting the product, and make it easily accessible is what creates the

right mix. Marketing starts with human wants and needs.

The marketing concepts holds that the key to achieving organizational

goals consists of being more effective than competitors in integrating marketing activities

toward determining and satisfying the needs and wants of target market. The essence of

marketing is providing desired value of customers. Marketing should consider a central

business function as it establishes, develops and commercializes long term customer

relationship. This way the objective of both the parties are met, that is, customer needs are

served and the company ears profit. The marketing process consists of analyzing marketing

opportunities, developing marketing strategies, planning marketing programs and

managing the marketing effort.


Functions of Marketing Department

Marketing Manager

Clerk

Sales Officer


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The marketing department of the company focused to attract and retain customers

to long term satisfaction of their needs and build along term customer relationship.

Marketing is not the sole prerogative and responsibility of the marketing department in an

organization, performs the function of a marketer. His main job is to convey a consistent

image of his organization, either to the internal stakeholders (employees. Share holders) or

to the external share holders (customers, public). The company should realize that every

interaction of stakeholders with any employee of an organization decides the ultimate fate

of the organization. Marketing department mainly concentrates on customer promotion and

dealer promotion. Some of the main functions are:

1. Seminars for Farmers

Seminars are conducted for farmers both the rural and urban areas. The

main purpose of these seminars is to create a better awareness among the

farmers. In this section farmers are given valuable advices on cattle care and all

their questions are clarified.

2. Cattle Shows

Company sponsors cattle shows conducted by milk society, dairy

departments etc. cattle shows help the company to reach the prospects not

reached through their sales force.

3. Dealer Promotion

It is carried out by providing dealers with

i.Banners

ii. Purchase-pointers

iii. Dealer commission is granted at the rate of 10%.

Feedback from Customers


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Marketing department encourages feedback from customers. Labels addresses for

enquiry are put in each packet for feedback.

Obtaining Sales Order

Dealers are selected through appropriate procedures. Animal population of the area is afactor for giving dealership. Dealers can give orders either directly or through telephone.

Date of delivery is given in advance.

SALES PROCEDURE

1. Dealer can use own or rented vehicle

2. Vehicle is weighted before going to godown.

3. After weighting it is loaded with required quantity.

4. Vehicle is then weighted with load.

5. Weight of product us verified

6. Bill clearance done

TRAINING

Training for KS sales persons was conducted in previous years. According to the

training session, the main objective of sales management were

a).Sales volume

b).Contribution to profit

c).Continuing growth

Advertisement and Sales Promotion

The company does not give much importance to advertisement but it

concentrates on sales promotions to a greater extend. However the advertising and sales

Promotion expenditure for the year 1999-2000 amounts to Rs.6, 92,913; catalogues and

descriptive leaflets are also provided to dealers.


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Market Share

Company Share%

1 KSE 40

2 Others 60

Market SegmentationSince the final consumer of cattle feed is cattle, market segmentation is done on

the basis of the milk production of cattle.

Market is segmented as

1. Dry animal with no milk

2. Animals yielding milk below 5 liters

3. Animals yielding milk between 5 to 10 liters

4. Animals yielding milk more than 10 liters

Pricing

The pricing of KSE is flexible. Price of the product varies according to the cost of raw

materials. During 1998-99 the company was forced to increase the price of their product.

But when the prices of raw materials lowered, the company decoded to share it with the

customers. As a result there was a reduction of Rs.13 from 18 per pack. According to

Kerala General Sales Tax Act, a 15% additional sales tax was imposed, so prices were

renewed from 23 August 2006. But from the previous year the tax on cattle feed was

removed.

Competitors

Major competitors are Godrej, Co-operative milk marketing federation, SKM cattle

feeds and Kerala feeds.


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Dealership Chart

HUMAN RESOURCE DEPARTMENT

Company

Sub Dealers

Authorized Dealers

Customers

Retailers

Wholesalers

Customers

Retailers

Customers

Retailers

Wholesalers


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Human resource is of paramount importance for the success of any organization.

It is a source of strength, aid and, it is the most important asset of an organization. Human

resource are the wealth of an organization which can help it in achieving its goals. Human

resource management is the planning, organizing, directing and controlling of procurement,

development, compensation, integration, maintenance and reproduction of human

resources to the end of the individual, organizational and societal objectives are

accomplished.

Human resource management is the qualitative improvement of human beings

who are considered the most valuable assets of an organization. It is the strategic approach

to the acquisition, motivation, development and management of the organizations human

resources. The primary objective of HRM is to ensure the satisfactory accomplishment of

the objectives of an organization and of its employees and management. It helps workers in

accomplishing individual and organizational goals.

The HR manager organizes the HR department to carry out the functions entrusted

to him. In KSE personnel department functions are controlled by Personnel Manager.


Functions of Human Resource Department

1. Recruitment

Personnel Manager

Personnel Officer


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Recruitment is the process of searching for prospective employees and

stimulating them to apply for jobs in the organization. This is made on the base of

personal interview. Only qualified candidates are selected. Final selection is done by the

head office.

2. Pay Fixation

It is based on the job analysis, conduct of salary survey, group similar jobs into

pay grades, price each pay grade and wage administration rules.

3. Promotion

Advancement within an organization is ordinarily labeled as promotion. It refers

to the advancement on an employee to a better job. Promotion is a mean of filling up

vacancies which occur in any organization from time to time. Promotion is given on the

basis of:

Seniority

Performance

Additional Qualification

There is an understanding between the workers and the management that

promotions will be made on the basis of ability and seniority.

4. Welfare

Labour welfare means anything done for the comfort and improvement intellectual

or social, of the employees over and above the wages paid which is not necessary for the

industry. KSE gives first priority to the welfare of the employees. Statutory and non

statutory benefits are provided.

5. Performance Appraisal


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Performance appraisal is the systematic, periodic and an impartial rating of an

employee, excellence in matters pertaining to his present job and his potential for a better

job. It is done to ensure the efficiency of workers.

6. Statutory Requirement

Factory license and boiler license renewed every year.

Punchayathu tax and building tax, company tax, individual employee tax, etc. are

paid.

Diesel license and environmentally acceptable licenses are renewed every two

years.

WELFARE ACTIVITIES

Labour welfare activities of KSE Ltd ensure a peaceful and friendly atmosphere in

the workplace. Labour welfare is a matter of first priority to the management. The firm

provides sanitation, periodical medical checkup and recreational facilities to the employees.

Firm provides both statutory and non statutory benefit.

Statutory Benefits

ESI and per ESI Act 1948.

Gratuity as per payment of gratuity Act 1972.

Employees Deposit Linked Insurance.

Contribution to Kerala Labour Welfare Fund.

P.F.

Non Statutory Welfare Fund


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Employee Welfare Fund

All employees of the firm contribute a fixed monthly amount to the fund.

The fund is administrated by a committee nominated by the management and theemployees.

Terminal Fund

Death Fund

Disablement fund

Medical benefit

Cash award for children

Loan for marriage of children

Loan for house hold items.

Annual Gift

Firm give annual gift to all employees. Same amount is given to all from the

General Manager to Lowest paid workers.

Uniform and Footwear

Firm provides two sets of uniform to the workers. Technical staff is also

provided two sets of uniform and pair of shoes.

Ex-Gratia Payment

One month salary is granted as Exgratia in connection with marriage of

employees and if an employee dies in service.

Leave and Travel Allowance

It is given every year.


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Conveyance allowance

It is allowed to all permanent employees based on category in which they

work.

Shift Allowance

The second and third shift employees are provided with shift allowance.

Washing Allowance

It is provided to all employees with uniforms.

Group Insurance

It is introduced recently in the firm. All employees are provided with group

insurance of LIC.

Leave Allowance

13 days declared as holiday in a year.

Trade Unions

KTUC(M)

INTUC(I) BMS


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SOCIAL RESPONSIBILITY

KSE Ltd is in the fore front for meeting its responsibility towards the society.

KSE has contributed liberally towards the social courses; few of them are:

1) Construction and maintenance of a modern childrens information center KS

PARK at Irinjalakkuda of a cost of Rs.80 lakhs.

2) Construction of cum handrail for public at a cost of Rs.10 lakhs.

3) Contribution to Kargil fund of Rs. 5 lakhs.

4) Contribution to Gujarat earthquake relief fund Rs.10 lakhs.

5) Contribution to Bharathiya Vidya Bhavan Irinjalakkuda Rs.1 lakhs.

6) Contribution to St.James Hospital Rs.3 lakhs.

7) Contribution to Amala cancer hospital and research center Rs.3 lakhs.

8) Contribution to Chief Ministers relief fund Rs.3 lakhs.

9) Contribution to Mahatma Gandhi Library and Reading room Rs.26000.

10) Contribution for the construction of classroom of Unnai Warier Smarakanilayam

Rs.20000.

11) Contribution for St.Joseph College for Women Rs.80000.

12) Contribution for the blood bank attached to the Govt. Taluk Hospital Rs.25000.


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INDUSTRIAL RELATION

The company has 940 employees in its role as on 31/3/2010.The company has is

an exception to the adverse labour conditions said to prevail in Kerala. During its working

of 36 years the company had lost only few man days due to labour unrest. However the

functions of Swaminathapuram unit was affected due to labour unrest from 10

february,2009 to 25 March,2009. Alternative arrangements were made to meet the resultant

shortage in production and for effective sale of finished goods in Tamil Nadu during the

period of labour unrest. There were no labour issues of a series nature in any other units of

the company

During its working of 36 years, the company had lost only few man days due to

labour unrest. The management continues to maintain cordial industrial relation with its

employees in all units and is attending to their grievances with an open mind.

Commitment to Rural Development

KSE has taken up rural development as a major corporate task and responsibility.The agrarian rural society is the backbone of the nations economic structure and KSE has

always been active in supporting and promoting images in their vocation.

Today Kerala and Tamil Nadu comprise largest market for KSE cattle feed. The

majority of its customers are from the rural belt with limited income at their disposal. Over

600 KSE dealers ensure that the KS range of cattle feed is available to them at a lower

price suggested and enforced but the company has made arrangements for the supply of

cattle feed in villages directly from dealer and through retailers.


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Besides bringing a range of trusted products to the village, KSE also imparts

valuable advice and instructions regarding animal husbandry and cattle feed to the

villagers.

Progressive Management and Unique Work Culture

The management on KSE rests on an eminent term of professionals from the

cultural, financial and special systems of society who form the BOD. The chairman,

managing director, executive director and whole time director head the operations of the

company and oversees its smooth functioning. The day to day management of various units

is carried out by experienced professionals under a chief general manager, who leads and

motivates a dedicated work force.

The total number of employees in various units of KSE now exceeds 2000.

Besides, KSE gives indirect employment to over 5000 people, through its distribution

network across Kerala and Tamil Nadu.

The work culture of KSE is an exception to the rule in the strike ridden industrial

climate of Kerala. During the quarter century of its operation, the days lost to industrial

unrest is only 23 days. This fact illustrates the cordial work environment and speaks of the

extraordinary relationship between the management and the employees.

Periodic appraisal and renewal of agreement between the management and the

workers create a responsible attitude and productive atmosphere. The united efforts, mutual

trust and progressive vision of the management and workforce are the cornerstone on

which the success of KSE is based.


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FUTURE GOALS

KSE, having an annual turnover of Rs.250 crores, which s the largest

manufacturer of cattle feed. It provides employment to around 1000 members directly and

another 5000 indirectly. Its share is being listed in three stock exchanges in Cochin,

Chennai and Mumbai. The company commenced its production in the year 1972.

It is marketing annually about 1.80 lakhs per tons of superior quality cattle

feed. KSE has successfully launched its Vesta Brand Ice Cream which has been well

accepted in the market for its matching international quality standards. KSE plans to add

more ice cream production units across Kerala in the coming years to serve all pockets.

KSE is in the oil extraction industry in the past 31 years. It is having two

solvent plant with processing capacity of 100 tons per day. The company has also a

chemical oil refining plant of 20 tons per day. The company has secured the National

Productivity Award for the year 2001-2002 for being first in terms of production efficiency

in the animal feed sector. This is the sixth time in a row that the company is being selected

for this most coveted award.

It is pertinent it note that in the Kerala industrial scenario, where many

companies are choosing down, either due to labour unrest or due to other economic

reasons, KSE continue to commence new venture each year and runs them successfully.

The company is having six units at different locations. The relation with the labour unions

is very warm and cordial.

KSE, with a capital base of Rs.36crores embarks on an expansion to double its

solvent extraction capacity and add a most modern eco friendly vegetable refining plant.

The company has already identified six Acres of land in the KINFRA small industries park,

koratty fort his expansion.


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In the first phase the company plans to install one 200 MT per day solvent plant

for processing oil cakes and also a 100 MT per day physical refining plant. Both these

plants will be of international standard using most modern technologies, were the process

loss is kept to the minimum. The project will generate direct employment to 125 and

indirect employment to another 500 numbers. In the second phase, a 100 MT per day oil

fractionation unit will also be added.

As a pioneer in the solvent extraction industry, leader in cattle feed manufacture,

and an emerging force in ice cream and resourceful new entity in dairy development and

milk products, KSE is determined to move with the times, taking on new challenges,

achieving new milestones.


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CHAPTER VI

SWOT ANALYSIS


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SWOT ANALYSIS

STRENGTHS

Vast experience of 36 years in the cattle feed and solvent extraction industry. KSE

has survived many ups and downs in the industry.

Market leader in the cattle feed segment.

Won numerous awards and recognitions which prove KSEs product quality and leadership

position.

Huge network of product dealers.

Financial strength of the company helping to withstand the unhealthy market competition. The company has branches in various places.

The company enjoys a strong brand loyalty in the market.

Company uses an advanced technology for manufacturing.

KSE enjoys a good market share.

WEAKNESS

The cattle feed industry in India has been reeling under pressure for the past three

years and presently passing through difficult times on account of steady increase of

the price of ingredients.

Labour unrest from 10 Feb 2009 to 25 mar 09 in KSEs Swaminathapuram unit

caused a rift between the workers and the \management.

KSE is finding it difficult to procure coconut oil cake domestically and has rely on

imports. Further the depreciation of the Indian Rupee against US dollar is pushing

up KSEs import costs.


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OPPORTUNITIES

Acceptability of its feed and quality standards in the market.

Talented technical and marketing personnel.

Financial strength of the company leading to better purchasing power.

Prompt after sales service and good customer relationship.

A lot of prestigious awards and recognitions to prove consistent quality and

leadership.

With the VAT removed on sale of cattle feed, de-oiled cakes and coconut oil,

KSEs products are competitively priced.

Judicious purchase of materials.

Removal of value added tax on sale of cattle feed, de oiled cakes and coconut oil

enabling the company to effectively combat with competitors.

Good network of leadership.

THREATS

Negative inflation rate of the country indicating a general slowing down in

industry.

The highly volatile Rupee Vs dollar situation acts as a non stimulant in import

transactions.

Indirect control by the Govt. over price of milk which is bottleneck in increasing

price of feed to offset increase in raw material prices.

Import of cheaper oil for industrial consumption leading in fall in demand for

solvent extracted coconut oil.


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CHAPTER VII

OBSERVATIONS

SUGGESTIONS AND

CONCLUSION


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OBSERVATIONS

The observations of the study are on the basis of analysis and interpretation of data

obtained from the respondents by the way of interview and observation of the researches

during the course of the study.

KSE has cordially employer, employee relationship.

The top management has a clear vision about the future which is obvious from

KSEs diversification stratifies and the innumerable new product development it

undertakes.

The management is always keen to implement the updated technologies for

rendering excellent services.

The organization is having a fair industrial relation.

The company has a strong commitment towards the society.

Job satisfaction is relatively high among the workers mainly because of job

security and better wage and working conditions.


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SUGGESTIONS

Following are the suggestions made by the researcher of the effective functioning of the

firm.

The company can give more advertisement in mass media, it can also use other

sales promotional tools to catch customers attention and increase brand loyalty.

KSE can introduce professionals into the middle and lower level of management.

By appointing more sales representatives, KSE can expand their sales and thereby

increase in turnover.

By opening new branches at various parts of south India company can expand its

business network.

The company can lay greater emphasis on rural market for this a new distribution

system could be invented so as to penetrate deep rural market. The rural market is

the promise of future.

The company can reduce the cost of production by procuring raw materials from

the nearest suppliers.


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CONCLUSION

KSE Ltd. Is the pioneer industry in the cattle feed, through faces keen competition is

all set to change the face of the organization the future. Its great vision that to be No.1 in

south India can be achieved in a short span of time. The organization is also moving

towards social development programs in order to deliver value to the society. The study

also revealed that the organization is moving towards betterment of its people.

As a pioneer in the solvent extraction industry, leader in cattle feed manufacture, and

an emerging force in ice cream and a resourceful new entity in dairy development and milk

products, KSE is determined to move with the times, taking on new challenges, achieving

new milestones.

Both the technology and its commitment are sure to payback within a short span time

towards the achievements of its future goals. It is capable of converting its threats into

opportunities with the guidance and control of the top management whose leadership

quality is impeccable. The track records prove it.


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BIBILOGRAPHY


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BIBILOGRAPHY

Books and Periodic

Jain S.S-Problems and Agriculture Development in India, 3rd edition, Kitab Mahal

Publishers, New Delhi.

Kothari C.R Research Methodology, 2nd edition, 2003, Vishwaprakashan publishers.

David A Decenzo, Stephen P Robins Human Resource Management, 6th edition , john

Wiley and sons INC.

Philip Kotler Marketing Management, 10th edition, prentice-hall of India publishers, New

Delhi.

Goyal, B.S Production and Operations Management, 4 th edition, Pragathi and Prakashan

publishers, Meerut.

Report and Journals

Annual Report of the KSE for the last 10 years.

Company Magazines and Journals.

Websites

www.kselimited.com
http://www.kselimited.com/http://www.kselimited.com/http://www.cattlefeedindustry.com/

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