CHAPTER 1 INTRODUCTION

1.1 INTRODUCTION

Travancore Titanium Products Ltd. was incorporated on 18th of December 1946, to produce pigment grade Titanium dioxide from Illuminate, which is abundantly available as place deposits on beaches near Kollam, in the coastal state of Kerala, India. The unit was promoted by the, then princely state of Travancore in collaboration with the British Titan Products (BTP) Company Limited; U.K.

The Company which started production at a modest rate of 5 tons per day increased its capacity in stages to the present level of 40-45 tons per day. Till recently, Travancore Titanium Products Ltd., was the only unit producing Anatase grade Titanium Dioxide pigment, in India. Travancore Titanium Products became a State Public sector unit in 1960, with the Government of Kerala owning 80.94% of the shares. Production of titanium dioxide commenced in the year 1951, and the capacity was raised to 10 tons per day in 1960, the year in which the management of the Company was taken over by the Govt. of Kerala. A Research & Development wing was set up in the company in 1961.The Company also installed its own sulphuric acid plant to produce acid for captive consumption. In 1963 the capacity of Titanium Dioxide produced was further increased to 18 tons per day with a commensurate addition to the sulphuric acid production also.

It is a matter of pride that the manufacture of a rare chemical like Titanium dioxide which was confined to highly industrialized nations of the West, was taken up here in Thiruvananthapuram five decades ago. Till last decade TTP was the only unit producing this white pigment, not only in India, but also in the whole of South-East Asia.

The organization study was carried out in TTPL Kochuveli, Thiruvananthapuram. This report gives an idea about the organization and its functions. The study also gives clear picture about the different departments of the organization.

The plant has the capacity to produce both Anatase and Rutile grades of Titanium dioxide. The plant functions round the clock in 4 shifts

1.2 OBJECTIVE OF THE STUDY

Textbooks, Journals, Libraries etc. can provide only limited amount of knowledge about the activities inside an organization. In the modern world of improved knowledge and technology, management students who have clamor for taking corporate jobs should be aware of various functions within an organization. For getting detailed knowledge about such things, it is better to have a close observation about such functions. An organizational study also provides hands on experience to them. Books and classroom lectures give more emphasis to theoretical aspects of management and concept development. But in the actual practice things may not be exactly the same as theory. The process and activities in an organization depends on the products, size of operation, competitiveness its organizational framework, and like. The present organization study is undertaken with certain clear-cut objectives. They can be grouped as:

 PRIMARY OBJECTIVE  To acquire knowledge about the functions of finance departments in TTP towards the achievement of its organizational goals.

 SECONDARY OBJECTIVE  To compare theoretical knowledge with actual practices.  To study functions of top, middle, lower levels of management in the day-to-day functioning of the firm.  To study how various departments coordinate with each other.  To experience the organizational processes at various levels.

1.3 METHODOLOGY

This report is prepared on the basis of primary data and secondary data.

 Primary data was collected using the following methods.

y y y

By informal interviews with the department heads Discussions with the managerial staff Personal observation

 The secondary data was collected from the following sources

y y y

Brouchers Company records and journals Website

1.4 SCOPE OF THE STUDY

 The organization study carried out at TTP mainly focuses on the major functional departments and its functioning. The study makes an attempt to understand the organizational process and procedures taking place in each functional department and to compare them with the theoretical aspects of management.

 The study also gives importance to the welfare of workers and how can we motivate the workers so utilizing the full potential of them for the success of the organization.

1.5 LIMITATIONS OF THE STUDY

 There was a considerable amount of inhibition on part of staff for providing information  The information provided by the people in the organization may not be complete  The project was bound for a short period ,thus time is a limiting factor  Certain confidential information regarding study was not available and the analysis and interpretations are subject to limitations.

CHAPTER 2 OVERVIEW OF THE INDUSTRY & ORGANIZATION

2.1 INDUSTRY PROFILE

WORLD SCENARIO

The use of Titanium Dioxide is very vast and it has been produced in various parts of the world at different levels, which includes Multinational companies as well as small scale companies. It is estimated that worlds total installed capacity for Titanium Dioxide production is of the order of 4.22 to 4.38 million tons per annum. The overall average capacity utilization of Titanium dioxide industry is 90 to 91%. The higher demand in global market attracts various firms to enter into the Titanium Dioxide manufacturing.

The credit for recognizing the existence of Titanium goes to Rev. William George who found traces of black magnetic sand unfamiliar to him in Manacine Parish (UK) and he named it Manacine. Subsequently Kiwin recovered a new white metallic oxide and called it Manacine. But it was M. K. H Lapalast who discovered titanium. He examined Rutile and identified it as an oxide of a metal and named it as Titanium after Titan of Greek Mythology in the year 1775. The first commercial product of titanium was an alloy additive to steel, when ferro alloys were developed in USA in the year 1906. A decade after Titanium Dioxide pigment was produced on a commercial scale. The use of titanium minerals in welding electrode coating gained acceptance in the mid thirties while titanium metal has been of commercial importance since 1948.

Titanium dioxide is far more stable than any other pigment. Its perfect non toxicity & chemical inertness make it an ideal choice as a white pigment. The light scattering property of finely divided titanium dioxide is unmatched by any other known material.

The chemical is available in two crystalline forms, viz. Anatase and Rutile, which are of much commercial significance. The relatively softer Anatase is the right material for delustering artificial fibers. In TTP Ltd. the Anatase grade is produced by the conventional sulphate technology
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Titanium Dioxide is the whitest of white pigments and has replaced other less effective pigments such as Zinc Oxide, Lithopone etc. This is because of the unique combination of its superior properties of a high refractive index, low specific gravity, high hiding power and opacity, and no toxicity. It also has high tinting strength and dispersion properties as well as chemical stability. Titanium Dioxide is produced in TTP in the ANATASE form and marketed as AJANTOX. Anatase grade possesses excellent water dispersion properties and gives a clear tone in all ranges of application. Travancore Titanium Products Limited has recently launched a Rutile Grade

Titanium dioxide pigment viz., TTP RD-01. This product was developed in the year 2002 indigenously through the Sulphate route pigment. TTP markets this product without surface treatment at very competitive price. The top five producers of world now control 78% of the global capacity. They are DuPont (USA), Millenium Inorganic chemicals (Australia), Kert Megee (Canada), Huntsmwn (Tioxide) & Kronos (Germany) and ISK (Japan). Kemera, sachtlaleen and crystal come in the second tie. Cinkara, Precheza, Zachem, Prolice, Hankook (South Korea), Sakai and Tyka

(Japan). Kerala Minerals & Metals Ltd (India) and two other Ukranianian producers come next. All others are very small producers.

Titanium Dioxide enjoys a large market by any measure Historically the market has grown in volume at 3.5% annually to reach close to $8 billion in production value today. In the last decade the demand h as slowed down to 3% and it is expected in the next decade growth will be in the range of 2.5-3.5

Looking over the next 20 years, at least some new Titanium Dioxide pigment will be made, though most of the industries additional capacity will come from expansion.

Pigment consumption rose sharply in Western Europe and Asia/Pacific (Excluding Japan) during the year 2000. In East Asia, notably China, Taiwan and South Korea continued as a path of strong recovery 2000. East Asia is presently the most attractive region in the world for Titanium Dioxide
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NATIONAL SCENARIO

The Indian reserves of Illmenite and Rutile are expected to be around 6,00,000 units/year and most important sources are South Kerala and Tamilnadu. Beach reserves are also seen in Ratnagiri (Maharashtra), Ganjan (Orissa) and Sreekakulam (Andhrapradesh).The reserves in Kerala and TamilNadu are about 20 million tons.

This information throws light into the possibilities of new manufactures and competition in Titanium Dioxide industry in the Indian market. The demand for the new manufacturers will be more, with the increased demand for the paints, plastics, rubber etc.

Currently there are four units in India engaged in the manufacturing of Titanium Dioxide pigment (Rutile & Anatase) with a total combined capacity of 44560 metric tons per annum. These units are y y y y Kerala Minerals and Metals Ltd Chavara, Kollam Travancore Titanium Products Ltd, Trivandrum Kilburn Chemicals Ltd, Chennai Kolmark Chemicals Ltd, Kolkota

KMML is the only unit producing Rutile grade Titanium Dioxide pigment in India with an installed capacity of 30,000 tons per annum

PUBLIC SECT

OR

: AN O V E R V I E W

Public Sector enterprises are formed with an intention to promote industrial growth in our country. The Travancore Titanium Products Limited was one of the leading profit making companies in the public sector. Public sector enterprises are promoted by the Govt, for the industrial development of our country. They function independently or with controlled autonomy with an overall control and supervision over it by the Government.

UBLIC

ECTORS IN

IN

DIA

At the time of independence public sector enterprises of the central Govt, was confined to a very small segment of the economy namely railways, posts and telegraphs, port and defense establishments. After independence the expansion of public sector became an integral element of national economic planning. But at present the trend seems to be for disposing off the sick public sector enterprises of private undertakings. However, it is an undividable fact that public sectors has laid a strong foundation for industrial development in India by pumping in huge investment and facilities in key sectors of the economy without caring much for narrow commercial and profit centered consideration.

PUBLIC SECT

ORS IN

ERALA

Public Sectors in Kerala have a long history. It can be traced back to the period of the Second World War when the state of Kerala was divided into three political units namely Travancore, Cochin and Malabar. Among these Travancore was considered to the most industrialized one. Earlier the policy of the Government of Travancore was to encourage the establishment of industries in the private sector and not to establish state owned industries. However, later the Govt, realized the need for the formation of public sectors in and around Travancore.

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During the period of Second World War there was an increased demand for arms and ammunition, which compelled the Govt, to pay special attention to promote war-oriented industries. Consequently a variety of industries were established. During this period the Travancore Titanium Products Limited was established which was promoted by the princely administration of the Travancore state.

CURRENT INDUSTRY SCENARIO

 LOSS OF MONOPOLY POSITION OF TTPL For many years TTPL enjoyed a monopoly position in the market as it was the only producer of titanium dioxide pigment in India. With the commencement of production of rutile grade pigment by KMML in 1985 and anatase grade pigment by a few small scale companies, TTPL lost its monopoly in the market. Further another serious problem that affected the company is cheap pigment imported from China and other countries. Other major competitors in India include one at

Tuticorin (Kilburn Chemicals) and another at Calcutta (Colmack Industries).

 EFFECT OF LIBERALIZATION OF THE INDIAN ECONOMY In the wake of liberalization of the economy the import duty on titanium dioxide was also reduced in successive Central budgets. With effect form July 1988 onwards Titanium Dioxide pigment was also put under the Open General License (OGL) list, making the imports even more liberal. Exporters were allowed to import raw materials against advance license without

payment of customs duty. These advances are freely tradable by exporters and available at a price around fifty percent of the license value.

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 IMPACT OF WTO REGULATIONS India may be forced to comply with the WTO regulation in the year 2002 04 when the import duty rate would come down to the level of around 20%. This would mean that the landed cost of the imported material would come down by around 20%. Besides, more and more competitors would be coming in to Indian market due to of the liberalization of the economy. It is therefore obvious that unless immediate steps are taken to counter the impact of liberalization, TTP would be completely outpaced in the market and ultimately the operations of the company would become uneconomical. Further there is all possibility that the ISO 14000 certification pertaining to environment could be made mandatory for all chemical manufacturing units in due course.

Withdrawal of the levies and service charge on Titanium Dioxide and also resorting direct marketing will not solve these problems. Hence TTP will have to find alternate options to effectively counter these threats within the next couple of years. Therefore modernization, capacity enhancement and pollution abatement schemes are to be carried out on an emergent basis. However, the State Government and entire unit of TTP is fighting hard to bring back the lost glory. Their most challenging problem is that of pollution and outdated technology for which steps are being taken on an urgency basis for the survival of this one time most profit making public sector companies of India.

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2.2 COMPANY PROFILE

Travancore Titanium Products Ltd, is a Public Limited Company under the State Public Sector, with Government of Kerala owning 80.94 percent of the shares. Kerala State Industrial Development Corporation (KSIDC) holding 7.91 percent and the balance held by the Public. The total man power employed at present is around 950.

With a view to improving efficiency, profitability, competitiveness and to maintain market leadership, TTP has proposals to expand its capacity to 27000 tons per year, modernize and diversify in stages to produce both Anatase and Rutile grades of Titanium Dioxide pigment. Modernization and revamping would be carried out with minimum interruption to the present production and the new plans to this connection will be launched during the current year.

Thiruvananthapuram could find a place in the industrial map of independent India during the early fifties itself, thanks mainly to M/s. Travancore Titanium Products Ltd. (TTP Ltd.,) situated at Kochuveli in the outskirts of the city. The unit was promoted by the Princely State of Travancore in the year 1946 in collaboration with the British Titan Products Company, U.K. (now known as Tioxide Group Ltd) with the object of producing pigment grade titanium dioxide using the titanium rich ilmenite available as placer deposit in the beach sands near Quilon. It is a matter of pride that the manufacture of a rare chemical like titanium dioxide which was confined to highly industrialized nations of the west, was taken up here in Thiruvananthapuram five decades ago by His Highness late Shri Chithira Thirunal Balarama Varma Maharaja who visualized the industrialization of his kingdom by unearthing the rich mineral deposits. Till last decade TTP was the only unit producing this white pigment, not only in India, but also in the whole of South East Asia.

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Titanium dioxide finds use in a variety of industrial products such as paints, foot wears, toilet soaps, ceramic products, artificial fibers, pharmaceutical preparations, rubber products, plastics, paper, printing inks, textile printing formulations, flooring materials, cosmetics, welding rods etc. Its extreme whiteness, perfect non toxicity and chemical inertness make it an ideal choice as a white pigment. The light scattering property of finely divided titanium dioxide is unmatched by any other known material. Titanium Dioxide is available in two crystalline forms, viz, anatase and rutile. The relatively softer Anatase is the right material for delustering artifical fibers. At Travancore Titanium Products Ltd., Anatase grade Titanium Dioxide is produced by the conventional sulfate route.

COMPANY HISTORY

Travancore Titanium Products Limited (TTPL) was incorporated on 18th December, 1946, in collaboration with British Titan Products Limited, UK, for the manufacture of Anatase grade Titanium Dioxide pigment through the sulfate route. The installed capacity of the plant was 1800 tons per annum (i.e.5 tons per day). Though commercial operations started in 1950, the full swing production could be maintained from 1.1.1954 consequent on the Central Government granting tariff protection and also after availing a loan of Rs.15 lakhs from IFCI. The management of the company was vested with the Managing Agency, viz., Indian Titan Products Company Pvt. Limited, as per a Managing Agency Agreement dated 3.3.1947 on a remuneration of 10% of net profits. (This management was taken over by the State Government)

The company started its first expansion programme in 1957 for doubling the annual production capacity from 1800 to 3600 tons (5 to 10 tons per day 1800 tons rutile and 1800 tons anatase). A Research and Development wing was set up in the company 1961. Industrial license for 50 tons per day expansion was obtained in July 1961. It was proposed to produce rutile grade and anatase grade side by side. Next expansion from 10 to 18 tons per day was completed in October 1963. However, the rutile production was temporarily discontinued in 1963. Government
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approved the expansion programme for producing 50 tons per day in 1967.The sole selling agency agreement with M/s TTK & Co. which has been in existence since 1954, was terminated on 30.6.1970 from which date TTP took over the sales directly. The next expansion programme to 24,500 tons per annum, including plant and equipment for the production of coated rutile grades, was completed in 1973. The installed capacity after the expansion was as follows:

Old Plant New Plant Total

: : :

6,500 tons 18,000 tons 24,500 tons

As the capacity utilization was very low, a Committee appointed subsequently by the Government viz., Dr.Vazir Committee, assessed the achievable capacity of the plant as 15,000 tons per annum of anatase grade pigment. The Resource Mobilisation Policy Committee set up in 1974 by the State Planning Board recommended for formation of a Sole Selling Agency for the sale of products of government companies. Accordingly, the Kerala State Industrial Products Trading Corporation (KSIPTC) was formed in the year 1976. KSIPTC was appointed as the sole selling agents with effect from 1st March 1979. Marketing of Titanium Dioxide is now done by TTPL itself. Conversion of Sulphuric Acid Plant into DCDA technology by FEDO on a turnkey basis at a cost of Rs.193.69 lakhs, was inaugurated on 13.9.1980. The DCDA project started in 1980 was commissioned in June 1984. Installation of a 1000 KVA generator in December, 1985. During 1989-90 another 1000KVA generator was installed and a 66 KV substation commissioned. Order for constructing a new 300 tons per day sulphuric to M/sDMCC on 21-10-1993 at a cost of Rs.24.42 crores. The plant was commissioned on 29th March 1996.

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ORGANIZATION CHART

16

BOARD OF DIRECTORS y y y y y Chairman and Managing Director-(The Principal Secretary Industries Department of Kerala Government). Executive Director Director - (Additional Secretary in Finance Department of Kerala Government) Director - (A Member of Legislative Assembly) Director - (A Special Secretary to Industries Departmental of Kerala Government)

The current Directors are: 1) Sreenivas, IAS 2) N R Subramanian 3) K Gopakumar

EXECUTIVE STAFF

Mangers Dy. Managers Other Executives Supporting Staffs and workers Total

40 85 255 570 950

REGISTERED OFFICE Travancore Titanium Product Ltd Kochuveli.P.O Thiruvananthapuram Kerala.

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DECISION MAKING AUTHORITY

The decision-making authority in T.T.P Ltd. vests with the Titanium Management Council (TMC). The council has M.D. as the Chairman and all Department head as its members. The decisions taken by TMC are based on government policies. The TMC meets on the first day of every month prepares, the activities for the next month such as monthly production target, monthly sales target etc. A review of the previous monthly meeting is also done.

QUALITY SYSTEM CERTIFICATION

 ISO 9001-2000 Certificate COMPANY VISION STATEMENT Adding Life to Colours QUALITY POLICY To achieve customer satisfaction by effectively managing resources and delivering Titanium related products through continual improvement of the Quality Management System.

VISION To be the largest producer of Titanium dioxide products and the most preferred supplier

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MISSION

Our mission is to ensure Customer satisfaction by continuously importing our product quality and to a reasonable profit Quality policy To achieve customer satisfaction by effectively managing and delivering Titanium related product through continual improvement of the quality management system Quality objectives

 Customer satisfaction  Effective management of resources  Continual improvement Governing body TTP is governed by the board of directors consisting of six members. The period of the board depends on the government decision. The government of Kerala appoints the Managing Director pm deputation for a period of 3 years.

CURRENT SCENARIO

 TECHNICAL Manufacture of Titanium Dioxide pigment through the sulphate route has the drawback of the effluent problems associated with the process. Throughout the world producers of Anatase grade pigment have resorted to developmental activities to upgrade the technology so as to overcome this drawback. The last expansion of the Titanium Dioxide pigment plant in TTPL was carried out more than 25 years ago. Since then the Sulphate route technology for production of Titanium Dioxide has undergone several changes. It is worth mentioning in this context that TTPL should also upgrade its technology to International Standards.

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 COMMERCIAL The present stagnant position has however, forced the company to follow a Downsizing Strategy to overcome the hurdles and put it back on the profit-run. In this regard, the strength of the employees have been brought down from 1500 to a size of just 950 and company still planning to bring this number down to around 500 in the coming few years. There is also a plan to bring in some tie-up in the form of collaboration with KMML as both are State owned to bring back TTP to its old glory.

2.3 PRODUCT PROFILE

ABOUT THE PRODUCT

Travancore Titanium Products Ltd is one of the largest industries in India that produces Titanium Dioxide (Ti02). The company is also manufacturing Potassium Titanate, Sodium Titanate, low Phosphorus and Special grade Titanium Dioxide comparatively in small quantities. Titanium Dioxide (Ti02) is a white pigment and there are two grades of Titanium Dioxide. y y Rutile Grade Anatase Grade

These two grades of Titanium Dioxide are chemically same but their physical properties differ from each other. The company deals with the production of Titanium Dioxide, which belongs to Anatase grade. The major raw material used for production is Ilmenite. The most important commercial use of Ilmenite is for the manufacture of Titanium Dioxide pigment. Ilmenite is a compound of the oxides of iron, Titanium and traces of other elements. The separation of Titanium Dioxide can be done through the sulphate route or chloride route. The Travancore Titanium Product plant is based on the Sulphate Route.

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PROPERTIES OF TITANIUM DIOXIDE

Titanium Dioxide is of non-toxic nature having chemical stability. It possesses higher refractive index and hence it is used to make paints. It is extremely heat resistant and this enhances the capacity of the substance incorporated with Titanium Dioxide to withstand the effect of the chemical environment and climatic conditions. It has got high pacifying power i.e., the power to change transparency. So it is used in plastics to make it opaque. Its uniformity of composition enables it to mix with any material without losing its natural properties. Hardness of the material provides good resistance to mechanical shock. It possesses tinting strength i.e., the particles are so minute that it occupies a larger surface area.

PRODUCT CONSUMPTION PATTERN INDIAN INDUSTRIES WHERE TITANIUM DIOXIDE IS USED AS RAW MATERIAL y Textiles CTM Textiles Rajkamal Processors Sharda Textile Mills Bishen Dyeing,Printing & Weaving Mills Bimal Dyeing, Printing & Weaving Mills y Ink Kores (India) Ltd. JBA Printing Ink Ltd. Coates of India Rainbow Ink & Varnishes
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Cosmetics Hindustan Lever Ltd. Colgate Palmolive Godrej soaps Karnataka soaps & Detergents

Rubber Bata (India) Ltd. Lakhani Footwear Madras Rubber Factory Elastrex Polymers Prestone Industries Madhura Rubber Leo Rubber Paragon Rubber Relaxo Footwear

Paper Pudumjee Pulp & Paper Balakrishna Paper Mills ITC - Tribeni Tissues Sreevindhya Paper Mills Sreekrishna Paper Mills Security Paper Mills, Goverment of India
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Leather National Leather Cloth

Paints Asian Paints (I) Ltd. Goodlass Nerolac Paints Beepee Coating Special Paints Rajdoot Paints Hem Paints Berger Paints

Chemicals Camphor & Allied Products Dr. Beck & Company Jay Industrial Chemicals The National Paints & Chemicals

Plastics Hycount Plastics Padinjarekkara Rubber & Plastics Sudhakar PVC Sudhakar Plastics Nuchem Plastics

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Cellofine Paper Travancore Rayons Limited

Electronic Industries Videocon Narmada Electronics Gujarat Mulco Electronics

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CHAPTER 3 DEPARTMENT STUDY

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Travancore Titanium Products is a public sector undertaking headed by the Chairman and Managing Director. Shri. SREENIVAS S is the Chairman and Managing Director during my organizational study. DEPARTMENT STUDY Departmentalization is the efficient and effective grouping of jobs into meaningful work units to coordinate numerous jobs-all for the expeditious accomplishment of the organization's objectives. This creates flexibility, adaptability and unity of action within the firm. The various departments in T.T.P. are as follows:  Production Department  Financial Department  Personnel Department  Engineering Department  Project Department  Research & Development Department  Security & Vigilance Department  Safety Department  Medical Department  Material Department  Legal Department  Commercial Department  Training Department  Marketing Department

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FINANCE DEPARTMENT

Finance department is the lifeblood of the business. So in any organization the most important department is the Finance Department. Without this department no company can work smoothly. TTP also has a efficient department for Accounts and Finance headed by Financial Advisor. Finance Department is concerned with planning and controlling of the firm's financial resources.

The important objectives of the finance department include.

> Preparation of corporate plans annual plans and budgets. > Financial planning cost control and ensuring uniform and correct observance of financial disciplines of the company. > Monitoring the progress of budget achievements. > Providing accounting service to all levels ensuring updating of systems procedures for the same. > Advising management on funds utilization and its implementation. > Vetting of all investment proposals, certain of new assets, new posts etc. from the point of financial feasibility. > Evolve an audit manual.

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The finance department performs various functions very effectively which includes:

>

To collect all sums due to the company in time as per sales, orders etc. > To make timely payments to creditors, suppliers, contractors, employees, Government statutory bodies, service provides etc. > Timely dispersant of salary/wages/perks to employees as per agreement, MOU etc.

> To assist all types of audit work. > To prepare MIS as required by management. > To complete all Budget work. > To manage cash properly to maintain proper liquidity. > To assist all departments in providing financial administration of all transactions. > To make proper entries in boos of accounts and extract reports like Trial Balance, P & L A/c, Balance sheet on a time bound basis.

Significant Accounting Policies are: Every organization has its own accounting policies. TTP also has its own accounting policies. The following by the company:

1. FIXED ASSETS Fixed assets are started at cost of acquisition or construction less deprecation. All costs relating to the acquisition and installation of fixed assets are capitalized. Assets and liability are consistently being recorded at historical costs to the company and therefore they are not adjusted to reflect the change in value in the purchasing power of money.

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2. INVESTMENT All investments are valued at cost.

3. INVENTORIES a. Raw materials, materials in process and stores and spares are valued

at the cost on weighted average method. b. Finished goods - Titanium dioxide is valued at cost. c. Goods in transit are valued at cost.

4. SALES Sales are exclusive for excise duty and sales tax.

5. DEPRECIATION Depreciation on fixed assets has been provided as per the rates prescribed in schedule XIV of the Company's Act of 1956. Under written down value method depreciation on additions and deletions of fixed assets is calculated on prorata basis.

6. RETIREMENT BENEFITS Gratuity liability is provided based on the company rules prevailing from time to time. The gratuity fund created to the company has been approved by the income tax authorities. The net asset enables the fund to fully discharge the company's obligation in respect of gratuity, payment to the employees etc. The liability to pay leave encashment accrues only

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when the employees can encash unveiled leave during their period of service till the employee exercise his rights. Hence it is not quantifiable and is accounted on cash basis. 7. SCRAPS Accounting of scrap is done at time of sale. In finance department, there are several sections such as salary/wages, provident fund, loans, over timework allowance darkness allowance etc. Each section is handled by one or two persons.

SECTIONS IN FINANCE DEPARTMENT

There are several sections in the department of finance. They are: 1. BILLS SECTION 2. LOAN SECTION 3. STORES ACCOUNTS Here proper maintenance of stores accounts and proper balancing and recording of each and every transaction is done.

4. SALARY AND WAGES SECTION: Timely payment of benefits including salary and wages to the employees is under the charge of this section.

5. CASH SECTION Cash section is in charge of preparing cheques on receipt of vouchers, on receipt from bank and they maintain a petty cash book for entering expense including during business hour, which includes monthly salary and incentive payments and other payments.

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6. COMPUTER CELL The Computer cell in TTP started functioning since 1994 with assistance from ER & DC. Today almost all the departments of the company are computerized. Various sections of the company are connected to Local Area Network (LAN).

7. TIME OFFICE Time Office is for recording the attendance of the workers. This section is under the authority of Finance Controller. The manual card punching is facilities in time office. The electronic card punching system is on trial stage and it facilities in office building entrance for employees. Simultaneously the attendance registers were kept in each department.

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ORGANIZATIONAL STRUCTURE OF THE FINANCE DEPARTMENT

Financial Advisor

Financial Manager Deputy Financial Manager Assistant Financial Manger

Section Officer

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CONCLUSION

The Travancore Titanium Products Ltd is a well reputed, profit making Indian Company with an annual sales turnover of about 170 crores. The company is a boon to India, as its main product, Titanium dioxide forms an essential ingredient of almost all items used in our day-to-day life. Moreover, all the departments are functioning hand-in-hand and contributing to improve the profitability of the organization.

The management of TTP is well blessed with experienced and qualified persons, which has resulted in profit maximization. TTP's welfare facilities greatly emphasis on the high concern it has for the human resource. With these assets, Travancore Titanium Products Limited will have a bright future.

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BIBLIOGRAPHY

Sekaran Uma, Research methods for Business Fourth Edition 2009 Copyright

Panneerselvam Production and Operations Management Second Edition 2003

www.travancoretitanium.com

www.wikipedia.com www.google.com

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