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DECLARATION
I GEETHIKA.K, hereby declare that this project entitled A GENERAL STUDY ON BALIAPATAM TILE WORKS LTD,PAPPINISSERY WITH SPECIAL EMPHASIS ON FINANCE DEPARTMENT submitted in partial fulfillment of the requirement for the award of the degree of Master of Business Administration of kannur university as a record of original work done by me under the guidance of Mr.Vidhushekhar.

Place: Nileshwar Date:

GEETHIKA.K

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Organizational study on btw.ltd

ACKNOWLEDGEMENT
I take this opportunity to acknowledge my honest gratitude to those who have helped me in this effort to make this report possible in time. I am greatly to Mr.V.P.Ramdasan, Head of Department, Center for MBA, Nileswar who gave me permission to conduct this study. I would like to express my sincere gratitude to Mr.Sushil Aaron, M.D., BTW.Ltd, Pappinisseri for permitting me to do the project. I sincerely acknowledge my thanks to all teachers especially to my guide Mr.Vidhushekhar for giving me necessary guidance and timely suggestions for the completion of the study. I also extend my thanks to my organizational guides Mr.Saji Joseph, BTW.ltd for their generous help throughout my project work. His valuable suggestions and cheerful encouragements will ever be remembered. I would like to acknowledge my heartfelt thanks to all staffs, the BTW.Ltd, who has helped me to bring out this work successfully. I would like to thank my parents, friends and others who directly or indirectly helped me in completion of this project. Above all I thank the almighty god for his blessings.

Place: Nileshwar Date:

GEETHIKA.K

Center for MBA, Kannur university

Organizational study on btw.ltd

CHAPTER-1 INTRODUCTION
I have taken up this project as a part of my degree in Master of Business Administration course, to relate the theoretical studies with that of the practical work done in the organization. I have done my project work in THE BALIAPATTAM TILE WORKS LTD. The history of tile industry is old. The first tile was produced 7 to 8 thousand years ago in the area now known as Holy land. A tile is a thin, flat or convex slab of hard material such as baked clay or plastic, laid in rows to cover walls, floors, and roofs. Tiles are often used to form wall and floor coverings, and can range from simple square tiles to complex mosaics. Tiles are most often made from porcelain, fired clay or ceramic with a hard glaze, but other materials are also commonly used, such as glass, metal, cork, and stone. Tiling stone is typically marble, onyx, granite or slate. Thinner tiles can be used on walls than on floors, which require thicker, more durable surfaces. Baliapatam Tile Works Ltd, one of the leading manufacturers of clay products in Kerala. The BTW.Ltd is located at Pappinisseri in kannur.BTW Ltd was established in 1947.the founder of the BTW Ltd is Mr. Sumithran Aaron. The company has the employee strength of about 600. I have conducted this study to get more knowledge about the company and I give special emphasis on finance department. The BTW Ltd producing different types of bricks and tiles. There are mainly 5 departments in the company. Each department has one departmental head and employees are working under his authority. The finance department maintains all records. The company is facing competition from national and international markets. Human resource department providing all facilities and guidance to the workers.

OBJECTIVES OF THE STUDY


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The main objectives of the study are as follows; To get an idea about the overall working of BTW Ltd. To get an idea about the production process of BTW Ltd. To get a practical experience. To get a knowledge about financial aspects of the company. To get an overview about the present status of the organization. To know all departments of the organization. To study the problems faced by the company. To study in detail the companys attitude towards their workers and customers. To study the policy adopted by the company for smooth functioning of the organization. To give suggestion to improve the production and profit of the company. To enquire about the selection process of the employees and welfare measures.

RESEARCH METHODOLOGY
The study is conducted by collecting information by using both primary and secondary sources.

Primary sources
Primary datas are newly collected datas or information collected for the first time. These datas are fresh. They are collected by; Interviewing managers, supervisors, and workers. Direct observation of manufacturing process and other functioning of the organization. Discussion and interactions with supervisors and departmental heads at various level.

Secondary sources

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Secondary datas are those datas or information which is already collected .they are not collected by direct interview or observation. These datas are collected by; Company records. Annual report of the company. Interpretations of various related document related to the topic. Pricelists www.btwltd.com Other publications etc.

SCOPE OF THE STUDY


Organization study provides an opportunity to the management trainees to have practical knowledge about the organizational activities in company by conducting study. The study will give a wide range of knowledge about the organizational structure, functions of various department and officials. The study enables to do the swot analysis of the company and suggest for the improvements of the company.

LIMITATIONS OF THE STUDY


The study is subject to following limitations; Time span available for conducting the study was very short. The project is only a general study of the organization. Unable to collect data in detail since it was a large firm with different units. Lack of prior experience is one of the limitations. Lack of co-operation from some of the company staffs.

CHAPTER-2
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INDUSTRIAL PROFILE
Shelter is one of the basic requirements of man. Clay is one of the cheapest raw materials to satisfy this basic requirement. For very long time man has been using clay for building purpose. Clay is basically an aluminosilicate mineral with the exclusive property of mould ability in presence of water & was earlier exploited for making walls, embankments etc, after reinforcement with straw, coir, fibers, bamboo splinters or wood shavings. It was rather an accidental observation that clay when subjected to heat (firing) developed red colour along with high strength& stability development of this process lead to the production of clay products. Rumors have it that the first clay tiles were produced seven to eight thousand years ago in the area now known as the Holy Land. Many sources independently verify that the actual known history of Tiles can be traced back as far as the fourth millennium (4000BC) to Egypt. In those days, tiles were used to decorate various houses. New methods and materials have, of course, been introduced, but tile setting remains a handoperated, labor-intensive process, and its not likely to change soon. In an age when downsizing and mass layoffs are commonplace, tile setters have achieved true job security, working their tails off in the process.

Tile industry in India


The tiles were first introduced to India in 1860 by a German missionary. Since then the industry flourished in India. These red tiles, prepared from hard laterite clay, are in great demand throughout India, Myanmar, Sri Lanka, and the Far East and are even shipped to East Africa, the Middle East, Europe, and Australia. These were the only tiles to be recommended for government buildings in India during the British regime. Several other tile factories came up in the years that followed. In 1868, the Albuquerque tile factory producing these tiles was started by Mr. Pascal Albuquerque at Mangalore in South Canara. The tiles produced by the factory were in great demand throughout the Indian subcontinent and East Africa. Abundant deposits of clay, plenty of firewood from the Western Ghats and cheap skilled labour helped the industry flourish. By the 1900s there were around 25 tile factories situated in and around Mangalore. The report shows that by 1913, the tile factories were employing 2000 workers &were producing 60000 tiles a day.

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Though the sector has demonstrated its strength; the focus towards its segment by local govt has been defensives resulting to insulate the sector from the dynamics of competitive growth. Now many of the industries have closed down &the remaining few are on the verge of deterioration. The demand for the tile is thus, improving when compared to the previous years. Demands for other clay products are also gaining momentum in the market. However some of the tile manufacturing companies have reached a saturation stage of sales. They have to make changes in their overall system of production & distribution enhances their sales. Today Ceramic tile throughout the world is not hand-made or hand-painted for the most part. Automated manufacturing techniques are used and the human hand does not enter into the picture until it is time to install the tile. They are used in an almost infinite number of ways and you dont have to consider yourself wealthy to own them. In commercial buildings, where both beauty and durability are considerations, ceramic tiles will be found, particularly in lobby areas and restrooms.

Tile industry in Kerala


Tile industry is one of the traditional and labour intensive industries of Kerala. There was time when Kerala had the monopoly of tiles production in the country for a long. The first tile factory in Kerala was set up at Kozhikode by German Missionaries & it was named Common Wealth Trust Ltd. or COMTRUST.The numerous rivers & backwaters of Kerala provided cheap transport & so it is quite natural that a number of factories have opened at Calicut, Kollam, Trichur& Aluva. The abundance of clay was the other major factor, which contributed for the rapid expansion of the tile industry in these parts of the states.

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The above graph showing the top 10 tile manufacturing countries & India got 3rd position PROBLEMS FACED BY THE INDUSTRY In olden days the tile industries were confined to Kerala &South Canara District of Karnataka state. Later on the tile factories have mushroomed through the country with encouragement and support from their respective governments. In the late 1960s three were 36 tile factories in and around Mangalore region. But today only 6 tile manufacturing units are survived in the region and even among them only a few are working to their full capacity due to lack of demand and competition from neighboring state, where the cost of production is comparatively low.

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1.

Shortage of Fuel
Fire wood, the chief fuel required for the industry is also becoming scarce with

present forest policy of the Govt., hence the industry has to depend on plantation firewood like rubber wood and other alternative fuels for firing.

2.

Threats from Multinationals


The traditional medium and small scale tile industry in Kerala is facing threat

from the multinational companies coming into India with huge investments.

3. The Shortage of Good Quality Clay


These days the tile industry is not getting good quality clay for manufacturing of bricks and tiles, which affect burning& results in heavy breakages of products.

4. Protest from the local people &the environmentalists


Through the mining & Geology Dept has identified the clay deposit areas in the state, the local people and the environmentalists, under the protest of the proposed paddy field and wetland conservation but make strong protest against the clay excavation.

5. Restrictions and Lack of Govt. Support


The tile industry in neighboring states is getting good support from the respective state governments. In Karnataka and Tamilnadu no royalty required to be paid forming clay. The Karnataka Government provides land for free of cost forming clay. The state government is not giving much assistance to modernize the traditional tile industry.

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CHAPTER-3 COMPANY PROFILE


LOCATION The Baliapatam tile works ltd is located in Pappinisseri, 10 Kms away from kannur. Kannur is well connected to other towns and cities through railways and roadways. It has all about facilities like banking and transportation. ORIGIN Baliapatam Tile Works Ltd, one of the leading manufacturers of clay products in Kerala a public limited company was incorporated on 16 th September 1947.The eminent personality who set up the company was Mr. Sumithran Aaron, who set up the first factory at Pappinisseri, 10 km away from kannur town, since its inception in the year 1947; the company has been manufacturing quality clay building materials of high technology. It was Mr. Choorakadan Aaron who started a small tile factory in the year 1920 along with other 3 partners. Mr. Choorakadan Aaron sought the help of a retired Technician from Basel Mission, Tile factory at Mangalore for providing necessary expertise in the manufacture of tiles. It was at the time that Mr. Choorakadan Aaron formed a partnership firm named C. Aaron &Sons which carried on the business of tiles industry and handloom industry. The company has shown consistent growth since inception and has a cluster of five during the World War II, the handloom industry experienced a boom and in order to take advantage of that he made the firm C Aaron & Sons into a limited company named Aaron Spinning &Weaving Mills Ltd and expanded the handloom business. While the companys attention was focused on the profit making handloom, section, tile factory was almost neglected.

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GROWTH The Baliapattanam Tile works Ltd (BTW Ltd) has been in the forefront of innovation in the field of clay product for over 60 years. The company has experienced in developing designing manufacturing and marketing Clay products. The products of the company offer an optimum combination of utility and durability. At the same time, they are safe and environment friendly. A half century ago the company had to face a lot of problems in marketing the products. As the country was underdeveloped and the consumption power and purchasing power of the people were at lowest. Under the table guidance of Mr. Sumithran Aaron and manager Mr. George Aaron, the company overcame those obstacles. Mr. Wesley Aaron is the present chairman guided the company in 1959 became the managing Director in 1969 and served the company for period of long 50 years. Under his able leadership emphasis has been laid on diversification of products. Under the technical advice of Mr. J.L. Pavamani.a qualified ceramist, clay pressed items like decorative wall & floor tiles were manufactured by the company, for the first time in the country. Started from main factory, the company expanded its operation very aggressively due to increased demand. In the year 1961, a second factory was established in Pappinisseri. In 1963, a third factory was commissioned in Payyannur. A fourth was started in 1971 at Narath in Kannur District. A fifth one was added in the year 1990 at Nileswar with acquisition of the assets of the Malabar Tile Works. As part of product diversification the company started a designer Tile Unit, the sixth unit at Pappinisseri. No wonders BTW Ltd is today the North Malabars most popular brand of wide variety of clay& related products. UNITS OF THE COMPANY The Baliapatam Tile works Ltd, one of the leading tile manufacturing concerns in south India, under the leadership of Mr.Sushil Aaron as Managing Director, Wesley Aaron as chairman & Mr. Devadas Aaron as vice chairman have bought the company a way ahead of other companies in the industry.
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The Baliapatam Tile WORKS Ltd has 6 units situated in Kerala-four in Kannur District and one in Kasaragod district. The main factory was established in the year 1947 at Pappinisseri (kannur). The second unit was established in the year 1961 which is situated near

Pappinisseri railway gate. The third unit was established in the year 1963, the main purpose of the factory

was to cater the demand from North Kerala. It was laid in Payyannur (kannur). The fourth unit was established in the year 1971 at Narath by taking on the assets

of Premiere Tiles and clay works. A fifth factory was added to the list of companies in the year 1996 at the In the year 2008 Designer Tile Unit was established at Pappinisseri.

acquisition of the assets of Malabar Tile Works Ltd at Nileswar, Kasaragod district.

All the factories are under the same umbrella, i.e., THE BALIAPATAM TILE WORKS LTD. MANGEMENT The management of the BTW.LTD is vested in a body consisting of a chairman, managing director, and eleven directors. This body is responsible for the efficient management and the present directory of company affairs towards the accomplishment of its objectives. MEMBERS

Chairman Managing director Directors

: Mr.Wesley.C.Aaron : Mr.Sushil Aaron : Mr.Devdas Aaron Mr.wesley.c.aaron

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Mr.Sushil Aaron Mr.Prashanth Tholar Mr.p.t.p.shahul Hameed Haji Mr.P.K.Mohan Kumar Mr.K.S.Shankaranarayanan Mr.P.T.P.Mohammed Kunhi Mr.Sukumaran Nambiar Mr. Lindsay Aaron Mr.P.V.Janardhanan Nair

HEAD OF THE DEPARTMENT

Managing Director Sales Manager Production Manager Personnel Manager Accountant Officer Executive Secretary

: Mr.Sushil Aaron : Mr. John Praveen : Mr.K.K.Sunil Kumar : Mr.Saji Joseph : Mr.Kunjiraman Nambiar : Mr.Sahajan.

OBJECTIVES OF BTW.LTD
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To maintain leadership in clay building material industry in India. To increase the production of value added products such as hollow bricks and

decorative roofing tiles. To improve sales by quality control and product diversification.

The company will achieve these objectives through excellence in the area of; Customer satisfaction Quality Cost reduction.

VISION Continue to remain the best tile manufacturing industry in India with growth in all the areas. HIGHLIGHTS OF BTW.LTD Pioneer of tile industry having more than 60 years of experience. Company has its own quality control and product development laboratory. Highly experienced management team with good knowledge about market and its

products. Technical innovation (members & (R &D) center for clay roofing tiles, bricks and

other ceramic products, Sreenivasa Nagar Karnataka. Minimum amount of wastage. Ability to meet huge requirements at any point of firm. It has a capacity to meet huge range of requirements at any point of time, Human resource around 600.

Production capacity - 66,000 standard tiles.

FUTURE AIMS&STRATEGIES

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The BTW Ltd has been in the forefront of innovation in the field of clay building products over 60 years. The company has the widest range of designing manufacturing capabilities. Now the company is aiming at introducing safe & environmental friendly products of optimum combination, elegance utility and durability. The company is also aiming at restructuring of manufacturing units that being in high and technology and access to fresh market and high end product as continuous development of new technologies in crucial to keep face with competition which in turn has a healthy effect on the market. The company sells majority of production in Kerala and other neighboring states. It is now planning to expand its market to northern region and other parts of the country. The strategies for growth of the company consist of expansion of the capacity and modernization of the manufacturing units at Nileswar and Narath. The company aims at insulating itself from uncertainties in the tile market, occasioned by competition as well as business cycles, by giving greater thrust to Hollow Bricks as well as decorative roof and wall tiles. The consistent profit margins in these two segments lend necessary support for the growth. The company is contemplating to further argumentum its Hollow bricks capacity; the company is also increasing the capacity of decorative tiles, which are value added products. The company is also planning to roll out new products shortly, which would cater to building

PLANT LOCATION
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The choices of the location for its place of its industry are one of the early decision that an enterprise has to make for earning maximum business unit in a free market economy. The governing principle is that the location of plant should be fixed in such a manner that people interested in its success can manufacture goods and market them with least expense. The main factory of the BTW.Ltd is located at pappinissery.the total extend of the land area is about 5 acres. It is adjacent with railway and national highway. As the factory is based quite near the Valapatanam River, major raw material that is water is available in plenty. The location of the factory is geographically advantageous place. PLANT LAYOUT The layout of this factory is much planned. The main aim of this factory is, as far as its layout is concerned is to make the fullest use of workers efficiently. In addition to this, the following factors have also influenced the management to check out the layout. Utilization of available space. Provision of the best possible working condition to workers.

PLANT LAYOUT
CLAY BOX CONVEYOR CRUSHING ROLLER

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CONVEYOR

FIRST GRINDER ROLLER ROLLER CONVEYOR

CONVEYOR

DOUBLE SHAFT MIXER

HIGH SPEED ROLLER

20 INCH PUG MILL

VACCUM PUMP

FINISHED PRODUCT

CHAPTER-4 PRODUCT PROFILE

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The company is one of the leading manufacturers of structural clay product in the Kerala state. Since its inception in the year 1947, the company has been manufacturing quality clay building materials of high technological nature. The different types of clay bricks; Solid bricks Perforated bricks Hollow bricks Roofing channels bricks Pillar bricks Hollow copping wall bricks Ventilator bricks Paving bricks. TYPES OF TILES The company manufactures a variety of decorative roofing tiles, and also Mangalore pattern roofing tiles, terrace roofing tiles& clay roofing tiles. The different types of tiles are, Portuguese roofing tiles Dutch roofing tiles Spanish roofing tiles Roman roofing tiles Curved roofing tiles Pointed roofing tiles Embossed roofing tiles Terrace roofing tiles Pan roofing tiles
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Hollow terrace roofing tiles Ridge tiles Valley tiles Ventilator tiles Sky light tiles.

TYPES OF CLAY PRODUCTS The ranges of clay products manufactured by the company are classified as under-: Mangalore pattern roofing tiles & ridge tiles Solid bricks perforated & specified hollow clay bricks for load bearing and partitions walls. Hollow clay bricks and clay channels for construction of roof and floor slabs Decorative clay tiles for roof and walls Terrace roofing tiles for weather proofing and insulation of roofs. Pottery products such as flower pots, water pots etc.

CLAY VENTILATOR BRICKS

DOUBLE GROOVE ROOFING TILE

DUTCH ROOFING TILE

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HOLLOW BRICKS

HOLLOW ROOFING BRICKS

HOLLOW ROOFING CLAYBRICKS

HOLLOW TERRACE ROOFING BRICKS

LONG HOLLOW BRICKS

PERFORATED TILE

ROMAN ROOFING TILE

ROOFING TILE

SINGLE GROOVE ROOFINGTILE

SOLID BRICKS

SPANISH ROOFING TILE

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Other products & services we offer;

Curved Roofing Tile (Decorative Roofing Tiles - Type-A)

Curved Roofing Tile (Decorative Roofing Tiles - Type-B)

Curved Roofing Tile (Decorative Roofing Tiles - Type-C)

Embossed Roofing Tile (Decorative Roofing Tiles - Type-A)

Embossed Roofing Tile (Decorative Roofing Tiles - Type-B)

Embossed Roofing Tile (Decorative Roofing Tiles - Type-C)

Pointed Roofing Tile (Decorative Roofing Tiles - Type-B)

Pointed Roofing Tile (Decorative Roofing Tiles - Type-C)

Portuguese Interlock Roofing Tile

CHAPTER-5
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ORGANISATIONAL CHART
The organizational chart shows the authority and responsibility relationships of personnel in an organization. Organization chart of Baliapatam tile Ltd is shown below;
BOARD OF DIRECTOR

MANAGING DIRECTOR

MANAGER

Production Department

Sales Department

Finance Department

Personnel Department

Secretarial Department

Sales Manager

Accounts Officer

Personnel Officer

Executive Secretary

Sales Staff

Accountant

Time keeper

Staff

Asst. Accounting Staff

Watch Man

Main Factory Functional manager Supervisor

2nd Factory FM

3rd Factory FM

4th Factory FM

5th Factory FM

Supervisor

Supervisor

Supervisor

Supervisor

Workers

Workers

Workers

Workers

Workers

CHAPTER-6
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DEPARTMENTAL STUDY OF BTW LTD


The Baliapatam tile has different departments which control different functional activities of the organization. Each department has one departmental heads. He has the ultimate control over the department. There are mainly 5 departments. The important departments of BTW are as follows;

1. PRODUCTION DEPARTMENT. 2. HUMAN RESOURCE DEPARTMENT. 3. SALES DEPARTMENT/ MARKETING DEPARTMENT. 4. PURCHASE DEPARTMENT. 5. SECRETARIAL DEPARTMENT. 6. FINANCE DEPARTMENT.

PRODUCTION DEPARTMENT
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Production involves conversion of raw materials into finished goods. It can be briefly explained as follows;

INPUT (RAW MATERIAL)

CONVERSION PROCESS

OUTPUT (FINAL PRODUCT)

Production is the basic activity of all individual units. The function of the production activity is the creation of goods &service for the satisfaction of human wants and needs. Production involves step by step conversion of one form of material in to another through chemical or mechanical processing to create or enhance the utility of the products or services. The main objective of production is to ensure that it is a product, which can satisfy the needs of the customer by giving it at the right place at the right time. In The BTW LTD all machinery and supporting equipments are made indigenously by, Vijaya Parkash industries Calicut. A total of 1700 units of power are consumed daily. The production capacity is 66000 standard tiles per day and it will Avery according to order. RAW MATERIAL In the manufacturing units the main raw materials are water and clay. These are only raw material in the production BTW Ltd by use they make so many items. The clay is divided in three types and they are plastic, lean, chuddy clay. in BTW, they bring these clay form the land were the soils kept or by agencies. Firstly they take a sample of 5 kilogram of soil and after some test they bought that land and by using the tipper Lorries, they bring back these soils to their company. Materials are divided in to three they are: Lab quality No . 1 Lab quality No . 2 Lab quality No . 3
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Lab quality No. 1 It includes more plastic clay and less proportionate of other form this they make decorative items and tiles. Lab quality No.2 It include more lean clay and less proportionate of other. From this they make hollow bricks and ceiling blocks. Lab quality No.3 It include more chuddy clay and less proportionate of other. Form this they make solid bricks and ceiling blocks for taking this clay to the first process they use J.C B, excavator, etc. SOURCE OF ROW MATERIAL According to the availability of soil, the site will vary. Now the plastic clay is taken form Vayakkara clay site near Neeleswaram at Kasaragod district and lean clay is form Mayyil at Kannur district Water another major raw material is available plenty in the region & well in the main source. MACHINES AND EQUIPMENTS Excavator Box Feeder Pre Crusher Double Shaft Mixer Cushing Roller High Speed Fine Grinder Dearing Pug Mill Rubber Belt Conveyor Revolving Press Chain Conveyor Kiln Exhaust Fan

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Generator Water Pump. PRODUCTION PROCESS The production process is a series of action which convert the inputs into more useful outputs. The production processes of BTW.ltd are; Procurement of raw material Clay preparation Moulding Drying Firing and cooling Grading. The production process is detailed as follows;

I.

Procurement of raw material


Raw material procurement means to obtain. It is applied to mining procedure in

the clay industry. Mostly there are 2 types of clay they are plastic clay and lean clay. In lean clay, the sand content is more than in plastic clay. Plastic clay is mixed in 1:3; this clay is obtained either directly from the factories clay field or is supplied by local agencies who supply the required quantity of material on contract basis. Lorries and trucks are used to transport the clay obtained from the field firm to shortage area. It is the common practice to store enough raw materials for several operations, thus ensuring continuous operation regardless of the weather condition. Mining of clay is usually done in summer season for the use in both summer and rainy season.

II.

Clay preparation

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The production process starts once the decision regarding the clay condition is made as per the requirement. Clay is soaked with water and is kept for setting and then it is carried by excavator to box feeder (where 3 types of clay namely Chedi clay, plastic clay, lean clay is mixed properly). The proportionate mix of clay is adjusted using a chamber, which is attached to the box feeder serves the following process; a) Proportionate and automatic feeding of clay at required ratio b) Uniform speed. This proportionate mix is passed through the conveyer belt to pre-crushing roller, where it crashed lumps of clay and hard mixer. Then it moves to the mixer. The clay is mixed with some amount of water necessary and the preliminary grinding take place. The grinding roller grinds and mixes the soil and discharges it to the conveyer belt which discharges the clay to High Speed Roller. Then it is finally grinded and it goes to the Extruder commonly known as 20 De-airing pug mill. It is attached in vacuum pumps, which removes certain percentage of moisture and air to make clay denser and plastic, before the slabs came out the extractor the month pieces extruder can be changed according to the product design. In day of 8 hours 50000 slabs are produced and send to all units. These slabs are cut according to the weight each block as 17.5 to 18.5kg weight.

III.

Moulding

In this section the two days old sliced slabs of clay is put into pug mill of 14 inches. The mouth pieces of this machine can be changed as per the required product. The final output thus processed is then carried to drying section.

IV.

Drying
When wet clay units come from moulding or cutting machines they contain (7-

20%) moisture depending up on the forming method. Before firing process begins most of this water is evaporated in drier champers. There are three drying cycle. Stages of drying
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Stage1: In this stage drying begins in the ground floor for 15 days. Stage2: In this stage the product is kept for another 10 days for drying in the second floor. Stage3: In this stage the product is kept for another 7 days on the kiln top where the moisture content is reduced to 5%. The dried product which comes out of the kiln must not contain more than 5% moisture content otherwise it will break. After drying tile are sorted and loaded to the kiln. Fire wood is used in kiln baking .

V.

Firing and cooling


The kiln installed in the main company is called German continuous kiln, having

30 champers. In each champers 3500 standard tile can be accommodated at a time during the manufacturing process. The process of heating in kiln is continuous. The fuel is inclusive of fire wood, cashew shell, coconut shell etc. it is estimated an average of 500kg fire wood is required for burning of 1000 of standard tiles.

VI.

Grading

The burned products are then graded on the basis of quality (strength and hardness). It is graded as first quality, second quality, Over Burned Clay (OBC) reject. After grading it is stored. Storage is done within the yard of the factory itself. There are sheds in the factory premises itself for storing various grades of bricks, tiles etc. Later goods are dispatched as per order to different places.

PRODUCTION PROCESS

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PLASTIC CLAY

LEAN CLAY

CHEDI CLAY

BOX FEEDER

PRECRUSHER

DOUBLE SHAFT MIXER

HIGH SPEED CRUSHER

MOULDING

EXTRUDED SLAB 21% MOISTURE

DE-AIRING PUG MILL (vacuum pump)

FINE GRINDING ROLLER

DRYING I RAW PRODUCT 18% MOISTURE 15 DAYS (GROUND FLOOR)

DRYING II ANOTHER 10 DAYS (FIRST FLOOR)

DRYING III ANOTHER 7 DAYS (ON TOP OF KILN)

GRADING

DRAWING

BURNT PRODUCT

LOADED TO KILN FOR FIRING (MOISTURE CONTENT MUST NOT EXCEED5%)

DISPATCHING

QUALITY CONTROL AND PRODUCT DEVELOPMENT LABORATORY


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The company incorporates quality control; analysis supported by continuous positive feedback at every stages of production. Every bit of activity will be precisely defined before going for production. The activities start from the point of purchase. The result, product will meet highest standard. They understand and implement the first standard. The product survey is conducted to more need aspiration of customers. Firstly some amount of clay from the field is tested in the laboratory for quality. If the quality of clay meets the standard, the company purchases the whole field. The quality assurance standards are mainly based on customer specification or company specification. CLAY TESTING

i.

Plasticity of clay
The plasticity of clay is measured by performing a test called Pfferkon Test.

The test is repeated for various moisture content of sample clay and Pfferkon number noise then found water content corresponding to average deformation is called Pfferkon plastic index number.

ii.

Raw shrinkage of clay


Recommend shrinkage of good clay 10% 9% 8% Burned clay 11% 10% 9%

Quality No. 1 No. 2 No. 3

iii.

Water Absorption/ Density/ Crushing strength / Color

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Make a test specimen, (cube 50*x50x50mm). The test specimen is directed at 110oc and weighted. After a dried weight is taken it is placed in a beaker of and boiled gently for 24 hours it is then plainly kept for 2 hours. The specimen is removed and excess moisture is wipeout of with a moist cloth and the specimen weighted to give a soaked weight. Percent of water absorption = (Weight after absorption of water - Weight before absorption of water) x 100 Weight before absorption of water Density = mass/area Kiln fire temperature Breaking strength of solid brick - 8500c -9500c - 200kg per cm2

Breaking strength of hollow brick - 40kg per cm2 Recommended density PRODUCTION CAPACITY In BTW, production departments annual raw production is 40 lakhs and burned tile is 36thousand. TARGET OF PRODUCTION The target of BTWs production department is to produce 70% first quality products and maximum breakage is 2%. - 1.6g/cc

WASTE MANAGEMENT

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Main waste in the tile production department is a damaged tiles and over burned tiles. If the tile is damaged before firing, these are recycled within the production department. If it is damaged after firing, if the damage is small it is sold for lower price otherwise it is loss for the company. POWER The main power is used in production is electricity available power is 250KVA.

HIERARCHY OF PRODUCTION DEPARTMENT


MANAGING DIRECTOR

GROUP MANAGER

MAIN FACTORY

2ND FACTORY

3RD FACTORY

4TH FACTORY

5TH FACTORY

SUPERVISOR

SUPERVISOR

SUPERVISOR

SUPERVISOR

SUPERVISOR

WORKERS

WORKERS

WORKERS

WORKERS

WORKERS

HUMAN RESOURCE DEPARTMENT


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Human resources are term used to describe the individuals who make up the workforce of an organization, although it is also applied in labor economics to, for example, business sectors or even whole nations. Human resources is also the name of the function within an organization charged with the overall responsibility for implementing strategies and policies relating to the management of individuals (i.e. the human resources). This function title is often abbreviated to the initials "HR". In simple terms, an organization's human resource management strategy should maximize return on investment in the organization's human capital and minimize financial risk. HR POLICY OF THE BTW LTD 1. Each employee should Understand his/her role Take responsibility Have the necessary empowerment 2. Policy of hiring people with due respect to factors like sex, material, status, etc. 3. Policy on terms and conditions of employment, compensation policy and methods, working hours etc. 4. Policy regarding housing and allowance. 5. Policy regarding training and development. 6. Policy regarding industrial relation, grievance procedures, etc

PERSONNEL MANAGEMENT PRACTICES OF THE BTW LTD

1. RECRUITMENT
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Recruitment is the process of searching for prospective employee and stimulating them to applying for job in an organization. The recruitment procedure at BTW is very simple and effective in the fact that it select the best person and place him at the right place giving him policy society. The job at BTW requires more of better technical as well as educational knowledge.

Sources of recruitment
A. Internal source Person who are already working in the company constitute the internal source whenever any vacancy arises someone from within the company is upgraded; transferred or promoted to fill that vacancy. The major sources of internal recruitment are promotion, transfer demotion. In BTW there is only promotion and transfer. a) Promotion The company promotion is made of merit, seniority and potentials of employees usually become eligible for promotion after 15 years of their service in respective organization. Promotion policy Promising employees are given promotion or up gradation. Vacancies are primarily filled up from with the company through promotion or by direct recruitment. b) Transfer To meet company requirement employees are transferred to utilize their skill, experience, job knowledge better. Some time transfer may be occur as disciplinary measures. Transfer policy Transfer is based on recruitment of the company skill, competence.
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Transfer is made with in the unit factories or departments/ section. There is no change in pay. Transfer order is given to the workers in writing well in advance and sufficient time is given to join. B. External sources Recruiting employees from outside the company is called external source. It constitute Candidate responding to advertisement and news papers, company notice board etc. Employees working in other organization. Former employee or retired employee. Job aspirants from employee exchange, college and computer institution.

2. SELECTION
Selection is the process of choosing the best suitable person out of the entire applicant. At BTW the applicants who possess the best ability are selected to do the job. The selection process of BTW consist of two stages, Screening of application. Written test & interview.

3. TRAINING

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Training is the process of increasing the knowledge and skill for doing a particular job. Employees selected for various positions require training for meeting specific task to which they have been assigned. Training helps the workers to know the correct method handling the equipment and material at the job. At BTW training is given to all employees who enter the company to the first time and also to existing employees in order to perform Training is given under the supervision and guidance of the qualified supervisors/ manager/ department head. 4. INTERNAL MOBILITY It is the process by which the employees move between different positions in an organization. This may be in the form of transfer and demotion. At BTW internal mobility motivates employees increase the job satisfaction and given sense of affiliation which produce higher organizational loyalty. 5. INDUSTRIAL RELATION According to Dale Yoder industrial relation refers to the relationship between management and employees or among employees and their organization arises out of employment. The company maintains a cordial and mutually beneficial relationship with the union representing workers and staff. The industrial relation system in company safeguards the rights and interests of both labour and management. At BTW grievances are redressed with proper discussion between the workers union and management. A work committee is formed for addressing the grievance of works. This committee consists of members from management side, workers side and union representative of different union.
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COMPENSATION Compensation refers to the wide verity of financial and non financial reward to employee for their service rendered to the organization. The employees of BTW are provided with the full scheme of compensation. WAGES AND SALARY ADMINISTRATION The increase in the efficiency of an organization in largely depends upon the contribution made by the man power in the organization and this can be secured only they are properly rewarded. Time wage system existing BTW it is based on the time per day, per month etc. wages does not depends all on the performance of employees .Wages and salary include Basic wages +additional wages/salary/FDA and DA. WAGES AND SALARY ADMINISTRATION POLICY OF BTW LTD The wages and salary are primarily paid in accordance with the payment of Wages Act. Wages enhancement is done every 3 year on the basis of the agreement which has been agreed by the Trade Union and management. Bonus of 200% will be paid to employee as per payment of Bonus Act. Attendance incentives are given to all eligible employees. Production incentive is also given but in accordance with sales turn over.

Salary is being paid on the last working day of the month.

MANAGEMENT STAFF Accountant officer, personal officer, personal assistant to MD, sales manager, managers of the company units, etc. Basic wages of workers
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CATEGORY

BASIS (Rs)

A B C D E

320 310 300 290 280

VDA (Approx) FDA/Additional Total Wages (Approx) 2400 1900 4620 2400 1900 4610 2400 1900 4600 2400 1900 4590 2400 1900 4580

Attendance Incentives ATTENDANCE INCENTIVES WORKERS 240 250 251 260 261 270 270 & Above WORKERS CATEGORY Category A Category B Category C Category D Category E : Masons, carpenters, engine drivers, kiln burner, electrician : Electrician, machine fitters, welder, excavator, and operator : kiln setter, slab places, kiln drawers : Tile dimmers, Tile receivers, firewood cutters. : Head load workers, fixing helpers, canteen workers. 0.50 per attendance 0.75 per attendance 1.00 per attendance 1.25 per attendance STAFF 0.75 per attendance 1.00 per attendance 1.25 per attendance 1.50 per attendance

WORKING HOURS In the BTW LTD three are 3 shifts for work productions process starts form 7: 30 AM and ends on 3: 30 PM the three shifts works are:
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First Shift General Shift Second Shift WORKING HOURS OF STAFF 9: 00 AM to 5: 00 PM

7: 30 AM 8: 00 AM 2: 00 AM

to to to

3: 30 PM 5: 00 PM 10: 00 PM

TIME KEEPING The BTW LTD has a fully fledged time keeping department. The department keeps a cord for each employee. The employee has to sign the attendance register every day. LABOUR WELFARE PROGRAMMERS 1) Safety programmers 2) Healthy programmers 3) Statutory welfare provision 4) Others Canteen Leave with pay/ annual leave Incentives Labour welfare funds Loan from bank and company. SAFETY MEASURES Elimination of hazards Personal productive equipments Proper layout and design Maintenance Training in safety measures
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Safety inspection Spot checking Investigation of accidents. EMPLOYEE PF AND MISCELLANEOUS SCHEMES Employee Provident Fund Scheme Employee Pension Scheme Employee Deposit linked Insurance Scheme PAYMENT OF GRATUITY Every employee irrespective of his wages is entitled to receive gratuity after he had rendered continuous services of 5 years or more. However, the condition of 5 years company service is not necessary, if his/her service is terminated due to death or disablement. PAYMENT OF BONUS Payment of bonus is one of the ways of sharing profits of the business. It is an incentive to increase production. Under the payment of Bonus Act every employee receiving salary/wages up to Rs. 10000/- and engaged in any kind of workers entitled to bonus for accounting year if he has worked for at least 30 working days in that year. In BTW bonus is paid at the rate of 2% of eligible/wages of workman. Those who are out of bonus are paid 8.33% if the eligible salary/wages as the festival allowance. The festival allowance or bonus is paid during Onam season. COUNSELING SERVICE Employees who are in need for proper advice and help with regard to education of their children and family problems are given proper allowance and advice by personnel department. EMPLOYEES STATE INSURANCE FUND
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This scheme provides social protection to employees in the organized sector in conceivable contingencies such as thickness, maternity death or disablement due to employment injury. ESI constitute 1.75% of the employees salary and companys contribution is 4.75% of the total wages of employees. This scheme include Sickness benefit Disablement benefit Medical benefit Maternity benefit Unemployment allowances Funeral

TRADE UNION AT BTW LTD The trade union may be defined as the voluntary association of individual formed for a specific purpose. In BTW Ltd the union performs a major function for their members and that are negotiation and representation. There are 5 trade unions they are BTWs National Labour Union (Affiliated to INTUC) BTW Workers Union ( Affiliated to CITU) Kannur District Tile (Affiliated to STU) Kannur District Tile Workers Union (Affiliated to AITUC) The Baliapatam Tile Works Staff Association. STRIKES AND LAYOFF The industrial dispute Act 1947 defines strike as cessation of work by a body of persons employed in any industry acting in combination, or a concentrated refusal under a common understanding of any number of persons who are or have been employed to continue to accept employment.
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The industry dispute Act defines layoff as the failure or refusal or inability of an employee to give employment to work men on account of: Shortage of power, cool, raw materials etc. Accumulation of stocks Breakdown of stocks Natural calamities Any other connected reasons In the BTW LTD, no wages and salaries are paid during strike, but 50% of their wages and salaries are paid during layoff. GRIEVANCE Grievance is a compliment of one or more workers in respect of wages, allowance, condition of work and interpretation of service stipulation, covering such area as overtime, leave transfer, promotion, seniority, job assignment and termination of services. REASONS Low wages Less incentives Inability of supervisors Objection to a particular work Poor welfare measures Indiscipline Lay off

PROCESS OF GRIEVANCE HANDLING IN THE BTW LTD In BTW Ltd an enquiry is made to find out the root cause of the problem. chance is also given to employees present the problem and his involvement in the problem. Then the enquiry officers conduct an enquiry about the problem and suggest the solution and this suggestion are discussed with the union leaders and suitable solution is taken after discussion.
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HIERARCHY OF PERSONNEL DEPARTMENT


MANAGING DIRECTOR

PERSONNEL OFFICER

MAIN FACTORY

2ND FACTORY

3RD FACTORY

4TH FACTORY

5TH FACTORY

STAFF/TIME KEEPER

STAFF/TIME KEEPER

STAFF/TIME KEEPER

STAFF/TIME KEEPER

STAFF/TIME KEEPER

SECURITY STAFF WORKERS

SECURITY STAFF WORKERS

SECURITY STAFF WORKERS

SECURITY STAFF WORKERS

SECURITY STAFF WORKERS

SALES DEPARTMENT
Sales are the part of marketing. Sales department deals with the selling of the products. It provides the basic guide to thinking & action taken by the executives within the sales organization under a given set of circumstances. SALES POLICY OF BTW.LTD The backbone of successful sales policy is consumer satisfaction & consumer goodwill. In BTW Ltd the sales policy involves appointment of dealers in all places. Especially Kerala, Karnataka, Tamilnadu, Andhra Pradesh, & Maharashtra. The company representatives visit all dealers once in a year to renew the relationship. If any new dealers come in, they are appointed as dealers for BTWs products if found suitable. The co. also offers seasonal discounts of about 10% as incentives for dealers who achieve better target.
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The co. is practicing 3 types of dealership namely A grade, B grade & D grade. For an A grade dealership, the dealers have to deposit a sum of Rs 25,000, so that they can enjoy a 10% discount if they are meeting a turnover of Rs. 5 lakhs the deposited amount will be reimbursed. For the B grade dealership, they have to deposit. Rs. 10,000 & they will be recovered with 5% discount & for reimbursement of deposit they have to enjoy a turnover of Rs.250000. The D grade dealership is mainly meant for contractors, they can enjoy a 2.5% discount without any deposit & target turn over. Other than dealers direct parties are also enjoying the discount. MAJOR DEALERS WITHIN KERALA M/S TECHNOCRAFT - KOTTAYAM STANDARD TIMBER TRADERS - KANNUR U.K.SUKUMARAN - PAYYANNUR KISSAN AGENCIES PADIYOTUCHAL T.K.C.TRADERS KUTTIYADI C.K.VALSARAJ MALABAR TIMBER VADAGARA ABDUL KHADAR &CO. TALIPARAMBA.

DEALERS OUTSIDE KERALA TERRACOTTA ENTERPRISE MUMBAI SRI GANESH TILE DEPOT BANGLORE N.K.AHMMED CHENNAI CANARA TILES MANGLORE SHREYAS ENTERPRISE MANGLORE NATURAL CONSTRUCTIONS GOA TERRA TILES BANGLORE MARATHI TILES COIMBATORE ANNAPURNA CLAY DEPOT BANGLORE SREE RAMAKRISHNA TILE BANGLORE.

SALES PROCEDURE The sales procedure refers to the way in which sales are carried out for the formalities involved in selling a product.

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In the BTW Ltd, on the receipt of the order, it is registered in proper records & while executive, the Lorries are hired from the head office & delivery order is sent to the branches where the particular item is produced. Once the purchasing party is making the full payment, a payment receipt is given which is to be produced on delivery .On delivery an invoice or bill is also given. When delivery is being undertaken from other units of the factory, dispatch information is given from the head office. The dispatch information is to be produced at the factory, where delivery is made. And from there a copy of the bill is sent back to the head office for information & incorporation in accounts. SALES OF LAST FIVE YEARS YEARS 2006- 07 2007- 08 2008- 09 2009-10 2010-11 SALES(in R.S) 90548679.65 9,14,21529.00 113886825 94995388 118216459

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SALES OF LAST FIVE YEARS


120000000

100000000

80000000

60000000

SALES(IN R.S)

40000000

20000000

0 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011

ASSESSMENT OF SALES DEPARTMENT BTWS sales department have specialized knowledge of customers industry. BTWs sales department strive hard to give the customer the Best Solution. BTWs sales department make promises that they can keep. Sales department of BTW Ltd collect proper feedback from customers & send information regarding the changing customer needs & wants to those in charge of product development.

They serve the same customers for a long period of time. Sales promotion efforts
are also undertaken by the company to stimulate consumer purchasing & dealer effectiveness. Rewards are offered to dealers if they cross the target set by the company. Special displays of several products in various exhibitions which are capable of impressing the company name generally among public.

MARKETING DEPARTMENT
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Marketing is an economic process by which goods & services are exchanged from the maker to the user & their value determining in the terms of money. Human effort, finance &market constitute the primary resources in the market. The success of the company depends upon the acceptability of its product in the market. OBJECTIVES OF MARKETING DEPARTMENT To generate maximum business at the best possible rate. To encourage clear to do more at best possible rate. To encourage clear to do more business & for quick payment realization by providing turnover and cash discount. Not to lose any order as price ground. Maximum satisfaction to consumer by timely supply of good quality product& competitive price. Speedy realization of payment. The ultimate purpose of production is satisfaction of consumer needs; production of goods has no meaning unless they are distributed to the customer. Customers can satisfy their wants only when goods reach their hand. Marketing serves the purpose. Marketing makes commodities more useful to the society by getting them what they want & where they want, thus marketing is concerned with all activities which are involved in the process of transferring the goods from one point of production to the point of consumption. FEATURES OF MARKETING DEPARTMENT IN BTW.LTD The company selects target market in which it enjoys superior advantages & discards or avoids market which is weak. The company employees & department are customer market oriented. Good marketing relationship between marketing research &manufacturer. The company continuously builds &track customer satisfaction & loyalty. The company is skilled in building its brand name & image. The company is flexible in meeting customer varying lifestyle & taste.
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DEMAND FOR THE PRODUCT The market demand for BTWs product is high as compared to other tile manufactures. On the other hand the reputation of the company also helped substantially to maintain good demand for the products. Hollow bricks, solid bricks, terrace roofing tiles, etc are some of the BTWs products which have a high demand in the market. MARKETING MIX

It is a term used to describe the combination of the four inputs which constitute the core of the companys marketing system, the product, price, place &promotion. I.
PRODUCT MIX

Product is the bundle of utility, they are offered for sale. The product must satisfy consumers needs. Product mix is also called product portfolio or product range. A product mix is the total list of all products offered by a firm. The BTW.LTD produces different types of clay bricks, tiles& clay products according to the customers demand &market requirements. Product mix of the BTW.LTD
1. Types of tiles Solid bricks, perforated bricks, hollow bricks, hollow partition bricks, hollow roofing bricks, paving bricks, ventilation bricks. 2. Types of tiles Decorative roofing tiles, Portuguese roofing tiles, Spanish roofing tiles,dutch roofing tiles, roman roofing tiles, groove roofing tiles, curved roofing tiles, pointed roofing tiles, embossed roofing tiles, terrace roofing tiles, ventilator roofing tiles, hollow roofing tiles, sky light tiles, Portuguese interlocks roofing tiles, roman interlock roofing tiles. 3. Range of clay products Mangalore pattern roofing tiles ridge tiles. Solid bricks perforated specified clay bricks for load bearing partition walls.
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Hollow clay bricks, clay channel for construction of roof floor slabs. Decorative clay tiles for roofs walls. Terrace roofing tiles for weather proofing &insulation of roof. Clay roofing tiles. Decorative clay tiles for roofs walls. Pottery products such as flower pots, water pots etc. Paving bricks for drive ways. Clay sewage pipes.

II.

PRICE The term price denotes the money value of the product or service. It is a value

which a buyer passes on to the seller in return for a product or service provided. In other words, it is the value a seller is asking for the product or service he offers. It is the market value expressed in terms of money. In BTW Ltd price of the product is determined as the basis of weight. Other factors like profit, sales, interest-on-capital etc, also considered while pricing of the product. The pricing policy adopted by the company is cost + pricing. It ensures that no product is sold at loss. Since the price covers the full cost incurred [cost+ 20-25% profit].

PRICES OF BRICKS
SPECIFICATION Solid bricks Perforated bricks SIZE 2009565mm 23011075mm 230 110 75mm 300 150 150mm 350 175 150mm 250 140 110mm 360 350 150mm 250 350 65mm PRICE(Rs) 6.75 8.50 6.50 25.00 25.00 8.50 30.00 15.00

Hollow roofing bricks

PRICES OF ROOFING TILES

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SPECIFICATION ITEM Portuguese Roofing tiles Dutch roofing tiles Spanish roofing tiles Roman roofing tiles Groove roofing tiles A B A B A B A B A B C

SIZE(nos) 230150 300200 230150 300200 230150 300200 230150 300200 350 220 350 220 320 210

PRICE(Rs) 1st quality 7.50 10.00 7.50 10.00 7.50 10.00 7.50 10.00 12.50 15.00 11.00

PRICE PRICE nd 2 quality 3rdquality 6.50 4.00 7.50 5.00 6.50 4.00 7.50 5.00 6.50 4.00 7.50 5.00 6.50 4.00 7.50 5.00 11.50 13.00 10.00 9.00 10.00 7.50

PLACE Place in the context of marketing mix means taking decisions to make the products available to the consumers for purchase and consumption. Making the products available to the consumer is known ad distribution. DISTRIBUTION POLICY OF BTW.LTD One of the most critical marketing decisions to the mode is the selection of marketing channel system by the manufacturer. The objective of the selection is to place firm & its product into a market position which is very safe. The company markets its product directly & adopts the dealer or agent 75% as the marketing channel retail outlets have full freedom during the sale without any restriction from the company part regarding the selling price. There are up to 200 dealers in south India 50% of in Kerala. Tamilnadu, Karnataka, Kerala & Andhra Pradesh are primary market for the company product. CHANNELS OF DISTRIBUTION

III.

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The objective of this section is to place the firm & its products into a marketing position which is very safe. The company markets its products directly & adopts the dealers or agents as the marketing channel. Retail outlets have full freedom without any restriction from the companys part regarding the selling price. Due to mass production it becomes essential for the channels of distribution to develop a mass communication system mainly for physical movement of goods & to inform the consumers about various choices available to them. 3 major channels of distribution at BTW Ltd. Manufacturer Manufacturer Manufacturer Customer Dealers Dealers Customer Agent Customer.

PROMOTION MIX The reputation and goodwill earned by the company has helped them a lot in maintaining their sales to a great extend. As such the co. has no special media for advertising its products. But in some cases they advertise through other publishers, souvenirs&magazines. Sales promotion efforts are undertaken by the co. to stimulate consumer purchasing &dealer effectiveness. Dealer promotion is done by offering rewards to dealers if they cross the target set by the company. Direct marketing is the strategy adopted by the BTW LTD promoting their products. The co. also shows special displays of several products in various exhibitions which are capable of impressing the co.s name generally among public. The peak sales of the BTW.LTD products occur during the period between January&April.

IV.

CUSTOMERS

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The BTW.ltd, through its long made reputation has a very large no. of customers both in around Malabar region, in other districts of kerala&outside kerala.Due to its reputation large no. of customers are approaching. The BTW.ltd in order to buy tiles, block, bricks&other clay products. CUSTOMER CONTACT Customer contact at the BTW.ltd is maintained mainly through telecommunication system. Internet is one of the principle sources to contact customers &dealers. The co. offer quotations online/manually. They also clarify the doubts though e-mails. They also attach their specifications online and also other brouchers related to goods they offer. Technical details of the products are cleared by the supervisors in charge to certain customers. If there are any complaints about quality and breakage of the product the co. sends its representatives to each market to enquire about customer satisfaction needs and also find out complaints if any. COMPETITORS The main competitors of the co. are Thrissur, Calicut&mangalore.The sales price of the co. is 20% more when compared with the prices of competitors. In an year the sales price is revised two times. Sales target is based on installed capacity (200 lakhs). The btw.ltds products are well known for its quality. The quality characterized products have good demand in the market. Demand for wall bricks is higher than other products of the co. Competitors are;

Pappinisseri co-operative tiles-Pappinisseri Kannur block-Pilathara Feroke tile-Calicut Common wealth trust ltd-Calicut Calicut tiles- Calicut

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PURCHASE DEPARTMENT
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Purchase department carries out the procurement of all indigenous items like raw materials, machines, spares, other instruments etc. Purchases of material are done according to the recommendation and specification from the user department. PURPOSE To lay down the procedure for procuring/purchasing of items from the domestic supplier as well as import. SCOPE Procurement items like clay, chemical, spares, instruments, oils, lubricants, fuel, equipments and machinery, bearings. PURCHASE PROCEDURE OF BTW.LTD In BTW Ltd, the purchase department plans to procure the material based on annual production plan or monthly production plan & material records. It deals with purchasing, storing&dispatching of materials and supplying raw materials to the production department. The purchase department releases orders for purchase after getting the indent signed by the MD. The purchase officer does not initiate any action for purchase of raw material on his own account. With the help of purchase requisition he comes to know the type of material need in the organization. SUPPLIERS OF BTW.LTD

Bearing Sri Ganesh Enterprises- Mumbai Machines Vijaya Pradesh Industrial- Calicut Kerosene Govind Ram & co.

HIERARCHY OF PURCHASE DEPARTMENT

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MANAGING DIRECTOR

GENERAL MANAGER

PURCHASE EXECUTIVE

PURCHASE ASSISTANT

SECRETARIAL DEPARTMENT
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The first secretary of the company is appointed by the promoters and is known as proten secretary and his name is mentioned in the article of association. A company secretary is one of the principal officers; he is responsible for the secretarial work and management affaires of the company. It is the concern of the secretary to get his

appointment confirmed by a resolution of the board passed in first meetings. Companies having paid up capital of 5 crores must have full time secretary. Since BTWs paid up capital is only Rs. 4, 50, 76,320 they do not have a full time secretary. But instead they have an executive secretary to managing director. The power of the management of co. is vested in the hands of the BOD. The BTW.ltd calls annual general board meeting every year in the month of September and it will be conducted at the registered office at Pappinisseri. QUALIFICATION SHARES To become a director of THE BTW LTD, a person should hold 500 shares as per the articles. Each director may take qualification shares within two months. SHARE HOLDERS Share holders are a person who holds share of the company. In the BTW LTD. There are 540 shareholders in total. it includes 2 NRI shareholders and corporate shareholder. DIRECTORS Directors are appointed or elected by representatives of shareholders and there for they are in a position of managing the company. In the BTW LTD they have 11 directors and they are appointed in the Annual General Body meeting of the company every year.

DIRECTORS MEETING

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Directors meetings are held every month to discuss the matter relating to the affairs of the company and take decisions affecting the company. Generally annual general meeting is held in month of September every year. The power of management of the co. is vested in the hands of BOD. REGISTERS MAINTAINED BY THE COMPANY Register of members Register of Directors. Managing director etc. Register of directors share holding Register of contracts, companies & firms in which directors are interested. Register of charges Register of transfer/ transmission Register of investments Register of deposits Minutes of board meetings Minutes of general meeting Index of register of members. Unpaid dividend register. Minutes of the remuneration committee. Register of duplicate certificates.

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BOARD OF DIRECTORS

MANAGING DIRECTOR

SECRETARIAL DEPT.

PERSONNEL ASSISTANT

STAFF

CHAPTER-7
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FINANCE DEPARTMENT
Finance means money, cash or funds used in any activity. Business finance means finance used by the business. Finance is regarded as the lifeblood or nervous centre of the business enterprise. Because in the modern money oriented economy, finance is one of the basic foundation of all kind of economic activities. Finance department is the department or committee which manages the money used in an organization. The Ministry of Finance is responsible for the financial functions and activities of the Board and management of financial policy of the Office.

In BTW.LTD:
SOURCE OF FINANCE Every company should maintain reliable sources of finance. The main sources of finance of the btw.ltd are; Advance paid for booking by dealers Deposits by agents Capital Bank loans. FINANCE POLICY In BTW Ltd the chief finance policy is to bring in funds through deposits and other funds that are moved out of various expenses. Another feature is that the MD signs all purchase indents and other documents like bills, vouchers etc.

ACCOUNTING PROCEDURES
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The BTW Ltd follows Double Entry system of accounting. The accounts department maintains various books of account. For recording the day to day transactions cash receipt, payment vouchers and rough cash books etc, are maintained manually. Finally the fair cash book is prepared using computerized methods. The credit sales report is also presented. The journal entries are recorded in journal register. Computerization of the accounts section was made in the year 1994, at present 70%of the work is done by computers. CAPITAL Capital is the total amount with which the business gets established and then operated. Capital of BTW Ltd comprises of equity shares having a face value of Rs. 10 each. During the year the authorized capital of the co. was increased from R.S 2, 00, 00,000 to R.S 5, 00, 00,000 .Likewise the subscribed &paid up capital is R.S 4,50,76,320 as on January 28,2011 and there is no bonus share. WORKING CAPITAL Working capital is that part of the capital that is required for the day to day operations of the concern. The main sources of working capital of btw.ltd are cash, credit and funds. INVESTMENT The company has invested in Keltron Component Complex Ltd (1000 equity shares of Rs.10/-each), & in Canannore Co-operative Spinning Mills (20 C-class shares of Rs.100/- each). DIVIDEND The divisible profit of the co. is distributed among the shareholders of the co. on the basis of number of shares held. Directors recommend payment of the dividend for the year ended 31st march 2011 at the rate of 13.5% on equity shares. The dividend ,if approved at the ensuing
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annual general meeting ,will be paid to the shareholders whose name appear on the register of members of the co. as on 14.09.11 The dividend would be tax free in the hands of the shareholders. RESERVE & SURPLUS A part of profit is transferred to reserve & surplus. A certain percentage of profit to be transferred as reserves & surplus is being decided by the board of directors. This year R&S carried to balance sheet is R.S 1, 80,20,994. DEPRECIATION Depreciation refers to two very different but related concepts: 1. the decline in value of assets (fair value depreciation), and
2.

the allocation of the cost of assets to periods in which the assets are used (depreciation with the matching principle).

In BTW the depreciation on fixed asset is calculated and provided on written down value method. Fixed assets are valued at the cost of acquisition less depreciation. Depreciation on certain fixed asset is as follows: Building Plant & Machinery Furniture & fittings Light & vehicle Lorries Computer PROFITABILITY - 10% - 13.9% - 18.10% - 25.89% - 40% - 40%.

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The profitability of a co. is an indication of success. Normally the profitability depends upon the factors like productivity, efficiency of workers&good management. However, it may decrease due to unforeseen problems. EARNING/SHARE Earnings per share (EPS) is the amount of earnings per each outstanding share of a company's stock. In the btw. Ltd EPS of the accounting year 2010-2011 is 2.30. BANKERS The bankers of the co. influence the financial position of the company. The following are the bankers of the BTW.ltd; Central Bank of India (kannur ) Canara Bank (kannur& Payyannur) Indian Bank (Pappinisseri) State Bank of Travancore (Pappinisseri ) Punjab National Bank (Kannur ) Syndicate Bank (Nileswar ) UTI Bank Ltd (Kannur ) Industrial Bank Ltd (Kannur). TURNOVER Turnover is sometimes a synonym for revenue (or in certain contexts, sales).In other words, Turnover is the name for a measure of how quickly inventory is sold (inventory turnover). A high turnover means that goods are sold quickly, while a low turnover means that goods are sold more slowly. The turnover of the co. during the financial year 2010-2011 is R.S 11,82,16,459. ACCOUNTING POLICIES
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The company its account on accrual basis following the historical cost

conversion in accordance with the generally accepted principles & in compliance with accounting standard as in the Companies Act. Fixed assets are at the cost of acquisition less depreciation. Depreciation of fixed asset is calculated & provided on written down value

method. Investments are valued at cost. Inventories at cost net realizable whichever is lower cost assigned for

valuation of raw material is on weighted average basis of stores spare parts of specific identification basis & of finished goods & stock in process, in First In First Out basis after providing for in value absolute & slow moving items. Sales disclosed are net of discounts. Revenue expenditure on research & development is charged to the Profit &

Loss Account. Capital expenditure on research &development is included as part of fixed asset & depreciation on the same basis as other fixed asset. Retirement benefits to employees are provided for under the group

insurance scheme of LIC of India. Tax on income of the current period is determined on the basis of taxable

income computed in accordance with the provision of the Income Tax Act. AUDITORS The statutory Auditor of BTW is M/s T.K. Menon &co. Calicut- 673002.

HIERARCHY OF FINANCE DEPARTMENT

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MANAGING DIRECTOR

ACCOUNTANT OFFICER

MAIN FACTORY

2nd FACTORY

3rd FACTORY

4th FACTORY

5th FACTORY

Accountant Manager

Assistant Accountant

Assistant Accountant

Assistant Accountant

Assistant Accountant

Clerk

Clerk

Clerk

Clerk

Clerk

PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31st MARCH ,2011.
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(Amounts in R.S) SCH 31st MARCH 2011 INCOME Sales Increase/(decrease in stocks) Other income TOTAL EXENDITURE Materials Manufacturing expense Personnel costs Financing charges Selling and distribution expenses Other expenses Depreciation TOTAL PROFIT BEFORE TAXATION Provision for taxation Provision for fringe benefit tax Provision for deferred tax Provision for deferred tax reversed PROFIT AFTER TAXATION Balance brought forward from previous year Capitalized as bonus shares TOTAL APPROPRIATION General reserve Proposed dividends:13.50% on equity shares(12.50%) Provision for tax on dividend Balance carried to balance sheet TOTAL NOTES ON ACCOUNTS R I J K 11,82,16,459 7,35,158 85,87,399 12,75,39,016 2,16,48,720 2,63,25,899 5,03,51,682 12,508 12,09,209 64,39,631 55,87,011 11,15,74,660 1,59,64,356 (60,27,929) -4,28,377 -1,03,64,804 48,45,257 -1,52,10,061 31st MARCH 2010 9,49,95,388 (9,07,285) 9,9,98,515 10,40,86,618 1,62,31,538 1,98,90,148 4,29,72,869 9,846 4,98,900 55,43,594 53,45,207 9,04,92,102 1,35,94,516 (48,90,499) --51,176 87,55,193 41,20,505 (4,60,074) 1,24,15,624

L M N O P Q D

40,00,000 60,85,303 9,87,188 41,37,570 152,10,061

10,00,000 56,34,540 9,35,827 48,45,257 1,24,15,624

BALANCE SHEET AS AT 31st MARCH,2011


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(Amounts in R.S) SCH SOURCES OF FUNDS 1.Shareholders funds: a)Capital b)Reserves and Surplus 2.Loan funds Secured loan TOTAL APPLICATION OF FUNDS 1.Fixed assets: a)Gross block b)Less: depreciation c)Net block 2. Investments 3.Current assets, Loans and Advances: a)Inventories b)Sundry debtors c)Cash and bank balances d)Loans and advances Less: current liabilities and provisions: a)Liabilities b)Provisions Net current assets 4.Deferred tax: Deferred tax assets Deferred tax liabilities 5.miscellaneous expenditure (to the extent not written of or adjusted) TOTAL NOTES ON ACCOUNT

31st March 2011

31st March 2010

A B C

45076320 18020994

63097314 11471 63108785

45076320 14728681

9805001 59805001 60198498

82820364 45193426

E F 21458760 305 33772270 2401651 57632986 22732552 7768260 30500812

37626938 --

80131355 41154279 --

38977076

24201995 206354 27820578 2967339 55196266 25026517 6869623 31896140 27132174 23300126 806 (2079510)

2350 -1652677

-1650327 -63108785

-2078704 -60198498

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NET PROFIT OF 5 YEARS


YEARS
2006 2007 2007 2008 2008 2009 2009 2010 2010-2011

NET PROFIT
1,02,21,889 89,69,736 1,72,78,022 87,55,193 1,03,64,804

NET PROFIT OF LAST 5 YEARS


20000000 18000000 16000000 14000000 12000000 10000000 8000000 6000000 4000000 2000000 0 2006-2007 NET PROFIT

2007-2008

2008-2009

2009-2010

2010-2011

RATIO ANALYSIS
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In present complicated business world mere data are not sufficient. The income statement and balance sheet should be subjected to detailed analysis and final interpretation. Ratio analysis is one of technique of financial analysis. Ratio means relationship expressed in numerical terms. It is one of the data expressed terms of another numerically. It can be expressed in times, percentage etc. Classification of ratio RATIO
On the basis of statement On the basis of importance

On the basis of function

P/L RATIO BALANCESHEET RATIO COMPOSIT RATIO

PRIMARY RATIO SECONDARY RATIO

FINANCIAL RATIO

LIQUIDITY

LEVERAGE
PROFITABILITY RATIO TURNOVER RATIO COVERAGE RATIO

Among all the above ratios financial ratios, profitability ratio, turnover ratio are commonly used to analyze the financial datas and to indicate the financial position of a firm.

FINANCIAL RATIO
These are ratios used to indicate the financial position of a firm. Both short term and long term financial fitness is essential to carry on its business smoothly. This financial soundness can be measured by the following ratios;

1) Liquidity ratios

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These are used to measure the short term solvency of an organization. It measures the adequacy of working capital to run its day today operation. Important liquidity ratios are; Current ratio Ratio between current assets and current liabilities. Higher the CR greater the ability to meet the short term debts. Ideal CR is 2:1

Quick ratio Ratio between quick assets and quick liabilities/current liabilities. Considered as superior to current ratio in testing the liquidity. Ideal QR is 1:1

Where , Quick assets= current assets-stock Quick liabilities=current liabilities-bank overdraft 2) Leverage ratios These are used to ascertain long term solvency of a firm. The shareholders,deb.holders&long term creditors are interested in long term financial position. Leverage ratios are; Debt equity ratio Ratio between debt and equity in the total funds of a business. It shows the relative control of shareholders and creditors to the company. Greater the DER greater the risk to creditors. Ideal equity ratio for public sector co. is 1:1 and 2:1 for private sector.

Fixed asset ratio


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Ratio between fixed asset and long term funds. It explains whether the firm has adequate long term funds to meet its fixed asset requirement.

Proprietary ratio Ratio between proprietors funds and total assets. It indicates the proportion of total assets financed by the shareholders.

3) Profitability ratio The ultimate object of any business is to earn maximum profit. It is important to the management,creditors,employees etc. Important ratios are; Gross profit ratio Ratio between gross profit and net sales. Expressed in percentage.

Net profit ratio Ratio of net profit and net sales. Also called as profit margin.

Operating profit ratio Ratio between net operating profit and net sales. It is the exact profit.

Return on assets ratio Return on capital employed Earnings per share


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4) Turnover ratio It indicates the efficiency with which capital employed is rotated in the business. Higher the rate of rotation greater will be the profitability. Important ratios are; Stock turnover ratio Ratio between cost of goods sold and average inventory. It indicates how many times the firm has turned its inventory.

Debtors turnover ratio Ratio between net credit sales and sundry debtors.

Creditors turnover ratio Ratio between net credit purchase and amount of sundry creditors. It implies credit period enjoyed by the firm in paying its creditors.

Fixed asset turnover ratio Ratio between sales and fixed asset.ie,it measures the efficiency with which a firm is utilizing its fixed assets in generating sales.

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In BTW.LTD,
SL.NO
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14.

RATIOS
CURRENT RATIO QUICK RATIO FIXED ASSET RATIO PROPRIETARY RATIO GROSS PROFIT RATIO NET PROFIT RATIO OPERATING PROFIT RATIO RETURN ON ASSET RATIO ROCE EPS STR DTR CTR FTR

2009
1.57 1 0.64 0.58 0.66 0.152 1.45 0.173 0.46 9.52 2.4 9132.62 0.126 3.09

2010
1.73 0.97 0.65 0.64 0.61 0.092 1.47 0.093 0.23 1.94 2.45 460.35 0.296 2.44

2011
1.89 1.19 0.596 0.66 0.06 0.087 0.085 0.11 0.25 2.30 7.40 387594.9 0.474 3.14

From above ratios we can understand the financial position of the BTW.ltd.Here according to the three years data the current ratio of the company was increased from 1.57 to 1.89.ie,the firm has greater ability to meet the short term debts. The short term solvency of the company is high in the year 2011 as compared to2009. Quick ratio increased from 1 to 1.19. it is also showing the firms short term solvency. Then the leverage ratios such as fixed asset ratio, proprietary ratios showing some changes. In 2009 fixed asset ratio was 0.64,in 2010 was 0.65.in 2011 is 0.596 and proprietary ratios 0.58,0.64,0.66 res. That is, the firm has an average ability to meet the long term solvency. The firm is having the average adequate resources to meet its long term funds. The profitability ratios such as GP ratio, NPratio,Operating profit ratio, ROA,ROCE, EPS also changed. In 2009 EPS was showing a greater change than 2011 ie,9.52. As compared to the above 2009 have a greater profitability position than 2011.
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The turnover ratios such as STR,DTR,CTR.FTR showing an increase from 2009 to 2011.that is the firm has a high efficiency in rotating the capital employed from 2009 to 2011.the speed of the rotation of capital employed in business is increased. That is the firm has greater profitability.

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CHAPTER-8 SWOT ANALYSIS


SWOT stands for Strength, Weakness, Opportunities and Threats. Strength and Weakness are essential factors. SWOT analysis is the tool for auditing the organization and its environment. It is the first stage in planning and helps marketers to face on key issues.

Strength
In technical expertise, quality assurance, innovative solutions for meeting customer satisfaction by wide range of products and confidence of meeting challenges faced by the industry. Baliapatam Tile Works Ltd is one of the leading manufacturers of structural clay products in Kerala State. The product of BTW Ltd is certified by ISO. A very dedicated workforce. BTW has a very high brand image which has been built over the last 50 years with acquired goodwill. No toxic effluents at any stage of production. There is minimal wastage of products. To decrease the rate of pollution the height of the chimney has been increased and good machines are used. High quality products and customers all over the world.

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Weakness
Government policies against the industry. Depends mainly on private transport services. Not in a position to attract price conscious customers. Mainly follows the manual accounting methods. Poor marketing strategies. It involves high cost of labour when compared to the neighboring states. It still uses conventional practice of firing clay using firewood, coal, coconut shell and other biomass fuels. It increases fuel cost. High cost of production leading to lack of profit. Inventory management not computerized. Promotional activities are not sufficient to boost up the sales. Lack of good distribution network compare to the competitors. Poor administration.

Opportunities
There is opportunity for skilled and motivated younger staff. Unprecedented and exclusive change in the industry. Increasing the level of quality consciousness in customers. Technical innovation. Seek out innovative and environmental friendly opportunities in the manufacturing process. There is an opportunity to diversify its product. The product of the company is being exported to gulf countries and foreign countries.

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Threats
The working of the company has been adversely affected by the effect of globalization. Though competition faced by the company. Environmental threats. High risk involved in manufacturing. Clay is a non-renewable resource: hence it gets exhausted on continuous exploitation. Firewood and fuel for burning are become costly and its availability is limited. Though high quality is maintained it faces various threats from the market. Strikes, lockout which in turn affect production. trade Unions demands & protects.

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CHAPTER-9 FINDINGS & SUGGESTIONS


FINDINGS
Baliapatam Tile Works Ltd is one of the leading manufacturers of structural clay products in Kerala State. High fuel cost. Traditional method of drying of bricks. Very dedicated workforce. Company is still uses conventional method of burning using firewood and fuel. High labour cost. Entry of new companies with highly advanced technology is a big problem faced by the company. The company was awarded the ISO-9001-2000 certificate. No proper promotional measures have been undertaken. Lack of material handling equipment. There is no proper lighting facility. The employee-employer relationship is found to be cordial. The management is very keen in welfare activities of the companys employees. There always a possibility of stable demand for the products. The company gives more importance to quality than price of the product.

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SUGGESTIONS
The following suggestions are recommended. Advertisement has to be increased in large scale. The company should adopt new technology in burning the clay. The company should adopt more effective and scientific drying process. Modernization has to cop up with the technology development The company should adopt new technologies in material handling. The company should provide lighting facility. The company should conduct training program for its employees to improve their skill and to educate them about the technological changes or innovation taking place and to make them adopt such changes The company must concentrate on international market and increased their export. The company must take steps to better the working environment.

CONCLUSION
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The Baliapatam tile woks Ltd was established in 1947. The founder of the company is Mr.Sumithran Aaron. Now the managing director of the company is Mr.Sushil Aaron.BTW Ltd producers of clay products, which are well known for the superior quality then and now, is making their performance graph up with its enthusiastic professional management and committed work force. World is changing and modernization and innovation will have to be incorporated in every phase of working of the company and ways will have to be found to cope with competition and overcome the barriers of innovation. The company is facing a new problem, that is, the scarcity of clay. The acquiring of clay from various locations has been prohibited by the government and the people of the particular locality. The company should convenience the public that the clay acquiring will not affect the natural wealth. The government should also try to support the company. If they scarcity of clay continues, then the company may have to go down to layoff. This will lead to the downfall of a leading company. Many workers and their family will be in disaster. To conclude the study BTW who had done well during the past emphasis in terms of manager who can chase change and also temporary task forces will have to supplement formal structures to tackle issues like product launching and cost reduction.

BIBLIOGRAPHY
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Organizational study on btw.ltd

Annual report of WIP Ltd. Books and journals. Magazines. Brouchers www.btw.ltd.com.

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