FORMAT FOR PREPARATION OF PROJECT REPORT



CHAPTER - 1

INTRODUCTION

1.1 ABOUT THE CITY:

Tuticorin is also known as “Pearl City”. It is a Seaport which serves Southern Tamil Nadu including the inland cities of Coimbatore, Madurai  and  Tirunelveli. It is one of the major seaports in India with its history dating back to the 6th century. Tuticorin is traditionally known for its pearl fishery and shipbuilding. Tuticorin became the centre of the Indian independence movement in the early 20th century, with such leaders as the poet Subramanya Bharathy, Veerapandiya Kattabomman, Thalapathi veeran sundaralingam first human suicide bomber in the world Venni Kalady, Vellaya Thevan, and V.O. Chidambaram Pillai. In 1906, the freedom fighter V. O. Chidambaram Pillai, with the help of Bal Gangadhar Tilak, launched the first Swadeshi ship S.S. Gaelia from this port town in British India.

The major harbour of Tuticorin is well known as a pearl diving and fishing centre. Tuticorin, one of the oldest sea ports in the world, was the seaport of the Pandyan kingdom after Korkai and later was taken over by the Portuguese in 1548, captured by the Dutch in 1658, and ceded to the British in 1825. The lighthouse built in 1842 marked the beginning of the history of Tuticorin harbour development. Tuticorin was established as a Municipality in 1866 with Roche Victoria as its first chairman. It attained the status of Corporation on August 5 2008 after 142 years.

The economy of Tuticorin is based on shipping, fishing, salt pan, and agricultural industries. Tuticorin has a host of other industries including power, chemicals and IT. The availability of skilled labour, an electricity generating plant, a container facility and it being a major port has made Tuticorin a major centre for industry and business.

1.2 COMPANY PROFILE:

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Founded in 1993, Located in Tuticorin, Tamil Nadu, Sivanthi Joe Coirs Pvt Ltd. is engaged in the manufacturing and export of coco pith, coco fibre and coco chips with coco pith being the main product the company specializes in . Sivanthi Joe Coirs(a partnership firm) was established in 1994. The company was founded by two entrepreneurs, late Mr. S Karunagaran, a Chartered Accountant by profession, whose son Mr. K.Sivakar has now taken charge and Mr. Dunston D Joseph, a management graduate Sivanthi Joe is ISO 9001 - 2008 Certified Organisation Controlled by European Certification for Agricultural Sector (MPS - ECAS), Netherlands. The company is the world’s largest Coco Peat (Coir Pith) production factory, with more than 500 acres (200 hectares) of land in seven different locations in India, technically classified process wise buildings and well equipped machineries and processing technology. The company has manpower capacity of about 2000, 24 hours Quality Control Lab and the biggest network of raw material suppliers. Sivanthi Joe has a head quarters and state of art factory in port city Tuticorin and 7 other manufacturing locations

1.3 MISSION STATEMENT:

To achieve the leading position in the global growing media and potting soil industry by providing world class products and services to valuable customers across the world.

1.4 VISION STATEMENT:

To become the pioneers in the world of coir business.

1.5 OBJECTIVES OF THE COMPANY:

The company has its objectives based on the general management concept of SMART.

S – SMART

M – MEASURABLE

A – ACIEVABLE

R – REALISTIC

T – TIME BOUND

• To achieve a turnover of Rs.200 crore by the year of 2010

• To focus on cost reduction and technology up gradation in order to become

competitive in each line of business.

• To constantly innovate and develop new products and services to satisfy

customer requirements.

• To compete through speed, agility and flexibility in recognizing and

capturing opportunities in existing markets.

• To invest sufficiently to stay in the game but avoid premature

commitments.

1.6 QUALITY POLICY:

The company employs the concept of Total Quality Management. The main aim of the organization is to obtain 100 % satisfaction of its customers by supplying fine and high quality products.The company owns the RHP certificate together with SA 8000 Certificate.

1.7 COIR

Mankind has been greatly gifted by Mother Nature. Of the flora and fauna that populate the earth, one valuable product is the Coir. Coir is a versatile natural golden fiber extracted from the protective husk of coconuts and the residue after the extraction of fiber from the husk (Mesocarp) of the Coconut is Coco Peat (Coir Pith). Coir can be spun into a wide range of products that possess eco-friendly characteristics. Sivanthi Joe produces several products from this marvelous Coconut husk into growing media for plants in the Horticulture and Floriculture fields more effectively. Being located at Tuticorin, a place well known for its marine resources and palm trees in and around 100 Kms. Surroundings have very large Coconut Farms and Plantations. Thus Sivanthi Joe is well suited to handle palm resources from these areas.

1.8 PRODUCTS/SERVICES

1.8.1 ENVIRONMENT FRIENDLY PRODUCTS

  1.8.1.1.Global warming.

The new challenge threatening the world is global warming. Environmentalists are seriously engaged in discussions about it. Environmental movements call the process of the rise in surface temperature of the earth owing to human activities, as global warming.

When the gases in air absorb and let out infrared rays the earth gets warmed. Scientists point out to the change in the temperature in the earth between those that were recorded in 19th century and this 21st century. They say the increase in the temperature of the earth is caused by what is known as ‘greenhouse gases’. They contend that gases like carbon dioxide, methane, nitrous oxide etc., are let out on a vast scale due to processes like vaporizing water, and industrial emissions and thereby result in the warming of the earth. Sivanthi Joe Substrates products are the right tool to make our earth as green with water savage.Save water and make the world a greener place.

1.8.1.2 NATURE FRIENDLY PROCESSES:

Preserving natural features can benefit both the developer and the development. Nature-friendly development practices can add value to property, protect natural resources and help organizational bottom lines grow.

Sivanthi Joe products are 100% nature friendly and are made from 100% natural products of Coconut Husk. In general agricultural practice, the fertile land is developed using a huge quantum of water and fertilizers for cultivation. But the products delivered by Sivanthi Joe offer a right solution through which the cultivation of land can go on without using too much of  water, fertilizers or manure.  

 1.8.1.3 ENVIRONMENT FRIENDLY GROWTH:

In the recent times, the earth, water and air are highly polluted and now the earth is under threat. The study and impact of the environment study therefore, is of high importance in today’s context and it requires the collective action of the global community to think and act to save the environment.    

Sivanthi Joe products are environment friendly products and this is the first step towards creating a better world.

1.9 PRODUCTS:

Sivanthi Joe Coirs manufactures various products out of Coir for various end uses.The range of products are listed as follows,

 

• Coco Soil ™

• Coir Grow ™

• Coco Plugs ™

• Coco Seedling Trays ™

• Organic Coco™

• Coco Nursery™

• Coir Lawn™

• Coco Turf™

• Coco Garden™

• Coco Roof™

1.9.1 COCO SOIL ™

Buffered /Treated Coco Peat (Coir Pith) Substrates with various additives and mixtures suitable for flower and vegetable cultivations. The Coco Soil Substrates is available in loose material used for growing pot plants, bedding plants, pressed blocks.

Fig 1.1 Coco soil

AVAILABLE BAGS

From 10 Ltrs  to  80 Ltrs Bags with RHP Mark / Logo on the Bag

1.9.2 COIR GROW™

Buffered /Treated Coco Peat (Coir Pith) in loose form packed in bags as base for plant growing media. Used for producing plugs and seedling purpose.

Fig 1.2 Coco Grow

AVAILABLE BAGS

From 10 Ltrs to 80 Ltrs Bags with RHP Mark / Logo on the Bag

 

1.9.3 COCO PLUGS ™

The Coco Peat (Coir Pith) Substrates compressed with paper pot, used for plant propagation purposes.

Fig 1.3 Coco plugs

AVAILABLE SIZES

Coco Plugs are available in four sizes of 15 mm, 25 mm, 40 mm, 50 mm.Coco Plugs are packed in different cavity plastic trays

1.9.4 COCO SEEDLING TRAYS ™

Coco Peat (Coir Pith) Substrates is filled in cavity Trays of different sizes for seedling raising & germination purposes.

Fig 1.4 Coco seedling trays

AVAILABLE SIZES

Different sizes are available according to the Customised requirements.

1.9.5 ORGANIC COCO™

100% Coir and natural base products with compliance of NPOP and the regulation (EEC) N 2902/91 certified by IMO Control, Switzerland.

Fig:1.5 Organic coco

AVAILABLE BAGS

20 Ltrs and  50 Ltrs Bags are available.

 1.9.6 COCO NURSERY ™

Fine Coco mix material for speedlings and nursery bags.

Fig 1.6 Coco Nursery

AVAILABLE BAGS

5 Ltrs and  20 Ltrs Bags are available.

1.9.7 COIR LAWN ™

Coarse Coco mix material for outdoor landscaping purpose.

Fig 1.7 Coir Lawn

 AVAILABLE BAGS

5 Ltrs and  20 Ltrs Bags are available.

 1.9.8 COCO TURF ™

Medium Coarse Coco mix material for indoor landscaping purpose.

Fig 1.8 Coco Turf

AVAILABLE BAGS

5 Ltrs and  20 Ltrs Bags are available.

1.9.9 COCO GARDEN ™

Special Coco mix material for Interior Plants and Garden.

 

Fig 1.9 Coco garden

AVAILABLE BAGS

5 Ltrs and  20 Ltrs Bags are available.

 1.9.10 COCO ROOF ™

Special Coco mix material for Roof Garden.

 

Fig 1.10 Coco roof

AVAILABLE BAGS

5 Ltrs and  20 Ltrs Bags are available.

 

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1.10 SERVICES

Apart from coir products the company also performs few other services which are listed as follows,

• The company has been arranging trailers for transportation of the containers from Sivanthi Joe Coirs to Tuticorin Port.

• The company provides world class logistics arrangement for delivering containers to the destination port and also facilitates door delivery.

1.11 METHODOLOGY

1.11.1 PROCUREMENT OF RAW MATERIAL

The raw material for the process is in the form of coco pith and coir. The raw material is procured from various parts of India where there is abundant supply of coconuts. Minerals are either mixed in the raw material form or later in the manufacturing process.

1.11.2 WASHING

The raw material thus procured is subjected to vigorous washing process preferably 2 cold washes followed by a hot wash.

1.11.3. DRYING

The washed material is then allowed to dry for about a day in order to remove all the excess water .Fig 3.1 shows the drying yard where in heaps of the washed raw material is allowed to dry under the influence of sunlight.

Fig 1.11 Drying yard.

1.11.4 SCREENING

Once complete drying of the raw material has been accomplished, thorough screening is done to eliminate any unwanted lint and dust away from the raw materials.

1.11.5 MIXING OF ESSENTIAL MINERALS

Nutrient material is added to assure that the growing media really serves the purpose. Essential minerals like N,P,K are added to nourish the growing plant.

1.11.6 TESTING

The proto sample is created and it is then sent to the laboratory to test whether the produced sample meets the requirements of the buyer. If there is any issues then the process is rectified or else it is sent for bulk production.

1.11.7 BAILING

After bulk production is effected the manufactured products are sent in for bailing.

1.11.8 EXPORT

Bailed material are then exported to various parts of the world.

CHAPTER 2

ORGANIZATIONAL SETUP

Sivanthi joe coir company has various indigenous departments for carrying out the activities. The departments of the organization are as follows. The managing partner and the partner takes care of the day to day administration and marketing. There is a total of 5 functional departments. The structure is a divisional one which is attached in the appendix. They are as follows.

• Operation department

• Administrative department

• Mechanical department

• Production department

• Marketing department.

2.1 OPERATION DEPARTMENT

The operation department has 3 sub departmental sections namely the project development department, safety and security department and the vehicle department. Each department is being headed by a head and also accompanied by foremen and supervisors.

GOALS OF THE OPERATIONS DEPARTMENT:

• To use the internal transportation vehicles efficiently and thus minimize their costs.

• To ensure the safety and security of the company and its employees.

• To maintain the roads, buildings and other infrastructure of the company and also create Green belts.

2.2 ADMINSTRATIVE DEPARTMENT

The administrative department is the one which takes care of the administrative activities including Human resource,legal, logistics and costing.The department has a manager assisted by head clerk and assistants.

GOALS OF THE ADMINISTRATION DEPARTMENT:

• To plan and manage the human resources required for the company.

• To maintain the books of accounts and thereby comply with the norms of Indian Accounting Standards.

• To efficiently co – ordinate with Production department by arranging container boxes on time and thereby ship the orders on time.

2.3 MECHANICA L DEPARTMENT

The mechanical department maintains all the mechanical aspects of the organization. It includes machinery maintenance(mechanical and hydraulic), workshop department, electrical department and the purchase department.

GOALS OF THE MECHANICAL DEPARTMENT:

• To maintain the machineries efficiently and thus reduce its idle time.

• To ensure that the required spare parts are available on time in stores.

2.4 PRODUCTION DEPARMENT

The production department is headed by the production manager and assisted by 9 other managers for each production unit. The assistant managers are accompanied by the supervisors. The purchase department and the quality department also falls under the production department.

GOALS OF THE PRODUCTION DEPARTMENT:

• To complete the orders received from customers on time.

• To produce quality Coco Peat based products exactly as per customer requirements.

• To use the production facilities and resources at optimum level and thus minimize wastage.

2.5 MARKETING DEPARTMENT

The marketing department is managed by the Managing partner and the partner. They jointly carry out prime strategies to market their products to the world.

GOALS OF THE MARKETING DEPARTMENT:

• To explore into the world of business

• To trap potential buyers.

• Gather essential information about buyers and the countries importing the products.

CHAPTER 3

SWOT ANALYSIS

SWOT Analysis is a strategic planning method used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a project or in a business venture. It involves specifying the objective of the business venture or project and identifying the internal and external factors that are favorable and unfavorable to achieving that objective.

A SWOT analysis must first start with defining a desired end state or objective. A SWOT analysis may be incorporated into the strategic planning model. An example of a strategic planning technique that incorporates an objective-driven SWOT analysis is Strategic Creative Analysis (SCAN) Strategic Planning, including SWOT and SCAN analysis, has been the subject of much research.

▪ Strengths: attributes of the person or company that are helpful to achieving the objective.

▪ Weaknesses: attributes of the person or company that are harmful to achieving the objective.

▪ Opportunities: external conditions that are helpful to achieving the objective.

▪ Threats: external conditions which could do damage to the business's performance.

Identification of SWOTs is essential because subsequent steps in the process of planning for achievement of the selected objective may be derived from the SWOTs.

First, the decision makers have to determine whether the objective is attainable, given the SWOTs. If the objective is NOT attainable a different objective must be selected and the process repeated.

The SWOT analysis is often used in academia to highlight and identify strengths, weaknesses, opportunities and threats. It is particularly helpful in identifying areas for development.

Fig 3.1 Swot Analysis.

3.1 IMPORTANCE OF SWOT ANALYSIS 

The importance of SWOT analysis lies in its ability to help clarify and summarise the key issues and opportunities facing a business. Value lies in considering the implications of the things identified and it can therefore play a key role in helping a business to set objectives and develop new strategies. The ideal outcome would be to maximise strengths and minimise weaknesses in order to take advantage of external opportunities and overcome the threats. For example, the environment may present an opportunity for a new product but if the company does not have the capacity to produce that product it may either decide to invest in new plant and machinery or to just steer clear.

3.2 ADVANTAGES OF SWOT ANALYSIS 

The biggest advantages of SWOT analysis are that it is simple and only costs time to do. It can help generate new ideas as to how a company can use a particular strength to defend against threats in the market. If a company is aware of the potential threats then it can have responses and plans ready to counteract them when they happen.

3.3 DISADVANTAGES OF SWOT ANALYSIS

There are also disadvantages of SWOT analysis. A typical SWOT analysis is a usually a simple list and not critically presented. If a company is thinking about compiling lists it may not be focused sufficiently on how to achieve its objectives. Taking a list approach can also result in items not being prioritised. For example, a long list of weaknesses may appear to be 'cancelled out' by a longer list of strengths, regardless of how significant those weaknesses are.

3.4 STRENGTHS

• More than 500 acres of land at seven different locations in India.

• Technically classified Process wise buildings.

• Well equipped machineries and processing technology.

• Manpower strength of 2000 workers.

• The area receives a monsoon every year.

• Very close to the Tuticorin Port.

• Situated at a distance of 5 kms from the Tuticorin Airport.

• Consists of a 24 hours Quality Control Lab.

• Has the biggest network of raw material suppliers.

• Plant specific recipe is added.

• RHP research is undertaken to add what is required.

3.5 WEAKNESSESS

• Drying process is affected by rains.

• An alternative cost effective method for drying has not been found so far.

3.6 OPPORTUNITIES

• Campaign for Green World

• Coir Peat would be an ideal substitute for growing medium market.

• Substrate Market

3.7 THREATS

• Intense competition from Sri Lanka and Thailand.

CHAPTER 4

MARKETING FUNCTION

Marketing management is a business discipline which is focused on the practical application of marketing techniques and the management of a firm's marketing resources and activities. Marketing managers are often responsible for influencing the level, timing, and composition of customer demand accepted definition of the term. In part, this is because the role of a marketing manager can vary significantly based on a business' size,corporate culture, and industry context. The market research process of Sivanthi Joe Coirs is illustrated as follows:

Fig 4.1 Market research process.

The marketing team carefully plans the strategies to be handled and implement them with utmost care so as to make them globally competitive in the world of growing media business.

4.1 MARKETING PLAN

4.1.1 PRIMARY MARKET RESEARCH

The company undertakes primary market research through,

• Hortifair Trade fair (1997 – 2008) 11 years database

• Enquiries through e-mails over the last 10 years

• Sivanthi Joe Coirs Marketing Database

• Abroad visits by the Management team members

4.1.2 SECONDARY MARKET RESEARCH

Secondary research is done by gathering information from industry profiles, trade journals, newspapers, magazines and the internet

4.1.3 SALES FORECAST

The turnover of the company is expected to reach Rs.200 Crore by the year 2010.

4.2 EXPORTS

Through the successful implementation of the marketing strategy Sivanthi Joe Coirs is able to export its products to the following nations.

4.2.1 EUROPEAN UNION

• Netherlands

• Belgium

• France

• Germany

• Italy

• United Kingdom

4.2.2 AFRICA

• Kenya

• Ethiopia

• Tanzania

4.2.3 FAR EAST

• Australia

• Korea

• Japan

4.2.4 MIDDLE EAST

• Iran

4.2.5 NORTH AMERICA

• U.S.A

• Canada

4.2.6 SOUTH AMERICA

• Peru

• Dominican Republic

CHAPTER 5

HUMAN RESOURCE FUNCTION

Human resource management (HRM) is the strategic and coherent approach to the management of an organisation's most valued assets - the people working there who individually and collectively contribute to the achievement of the objectives of the business.[1] The terms "human resource management" and "human resources" (HR) have largely replaced the term "personnel management" as a description of the processes involved in managing people in organizations. In simple sense, HRM means employing people, developing their resources, utilizing, maintaining and compensating their services in tune with the job and organizational requirement.

The goal of human resource management is to help an organization to meet strategic goals by attracting, and maintaining employees and also to manage them effectively. The key word here perhaps is "fit", i.e. a HRM approach seeks to ensure a fit between the management of an organization's employees, and the overall strategic direction of the company

5.1 FUNCTIONS OF HR DEPARTMENT

1. Organizational human resource planning & development

2. Recruitment & selection

3. Wage & Salary administration

4. Employee records maintaining

5. Performance appraisal

6. Job evaluation

7. Handling employee grievances

8. Handling the legal issues within & outside the Organization

5.2 PROCESS OF HR DEPARTMENT

The human resource department has 2 blocks which are:

1. Establishment

2. Industrial relation

5.2.1 ESTABLISHMENT SECTION

The main functions are:

1. Recruitment & selection

2. Rotation and placement of employees in consultation with

divisional heads

3. Wage and salary administration

4. Performance Appraisal

5. Retrenchment

5.2.2 INDUSTRIAL RELATION

Industrial relation operates only within the Organization. The Interorganizational relation is handled by the corporate cadre. 60 to 70 % of management time is lost in resolving IR issues. Therefore the H.R department is of paramount importance.

The main functions are:

1. Communication between management and employees

2. Grievance handling

3. Settlement of dispute

4. Handling disciplinary action

5. Safeguarding Employee rights

6. Career related issues like promotion & rotation

7. Resolving daily petty issues

5.3 RECRUITMENT PROCESS:

The recruitment process for SIVANTHI JOE COIRS is being handled by the

Human resource development team in 3 stages.

• Advertising

• Screening of applicants

• Selection and placement

The detailed step by step procedure is explained as follows:

CHAPTER 6

FINANCE FUNCTION

OBJECTIVES

• To Manage & account for the financial resource of the Organization, to forecast its requirement in the future and plan accordingly and to check for deviation.

• Report the financial performance of the company to Management, and to comply with the Govt. rules and regulations

6.1 FUNCTIONS OF FINANCE DEPARTMENT

Some of the main functions are Payroll, billing, Preparation of journal, ledger and trial balance, Banking, Financial resources & materials accounting, Budget preparation, Cost accounting, Auditing, Preparation of financial statements & reports, Corporate Planning.

6.2 PROCESS OF FINANCE DEPARTMENT

Finance department in FACT is divided into five sections for carrying out its process. They are:

1. Bills & Materials

2. Sales

3. Costing, MIS, Budget

4. Cash, bank & Payroll and

5. Tax & duties

6.2.1 BILLS & MATERIALS

The main functions are Stores accounting and Receiving, Dispatch and holding of bills.

6.2.1.1BILLS SECTION

Bills section deals with the contract account for execution of civil works

and other construction/erection, maintenance and services. It includes:

1. Sale of tender form

2. Remittance of EMD

3. Remittance of security deposit

4. Issue of materials to the extractors

5. Receipts to certified bill in the specified format

6. Security on running account bills and final bill

7. Statutory procedures and formalities in works contract

6.2.1.2 STORES ACCOUNTING

Main functions of stores accounting are:

1. Receipts of stores

2. Issue of stores

3. Returns of stores

4. Value adjustments

5. Reconciliation with control accounts

6. Unconsumed materials lying at site at the close of financial year

6.2.2. SALES ACCOUNTING

Some of the functions are

1. Accountability for selling and distribution of products & by products

2. Recording the transaction

3. Transfer of information from depots to HO

4. Compilation of reports

6.2.3 THE COSTING, MIS AND BUDGET SECTION is concerned with

ascertaining the cost of production, providing information, helping to

prepare a budget, forecasting the performance and finally making a plan.

6.2.3.1 COST ACCOUNTING

Identification of the cost centre - Direct expenses is recorded to the respective cost centre. Indirect expenses are separately booked and allocated at the end of the year. Cost sheet is prepared in two ways. The item in the cost sheet is compiled on the basis of process of the products or on the basis of elements of the product.

6.2.3.2 MIS (MANAGEMENT INFORMATION SYSTEM)

To provide the management with vital facts which affects the efficient running of the business for decision making on planning, organizing and controlling the major activities of the organization and initiating suitable action.

MIS Briefly consists of:

1. Divisional Reports- Two monthly reports for each division - one for the

finance department and another for the GM’s office

2. P & L Account-Statement and its analysis

3. Production performance of the division

4. Inventory position

5. Cost of production-Actual and budget for the month

6. Specific information important for the management-Major projects,

man-hour utilisation etc.

6.2.3.3 BUDGETING

Two types of budget-Revenue and Capital budget

Two types of estimates- Budget estimate and revised estimate

REVENUE BUDGET

Every year early in August detailed production targets and norms for consumption of materials for remaining portion of the current year and also for the next financial year are prepared by the head of Divisions.

CAPITAL EXPENDITURE

Shows all items of capital expenditure to be undertaken during the budget period like expenditure on acquisition of new assets like machinery, furniture and office equipments which have reasonable life; expansion of existing facilities and modification and improvements to plant and machinery resulting in i) increase in capacity ii) Increase in useful life iii) Improvement in quality of output and iv) reduction in cost of output is treated as capital expenditure.

BUDGET REVISION

While preparing the next year’s revenue budget, the revenue budget for the current year is revised, based on the actuals from April to September and the anticipated trend for the remaining period.

6.3 MONTHLY REPORT

On closing of the accounts of the months a monthly P & L account is prepared for each Division and the same is send it to the Division Head, FD and CMD. This report would give a comparison of the actuals for every month against budgeted performance.

6.4 THE CASH, BANK AND PAYROLL SECTION is concerned more with

the day to day activities and less of future forecasting & planning.

6.4.1 CASH AND BANK ACCOUNTS SECTION

The various functions include:

1. Receipt of cash, cheques, bank drafts, and postal money orders

2. Payment of cash, cheques, bank drafts, and letters of authority

3. Handling of bank deposits/withdrawals, custody of cash and inter

unit transfer of funds

4. Maintenance of petty cash books and cash books

5. Reconciliation of bank accounts

6. Security arrangement of cash handling

7. Safe custody of valuable documents

8. Cash interests calculation

9. Any other duties assigned by authorized officer

6.5 PAYROLL SECTION

Functions of the section are:

1. Preparation and disbursement of salaries and wages to managerial

and non-managerial employees

2. Effect various recoveries through payroll and remit the same to concerned agencies

3. Processing of various personal payments advances

4. Keeps books of account for the above transaction

6.6 BANKERS SUPPORTING SIVANTHI JOE COIRS:

1. Bank of Baroda

2. Syndicate Bank

3. Axis Bank

4. Indian Overseas Bank

5. Tamilnadu Mercantile Bank

6. Central Bank Of India

6.7 AUDITING

Various types of audits in SIVANTHI JOE COIRS are:

• Statutory audit

• Government audit

• Cost audit

• Income tax audit

• Sales tax audit

• Internal audit

• Quality control audit

6.8 INTERNAL AUDIT SECTION

Some of the main functions are

1. Operational/ systems/ management audit

2. Proprietary audit and audit of sanctions

3. Routine audit

4. Surprise verification of physical stocks

5. Special audits and studies

CHAPTER 7

FINANCIAL HIGHLIGHTS

7.1 GROSS SALES:

The net sales of the company over the period from 2007to 2009 is illustrated in the graph below. It is clear that net sales of the products have increased over the years.

Fig:7.1 Net sales

7.2 GROSS INVENTORY:

The net inventory of the company over the period from 2007to 2009 is illustrated in the graph below. It is clear that net inventory of the products have increased over the years.

Fig:7.2 Gross inventory

7.3 GROSS PROFIT

The net profit of the company over the period from 2007to 2009 is illustrated in the graph below. It is clear that net profit of the products have increased over the years though they has been a slack in the year 2008.

Fig 7.3 Net profit

CHAPTER 8

ACHIEVEMENTS

• The First Company outside Netherlands that has received own RHP Certification on Coir pith (Coco Peat base Products) from RHP Certifying Agency in The Netherlands, controlled by ECAS ( European Certification for Agricultural Sector), The Netherlands.

• The First Coir Company in the World to get the Certification of Organic Coco peat Production with compliance of procedures in National Programme for Organic production (NPOP) and the Regulation (EEC) N 2902/91 from IMO Control, Switzerland.

• The company has been continuously Ranked No 1 Coco Peat Exporter from India for eight years (2000-2008) by Coir Board- Ministry of Micro, Small & Medium Enterprises, Government of India.

SCOPE OF AN MBA

The MBA can play a major role in the following aspects,

• Strategic Thinking

• Rational Decision Making

• Problem Solving

• Management

• Reduce Wastage

• Yield optimum results

Providing direction to the firm: The first task, envisioning goals, is one of the tasks that should never be delegated. This is the ability to define overarching goals that serve to unify people and focus energies. It’s about effectively declaring what’s possible for the team to achieve and compelling them to accomplish more than they ever thought possible.

Managing survival and growth: Ensuring survival of the firm is a critical task of an MBA. Two sets of factors impinge upon the firm’s survival and growth. The first is the set of factors which are internal to the firm and are largely controllable. These internal factors are choice of technology, efficiency of labour, competence of managerial staff, company image, financial resources, etc. The second set of factors are external to the firm like government policy, laws and regulations, changing customer tastes, attitudes and values, increasing competition, etc.

Maintaining firm’s efficiency: An MBA has not only to perform and produce results, but to do so in the most efficient manner. The more output an MBA can produce with the same input, the greater will be the profit.

Meeting the competition challenge: An MBA can anticipate and prepare for the increasing competition. Competition is increasing in terms of more producers, products, better quality, etc.

Innovation: To plan and manage for innovation is an on-going task which can be performed well by an MBA. Keeping track of competitor’s activities and moves can also be a source of innovation, as can improvements in technology.

Renewal: The practices and strategy that got you where you are today may be inadequate for the challenges and opportunities you face tomorrow. Renewing has to do with providing new processes and resources. MBAs can foster the process of renewal.

Building Human Organization: Man is by far the most critical resource of an organization. A good worker is a valuable asset to any company. An MBA must constantly look out for people with potential and attract them to join the company.

Leadership: Organizational success is determined by the quality of leadership that is exhibited. "A leader can be a manager, but a manager is not necessarily a leader," says Gemmy Allen . Leadership is the power of persuasion of one person over others to inspire actions towards achieving the goals of the company. Those in the leadership role must be able to influence/motivate workers to an elevated goal and direct themselves to the duties or responsibilities assigned during the planning process. Leadership involves the interpersonal characteristic of a manager's position that includes communication and close contact with team members. The only way a manager can be acknowledged as a leader is by continually demonstrating his abilities. An MBA can execute this job better than anyone else.

Change management: An MBA has to perform the task of a change agent. It’s the MBA’s task to ensure that the change is introduced and incorporated in a smooth manner with the least disturbance and resistance.

VIEW OF THE MBA EMPLOYED

Mr. K.Sivakar is the Marketing Director of Sivanthi Joe Group. He joined the company in 2004. He holds the Bachelors’ degree in Computer Science Engineering (B.E.) and Masters’ Degree in Business Administration (M.B.A.).

His view, “The Company was founded by my father Mr.S.Karunagaran, a Chartered Accountant and Mr.Dunston D.Joseph, a Management Graduate. With their professional knowledge our company is well structured and well controlled. Our internal strength is our Organisational structure. Our General Manager Mr.Elankumaran is an MBA from Annamalai University and all other General Managers have their respected degrees in their own streams. As an MBA graduate I am able to run my business efficiently by applying business concepts and through strategic planning. I strongly recommend that MBA forms a foundation for the business to emerge as a successful one.”

CHAPTER 9

FUTURE PLANS

The following are the future plans of the company:

• The company plans to broaden its business into the domestic market.

• They are planning to create SEZ(special economic zone)

• Establish green house on their own and also to give awareness in India as a pioneer consultant for establishing green house in entire India

• Increase and diversify their product ranges to coir mats and other allied coir products.

CHAPTER 10

CONCLUSION AND RECOMMENDATION

Indian coir industry is an important cottage industry contributing significantly to the economy of major coconut growing states and union territories like Kerala, Tamil Nadu, Andhra Pradesh, Karnataka, Maharashtra, Goa, Orissa, Assam and Pondicherry. About 5.5 lakhs get employment in this industry. The export is around 5.5 Crores.

The project under study reveals the fact this industry caters the need of poor people in and around Servaikaranmadam, Tuticorin. My focus on the industry is to study the unique products they are giving to the market and the structure of their organization.

As far as my knowledge is concerned this industry is the only industry adopting the new technology in manufacturing coco based growing media. This industry is also going for expansion of home market through publicity and advertisement, product diversification, adoption of new technology, R&D training for artisans including women.

RECOMMENDATIONS

• To find out new uses of coir fibre especially in the areas of GEO fiber, Fire retardant, cement and gypsum polymer development.

• Acquiring mew technology like PVC tufted coir products

• Government must come with encouragement measures in providing

Seed capital assistance for growth of brown coir fibre production

• Incentives for installation of modern equipments to make coir

Industry more competitive in the export market.

CHAPTER 11

APPENDIX

The appendix contains the following:

• Profit and loss account

• Organizational chart

CHAPTER 12

REFERNCE

1. Statutory audit report 2007-2008 and 2008-2009.

2. ISO audit Report 2008

3.

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EXPORTS

BAILING

TESTING

DRYING

PROCUREMENT OF RAW MATERIAL

MIXING OF ESSENTIAL MINERALS

SCREENING

WASHING

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