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Kerala ceramics final


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Kerala ceramics final

  1. 1. 1 An Organization Study at Kerala Ceramic Ltd Submitted in partial fulfillment for the requirement for the award of the degree MASTER OF BUSINESS ADMINISTRATION M G UNIVERSITY KOTTAYAM Submitted by: SHAKHES Register No: Under the guidance of: Mr.: Faculty Member MBA Department, BSS IT MISSION THYACDU
  2. 2. 2 DECLARATION I declare that the project report entitled “An organization study on Kerala Ceramics Ltd (KCL)” Submitted by me for the award of Master of Business Administration of M.G University is my own work. The report has not been submitted for the award of any other degree of this university or any university. Place: Kollam Date:
  3. 3. 3 ACKNOWLEDGEMENT First of all I wish to express my deep gratitude and thanks to God who helped us in completing the organization study successfully. I shall remain grateful to. Mr.:…………………………BSS IT MISSION THYACDU for his amble guidance and encouragement for completing the organization study. I am also extremely grateful to faculty member for their valuable suggestions and advice regarding this work. I also express my profound gratitude to project guide Sr. ………………., Manager, HRM for his valuable guidance and timely advice and well-wishers for Encouragement given to us during the course of the project. It is my pleasure to express a deep sense of grateful Sr. to …………………………., Manager, Safety & Environment Department & MIS without his untiring efforts and tremendous background information this work would not have materialized. I express my sincere Thanks to all the staff of Kerala Ceramics Ltd (KCL) for their co-operation during my study in the company. Last but not least we thank my parents and for all their moral support and help, they had given to me.
  4. 4. 4 CONTENTS  Introduction  Industry Profile  Company Profile  Product Profile  Customer Profile  Departmentalization  HRM Department  Production Department  Quality Control Department  Stores & Dispatch Department  Internal Audit Department  Research & Development Department  Project & Maintenance Department  Marketing & Sales Department  Finance Department  Medical Department  Security Department  Safety & Environmental Department  Purchase Department  Civil Department  SWOT Analysis  Findings  Suggestions & Recommendations  Conclusion  Bibliography
  6. 6. 6 INTRODUCTION TO THE STUDY An organizational study as a part of second semester MBA is really helpful to get a real view of organization. It helps to know the working environment of a company apart from the theoretical knowledge we are acquiring. For this I chose Kerala Ceramics Limited,, Kundara and successfully done the project with the help of concerned people in the organization. The history of The Kerala Ceramics dates back to 1937 when the Maharaja of the then Princely State of Travancore set up one unit for Mining and Refining of China Clay and another unit for manufacture of Porcelain wares. The Kerala Ceramics Ltd. was set up in 1963 as a fully owned Government of Kerala Undertaking (under Companies Act) with its registered Office at Kundara, Kollam by amalgamating these two units. It was set up in1937 by the princely state of Travancore of the initiative of late Dr. C.P. Ramaswami Iyar, Shri. I.C. Chacko and Shri. Sardar Doyar Singh, a leading ceramist of the day and a professor of BHO. The factory was established of Kundara to utilise the abundant china clay deposit available in this area. The company has three divisions namely the porcelain division, the clays and minerals division and the sanitary ware division due to highly uneconomical operations the sanitary ware division of the company was closed down in 1990. Based on ERC recommendation and subsequent government decision, the porcelain division was closed down from 01-04-2003 and VRS is implemented to its employees. Now only the clay and minerals division is working.
  7. 7. 7 OBJECTIVES OF THE STUDY  To get practical exposure to the organization  To do an internal study about the working and functioning of the organization  To get an idea about the various department and functional areas in the organization  To get an idea about the work culture in the organization  To study the product profile and get idea about the various products offered To study the communication network in the organization METHODOLOGY The study was conducted using the method of interview and observation and also made use of the primary and secondary data Primary data Primary data is collected through observation or through direct communication with reoidentsin one form or another or through personal interviews.  The formal and informal interviews with Managers and Department heads, employee  Direct observation
  8. 8. 8 Secondary data Secondary data are those which have been collected by someone else and which have already been passed through statistical process. The secondary data were collected from.  Company records  Journals  Annual report.  Website SCOPE OF THE STUDY The study restricted to the functioning of, KCL.The study gives a detailed knowledge about the different functional areas like finance, marketing, operations and their functions The study covers the various aspects of KCL the different functioning of KCL. The main topic include the following  Profile of the KCL industry  Company profile  Product profile  Functioning of various departments  Findings, suggestions  SWOT analysis
  9. 9. 9 LIMITATIONS OF THE STUDY The study was limited, because the time period allotted was not sufficient to conduct a thorough study on the functioning of the organization. The employee of the various departments was not able to spend enough time in explaining the functions of their department, as it affected their work schedule. Respondents were reluctant to reveal complete details. This lack of knowledge of the respondents and the bias of them has acted as a hindrance to the study.
  11. 11. 11 Ceramic materials are inorganic, non-metallic materials and things made from them. They may be crystalline or partly crystalline. They are formed by the action of heat and subsequent cooling. Clay was one of the earliest materials used to produce ceramics, but many different ceramic materials are now used in domestic, industrial and building products. Traditional ceramic raw materials include clay minerals such as kaolinite, more recent materials include aluminum oxide, more commonly known as alumina. The modern ceramic materials, which are classified as advanced ceramics, include silicon carbide and tungsten carbide. Both are valued for their abrasion resistance, and hence find use in applications such as the wear plates of crushing equipment in mining operations. Advanced ceramics are also used in the medicine, electrical and electronics industries. In art history, ceramics and ceramic art mean art objects such as figures, tiles, and tableware made from clay and other raw materials by the process of pottery. Some ceramic products are regarded as fine art, while others are regarded as decorative, industrial or applied art objects, or as artifacts in archaeology. They may be made by one individual or in a factory where a group of people design, make and decorate the ware. Decorative ceramics are sometimes called "art pottery". The main product produced from clay in KCL is kaolin. Kaolin is named after the hill in China (Kao-ling) where it was first mined, for many years before its discovery in Europe (Cornwall, England) in 1745 by William Cook worthy who was looking for a source of material to produce white china wares China clay (Kaolin) consisting dominantly of kaolinite is one of the most sophisticated industrial minerals with a host of applications, viz., in ceramics, refectories, paper coating, filler for rubber, insecticides, cement, paint, textile, fertilizers and other including abrasives, asbestos products, fiber glass, chemicals, cosmetics, pharmaceuticals, electrical wares, foundry and glass. Kaolin is a native hydrated aluminum silicate and is classified as an inorganic. It is used as an absorbent, skin protectant, slip modifier as well as an opacifying, building and anti- caking agent. It is also known as below Alba, china clay and koalite. The term kaolin is now variously used as a clay- mineral group, a rock term (consisting of more than one minerals) an industrial mineral commodity, and interchangeably with the term china clay. IMERYS Table ware mines the world’s largest deposit of kaolin located in south west of England, France, New Zealand and it is from here that some of highest quality kaolin’s are produced. This kaolin’s have exceptional ceramic properties such as outstanding whiteness and mechanical strength which are of particular importance to the table ware industry. Kaolin has been mined in France, England, Germany, Bohemia, and in the United States, where the best-known deposits are in the south-eastern states. Approximately 40% of the kaolin produced is used in the filling and coating of paper.
  12. 12. 12 In filling, the kaolin is mixed with the cellulose fiber and forms an integral part of the paper sheet to give it baby color, opacity and printability. In coating the kaolin is plated along with an adhesive on the paper’s surface to give glass, color, high opacity, and greater printability. Kaolin used for coating is prepared so that most of the kaolinite particles are less than two micrometers in diameter. Kaolin is used extensively in ceramic industry, where its high fusion temperature and white burning characteristics makes it particularly suitable for the manufactures of white ware (china), porcelain, and refractories. The absence of any iron, alkalis, or alkaline earths in the molecular structure of kaolinite confers upon it these desirable ceramic properties. In manufacture of white ware the kaolin is usually mixed with approximately equal amounts of silica and feldspar and a somewhat smaller amount of plastic light- burning clay known as ball cay. These compounds are necessary to obtain the proper properties of plasticity, shrinkage, verification, etc., for forming and firing the ware. Kaolin is generally used alone in the manufacture of refractories. Substantial tonnages of kaolin are used for filling rubber to improve its mechanical strength and resistance to abrasion. For this purpose, the clay used must be extremely pure kaolinite and exceedingly fine grained. Kaolin is also used as an extender and flattening agent in paints. It is frequently used in adhesives for paper to control the penetration in to the paper. Kaolin is an important ingredient in ink, organic plastics, some cosmetics, and many other products where it’s very fine particle size, whiteness, chemical innerness, and absorption properties give it particular value. The United Kingdom is second only to the United States as a producer of kaolin or china clay and is the largest exporter of kaolin in the world. China clay is the United Kingdom’s chief exporter m and almost the entire output comes from the St. Austell area of Cornwall. Historically, the china clay s in Cornwall was discovered by William Cook Worthy in the mind 1700s to be suitable for making porcelain. A large variety of china clay is mined all over India. Super chailbasia Bilhar off the color and creamish – reddish several variations are mined in India .With the discovery of huge deposits of china clay in the Kutch district, the Gujarat Mineral Development Corporation (GMDC) hopes
  13. 13. 13 to develop mines clusters. It plans to ropes in private sector players to develop the cluster. Gujarat ranks fourth in terms of production of lie stone and china clay in the country. GMDC has identified in four places – Kutch, Rajkot, Morbi, and mehsana for the development of the ceramics industry. At present, Gujarat accounts for over 70% of the semi organized sector in the India ceramic industry, stoneware and ceramic grades occur extensively in Cuddalare, Pudukkottai, Tiruvallur, Kancheepuram and Tiruvanna malai districts. The reserves are about 9 million tons. The department of mining and geology through their past investigation campaigns in parts of Kerala, identified two major china clay zones viz., the southern china clay zone between Thiruvananthapuram and Kundara (Thiruvananthapuram and Kollam districts) and the northern china clay zone between Kannapura madayi- Cheruthazham in Kannur District to Nileswaram - Manjeswaram in Kasargod district. An estimated reserve of 172 million tons (probable reserve of 80 million tons and possible reserve of 92 million tons) of china clay of sedimentary and residual origin has been arrived at. The paper coating grade china clay is produced by Kerala Ceramics Limited, Kundara. Ceramics grade high quality china clay produced by Kerala Clay and Ceramics Products Limited (KCCP) from their mines at Kannapuram and Pazhayangadi, Kannur district and Pudukai Kasargod district. Among the 25 working china clay mines in Kerala, 17 are in Thiruvananthapuram, 4 in Kollam, and 2 each in Kannur and in Kasargod districts. Kerala has prominent place in the refined clay map of the country, contributing about 58% of the national annual output. Being the largest producer of high grade processed china clay, the enormous export potential and relatively good infrastructure like ports, rod and rail links, Kerala is yet to make a mark in the export of china clay. It spite of a fourfold jump in the production of raw clay in the past two decades, the corresponding rise in the output of processed lay was only three fold.
  14. 14. 14 POTENTIALS FOR CHINA CLAY INDUSTRIES IN KERALA Ball clay Ball clay (inferred reserve of 5.67 million tonnes) is found to occur in certain areas in Kollam, Alappuzha, Ernakulam, Trissur, and Kannur districts. Through it does not conform to specification of ball clays, yet it is considered to be a good substitute. At present, there is no commercial production. Fire clay The fire clay occurrences are in association with tertiary sediments in the coastal land and the inferred reserve stands at11.50 million tons. However, this resource is waiting to be exploited. Tile and brick clays The tile and brick clay are usually of low grade and red burning. The main requisites are that they should mold easily and burn hard at low temperature. There are about 400 tile factories and about 5000 brick kilns spread over the entire state to manufacture tile and bricks. The vast resources of alluvial clays in the paddy land and valley fill areas are used by this industry in the state. Clays available for the manufacture of tiles are mostly found in the districts of Trissur, Kozhikode, Ernakulum, Kollam, Trivandrum, Kannur, Palakkad districts. Some companies extracting kaolin in Kerala  English India Clay Ltd  Kerala clays and Ceramics Products Ltd  P K N Industries  Some companies extracting kaolin in India  Nupur International  Dhirajlal & Co  Gandhi Sales Corporation  Marrelore Mining and Allied Industries Private Ltd  Shlok Enterprise
  15. 15. 15 Some foreign companies extracting kaolin  D F L Minmet Refractories Corporation, China  Poilong Enterprise Company ltd, Taiwan  Foshan Promising Trading Company Ltd, China COMPANY PROFILE
  16. 16. 16 Name of company : The Kerala Ceramics Limited Date of incorporation : 05-AUG-1998 Address (Registered office) : P.B.No.2, Kundara, Kollam-691501 Factory : Clays& Minerals Division, Kundara Phone, Fax : 0474-2522252, 2526158 Administrative departments : Industries (Under government) Name of Chairman : Mr. Elamaram Kareem Name of M D : Mr. Devakinandanan Present activity : Production of refined clay Business type : Manufacture, Supplier Total number of workers : 294
  17. 17. 17 MISSION OF KCL “Capacity doubling with low cost” For achieving the mission to increase productivity with less cost of KCL changes from some process like washing and pressing .Driers clay feeding process which increases production. VISION OF KCL “To build a mineral based park” For achieving the vision they are planned to provide facility like place and material for outside companies for making small industrial parts, clay and rubber mixed product. The Kerala Ceramics Ltd is a public sector undertaking fully owned by the Government of Kerala. It was setup in 1937 by the princely state of Travancore the initiative of late Dr.P.Ramaswami, Sri.I.C.Chacko and Sri.Sardar Doyar Singh, a leading ceramist of the day and a professor of BHO. The factory was established at Kundara to utilize the abundant china clay deposit available in this are by the state of Travancore .In 1959, the porcelain division of the company started functioning in the existing premises. Almost all of the equipment’s are imported from U.K and the electric fired double tunnel kiln was supplied by M/S Brown Broveri of Switzerland.The Company was incorporated under Indian Companies Act in the year 1963 by amalgamating these two units. The registered office of the company is at Kundara, Kollam. In 1973, it was made a subsidiary of KSIE. In 1984 company took over functional industrial estate and satellite unit from SIDCO. In collaboration with Nycore the unit was converted into a sanitary ware division. The company has acquired 4.22 hectares of land in 1984-1985 after making initial payment of Rs. 5.23 lakhs. In 1991 Kerala Ceramics was delinked from KSIE and started functioning under the control of the Industries Department. The principal Secretary of Industries of State is the Chairperson of Board of Directors. His period depends on government decisions. The Government of Kerala appoints the Managing Director of the KCL.
  18. 18. 18 The company had three divisions namely the Porcelain Division, the Clays and Minerals Division and the Sanitary Ware division. Due to highly uneconomical operations the sanitary ware division of the company was closed down in 1990. Based on ERC recommendation and subsequent government decision, the porcelain division was close down from 01-02-2003 and VRS implemented to its employees. Now only the clays and minerals division is working. PRODUCT PROFILE
  19. 19. 19 The company has two captive mines and one beneficiation plant at Kundara, Kollam District of Kerala state. Plant has a capacity to produce 18000 MT of refined and spray dried kaolin. At present company markets various grades of natural dried kaolin. APPLICATIONS Kaolin is part of our natural world. Its uses are multiple and diversified. Kaolin’s whiteness and plasticity make it extremely suitable for its extensive use as a filler, extender, ceramic raw material and pigment. It is also an important raw material to refractory, and to catalyst, cement and fibre glass industries. Kaolin is used in many applications. It is a unique industrial mineral, which remains chemically inert over a relatively wide pH range and it offers excellent covering when used as a pigment or extender in coated films and filling applications. In addition, it is soft and non-abrasive and has a low conductivity of heat and electricity. The two largest applications of kaolin are the coating of paper to hide the pulp strands and the production of high grade ceramic products. It is also used in many other industrial processes: Kaolin in Paper: In this industry, kaolin is used both as a filler in the bulk of the paper and to coat its surface. Kaolin's whiteness, opacity, large surface area and low abrasively make it an ideal raw material for paper production. Its use allows a reduction in the amount of expensive wood pulp required, enhances the optical properties of the paper and improves its printing characteristics. When used as a coating on the surface of the paper, kaolin's whiteness improves paper brightness and opacity, whilst the size and the shape of the individual kaolin particles give the gloss and printed paper quality required for many different kinds of paper. Examples include papers for magazines and brochures, art paper, cartons and boxes etc.
  20. 20. 20 Kaolin in Ceramics: Kaolin converts to mullite and glass when fired to temperatures exceeding 1000° C. It is used in formulations described as white wares, which consists of tableware, sanitary ware, and wall and floor tiles. It provides strength and plasticity in the shaping of these products and reduces the amount of pyro plastic deformation in the process of firing. In tableware, in addition to the strength and plastic qualities, it is essential to the achievement of high fired whiteness. This is because it contains a low content of coloring elements such as iron and titanium. For sanitary ware, the product is formed by casting (either in plaster, or resin molds under pressure). Kaolin contributes the rheological properties that enables the casting slip to flow and drain after the cast formation. The cast pieces are relatively heavy and the kaolin must be strong to withstand the weight and retain the shape before the pieces enter the kiln. Fillers: When kaolin is used as a pigment, it is divided broadly into filler- and paper coating grade clays based on their brightness and viscosity. Its main properties, especially its whiteness or near whiteness, make it very suitable as a filler or pigment. In addition, it remains inert over a wide PH range, is nonabrasive, has a low heat and electrical conductivity and offers brightness and opacity. Paint: In its hydrous or calcite forms, kaolin can improve the optical, mechanical and rheological properties of a paint. Calcite kaolins are widely used in satin and matt paints where they can deliver increased opacity, whiteness and scrub resistance. Kaolin is particularly useful as a partial replacement for TiO2 pigment. Rubber: Kaolin adds strength, abrasion resistance and rigidity to rubber. Calcite kaolin in particular, with or without a chemical surface treatment, finds extensive use in high value thermoplastic elastomers for a variety of applications and in rubber insulation on high voltage power lines. Plastics: Kaolin is used in plastics to provide smooth surfaces, dimensional stability and resistance to chemical attack, to conceal fiber reinforcement patterns and to reduce shrinkage and cracking during polymer compounding and shape forming. It is also used as a rheological modifier and functional filler, in which capacity it is used to improve mechanical, electrical and
  21. 21. 21 thermal properties. A major application is in PVC cables where its main function is to improve electrical properties. Other important applications include specialty films where they impart anti- blocking or infrared absorption characteristics. Chemically treated, calcite kaolin is one of the major additives used in the manufacture of automotive parts based on engineering thermoplastics. Refractories: Refractories are produced from natural materials, combinations of compounds and minerals, such as kaolin, which are used to build structures subjected to high temperatures, ranging from simple to sophisticated products, e.g. from fireplace brick linings to re-entry heat shields for the space shuttle. In industry they are used to line boilers and furnaces, ladles, stills, kilns and so forth. Fiberglass: The fiberglass which is used as a strengthener in a multitude of applications requires the use of kaolin for its manufacture. Kaolin allows for the strengthening of the fibers integrated into the material. It also improves the integration of fibers in products requiring strengthened plastics: cars, boats and marine products, sporting goods and recreation products, aviation and aerospace products, circuit board manufacturing, fiberglass insulation, fiberglass air filters, fiberglass tanks and pipes, corrosion resistant fiberglass products, fiberglass building and construction products, etc. PROCESS The principal operation in wet dressing of kaolin is the classification process which has two objectives: (1) to separate other minerals, and (2) to obtain required particle size Screening, settling, hydro cyclones and centrifuges are mainly used for classification.
  22. 22. 22 Additional processing stages generally to increase brightness and to adjust other physical characteristics are also included in the refining circuits. In TKCL to improve brightness, bleaching process is used in which iron bearing minerals are removed by addition of a reducing agent (usually sodium hydro sulphite) at low ph. The colored iron compounds are rendered colorless and soluble by bleaching and removed during water washing and filtration stages. Dewatering is done through high pressure filter presses and product is finally dried in a spray drier. Spray drier is modern equipment in which clay slurry is atomized into an exceedingly fine spray on entering top of a large conical chamber. The fine droplets slowly descend passing through a stream of hot air. A fine powder is formed that is both free flowing and virtually dust free. QUALITY Almost one hundred tests a day are performed. Constant process monitoring is done at every stage of manufacture, to ensure the highest standards of quality. From raw clay, all materials and chemicals used in the production are subjected to tests to ensure adherence to specifications. Strict quality control by monitoring the critical parameters at desired frequencies is maintained during all the stages of operation. Sampling is carried out conforming to internationally approved methods. At every stage of the production, samples are taken at specified frequencies and analyzed to ensure strict adherence to specification. The technology is inherited from the Oharu Manufacturing Co. and enriched by our experimentation over the past 35 years. The product is especially tested for brightness, particle size distribution and dispersion aimed at customer requirement.
  25. 25. 25 DEPARTMENTS
  26. 26. 26 The various departments for helping the efficient running of KCL are below. This is what makes the company what it is now.  Personnel and Administration Department  Mines Department  Production Department  Quality Control Department  Maintenance Department  Commercial Department  Finance Department
  27. 27. 27 Personnel and Administration department CHART 2 The Kerala Ceramics Ltd Company has a well-developed personnel department for regulating and planning the wage policy for over a period of fifty years. The management also has special Measures to win the cooperation of a large number of workers employed in this company. There is favorable opinion on the part of the workers towards the personnel department of the Kerala Ceramics Ltd. The personnel department deals with human relationship with the organization concerned with working condition, recruitment, interview, test, selection, induction, training, transfer, promotion, demotion, punishment, welfare activities, retirements, grievances handling, disciplinary action etc. PERSONNEL AND ADMINISTRATIVE MANAGER SUPERINDENT SAFETY GUARDS TIME KEEPER STAFF
  28. 28. 28 PERSONNEL (Establishment/IR/Admin: /PR) The manager (P&A) in an organization plays a vital role as a counselor, mediator, problem solver and a change agent. The following are the functions of personnel department.  HRM function  Administrative function HRM function  Recruitment and selection  Placement and orientation  Transfer and promotion  Disciplinary actions  Industry relation  Public relation  Welfare activities Administrative functions cover the following activities  Attendance management  Wage and salary administration  Office management  Security management  Safety management Recruitment and selection of Personnel While selecting the personnel manager public sector undertaking by direct recruitment in Government companies which are outside the preview of public Service Commission. The following are the guidelines:  As per the Employment Exchange Act, 1959.  Recruitment to vacancies should be made by committees’ setup by the Board of Directors with not less than 8 members and at least one of them being Government representatives.  In respect of direct recruitment the principle reservation as applicable to Government appointment should be adhered to.
  29. 29. 29 Placement and Orientation The government directly appoints the Managing Director of the company. The staffs of the company are appointed by the Public Service Commission. The managers are appointed by the professional employment. The workers are appointed through the employment exchange. The trainees are selected through the relational institutional centers. Each employee has a personnel file which includes their application form, date of appointment to the company, about the transfer etc. The workers of the company are classified into:  Probation  Permanent workers  Temporary workers  Casual Workers  Apprentice Transfer It is the process of placing employees in the same level job, where they can perform well according to their potentialities and needs of the organization. Transfer is made through the order of the company or through the request of the employees. Promotion Promotion plays an important role in motivating the employees promotion policy contains the following aspects:  Promotion shall be made only to the next higher post in the scale structure.  The period of 12 month probation will be compulsory for every promotion.  When post falls permanently vacant management shall fill up the post from among employees.  Promotion shall be considerable only if there is a vacancy.  Promotion is based on seniority basis. There is no promotion on the basis of performance.  The pre-determined period to be filled in Kerala Ceramics Ltd. to get a promotion is 8 years.
  30. 30. 30 Disciplinary action In case of misconduct a report will be given to the disciplinary committee. In case of workers, the disciplinary committee will consult the manager. For the staff the committee will approach the General Manager (Personnel Department) and in the case of officers it will be headed to the Managing Director. A show cause notice is issued stating the details of the allegation. If the allegation is serious the officer will be kept under suspension pending enquiry. First a preliminary enquiry will be conducted and if the explanation is satisfactory it will be closed otherwise a detailed investigation will be called for and an officer will be appointed to enquire into crime done. Retirement Retirement of the employees is at 58 years of age (normal). Labor Welfare Schemes The labor welfare activities include P.F, ESI, Canteen, Uniform, Drinking water, Security other allowances etc… Employment assistance under die in harness scheme The objective of this scheme is to provide employment or any monetary assistance in lieu of employment to the department of employees die in harness. Legal claim The claim is for the employees with regard to various statutory obligations like compensation under Workmen Compensation Act. Casual Leave The workers are allowed in 14 days sick leave and 18 days cash leave a calendar year. Leave allowed for staffs are after 11 days of work and for workers after 20 days of work. The following allowances are given:  Dear allowances  Chemical allowance Rs.10 per day  Cycling allowance Rs.2 per day  HRA Rs. 100 per month for staff and Rs. 50 per month for workers.
  31. 31. 31  Night allowance Rs10per day.  Milk allowance Rs. 10 per day.  Washing allowance Rs. 15per month (only for the person’s the uniform is issued)  Stitching allowance (to whom uniform is provided)  First aid allowance Rs.35 per month  Festival loan Rs. 1100 given to the workers and is deducted from their basic pay by ten installments VRS Benefits On the basis of ERC and as ordered by government wide (ms) No 100/02/10 dated on 05/10/2002, the company has implemented a voluntary retirement scheme for 89 employees as on 01/03/2003 and the remaining employees were deployed in the only working division. Clay and minerals divisions is limiting the minimum required strength. The company utilized an amount of Rs. 200 lakhs released by the government for the above. .Incentives The employee will be given incentive for the production above the basic volume. The employee earns Rs. 1 for each additional unit of production in his direct presence and 50 paisa for his indirect presence (normal case). Public holiday The following are the festival and National holidays during the year:  Republic day  Maundy day  Good Friday  May 1st  Bakrid  Independence day  Thiruvonam  Sree Narayana Guru Samadhi  Mahanavami  Gandhi jayanthi
  32. 32. 32  Ramzan  Christmas Wage and salary administration It details the procedure to be followed for preparation, verification and disbursement of wages and salary for workers, casuals, apprentice, staff and officers of KCL and also preparation of disbursement of payments like overtime ,leave encashment of earned leaves and compensatory off, gratuity, super annulations etc. It covers preparation and disbursement of monthly wage and salary for workers and officer respectively and also for preparation of disbursement of all type of payment for employees. The salary scale is not revised since 30-10-99.For the calculation the employees are divided into two categories .First category includes all the executives and the second category includes staffs and workers. The staff and workers are dividing into various grades. The scale of pay of each worker in different grades is as follows: Scale of pay to workers Table: 1 Grade 1 Rs.3500-25-3625-30-3805-35-4015-40-4335-45-4650 Grade 2 Rs.3550-30-3700-35-3910-40-4150-45-4510-50-4860 Grade 3 Rs.3600-35-3775-40-4015-45-4285-50-4685-55-5070 Grade 4 Rs.3650-40-3850-45-4120-50-4420-55-4860-60-5280 Grade 5 Rs.3700-45-3925-50-4225-55-45555-60-5035-65-5470
  33. 33. 33 Scale of pay to staff Table: 2 Grade 1 Rs.3500-25-3625-30-3745-35-3920-40-4240-45-4465-50-4715 Grade 2 Rs.3560-30-3710-35-3850-40-4050-45-4410-50-4460-55-4935 Grade 3 Rs.3630-35-3805-40-3965-45-4190-50-4590-55-4865-60-5165 Grade 4 Rs.3730-40-3930-45-4110-50-4360-55-4800-60-5100-65-5425 Grade 5 Rs.3850-45-4075-50-4275-55-4550-60-5030-65-5355-70-5705 Grade 6 Rs.4000-55-4275-60-4515-70-4865-80-5505-90-5955-100-6455 Working Hours Table: 3 Labors The present manpower is 294. PERSONNEL DEPARTMENT SECTIONS  Time office section  Security sections SHIFT TIME GENERAL SHIFT 8.00 AM to 5.00 PM SHIFT (Workers) 8.00AM to 4.00 PM 4.00 PM to 12.00 AM 12.00 AM to 8.00 AM STAFF 9.30 AM to 5.00 PM
  34. 34. 34 Time office attendance The information regarding the workers entry and exit is recorded in this section. The system here is the punched card system using mechanical punching clock. Each and every worker in the company is provided with a card with his work number, dates and corresponding columns are kept separate rackets. The worker entering the factory is liable to his card and punches the time and keep in separate rack while leaving the premises. He is to punch the exit time and replace the card. This card system is the sample proof of the working hours of a worker and it provides information which helps the calculation of wages, attendance, period of work shift etc. a monthly statement is prepared by the time office and sends to the concerned department. It helps in the preparation of annual sheets concerning the working staff. Security sections Security section is very important function in many organizations, since it controls flow men, materials and vehicles. The main functions of the security sections are;  Safeguard the organizations day and night.  To maintain a list of the men, material, vehicles entering and leaving the organization.  To record the exact time of entry and exit.  To control movement within the organization. The entrance is restricted to one. The walls around the company act as a physical barrier. Security department ensures the smooth flow of men, material and vehicle to and from the company. The internal movement is restricted by identity cards. The security deals with any problem faced by the workers include cases of behavioral problem due to liquor consumption etc.
  35. 35. 35 Trade Union There exists 13 trade unions in the company, among that 6 for staff and 7 for workers. Some of the trade unions are listed below: 1. Kundara Ceramics Staff Congress [INTUC] 2. Kerala Ceramics Workers Federation [KTUC] 3. Kerala Ceramics Employees Union [AITUC] 4. Kerala Ceramics Workers Union [UTUC] 5. Kerala Ceramics Workers Federation [KTUC] 6. Kerala Ceramics Employee Congress [INTUC] 7. Kerala Ceramics Workers and Staff Union [UTUC] 8. Kerala Ceramics Administrative Staff Association [RSP] MINES DEPARTMENT Chart: 3 Mining is the process by which raw clay is digging out from captive mines. The initial step in the manufacturing of kaolin is to dig out raw clay from the earth’s crescent i.e. mining. Head of this department is mine manager, mines mate and workers works under Mines manager for assisting his duties. This department engaged in all activities related to mining of china clay. There are different types of mining like;  open pit method,  underground mining MINES MANAGER MINE MATE WORKERS
  36. 36. 36 In open pit method, the clay is directly dinged up to the depth of clay, forming a pit and then the clay as taken out. In underground mining, a tunnel is made from the pit and the clay is taken out. When the clay deposit is too deep for stripping then underground mining is used. The type of mining is followed by the Kerala ceramics Ltd. Kundara is the bench type open mining method. Raw clay materials are digging out from clay deposit manually or using machines. Here the height and width of each step in the mining of 11/2m.As the soil around these mines are soft we are using earth moving equipment’s like proclaim for mining purpose and carrying raw clay obtained from the mining site is then transported to store house by proclaimed. PRODUCTION DEPARTMENT Chart: 4 Production department is concerned with processing of raw material. It converts the raw material into finished goods that is according to the desired quality and with effective and efficient utilization of available resources to achieve maximum profit. At present KCL has only one division. That is kaolin division where raw clay is processed into different grades of kaolin. DEPUTY MANAGER WORKERS ASSISTANT MANAGER SUPERINDENT WORKERS
  37. 37. 37 Kaolin Division Kaolin division is meant for clay and minerals mining and refining. The major product of this division is spray dried kaolin, which is getting through processing of china clay (kaofil). The spray dried kaolin is demanded by Asian paints, Indian tobacco company(packing division), Nirma, Karnataka Soaps & Detergent Ltd, Tamilnadu News Prints and is used in pharmaceuticals, paints, detergents, cosmetics, paper coating, textiles, rubber and cables etc. PRODUCTION FUNCTION Production function includes three functions. They are:  Production (Processing /refining of raw clay)  Packing Section  Stores Section Production Main activity is mining and processing of china clay. The refining and processing of china clay is using the following stages: a) Blunging unit b) Bleaching and washing unit c) Filtering unit d) Kneading unit e) Drying and powdering unit a) Blunging unit In blunging section, slurry is prepared by adding clay and water. Agitator is used for slurry preparation. Commonly two types of bungers are used.  Horizontal blunger  Vertical blunger The raw clay and sufficient water are feed to the blunger tank where the dispersion of clay and sand in water takes place by impact and attribution. There this help in separation of lump particles. The residue is then sent to the vertical blunger where it is again agitated.
  38. 38. 38 The overflow from the blunger flows through a pipe to a classifier where the larger particles and huge amount of impurities like sand are removed. Further coarse removal is obtained in a rotary sieve and cyclone set, the product from which has only a size of 80 mesh. The main equipments of blunging unit include: Horizontal blunger, Vertical blunger, Classifier, Rotary sieve and Cyclones etc. b) Bleaching and washing unit Bleaching is done for the decolourisation of the slurry and removes the ionic impurities. Chlorine is used as bleaching agent. Bleaching is a batch process. Here for bleaching eight tanks are used. The first grade slurry which is collected from the top layer is pumped to the bleaching tank .On its way to the bleaching tank it is mixed with chlorine .Slurry and clay fed to the reactor tube and bleaching takes places. The mixed slurry and chlorine is collected in the bleaching tank and agitated well. By bleaching with chlorine we can increase the brightness up to 66-67%.After preferable sulphur dioxide is added. Sulphur dioxide has no action on the brightness. Their advantages are:  Helps to reduce consumption of sodium hydrosulphite as it is very costly, about 250 Rs per kilogram.  It neutralizes the action of excess chlorine. The mixture is agitated well and then it is mixed with sodium hydro sulphate in a tank which makes the iron impurities as water soluble. Addition of hydro helps to increase the brightness to about 85%.Then it is allowed to settle for two or three hours. Then top layer water is removed. Again slurry is agitated with excess water and soluble impurities dissolve in this water. It is then allowed to settle for about 12 hours and the clear water with soluble impurities is removed using a pump. This cut out water is pumped to two aeration tank for recycling and can be used again for bleaching purpose; washing is repeated three times. After this slurry is directly pumped to a collecting tank. From collecting tank it is pumped to the filter press by a centrifugal pump. Hence the percentage content of water in slurry is about 80%. c) Filtration unit The fine solids from the clay are separated from the slurry by filtration .The equipment used is recess plate filter. The filter press contains a set of 50 filter plates designed to provide a series or
  39. 39. 39 compartments in which solids maycollect. The plates of filter press are circular. The filter press is a hydraulic press. The hydraulic press uses a high quality lubricating oil as fuel .The plates to frames sit vertically in a metal rack, with cloth covering the face of each plate and are tightly by a hydraulic ram. The pressure not feeding the slurry to filter press is 10-12 kg/cm2.The pressure of the filter press is about 150kg/cm2 the slurry enters at one end of the assemble of plates & frames. It passes through a channel running lengthwise through one corner of the assembly. Auxiliary channels carry slurry from the main inlet channel into each frame. Here the solids are deposited on the cloth covered faces of the plates. Liquor passes through the cloth, down grooves or corrugation in the plate faces, and out of the press. Filtration continues until no longer flows out the discharge or the filtration pressure suddenly rises. These occur when the frames are full of solid and no more slurry can enter. Wash liquid may then be admitted to remove soluble impurities from the solids. The press is then opened, and the cake of solids is removed from the filter medium and the filtrate is recycled. The whole assembly is washed with water and again rest. The cake is transported by ‘cart’ to the kneader. There are seven filter presses; two on line at a time for removing the cake from medium .Natural dried kaolin is obtained by drying the cake in a solar dryer and powdering. d) Kneading Dispersion agent and the cake are mixed in a kneader to make the cake as slurry without increasing the moisture content. Kneading is a method of mixing used with deformable or plastic solids. It involves squashing the mass flat, folding, it over on itself, and squashing it one more. In this mixing is done by two heavy blades on parallel, horizontal shafts turning in a short through with a saddle-shaped bottom. The blade turn towards each other at the top, drawing the mass downward over the point of the saddle, and then shearing it between the blades and the wall of the trough. The circles of rotation of the blades are usually tangential, so that the blades may turn at different speeds in any desired ratio. Filter cake from filtering section and dispersion agent pyre are dropped into the trough and mixed continuously and deflocculating takes place. Now we get slurry which is agitated. By the
  40. 40. 40 action of dispersing agent breaking and loosening of molecular bonds of cake occur. The slurry then goes to two different collecting tanks with two different agitators. This is now feed to a 120 mesh sieve and then to a 200 mesh size sieve. The underflow is collected in a service tank and is pumped to atomizer. e) Drying & Powdering It is used to make hot air at a temperature of 450c for drying in a spray drier .It is a direct fixed heater consisting of two concentric shells and ventilator type mixing chamber. The inner chamber and oil burner, fires directly for producing the products of combustion. The dilution fall ill supply the air through the annual space of the concentric shell for mixing up with the product of combustion at the ventilator type mixing chamber. A provision for letting out the product of combustion during the initial lightening period is there with a short sack of chimney located at the outlet of the hot air generator with damper. Packing Section The company has a separate packing section where the products are packed before they are dispatched. The clay powders are highly fragile goods. So care should be taken while packing the goods. The company has adopted two methods of packing. a. Card Board Packing b. Basket Packing A packing label containing the basket number, name of packer, the number of items in basket, etc... Are attached to each package or case. A delivery note is also required before the goods are dispatched and two copies of the delivery note is kept in packing section. The note should contain all the details regarding the package like the basket number, name of the packer, number and type of items in the basket, date of manufacturing etc. Even though all the, measures are adopted it has been found that a breakage of about 5% in the first stage and 7% in the second stage cannot be avoided. Only 88% of the total output can be retained as finished goods. Stores Section All items required for production and office use are kept in the stores section. After purchase the material is kept in the stores and on receipt of goods according to stores requisition,
  41. 41. 41 this section prepares Goods received Note (G.R.N). This document is prepared in triplicate, one copy to keep in stores, one to accounts section and another to purchase departments. QUALITY CONTROL DEPARTMENT Chart: 5 The main function of this department is quality control analysis and that of new techniques, ISI certification process control standardization technical service on wastage and loss. A process control laboratory is functioning under this department which maintains the quality of the product as per the specified requirements .Samples from the production department are analyzed in the laboratory and this analysis provides information regarding any variation given to the production unit and thereby adequate steps are taken to rectify it. This will result in the reduction of wastage and loss. This department also checks the correctness of the mixing of raw material, mixture of contents. In the production side they have to check profile fitting, cleaning of the product ,sponging and perfect checking is done in shaping .The department has to check the preparation of glaze to correct grinding in ball ill and the mixer content. Benefits of the department The possible benefits are being explored and the expenses are nil. This quality check help to reduce wastage of raw materials to a great extent. Future plans The aim is to develop and introduce cost effective method for production of kaolin. DEPUTY MANAGER QUALITY CONTROL TECHNICAL ASSISTANT WORKERS
  42. 42. 42 MAINTENANCE DEPARTMENT Chart: 6 Under the Kerala Ceramics Ltd, there is a separate work and moulding department and the head of this department is work manager. Deputy and Assistant manager are assisting the job of work manager. The department handles the production process and maintenance work of the machineries. This section marks necessary change for each product and carriers out all the activities related to the manufacturing process. This department helps for the proper maintenance of machines and thus no interruption in work due to the complaint of machines. DEPUTY MANAGER ENGINEERING MAINTENANCE ENGINEER SUPERINDENT WORKERS
  43. 43. 43 COMMERCE DEPARTMENT Chart: 7 This department buys all kind of material both raw material and other need for the working of the company .It functions as a seller inside the organizational selling commodities to other departments. The commercial department deals with the procurement of raw materials for production. This department is also concerned with the sales of the products. Since Kerala Ceramics Ltd does have a separate marketing department. The other functions like arranging of contracts consuming civil, mechanical, electricity, purchasing head load in etc., within the company are done by this department. This department itself carries out the procedure regarding central excise duties concerning sales as well as production. Another important function of this department is the disposal of water material. Commercial department is the combination of two sections:  Purchase section  Sales section Purchase Section The main function of purchase department is receiving order request from the stores. Purchase of different items include feldspar, quartz, china clay, bell clay metal oxide, Zirconium DEPUTY MANAGER COMMERCE SALES SUPERINDENT PURCHASE SUPERINDENT STAFF STAFF
  44. 44. 44 silicate, Zion oxide, Barium carbonate, color powder, transfer picture etc. for the porcelain division. The purchase for the clay and mineral division include furnace oil, hydrosulphite, sodium silicate, sulphur oxide, soda ash, pyrophosphate, aluminum sulphate, chlorine, machine spares, dryer spaces, baring belts etc. The other functions are (Purchase Procedures) a) Rising of orders requisition: It is formed request from stores when a particular material is needed. The concerned officer receives this order. b) Proper enquiries to stores: After receiving order requisition an enquiry is made to obtain a report of the material under order. c) Collecting quotations from suppliers: Quotations are collected from suppliers through tender and schedule. d) Tabulation sheets: A tabulation sheet is prepared on received tenders with different rates from different companies and is seeing to departments concerned. e) Recommendation: Depending on cost, quality and reliability of the quotation, a tabulated sheet of quotation is recommended by concerned departments. f) Order release: After recommendation by time concerned department, an order is released for the purchase of material. Sales Section Marketing is the most important function of business unit. The end result of marketing is sales. Manufacturing perform the function, which direct the flow of goods from the producers to the consumers. The sales department is engaged in the marketing and selling of porcelain wares and china clay. The company is having major sales in hotel ware.
  45. 45. 45 Sales Procedure The company sells the product to the consumers where the party sends the list of the required items to the company; the company receives the requirement for the various products and sends them to the concerned party. Along with the price list, the company also sends the details of the product, which involves the technical specification etc. If the parties agree to price list they send order to the company. Once the company receives the order, they send the design of the product to the concerned parties. Then the company proceeds with the sales of the goods to the parties concerned. The company conducts all its financial aspects of the company only through the company bank. The company is directly selling china clay. There are three grades of china clay high bright, paper grade and general grade. High bright clay receives a good price for its superior quality. The major competitors of Kerala Ceramics Ltd  English Indian Clay Limited  Alpha Clays  20 Microns Ltd Some customers of Kerala Ceramics Ltd  Rubber flex, Malaysia( Export)  Sripathi Papers  Rainbow Papers Ltd-Ahmadabad  Kherai Paper Mills Ltd- Maharashtra  Sarda Papers Ltd- Maharashtra  N R Agarwall Industries Ltd- Mumbai  Balakrishna Paper Mills Ltd – Maharashtra  Berger paints Price Fixing The price fixed for the product by adding basic prices, sales tax, excise duty beyond packing expenses. The company can't sell the product below selling price because there is an approved selling price list. Discount allowed for white ware and ivory ware has good demand in
  46. 46. 46 the market. But white colored items have rather good demand. All rejected items are old has scrap value either through inviting quotation or through agents. Advertising The company does not have extensive advertising. But it advertises its products through souvenir and magazines. It also conducts exhibition and trade fare. Marketing activities of Kerala Ceramics Ltd The marketing activities of Kerala Ceramics Ltd can be broadly discussed in following heads: 1) Merchandising Function: Under the merchandising function the following activities are performed:  Buying and Assembling The extraction of raw materials for producing porcelain wares is done at its on Kaolin division. The other raw materials used for the production are purchased from other units. Assembling is done at the factory's porcelain division where all the production work is done.  Packing The porcelain goods are packed as per orders and buy using (clay various packing materials).  Selling The company sells the porcelain products to the agents as well as order from various parties. The clay is dispatched as per the order. Marketing physical distribution:  Dispatching The dispatch of products is an important marketing function of any company. After the orders from several parties have been received the company arranges the executives of the order by way of dispatch. Before dispatching of goods the following formalities are to be completed by the consumers.  Payment The payment is to be made in full by the DD payable at any schedule bank of the district.  Transportation and Insurance
  47. 47. 47 These are to be arranged by customer and shall nominate the approval transporter. The lorry receipt is sent directly. Registers and documents to be prepared for dispatching goods a) Order Register The particulars or orders received are entered in a register known as order register. The order register shows the date of receiving the order, the name of the party, type of products, payment of cash, destination and transportation. b) Delivery Note The delivery note is prepared before the goods are dispatched. It contains the general sales tax rules and it has to be maintained in triplicate. c) Invoice Invoice is also a necessary document in its name of customer, data, types of goods; quality, price, destination etc. are shown. d) Delivery Chelan A delivery Chelan is a prepared before dispatching the goods which are dispatched, L.R No. gate pass No., date of dispatch etc. e) Gate Pass The company gate pass is to be submitted before the security officer to take goods out of factory premises. The gate pass contains the description of materials, quality, packing, purpose of removal etc. Marketing Facilitating Function  Financing The Kerala Ceramics Ltd. Kundara does not require the financial assistance from the banker or other government agencies for marketing their product. The customer will have to make payment in advance by D.D.  Risk Bearing The porcelain goods as well as china clay is sold in various states of the country and locally also. So marketing involves many risks. If the product is not sold in standard quality the customer
  48. 48. 48 will return goods. There were also big chances of the damages while storing the factory goes down. By insurance all these risks are avoided to great extent, since transportation are done by the buyer.  Distribution channels The company has framed its own policy and strategies to face tight competition in the market. The company has appointed agents all over India. SALES FOR PRODUCTS KAOLIN Table: 4 Chart: 8 FINANCE DEPARTMENT 14307.78 9457 9725 0 5000 10000 15000 20000 2008-2009 2009-2010 2010-2011 Sales( in tonnage) Sales( in tonnage) Year Sales( in tonnage) 2008-2009 14307.78 2009-2010 9457.00 2010-2011 9725.00 CASHIER STAFF ASSISTANT MANAGER ACCOUNTS SUPERINDENT
  49. 49. 49 Chart: 9 KCL maintains a separate section for maintaining the monetary aspects of the business. The accounts have been prepared under the historical cost conversions or accrual basis as going concern with revenue recognized and expenses on actual basis applicable accounting standards. There is manual and computerized operation in KCL. KCL has accounting software. Functions The main function of finance department is to get all receipts and make all payments and also record all transactions and prepare the final accountants the department takes the following into consideration.  Estimating capital structure  Fixing capital structure  Sources of finance  Management of cash  Financial control  Physical verification of stock and other fixed asset  To correct the transaction as per status of company act and check whether all relevant accounting standard are adopted.  Periodical preparation of various statements of accounts.  To make all payment in time to the suppliers, contractors, employees etc. and other statutory payments like water, electricity, tax and duties etc.  To submit all necessary returns in the form to interested parties like shareholders, government etc.  Maintaining relation. Types of Accounts The accounting department prepares the following accounts for the easy working of the financial department.  Purchase account  Sales account
  50. 50. 50  Stores account  Cash account Financial Planning Financial planning is based on Companies budget. A monthly report is prepared for government agencies. Cost structure of one unit Rs 3155/tones (exclusive of interest and taxes).Tax policies are fixed according to government act .Insurance coverage’s action is on the basis of Kerala state Insurance department. Preparation of Financial Statement It is the responsibility of the finance department to prepare the financial statement. This help to find out actual position other organization. The financial department prepares the following,  Performance report  P&L accounts-mines  Cost sheet and variance analysis-plants  Monthly profitability trend  Store trend  Direct material consumption statement  Fund flow statement  Balance sheet  Yearly budget  The existing exhaust fan is very old and in worn out condition. It is to be replaced with a new one.  The company planned to make provision for a belt conveyer arrangement. Methods Maintenance of Account  Monthly trial balance & profit and loss account.  Yearly profit and loss account and balance sheet. Different Auditing system There are 4 types of audit  Internal audit  Tax audit
  51. 51. 51  Statutory audit  Accountant general audit Sources of fund : sale of goods. Share distribution Government : 54% KSIE : 46% Note on capital budget The capital budget is prepared with a view to enhance the production capacity to 50000mt per annum from the existing 1800 mt. The defaults are shown below. Blunger  Increase the number of sieves to 16 numbers from the existing 8 numbers. This is intended to handle the double volume of flow.  Additional two sets of pumps are required to handle the double volume of flow.  The number of collection tanks has to increase to two from the existing one to handle the increased volume. Settling  The company proposed to modify the setting tank. For this to install new agitators, new pumps, motors, valves, pipe line etc.  The company suggested installing a centrifuge for bleaching.  The high value product with more than 90/-of 2 microns particles.  Company proposed to replace the existing reaction tube with a new one to handle the vibrated capacity of production.  The company decided to make provision for replacing the existing inter transfer pump. Capital Structure The authorized capital of the company is Rs. 1400 lakhs and their paid capital is Rs. 190.58 lakhs.
  52. 52. 52 General Accounts In this section, a large number of General Accounts are kept, this includes:  General Journal in which transactions are entered first.  Standard Journal in which all recurring items are entered. (Salary, wages, excise duty)  Cash books in which all cash receipts and payments are recorded.  Ledger which includes general ledger, containing balance sheet items and expense ledger covering the revenue expenses.  Sundry creditors and debtors ledger.  Bank book in which all bank payments and receipts are entered.  Subsidiary ledger which include individual accounts maintained by each department. A Trial Balance is prepared every 4 months that is in September, December and March every year. Balance Sheet is prepared annually for financial year from April 1st- March 31st of next year. Bills Section In this section all payments for purchase are recorded. This includes bills payable to suppliers and contractors. All the advances being given are also properly recorded. Sundry creditor’s ledger and suppliers accounts are kept here. Every transaction is recorded at the end of the year and the accounts are ratified and sent to the general accounts section. Costing In this section, separate costs records are kept for maintaining and every year cost audit is conducted, both internally and externally by Govt. nominees. The main activity of costing section includes:  Budgeting and Budgetary Control Both revenue and capital expenditure budget are prepared. Capital expenditure budget is prepared based on the total cost incurred for items in all departments. Revenue budget is prepared on the basis of estimate for production, sales & expenditure. The balance sheet with total assets and liabilities is prepared and total cash flow is found. Other activity of costing section includes.  Assembling monthly performance.
  53. 53. 53  Preparation of various analysis statements.  Issue of bank loans for working capital loans.  Presenting monthly information about the performance of the company to the Govt.  Preparing monthly consumption statement of raw materials.  Keeping and maintaining assets register and cost ledger and reimbursement bill for medical expense of the employees. Establishment & Provident Fund Accounts This establishment section has 2 main functions:-  Time Keeping of factory Workers For time keeping a punching system is provided within fine fate punching clocks and punching cards are issued to all employees. The punching clock gives the details of attendance which is recorded in the attendance register.  Payment Remuneration Payment of remuneration is made strictly on the basis of attendance, overtime eligibility, allowance etc. There is separate section for keeping provident fund accounts. Total provident funds include the compulsory provident fund and voluntarily provident fund. The total provident fund is collected to TCC employee’s provident, trust, which will be invested by the company in small savings or Govt. security. Sources of funds To produce and sell there must be adequate finance for fixed assets, raw materials and the other supplies to meet day to day expenditure of the enterprise. The company by mean of equity funds and borrowed funds raised funds. The share capital has included authorized, issued, subscribed and paid up capital. Subsidy has been received from DSTR and Govt. of Kerala. Loans are obtained as term loans from SBI, IOB, UBI, IDBI and material loans from Govt. of Kerala. Loans are obtained as term loans from SBI, IDBI, UBI, IOB and material loans from government of Kerala.
  54. 54. 54 SWOT ANALYSIS
  55. 55. 55 STRENGTH 1) The brand name of KCL is the greatest strength. 2) Loyal customers give strength to company. 3) Company has its own clay mines. 4) Demand for the product is very high. 5) Availability of highly skilled man power. 6) Strong relation between the organization and all the levels of employees. 7) Effective communication facility. 8) High quality products make the strong bond between company and customers. WEAKNESS 1) The casual workers without any commitment are a weakness of KCL. 2) KCL is not up-to-date with technology. 3) Absence of a standard Research and Development Department. 4) The company has to wait for long time to get financial assistance from government. 5) Only a part of the total capacity is utilized. 6) Acquisition of land for mining purpose is a problem.
  56. 56. 56 OPPORTUNITIES 1) The company can introduce value added products and produce ceramics products in medicinal field, aircraft engineering, military and so on.. 2) If iron contents of clay are reduced by using novel technologies, company can exploit the opportunities of fiber glass industry. 3) The reopening of porcelain division can grab the market share. 4) Rising of new firms in paint, paper and rubber industry. 5) As this company has its own mine, can strongly compete with the recently entered companies. THREATS 1) The strong competitors sometimes pose a threat to KCL. 2) Global recession. 3) Rise in fuel price. 4) Seasonal threats in mining process. 5) Problems of land acquisition for mining. 6) Increase in price of raw materials. 7) Possible change in government policy. 8) Increase in transportation cost.
  58. 58. 58 FINDINGS 1) KCL has high reputation in the industry. 2) Refined clay of KCL meets above the ISI standard. 3) Well-disciplined hard working and skilled labour force. 4) The company is still hanging on older technologies. 5) There is an absence of a standard Research and Development department. 6) There is only a small amount exporting. 7) The by-products are not fully utilized. 8) Many positions are vacant in the organization. 9) There is employee shortage. 10) Many machineries are rusting in company and wasting money 11) Fluctuation in sales is really increasing showing loss. 12) Only operational profit, no financial profit. 13) Electric charge is very high that the KSEB is charging very high rate for additional consumption.
  59. 59. 59 SUGGESTIONS 1) The existing mines have to be widened. 2) Research and Development department should strengthen with chemist and scientists. 3) Customer needs and preferences have to be considered. 4) Planned technological change and sophistication is needed to face competition. 5) By-products have to be utilized well to earn additional income. 6) Novel technologies to reduce the iron content in the clay can help KCL to enter the fiber glass industry. 7) Employee motivation programs and training programs should be given. 8) Strive for better relationship between the management and local people so that problem faced during land acquisition can be resolved amicably. 9) Advertising will help more customers to know about the company and its products. 10) Try to acquire chemicals at low cost, it can cause a slight decrease in cost of production.
  60. 60. 60 RECOMMENDATIONS 1) World is now moving fast, discovering new ceramics products. So the time to change has been exceeded. 2) The closed porcelain division should be started with imported machineries. 3) More safety is to be provided for the employees as chemicals used affect their health. 4) Performance evaluation help to increase productivity and employees will get motivated.
  61. 61. 61 CONCLUSION
  62. 62. 62 The organizational study conducted in Kerala Ceramics Limited was really beneficial for me. It provided a lot of information on what’s actually happening in an organization, the problems they have to face, the factors influencing them, various departmental functions and relationship between employees. Although KCL is a Kerala government undertaken company, the changing governments sometimes neglect or avoid the company for bringing it on successful path. The hardworking managers, staffs and workers are the main assets. The company has yet not changed the technologies and this made the competitors to gain success over them. The re-opening of closed porcelain division will help to bring the company to previous status to some extent. As there is a huge amount of electricity is needed, the government has to make a contract with KSEB for providing electricity at low cost. Nowadays ceramics products are used worldwide, the organization have its own mine at Kundara and they are not exploring it in the proper way. Ceramics have wide application in aircraft products, sanitary wares and many more fields make its application more and more important.
  63. 63. 63 BIBLIOGRAPHY/WEB BLIOGRAPHY BOOKS  Kolter Philip, “Marketing Management”, Pearson prentice Hall, New Delhi, Fifth Reprint Edition 2004.  B.S Madhur, Co-operation India, Sathiya bhavan publication Distribution Pvt Ltd.  I.M Pandey, “Financial Management”, Vikas Publications pvt. Ltd New Delhi Sixth Edition 2002.  K Aswathappa , “Human Resources Management”, Tata McGraw Hill Education Pvt Ltd, New Delhi, Fourth Reprint 2011. COMPANY BROUCHERS  Company Journals  Department files Websites  http//  http//  http//