1.

Introduction

Organization study refers to the study of organization in general and about its organizational 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 study intends to get an overview of the K.S.Es organizational structure functional department and their style of working.

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.

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.

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

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

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 nondescriptive 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.

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 cooperatives. 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.

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

COMPANY PROFILE
History of K.S.E LIMITED
In the early 60s, when Kerala accounted for nearly 90 percent of copra in the country, 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 of oils, 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

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.

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 and infrastructure 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.

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.

 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 hi self 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 M.C Paul A.P George T.C Mathew K.C Vijayaraghavan T.R Regulal P.K Varghese K.P John P.D Anto John Francis K Jose Paul Thaliyath 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 Stock code Cochin, Mumbai and madras stock exchange Designation Chairman and Managing Director Director Director Director Executive Director Director Director Director Director

Cochin stock exchange The stock exchange, Mumbai Madras stock exchange Ltd

- KSE - 519421 - 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

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.

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 1972 1976 1987 1988 Kerala Solvent Extractions Ltd established. Solvent plant commences operation Mixed cattle feed production begins. Cattle feed production reaches 180 tones Introduction of computers In the factory and office. A new mixed cattle feed plant starts operation at

Swaminathapuram, in Tamil Nadu with a daily production 1989 1990 1991 1992 1993 1994 1995 capacity of 180 tones. A solvent unit with a capacity of 120 tones per day commences operation at the Tamil Nadu plant. Introduction of KS supreme pellets, bypass protein cattle feed in the market. Opens its Palakkadu branch. Cattle feed manufacturing begins in third party units. Enters export market. Introduction of feed supplement KS forte. Public issue and listing of shares. New vegetable oil refining plant commissioned. Calicut branch opened.

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.

240 TPD cattle feed commences at Vedagiri, Kottayam Dist, Kerala. 1996 1997 Company renamed as KSE limited A modern childrens park and information centre have been completed at Irinjalakkuda for the benefit of the 1999 public. 1998 Company introduces Ks Delux Plus the new pelleted feed in HDPE bags for Kerala market. Company starts production and distribution of milk and milk products 2000 2002 from Konnikkara and Thalayuthu Dairy units. Cattle feed production at Irinjalakkuda unit increased to195 MTs per day. Ice cream VESTA launched. Started producing cattle feed in a leased plant at Edayar, Kalamassery. Cattle feed production at the Swaminathapuram unit increased to 195 MTs 2003 per day 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. 2004 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.

Cattle feed production capacity at the irinjalakkuda unit increased to 210 MTs per day. 2005 Started producing cattle feed in a leased unit at Erode. ISO 9001:2000 accreditation for vedagiri and swaminathapuram unit. The 200 TPD solvent extraction plant at koratty commissioned 100 TPD 2006 2007 2008 physical refining plant at koratty commissioned. A branch at Coimbatore started for making vesta Ice cream. Decided to install 500 TPD cattle feed plant at irinjalakkuda unit. Ice cream production unit commissioned at Thalayuthu. Cattle feed production capacity at swaminathapuram increased to 200 MTs per day. 2009 Commissioned function action plant at koratty. Commissioned 500TPD fully state of the Art German Technology animal 2010 feed plant at irinjalakkuda. 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.

PRODUCTION UNITS
UNITS IN KERALA KSE Limited Irinjalakkuda, Solvent Road, Irinjalakkuda. KSE Limited, Vedagiri unit, Kottayam. KSE Limited, Palakkadu unit, Othugode, Palakkadu. KSE Limited, NIDA, Menonpara Road, Kanjikkodu, Palakkadu. UNITS IN TAMIL NADU KSE Limited, Swaminathapuram unit, Swaminathapuram. Branch KSE Limited, Paropadi, Kozhikode. KSE Dairy unit, Dairy unit, Thalayuthu KSE Limited, Dairy unit,Konikkara, Thrissur KSE Limited, Koratty unit, KINFRA Park, Koratty. KSE Limited, Muppathadam, Edayar, Kochi.

ORGANIZATION CHART
Board of Directors Chairman andClerk Managing Director

Chief General Manager

G.M Finance

Chief Marketing Manager

Chief purchase manager

Chief Nutritionist

Chief personnel manager

Plant Manager

Deputy finance manager

Sales officer

Purchase officer

Veterinary officer

Personnel officer

Engineer

Senior Assistant

Senior Assistant Senior Chemist Chief shift supervisor Attenders Godown Assistant Assistant operator Godown officer

Clerk

Clerk

Boiler operator

Electrician

Tally Clerk

Workers

Workers

CHAPTER -IV

PRODUCT PROFILE

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.

VESTA ICE CREAM

Keralas ice cream market is worth Rs 45 crore. The companys brand Vesta is available in various 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

CHAPTER V

DEPARTMENT PROFILE

DEPARTMENT PROFILE
1. FINANCE DEPARTMENT 2. PURCHASE DEPARTMENT 3. PRODUCTION DEPARTMENT 4. QUALITY CONTROL DEPARTMENT 5. MARKETING DEPARTMENT 6. HUMAN RESOURCE DEPARTMENT

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

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

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

 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,

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

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 and concentrating 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.

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

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.

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 case may be, incurred in bring the inventories to their location, determined on the following methods.

a. Raw Materials b. Packing Materials Consumables

:FIFO( first in first out) : FIFO( first in first out) : Weighted Average Cost

c. Stores and Spares and

7. Retirement Benefits:
a. b. Contribution to provident fund and employees welfare fund is Gratuity:-The accruing liability toward gratuity of employees is charged to profit and loss account. 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.

11.Borrowing cost:
Borrowing cost that are attributed to the acquisition or construction or 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 taxable incomes 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. b. c. 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 Animal feed division Oil lake processing division Dairy division comprising milk and milk products including ice

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.

Financial Highlights
2011
Sales and other income Gross profit Profit before tax Profit after tax Share holder equity Capital employed Gross fixed asset 54336.28 2387.83 1587.04 1044.93 3971.18 4998.67 7308.62

2012
45436.07 1446.98 667.31 449.81 3395.35 4498.23 7194.27

Share holder equity per share

EPS of Rs.10 each Dividend Rate

124.10 32.65 110%

104.23 14.06 100%

Market Price data 2011-2012 based on BSE data

Month
April May June July August September October November December January February March

High
219.95 217 210.90 244.95 245.90 244 243 251 247.50 254.00 250.00 267.50

Low
163.30 170 189.15 198.00 200 197 203.05 210 203 210.00 228.00 230.00

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.

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.

DEPARTMENTAL STRUCTURE

Chief Purchase Manager

Purchase Officer

Senior Assistant

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.

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.

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

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.

DEPARTMENTAL STRUCTURE
Plant Manager Engineer Chief Shift Supervisor Godown officer Godown Assistant Assistant Operator Boiler Operator Electrician

Tally Clerk

Workers

Workers

Functions of Production Department

The major functions of production department are: Utilization of optimum level of raw materials Controlling production Ensure flexibility in production

 Standardization of production Ensure quality in production Minimization of cost of production

Raw Materials
A 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

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 2 3 4 5 6 7 Oiled de oiled cakes Grains-maize, Jowar etc. Rice bran extraction/Rice polish/Wheat bran Molasses Minerals including trace minerals Salt Vitamin A,D3 50000/500 IU Total 40% 30% 20% 7% 2% 1% 200gm 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

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

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.

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 from the 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

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.

DEPARTMENTAL STRUCTURE
Chief Nutritionist

Veterinary Officer

Senior Chemist

Attenders

Steps in Quality Control

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.

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 involves 1) Calcium content verification. 2) Chlorine content verification 3) Phosphorous content verification

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

Marketing is the process of understanding customer needs and fulfilling them. 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.

DEPARTMENTAL STRUCTURE
Marketing Manager

Sales Officer

Clerk

Functions of Marketing Department

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

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 a factor 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.

Market Share
1 2 Company KSE Others Share% 40 60

Market Segmentation
Since 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.

Dealership Chart

Company

Authorized Dealers

Sub Dealers

Wholesalers

Wholesalers

Retailers

Retailers

Retailers

Customers

Customers

Customers

HUMAN RESOURCE DEPARTMENT

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.

DEPARTMENTAL STRUCTURE Personnel Manager

Personnel Officer

Functions of Human Resource Department

1. Recruitment

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

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

 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 the employees. 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.

 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

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.

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.

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.

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.

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.

CHAPTER VI

SWOT ANALYSIS

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.

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.

CHAPTER VII

OBSERVATIONS SUGGESTIONS AND CONCLUSION

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.

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.

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.

BIBILOGRAPHY

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, 4th 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 www.cattlefeedindustry.com