Rex-KKR Group of Companies os

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An Organizational Study at K.K.R Mills1

CHAPTER 1

INTRODUCTION

SJCET School of Management


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1.1 General Introduction

An organization study implies that a comprehensive and systematic approach

adopted to get familiar with the organization structure, working of an organization and

staffing process as a whole. The major objectives are to determine if the staffing levels

are appropriate and if the structure of management is serving the needs of the

organization. The word organization in the context of the broad term administration,

refers to the persons, committees, or departments who make up a body for the purpose

of administrating something, and without its proper care at the higher, middle and lower

levels of administration, it would be practically impossible for any management to runthe operations smoothly. In an organization study each and every department in an

organization is observed and analyzed in detail.

An organization study give a very clear picture of the functioning and the

methods adopted in the organization and it will help the trainee in knowing a lot about

the basic functioning of the organization. Experience is the best agency through which

we can learn almost anything under the sun. An ounce of practice is equal to tones of

theory. The study also gives the management trainee an opportunity to interact with the

people working in the organization and to internalize their good qualities. It is very

important from a trainees point of view to know how a problem is tackled by the

people working in an organization.

An organization study may be conducted on a stand-alone project or may be

incorporated into management audit. It is through suffering we learn practice; by

faceting danger we learn courage; by sorrow we learn sympathy and by mistakes we

reach perfection. Likewise theoretical knowledge will not do to face the challenges in

the real life. The major benefit of organization study is that operational efficiency and

service delivery can be enhanced through improved staff utilization and deployment

and improved exporting relationship



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This study will be helpful not only for the trainee but also for anybody going

through this report and will give a clear picture about the organization.

1.2 Scope of the study

The scope of the study is to familiar with the organizational structure, functions

of each department and in a real situation, how the managers handle the issues. The

organization study helps to understand the history, structure, activity and products of

the company and its contribution to Indian rice industry. This study exposes to the

various departments namely production department, sales department, purchase

department, finance department etc. and their interdependence on each other for the

successful running of an organization.

1.3 Objectives of study

To familiar with the organizational situations.

To understand the structure of the organization.

Study the growth, background and prospect of the company.

To understand the function and working of the various departments.

To know the duties and responsibilities of Key personnel.

To observe the work culture existing in the Organisation.

To find out the strengths, weaknesses, opportunities, and threats in an

organization.



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To understand the various practices applied in the organization.

1.4 Reasons for selecting the company

NIRAPARA-the brand name in which KKR mills markets rice, is today the

largest selling brand in Kerala and has become a household name. They are one of the

major players in south Indian rice industry. It is the first company which introducemodern rice processing house in Kerala. The company takes initiative to many social

activities also. All time company maintains quality of goods and services. Social

acceptance and brand value of the company attracts me to select this organization.

1.5 Study plan

Period of study: The study covered a period of 4 weeks, from 02-05-2012 to 02-06-

2012

First week

In the first week, different units in production departments were visited and reported

on the manufacturing process and the hierarchy in each unit.

Second week

In the second week, a study was made on rice industry, major players in this

industry, world and Indian scenario. Also a detailed study of the company covering the

structure of the company, its objectives, history, future plan, financial plan, etc. was

made.

Third week

The structure and functions of various departments were studied in this week.



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Fourth week

SWOT Analysis was done and final observations and suggestions were presented to

the management. Final draft of the report was also prepared.

1.6 Research Methodology

Research is a search of knowledge. It is a careful investigation of inquiry;

especially through the search of new facts in any branch of knowledge. It is the way to

systematically solve the problem. It is necessary for the researcher to design the

methodology for the problem. Personal observation, interview with key personnel of each

departments and information drawn from company manuals and journals facilitated the

collection of required data. Collection of data includes both primary and secondary data.

1.6.1 Sources of data

The data required for the study is obtained from primary as well as secondary

data sources.

Primary data



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Primary data is a data collected by the investigator himself for the

purpose of a specific inquiry or study. Primary data were collected through

personal interviews with concerned officers of the company.

Secondary data

Secondary data were collected from books, periodicals, literature published,

Internet and from other various documents like company manuals, journals, websites

and from other company records.

1.7 Limitations of the study

The managers, supervisors, workers etc. were busy at their own work.

Due to inadequate time it is not possible is to analyze all aspects

relevant to study.

Some company documents are confidential in nature. So it was not

possible to include all those items.

1.8 Chapter scheme

The present study is divided into six chapters.

The first chapter deals with the introduction, objective of the study,

scope and limitations of the study.



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The second chapter is about industry profile.

The third chapter deals with the company profile.

The fourth chapter includes departmental details

The fifth chapter deals with the SWOT analysis, Observations and

Suggestions.

The sixth chapter gives the conclusions

CHAPTER 2



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INDUSTRY PROFILE

2.1 INDUSTRY PROFILE

Rice cultivation is the principal activity and source of income for millions

of households around the world, and several countries of Asia and Africa are highly

dependent on rice as a source of foreign exchange earnings and government revenue. Rice

mill Industry is flourishing day by day, since rice is an unavoidable commodity for our day

today life. Kerala is a consumer state. We have to depend on other states in order to get

paddy. The rice mil1 industries are mainly concentrated at Kalady. There are around 200

rice mills at Kalady alone.

Food processing is seen as an industry with quick returns, whose

gestation period is much less than that of other industries. This is also the reason why a

large number of NRI investors have shown keen interest in food processing. In the past

seven years, since food processing became the new wave industry, many foreign giants



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have decided to enter this segment of the Indian market. The changing life-style of the

people, the increase in urban population, the rise in the literacy level and the enlarged T. V

coverage have triggered greater scope for the food processing industry.

There is a strong economic justification for setting up food industries,

from the viewpoints of farmers and consumers, employment generation and

industrialization. It should however be admitted, the food processing industry in India is

still in its infancy. Institutional demand, the requirements of hotels, restaurants and

household consumption comprise the domestic demand for the processed food industry.

The two characteristics governing consumption of processed food in the household sector

are the change in food habits and standard of living of the people.

As regards the structure of the industry, it is noticed that small and big co-

exist in the industry in India. The food processing industry covers the entire range from

wheat flour, rice milling, oil extraction, sugar etc., to the latest of the ready to eat kind of

tinned and preserved foods. The products need to be manufactured and marketedappropriately in order to tap the domestic and export potentials of rice, wheal, cereal

products, sugar, preservatives, confectionery, dairy products, fruits, vegetables; fish

products, meat, poultry, ice creams, tea and coffee.

According to the confederation of Indian Food Trade and Industry, the food

processing industry is the largest determinant of GNP, accounting for 19 percent of thetotal industrial production and employing around 18 percent of the national labour force.

2.1.1 PROBLEMS



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The industry has been facing a number of constraints; unreliable database for

availability of raw materials, shortage of raw materials, infrastructural limitations,

limited research and development support, difficulties in technology transfer and

absorption, unorganized state of industry, inadequate incentives, problems relating to

quality control, implementation of the prevention of Food Adulteration Act, high cost of

product development and promotion, taxation policies that continue to treat this industry

as catering to the elite sections and problems relating to packing.

The policy measures, which the government has sought to initiate, are meant to

remove those constraints. It has provided a single window for the industry, which

hitherto had to deal with five departments.

The Government of India encourages the food processing industry motivated by

following objectives;

To put to use the enormous amount of vegetables, fruits and grains, which were

otherwise, go waste for lack of local sales and storage facilities.

To generate rural employment.

To bring about a change in the eating habits of the people, by making them moreaccustomed to fast and processed foods.

The prospectus for the food processing industry has become bright with growth

of international tourism, changes in the consumption pattern in Metropolitan Centers and

enormous export potential.



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2.2 WORLD SCENARIO

Rice is the second largest produced cereal in the world. At the beginning of

1990s annual production was around 350 million tons and by the end of the century it

reached 410 million tons. The worlds major rice producing countries-including the two

most populous nations, China and India-have emphasized the importance of continuing to

develop new rice varieties to guarantee Asias food security and support the regions

economic development.

Production is geographically concentrated in Western and Eastern Asia. Asia is

the biggest rice producer, accounting for 90% of the worlds production and consumption

of rice. China and India, which account for more than one third of global population

supply over half of the worlds rice. Brazil is the most important non-Asian producer,

followed by the United States. Italy ranks first in Europe.

At least 114 countries grow rice and more than 50 have an annual production of

1,00,000 tons or more. Asian farmers produce about 90% of the total, with two

countries, China and India, growing more than half the total crop. For most rice

producing countries where annual production exceeds 1 million ton, rice is the

staple food. In Bangladesh, Cambodia, Indonesia, Lao PDR, Myanmar, Thailand,

and Vietnam, rice provides 50-80% of the total calories consumed. Notable

exceptions are Egypt, Nigeria, and Pakistan, where rice contributes only 5-10% of

per capita daily caloric intake.



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WORLD TOP 10 RICE PRODUCING COUNTRIES

Country 2009-10 2010-11

China 134,330 136,000

India 99,150 84,000

Indonesia 38,300 37,600

Bangladesh 31,000 30,000

Vietnam 24,430 23,795

Thailand 19,400 20,000



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Burma 10,150 10,730

Philippines 10,753 10,710

brazil 8,595 8,840

Japan 8,029 7,620

Table 1

Today rice is grown and harvested on every continent except Antarctica,

where conditions make its growth impossible. The majority of all rice produced

comes from India, China, Japan, Indonesia, Thailand, Burma, and Bangladesh.

Asian fanners still account for 92% of the worlds total rice production. More

than 550 million tons of rice is produced annually around the world. In the

United States, farmers have been successfully harvesting rice for more than 300

years. There are thousands of strains of rice today, including those grown in the

wild and those which are cultivated as a crop.

Global rice production in the recent years has fluctuated between 375-400

million tons. Consumption at around 410 million tons has been above production

in the recent years.

Global ending stocks, which had average above 120 million tons in the 1990's is

currently getting reduced to 80 million tons.



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Asia is the biggest rice producer, accounting for 90% of the world's production

and consumption of rice.

Per capita rice consumption has declined in recent years in many of the wealthier

rice-consuming countries, such as Japan, the Republic of Korea and Thailand,

because rising incomes have enabled people to eat more varied diet.

Although rice is widely grown and consumed, less than 6% of world production

(20-24 million tons) is traded annually.

Major importing nations of rice are West Asian countries and African countries.

Apart from it countries like Japan, Malaysia, and Brazil also figures in top 10

importing country. In West Asia and Middle East Basmati rice is favorites and

India is the major supplier in this category.

Though Rice is cultivated largely in Asia its export mostly originates from other

continents. Major rice exporters are Thailand, United States, Pakistan, Vietnam,

India, Italy, Uruguay, Australia, China and Argentina.

The Western countries are not major producers, but at the same time their

consumption is negligible. Thus, a significant portion of their produce is

exported.

2.3 INDIAN SCENARIO



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Rice is grown in many regions across India. For about 65% of the people living in India,

rice is a staple food for them. Rice is essential to life in India. It is a part of nearly every

meal, and it is grown on a majority of the rural farms. From a nation independent on food

imports to feed its population, India today is self-sufficient in grain production and also

has a substantial reserve. The progress made by agriculture in the last four decades has

been one of the biggest success stories of free India.

Agriculture and allied activities constitute the single largest contributor to the gross

domestic product, almost 33% of it. Agriculture is the means of livelihood of about two-

thirds of the work force in the country. The demand for rice in India is projected at 128

million tons for the year 2012 and will require a production level of 3000 kg/hectare.

Government of India is targeting to achieve production of 129 million tons of rice by

2011- 2012 with the growth rate of 3.7% with other food grains.

India is the second leading producer of the rice in the entire world,

preceded only by China.

Agriculture is the main source of income for families in India. Farms cover

over half the land and almost three-quarters of that land is used to grow

the two major grains: rice and wheat.

India's annual rice production is around 85-90 million tons. However, it fell to

73 million tons in 2002-03, due to poor monsoon performance. Annual

consumption is around 85 million tons.



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India also annually produces around 6-10 Lakh tons of Basmati rice, more than

70% of which is exported.

In India Rice is cultivated in both seasons - Kharif (80-85%) and Rabi. Only in

Southern India due to its tropical environment condition, it can be cultivated in

Rabi season also.

West Bengal, Uttar Pradesh, Andhra Pradesh, Punjab, Tamil Nadu, Bihar,

Orissa, Assam, Karnataka and Haryana are the major producing states. More

than 50% of total production comes from the first four states.

Food Corporation of India purchases around 20 to 25% of the total rice

production in the country both under levy from the rice mills and directly in the

form of paddy from the farmers at Minimum Support Prices announced by the

Govt.

More than 4,000 varieties of rice are grown in India. However, government

classifies rice into two categories: common (length to breadth ratio less than

2.5) and Grade A (length to breadth ratio more than 2.5).

Rice purchased by FCI is transported from surplus areas to deficit areas for

distribution under PDS. In addition, movement is taken to deficit areas also for

price stabilization through open sale.

India's basmati rice and non-basmati rice exports are valued at US $800 million

per annum.



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India is the world's largest exporter of Basmati rice, selling about 6-7 lakh tons

of the premium rice mostly to Saudi Arabia and other Middle East Countries,

Europe, and the United States every year.

2.3.1 RICE EXPORT SCENARIO

India is one of the important countries in the world in export of rice. India's exports are

expected to go up further during current financial year. Hence, Indian rice exports are set

to reach second place in the world markets after Thailand edging out Vietnam in the

process as per the report of the Food and Agricultural Organisation. Export of rice from

India has been divided in to two category i.e., basmati rice and non-basmati rice.

Basmati Rice

Rice export from India constitutes the major share of Basmati rice. Nearly two-third of

Basmati rice produced in India is exported. Basmati rice is the leading aromatic fine

quality rice of the world trade and it fetches good export price in the international

markets. Basmati rice being novel product is characterized by its unique grain size, aroma

and cooking qualities. Being high value product, it has got good export demand. Hence,

the export has been very high and exports have been steadily growing.

Basmati rice is a gift from "Mother Nature" to the Indian sub-continent and grows in the

Indo-Gangatic plains only Gulf region remains the major markets for Indian basmati rice

and inside Gulf, Saudi Arabia accounts for the major chunk of basmati imports from



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India. Pakistan is the sole competitor for India in the international market for basmati

rice.

Non-Basmati Rice

India is also exporting substantial quantity of non-basmati rice to various

countries in the world. Non-Basmati rice is next to Basmati rice, which is exported from

India to many countries in the world. The export value of non-basmati rice also contributes

considerable share in the export earnings of total agricultural products However, the

export of non-basmati rice has been fluctuating year to year due to weather conditions

affecting the production of non-basmati rice in the importing countries.

Major destinations for India's non-basmati rice exports are Bangladesh,

Australia, Bahrain, Ethiopia, Djibouti, France, Germany, U.K., Hong Kong, Korea, Sri-

Lanka, Maldives, Mauritius, Malaysia, Nigeria, Ivory coast, Indonesia, Nepal, Oman,

Qatar, Russia, South Africa, Saudi Arabia, Somalia, Singapore, U.A.E. Y.A.R., etc.

Competing countries in the international markets for India for the exports of non-basmati

rice are Thailand, Vietnam, Burma, China, U.S.A. and Pakistan. Major quantity of non-

basmati rice is exported to Asia continent.

Rice is exported from India to many countries in the world. In fact, India

is facing stiff competition in the international markets for the export of rice. Thailand is

the world's largest rice exporting country. Vietnam is another large exporter of rice, but

currently the demand for Vietnamese rice has steeply declined in the international market

due to which India is likely to become world's second largest exporter of rice. Thailand,

India and U.S.A. are the only countries making parboiled rice and exporting it. Thailand,

Vietnam and India are also exporting 100% broken rice. Data in respect of parboiled and

broken rice exports separately from India are not available.



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India has the potential to export one million tons of basmati rice.

Major destinations for Indian non-basmati, white/parboiled rice are

Bangladesh, Indonesia, Philippines, Nigeria, South Africa, Ivory Coast, and

other African countries.

Three years ago, Government of India subsidized exports of rice following a

large build up in government held stocks three years ago, which reached a

record 26.5 million tons on Nov. 1, 2002.

In January 2004, the Government announced that exporters would be allowed

to procure food grains directly from the growers.

2.4 STATE SCENARIO

Rice is a vital food material for more than half of the worlds population, theimportance of which as a food crop has been increasing with increase in population. It

is estimated that the rice requirement for Kerala is about 7500 tons per day whereas the

production within the state is grossly inadequate to meet the requirement. The

productivity of paddy in the State at the current level is sub optimal, meeting only 15%

of the requirement, and the remaining 85% requirement is met from the neighboring

states of Tamil Nadu, Andhra Pradesh and Karnataka. Modern Rice Mills are

scientifically up-to-date units, with most modern plant and machinery. Rice produced in

a Modern Mill would be of superior quality and thereby finding greater customer



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acceptance. Further, the bye-product of such Mills, Rice bran, could find great demand

as raw material among solvent Extraction Plants.

Paddy cultivation was part of the proud culture of Kerala State .Rice is the most

important cereal and staple food produced and consumed in Kerala. In Kerala you can

see vast green paddy fields. Kuttanad is called as rice bowl of Kerala because of rice

cultivation. According to the State Planning Board, Kerala lost over 500,000 hectares of

paddy fields between 1980 and 2007. But due to serious intervention of Kerala

government in the year 2010 , 15000 hectors of land kept fallow for 2-5 decades

brought under cultivation ,paddy production increased by 1.25 lakh tones ,upland paddy

cultivation started in another 1000 hectors. Kerala government has implemented novel

schemes under food security programme for special rice production areas like Kole,

Pokkali, Kuttanadu, Onattukara, Purakkad kari, kattampalli, Palakkad etc.

Paddy cultivated in almost all districts in Kerala. Rice production has

experienced continuous decline in area over 2 decades. Rice production touched its ofaround 14 lakhs tons in the mid-seventies. Event at its peak level internal production

was hardly sufficient to meet 50 % of states requirement. Consequent to the enormous

pressure which high value crops like coconut, banana, pineapple and rubber have

exerted area under paddy has declined from its peak coverage of 8.81 lakhs hectares in

mid-seventies to 3050 lakhs hectares in 2003-04.

In the earlier days rice used to be cultivated almost in all parts of Kerala in three

seasons .They were Mundakan ,Viruppu and puncha .In the present scenario it is

difficult to do rice cultivation in the state due to high labour cost and shortage of labour

Mechanized transplanting is attracting more and more paddy farmers in Kerala. By

adopting good quality seedlings, adequate use of organic manure, integrated water and

pest management Kerala farmers can increase rice yield and thereby profit from it. Also

paddy fields are being converted into filled up land.



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Rice fields are slowly diminishing from Kerala, creating threat to food security

of the State. For conversion of paddy fields, Kerala government had made law to stop

filling the paddy fields for uses like construction and cultivation of cash crops like

Rubber, Coconut tree etc. There has been an unprecedented hike in the price of rice

over Kerala for the last three years. Price of rice in the open market reached Rs.27-30

per kg In 2011 January.

At present, the paddy milling capacity available in the State is about 3000-3500

Tons per day giving an output of only about 2000 Tons of rice per day, leaving a huge

gap which is being met by Public Distribution System (PDS) and by import of paddy/

rice from other states. As per figures from Rice Mills Owners Association, there are

about 125 rice mills operating in the State, out of which about 50% are modern

sophisticated units with Whitener and Color Sorter machinery and others are partially

modernized or upgraded from the traditional Rice Mills (by incorporating dryer

systems). The remaining units are having a capacity to process only about 10 Tons of

paddy per week. Rice Mills in Kerala are meeting only 20% of the States requirements

and the balance is met by PDS and from other states. So the Demand Supply gap is

huge and there is sufficient scope for more Rice Mills.



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CHAPTER 3

ORGANISATION PROFILE

3.1 COMPANY PROFILE

Mr. K.K Karnan started rice manufacturing business in a small way. In the

beginning paddy was boiled in large copper vessel and was dried on mats before

removing the husk in milling. Thus the rice was manufactured in traditional way insmall quantities and sold locally. Later in 1976 a rice mill with small huller was



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installed and rice with better quality was introduced in the market of Kerala, but in

small quantities. That was the beginning of Mr. K. K Karnans entry into the different

markets of Kerala.

Foreign Technology started to be introduced into rice manufacturing industries

of India. First this technology was introduced into rice mills of Andrapradesh,

Karnataka, Punjab and many other states. Mr. K. K Karnan was curious and learned

more about this technology and was determined to make the benefit of new

technology available to the people of Kerala. With this intention be introduced this

foreign technology into his rice mill in the manufacturing process, in 1985. He was

able to give his customer rice produced in the natural way without loosing its qualityand without stones or any foreign matters in rice. His rice started to be sold in the

market of Kerala with the brand name NIRAPARA. The entry of NIRAPARA rice

in Kerala market becomes a success story as customers looking for quality started to

prefer NIRAPARA. NIRAPARA become the market leader.

In 1992 he imported computerized sortex machine and introduce it in the

process line. The sorting process helped in sorting only the quality rice thus removing

all black rice. Black rice is caused by the attack of insects to the paddy. This black

rice used to cause stomach upsets. By using the sortex machine NIRAPARA is able to

give the best rice to customers. Thus is how NIRAPARA silky sortex Rice came to

the market. Not only good looking rice but also quality rice with all nutritious factors

are given to the customers. NIRAPARA become a synonym for quality rice.

About the company



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Name and address KKR Group of companies

Okkal P.O, Kalady, Ernakulum Dist.

Kerala 683 550

Website: www.nirapara.com

Registered office Okkal

Established 1976

KKR Group of Companies SN Rice Mills

KKR Mills

KKR Flour Mills

KKR Agro Mills Pvt. Ltd.

SN Agro Products

SN Tile Works

KKR Food Products

Five Star Metals Pvt. Ltd.

KKR Products and Marketing Pvt. Ltd.KKB Fencing Co. LLC, Dubai

Bik-Maark International Marketin (P) Ltd.

Lotus Rural Development Society

Bik -Maark Builders & Realtors (P) Ltd

Promoters K.K. Karnan

Ammini Karnan

Biju Karnan

Table 2

In 1993 with the firm intention of modernizing the manufacturing process, anew plant with par-boiling system was installed. This system helped in retaining all



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notorious factors in rice without losing them during the process. Thus he able to supply

customers quality rice, which had all nutritious factors. The quality conscious people

of Kerala encouraged him by purchasing more and more of Nirapara. He made it his

goal that he will give quality rice to the customer.

Care is taken and many quality control measures are introduced and complied

with during the entire process from sourcing the paddy to reaching the quality rice to

the customer. NIRAPARA rice and rice products are now available and sold not only

in Kerala but also in other states of India. NIRAPARA rice products are exported to

other foreign countries also. NIRAPARA rice products are prepared by retaining the

nutritious factors of rice in traditional Kerala style of preparation. Only selectedquality sorted rice which is full of factors that give taste are used in the preparation of

these rice products. These rice products are used in the preparation of different Kerala

snacks and dishes.

Mr. K. K Karnan has his presence in the social, cultural and economic fields.

He is a life member of CSA in Angamaly, which promote the arts and cultural

traditions of Kerala. He is also the member of Janaseva in Alva which distributes mid-

day meals for poor student and which conducts child homes for to take care of the

orphans. He is involved in different social and welfare activities. Mr. K. K Karnan is

the award winner of Akshya Puraskara for traditional industry in 2000, Treasurer of

all Kerala rice mill owners Association and member of all Rice India Exporters

Association. His wife Mrs. Ammini Karnan is looking after the manufacturing of rice

products and is his history supported in his journey towards success. His son Biju

Karnan who joined his father in this field after his MBA assists him.

The factory of KKR mills is located in the green pollution free Okkal

Township, near Kochi in Kerala in South India. The facility is equipped with the

latest technology in the world for every aspect of processing of paddy- right from

destining, cleaning, drying, bran-removal, polishing and finally sorting. This

infrastructure of around 25crore of rupees in one of the largest in India.



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KKR mills are the only rice mill in south India to use the Z- sortex machine

capable of optical inspection for quality control. This machine scans every grain of

rice and removes discolored, broken and immature rice, ensuring that only rice that

meets the specification calibrated in the computer is selected for packaging. The

result-beautiful rice of even size, colour and bran that is a feast for the eyes and a

wholesome meal. NIRAPARA- the brand name in which KKR mills markets rice is

today the largest selling brand in Kerala and has become a household name.

The KKR mill is now all set to become a name to reckon within food. The

group has plans to set up a food park with facilities to process and manufacture a wide

range of food products like spices, pickles and other products for world markets. KKRmills boasts of a state of the art plant with the highest level of technology in the world

ensuring products that meet the stringent quality and hygienic standards.

3.2 COMPANY OBJECTIVES

The success of the company depends on the effective and well defined

objectives. The companys performance and profit depends on these objectives. A

company that has no objectives is like a ship without a captain.

Objectives In General

To stimulate Consumers to make purchase

To introduce new product

To encourage existing customers to buy more

To be more competitive in the market

To create more sales in off-season

To Promote Export business

To Introduce quality control technique for improving the quality of the product

To Provide Service to society through Janaseva



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The Economic Objectives

Profit Maximization

Cost Minimization

Production of goods

Creating customers

Innovations

The Social Objectives

Quality goods and services

Reasonable price

Provision of employment

Utilization of resources properly

Welfare of employees

3.3 VALUES OF THE COMPANY

High quality products

Customer orientation

Good relation between management, employees and workers.

Certification

ISO 22000-2005 certification

ISO 9001-2000 Certification

HACCP Certification (Hazard Analysis Critical Control Point)

Mission Statement



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The mission of the company is to deliver high quality food products that set

themselves apart from others in taste and value.

Vision Statement

The KKR Group of companies has a great vision of becoming a leader of fast

moving consumer goods and products. Its vision is to provide total customer

satisfaction through continuous improvement in production process and services.

Production Plants

Production

unit

Place Product Production

per month

(Tons)

Work force

KKR Mills Okkal Rice 500 70

SN Rice mills Okkal Rice 750 90

Karthika Mills Kanjhoor Rice 250 60

KKR Flour Mills Okkal Flours 750 280

KKR Agro Mills Chelamattom Rice 1500 90

KKR FoodProducts

Chelamattom Pickles and currypowder

150 and 80 350

Table 3



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3.4 ORGANISATION STRUCTURE


Account

officer

Production

Manager

Accounts

Manager

Purchase

Manager

Marketing

Manager

Territory

Manager

Export

Manager

Estate

Manager

HRD

Manager

Project

Manager

Lotus rural

developme

nt Society

Chairman

President

Vice chairman

General Manager

Purchase

Assistants

Store

keeper

Sales

Executive

Area Sales

Officer

Export

Assistants

Milling

Supervisor

Paddy

instructor

Maintenance in

charge

Weight

Bridge

Supervisor

Dept.

Officer

SalesOfficer

Cost

Accountant

Cash


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Managing Partners take the strategic decisions about the company. These

decisions have long term effects on the company. These decisions include expansion of the

unit, technological changes, entering into the new market, introduction of new products

etc. these decisions are taken with the consultation of the Managing Director and General

Manager. Managing Director manages day today affairs. They take all the decisions in

consultation with the General Manager and other managerial staffs. They lead the entire

company towards attaining the goals and objectives of the company.

General Manager: He is reporting to the President. He is responsible for

Personnel, Corporate Planning and all plant operations and engineering department. He

is required to carry out short and long term planning, matching the future production

prospects, achieving the targeted growth and profitability of the Company. The general

manager acts as the connecting link between Managing Director and various other

managerial staff. Every Department Managers have reported to the General Manger about

the affairs in their respective department.

3.5 PRODUCT PROFILE

Nirapara Rice is available in a wide range of varieties that suit various

tastes- brown rice and white rice in round- grained and long grained varieties. Besides

these, there are specialty rice varieties for the varied traditional uses in Kitchen all over the

world. Rice being the staple food from breakfast to dinner and dessert, Niraparas range of



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rice caters to every application of rice in the lives of the people especially of south India.

Nirapara rice is the only rice processed using the nutri-select process which ensures that

only best quality rice the optimum value of vitamin B is selected by the Z-sortex machine

& packed. Nirapara rice comes in neat porous traditional jute bag that help air circulation

that is essential to enhancing shelf life , keeping it fungus free.

Nirapara Rice Range

Sl. No. Name of the products

1 Single Matta rice

2 Rose Matta rice

3 Payasam rice

4 Ponni Rice

5 Idly Rice

6 Jyothi Rice

7 Jaya Rice8 Cherumani Rice

Table 4

Rice Flours

A wide range of exolic, traditional rice-based breakfast item are very

popular even in modern homes. Gone are the days when women would painstakingpowder and grind rice to make the better for breakfast item like idly, dosa, Appam etc.

Today, Niraparas readymade rice powders have found a firm place in kitchen shelves

across the world. Nirapara has rice flours suitable for a wide range of breakfast item. The

various rice flour products are:-

Sl.

No.

Name of the

products



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1 Idly powder

2 Appam Powder

3 Dosa powder

4 Chemba Puttu

Powder

5 Puttu Powder

Table 5

Wheat Products

KKR mills also process and markets wheat products for household

are under the brand name NIRAPARA. All Nirapara products carry with the assurance of

quality.

Sl. No. Name of the product

1 Broken Wheat

2 Rava

Table 6

Wheat based traditional foods are also popular in Kerala. Broken

Wheat is used to make nutritious wheat porridge; fine wheat is used to make a delicious

breakfast item called upma which is popular in the southern state of India. Nirapara also

has wheat flour which is used to make soft chappathis.

Pure Spices

KKR food product, a company set up in October 2002 is all set to bring

out a wide range of food products into the market under the Nirapara brand umbrella. The



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first set of products to enter the market is spices and pickles under the brand name

Nirapara Silky. Nirapara Silky spices powders are made from all over the country and

processed and packed in a state-of-the-art facility that meets the highest standards of

hygiene. The spices are available as both pure spices and ready mixes that are used to

make the popular South Indian Curries.

Nirapara Silky Curry Powder Range

Sl.

No.

Name of the products

1 Red Chilly Powder

2 Coriander Powder

3 Turmeric Powder

4 Sambar Powder

5 Rasam Powder

6 Chicken Masala

7 Fish Masala

8 Meat Masala9 Curry Powder

10 Pickle Powder

Table 7

Pickles

Pickles are an important item in practically every Indian meal. Traditional

pickle recipes using unique spices mixes and vegetables oils are made with a wide variety

of vegetables. Nirapara Silky pickles are delicious and are the perfect appetizer in every

meal. The pickles are made under the supervision of expert. Nirapara Silky Pickle Range

are:-

Sl.

No.

Name of the products



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1 Ginger Pickle

2 Garlic Pickle

3 Cut Mango Pickle

4 Kadukumango Pickle

5 Hot & Sweet Lime Pickle6 Hot Lime Pickle

7 Gooseberry Pickle

8 Bitter Gourd Pickle

9 White Lime Pickle

10 Mixed vegetable Pickle

11 Wild Mango Pickle

12 Tender Mango Pickle

13 Irumbenpuli Pickle

14 Tindora Pickle

15 Loloica16 Coconut chutney

17 Hot & Sweet Mango pickle

18 Vadukapuli Lime (White) Pickle

19 Vadukapuli Lime (Red) Pickle

Table 8

3.6 Financial Performance of the Company



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Balance Sheet As At 31st March 2011

Particulars Sch No. As At 31st March 2011 As At 31st March 2010

Source of funds:

1) Shareholders' Fund:

a) Share capital 1 23214000 23214000

b) Reserves & Surplus- Share Application 5000000 5000000

c) Profit & Loss Account 2826507 31040507 2734847 30948847

2) Loan funds:

a) Secured Loans 2 158688808 148338099

0 158688808 0 148338099

3) Deferred Tax Liability 2028789 2565245Total 191758104 181852191

Application of Funds:

1) Fixed assets: 4

a) Gross Block 91609156 90028410

b) Depreciation 59563172 32045984 54154789 35873621

2) Investments 0 0

3) Current Assets, Loans & Advances:

a) Inventories 3 224392348 196392331

b) Sundry Debtors 5 346158759 178794992

c) Cash & Other Current Assets 6 38847825 60577562

609398932 435764885

Less: Current Liabilities & Provisions

a) Current Liabilities & Provisions 7 449686813 289786315

Net Current Assets 159712119 145978570

Total 191758104 181852191

Significant accounting policies 15

Notes on accounts 16 0 0

Table 9

Sales and Gross profit



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Year Gross profit Sales

2008-2009 20036522 407905222

2009-2010 18961483 429590976

2010-2011 45155431 462568460

Table 10

Current Asset and Fixed Asset

Year Current Asset Fixed Asset

2008-2009 337575865 36656972

2009-2010 435764885 35873621

2010-2011 609398932 32045984

Table 11

Competitors

The following are the competitors of Nirapara.

Double hourse

Periyar

Eastern

Pavizham

Gayathri



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Mariyas

Saras

Melam

Anns curry powder

Taste buds

Priyom masala

Aachi masala

Sakthi masala

Brahmins

grandmas

AWARDS

Best Business Man Award 2008

4th Rank for the Well-Known Brand Name- NIRAPARA

CONTRIBUTION TO SOCIETY

They give educational aid for poor school students

The contributions to the society are providing employment.

3.7 Future Plans

The company has lined up plans to sell gingely oil, ready-to- eat-products, food processed in honey in the current year. The main focus is to enter new

domestic markets and European markets. There are also plans to introduce ayurvedic

cosmetics and health-related products in the market. The company plans to set up a

warehouse in Tamil Nadu for the storage of spices, a central dispatch warehouse in

Kalady, and a coconut oil manufacturing plant for oil production.



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3.7.1 New Technology

The KKR group is all set to enter the food processing industry on a large

scale, bringing in the worlds latest technology and machines in every new area of activity.

Attention to purity and hygiene standards that meet the highest world requirement is the

focus of the group.

3.7.2 New Product

The KKR group is looking at new venture in food processing and

preserving with a large scale investment on a food technology park in over 12 acres of

land located in a pollution free-environment friendly, green area. Besides spices, pickles,

rice and wheat products the group has plans to manufacture an international product range

like pasta, preserves, sauces, squashes, fruit-based foods, juices, coconut-based foods

etc

3.7.3 New Market

Today the Nirapara group has entered the middle-East markets and has

set its sights on markets like the Far-East, America and Europe. The day is not far before

the KKR group makes a mark in foods in the international markets. And with the

perseverance and commitment of the group it is indeed a dream that will come true before

long.



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CHAPTER 4

DEPARTMENT DETAILS



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Communication Process and Methods

Communication is an essential part for the success of any organization.

There is a very informal and direct communication in this company. It creates a positive

feeling in the mind of the employees. They can use the extension phones and parallel

connections for communication process. They provided loud speakers in every comer of

the company for informing the messages to the employees. Communication among the

workers is done with the help of Circulars, memos etc. Notice boards are kept in various

departments.

Authority

General Manager and other managerial personnel have authority in the

concern. They can take decisions in consultation with their subordinates. Separate limits

have been kept for each one of them. But they cannot take decisions, which involve a

financial commitment of over one lakh without the consent of the MD. The superiors are

also having authority to act on matters relating to the subordinates.

Responsibility

Everyone in the Organization has his own responsibility. The duties and

responsibilities are given to each of the employees upon his appoint. It helps in deep

involvement in the job. Managers head the departments. They are responsible and

accountable for the working of their respective departments. They report to the General

Manger.

DEPARTMENT DETAILS

Departmentation is the process of grouping of various activities into

separate unit or departments. A department is a distinct section of the business

establishment concerned with a particular group of business activities of like nature. The

actual number of departments in which a business house can be divided depends upon the



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size of establishment and its nature. Departments comprise a framework for an

organization and enable it to expand indefinitely. Departmentation aims at:

i. Specialization of activities for efficient performance.

ii. Simplifying task of management within a workable span.

iii. Maintaining co-ordination and control of the various activities.

The various advantages of departmentation can be summed up as:

a. It increase the efficiency of the enterprise since various activities are grouped

into workable units

b. It renders the task of fixation of accountability for result very easy since

activities are well defined and responsibilities are clearly laid

c. It provides for fixation of standards for performance appraisal and thus, ensure

effective control.

d. It creates opportunity for the department heads to take initiative and thus

develops managerial facilities.

4.1 PRODUCTION DEPARTMENT

Production department is deals with the process of producing Product.

That means converting input into output. Materials are a very important factor of

production. It includes physical commodities used to manufacture the final end product.

Production is manufacturing. Manufacturing is understood to refer to the process of

producing tangible goods whereas production includes creation of both tangible as well as

intangible service.



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The KKR Group of companies operates their production in three places

2 rice mills and 1 flour mill is situated at Okkal

1 rice mill, curry powder & pickle division at Chelamattom

1 rice mills at Kanjhoor

Functions of Production Department

Evaluate and approve manufacturing equipment process, testing, and test equipment

Establish points of inspection and test at a selected points in the production processes

Assure that purchased materials conforms to the requirement of purchase confirms tothe requirements of purchase orders and specification

Perform inspection and tests at selected points in the production process

Collect and analysis inspection and tests data and provide information on process andproduct quality levels

Control the handling, preservation and packing of material and equipment fromreceipt through shipment of the final product.



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STRUCTURE OF PRODUCTION DEPARTMENT

Figure 2


President

Production

Plant Manager

General Manager

PackingElectrical In Charge

Milling SupervisorMaintenance In chargePaddy Inspector

Bran Packing

& Loading

Husk Packing

& Loading

Paddy Loading

& Loading

Electricia Mechanic

Plant

O erators

Rice

Packing

Packing

Section

Sortex

Operators

Boiling

O erators

Milling

O erators

Parboiling

O erators

Helpers


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RESPONSABILITIES OF KEY PERSONALS

Responsibilities of production manager

Plan production of rice as per the target allotted for the month.

Ensure early, monthly, paid daily planning of production

Check and verify the process sheet

o Parboiling and drying process sheet.

o Log book of boiler section

o Milling process sheet

o Sortex section process sheet

o Packing register

o Mechanical maintenance register

o Electrical maintenance register

o Final products stock register

o Good received register

o Good return register



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o Packing materials register

Inform the Manager regarding the stock of by-product and other item

Ensure goods control over skilled and unskilled labours

Prepare weekly wage list and ensure disbursement of weekly wage by the

cashier

Ensure that an approved list of schedule of wages is available as and when

changes takes place

Prepare a monthly salary statement and hand over to the account department.

Maintain the attendance register for production staff

Ensure leave sanction of all employees and one copy of leave application is

forwarded to HR dept.

Ensure that the effluent treatment plant log book is properly maintained by

operators

Ensure that the pollution control norms are properly informed

Ensure timely water disposal from the mill

Conduct daily stand up meeting

Conduct monthly meeting & record the minutes

Responsibilities of Paddy inspector



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Inspect paddy when load arrives

Keep the godown and surrounding area clean and tidy

Collect excess husk in gunny bags and store properly in the available allotted

space near the drier of sale

Supervise loading and unloading of paddy

Timely loading of paddy into cutting task

Responsibilities of Mechanic

Ensure maintenance of all mechanical equipment

Maintain a register of schedule of maintenance

Maintain a register for oiling and greasing

Maintain a register of repairs

Maintain minimum stock register of fast moving spares

Maintain all spares in a locker or spares room

Responsibilities of milling supervisor

Supervise the milling operators duties

Ensure all out sourced products are checked, packed, stocked correctly

Ensure that all out sourced items are received at the respective godown

Inform export department regarding the position of the order well in

advance

Oversees duties of packing and dispatch supervisors



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Ensure good house keeping

Responsibilities of Electrician

Ensure that the electrical equipment are in working order at all times

Maintain a list of all electrical equipment in the mill including the transformer

& generator

Check oil level of transform and ensure timely maintenance

Ensure proper maintenance of generator and air compressor

Maintain register of repairs carried out for all equipment separately

Responsibilities of dispatch supervisor

Check the quality of rice before packing

Exercise control over the packing section

Maintain the stock in packing material register

Maintain the stock position register

Supervise the loading

Ensure sufficient stock of bags, tags and twine

Ensure Proper stacking of packed products

Ensure good house keeping

Supervise all operations of milling

Maintain good return register

Responsibilities of parboiling operator



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Control and ensure loading of cutting tank by paddy inspector

Ensure proper pre-cleaning of paddy and check working of all machines

Ensure that the greasing and oiling of pre-cleaner and drier etc and properly

exercised out in time

Check all parameters of soaking, boiling, and drying

Check the moisture of paddy after drying

Ensure batch wise storage of paddy in bins

Maintain the process sheet and enter the details

Operate raw-cleaning, parboiling and drying section.

Responsibilities of milling operator

Check the type of paddy

Check the variety of paddy whether single or double, new or old paddy

Ensure intake bin numbers are recorded

Ensure the batch number is obtained from parboiling section

Record the shift timing

Check the chaff valuable from the outlet and record weights

Check the coarse impurities

Check the weight of tips for sale

Check the weight of broken for sale

Record the number of tonnage

Record the productive hours

Record the reason for the loss of productive hours



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Responsibilities of Sortex operator

Check the type of rice and variety

Check the moisture level of rice

Check whether the rice received is suitable for sorting

Record the intake bin numbers for KKR mills

Check the discolourisation of rice within limits

Inform the production manager if the weight of black rice is above the

laid down

permissible limit

Record the final storage bin numbers for KKR mills

Check the final moisture level are within limit

Carry out preventive maintenance and cleaning of machine from time to

time

Carry out timely cleaning of ejectors, sortex machine and general cleaning

of the

rooms

Ensure cleaning and maintenance of conveyors and timely greasing and

oiling

Carry out sample weighting of packed rise from time to time



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PRODUCTION PROCESS FLOW CHART


Milling

Operator

START

RAW-PADDY CLEANER

RAW PADDY DESTONER

RAW PADDY SOAKING

RAW PADDY BOILING

RAW PADDY DRYING

PRE CLEAN DRIED PADDY

DESTONING

HUSK SEPARATION

PADDY SEPARATION

CONE POLISHING TO

REMOVE BRAN

WET POLISHING TO REMOVE

BALANCE BRAN

DESTONER


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Sortex

Operator

Figure 3

4.2 PURCHASE DEPARTMENT

The purchase department plays a very important role in an organization

because purchasing has its effect on every vital factor concerning the manufacture, quality,


BROKEN RICE SEPARATOR

SORTEX MACHINE

SORTEX BIN

RICE BIN

PACKING

STARKING

DESPATCH

STOP


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cost, efficiency and prompt delivery of goods to customers. Its function is to procure

materials, supplies, services, machines and tools at the most favorable terms consistent

with maintaining the desired standard quality. Purchasing is the most important function

of materials management as the moment an order is placed for the purchase of materials, a

substantial part of the companys finance is committed which affect cash flow position of

the company.

The purchase system is centralized in Nirapara. Centralized purchase

department means that all the purchase function are routed through one department. This

means all purchases should made by the purchase department to avoid duplication,

overlapping and non-uniform procurements. Purchasing is the most important function of

materials management. As the moment an order is placed for the purchase of materials, a

substantial part of the companys finance is committed which affect cash flow position of

the company.

Purchasing will be

Seasonal purchases- it includes the purchase of paddy, lemon chilly, turmeric etc.

purchasing will be mainly from open markets and also through agents. Paddy is mainlypurchased from Karnataka, Palghat, Alappey, Tamil Nadu etc.

Daily purchase- it includes machine parts, office materials and other materials for the

day to day needs.

Objectives of purchase department

To make continuous availability of materials so that there may be uninterrupted

flow of materials for production

To make purchase competitively and wisely at the most economical prices

To make purchases in reasonable quantities to keep investment in materials at

minimum



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To purchase proper quality of materials to have minimum possible wastage of

material & loss in production

To develop good supplier relationship which will ensure the best terms of supply of

materials

To adopt the most advantageous method of purchase to ensure smooth delivery of

materials from suppliers

To serve as an information centre on the materials knowledge relating to prices,

sources of supply, specification, mode of delivery etc..

Functions of a purchase Department

What to Purchase?

When to Purchase?

Where to Purchase?

How much to purchase?

At what price to Purchase?

To perform these functions effectively, purchase department follows the following

procedure

Receiving the purchase requisitions

Exploring the sources of supply and choosing the supplier

Preparation and execution of purchase order

Receiving and inspecting material

Checking and passing of bills for payment

1. Purchase Requisition or indenting for materials



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The purchase officer does not initiate any action for the purchase of

materials on his own accord. With the help of the purchase requisition, the purchase

officer comes to know the type of materials needed in the organization. A purchase

requisition is a form used as a formal request to the purchasing department to purchase

materials. This form is prepared by the storekeeper for regular items.

The requisition is approved by an executive, such as the plant

superintendent or work manager. The purchase requisition is generally prepared in

triplicate. The original copy is sent to the purchase department, the duplicate is kept by the

storekeeper or the department which initiates the requisition and the triplicate is sent to the

authorizing executives.

Specimen form of purchase Requisition


KKR GROUP OF COMPANIES

PURCHASE REQUISITION

NO.. Regular

Date.

Date by which Special

Materials are

required

Serial No Description of

articles

Stores code

No

Quality

required

Remarks

Requested by.

For use in the purchase Dept.

Approved by

Quotation invited on.


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Form 1

Table 12

2. Exploring the sources of supply and choosing the supplier

A source of supply of materials must be selected after the receipt of the

purchase requisition. The purchase department usually maintains for every group of

materials a list of the suppliers names and address. Quotations may be invited from these

suppliers by issuing tender to them. While selecting the supplier to whom orders are to be

given for the purchase of materials, the purchase department should kept in mind:

Manufacturing capacities

Reliability of supplier

Financial condition of the supplier

The management of the supplying firm

Terms of payment

Terms of delivery

Price quoted



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3. Purchasing order

After choosing the supplier, the purchase department prepares a purchase

order for the supply of stores. The order is the written authorization to the supplier to

supply the particular material or materials. It is the evidence of the contract between the

buyer and the supplier that binds both the buyer and the supplier to the terms which the

order is placed. If five copies are prepared, the possible use may be as follows:

The original copy is sent to the supplier

One copy is sent to the receiving department

One copy is sent to the person who initiated the purchase requisition

One copy is sent to the accounting department

The last copy is retained by the purchase department for future references

Specimen form of Purchase Order


SWADESHI COMPANY LTD

PURCHASE ORDER

No. Dated Purchase Requisition

No..

To(Suppliers)

Your quotation number.dated..has been accepted. Please

supply the following items of stores in accordance with the instructions mentioned

therein and terms and conditions listed on the reverse of the purchase order.

Serial

No

Descriptio

n

Quantity Rate Total

cost

Delivery

rate

Remar

ks

Terms of Delivery

Terms of Payment

Packing and dispatch Instruction

Discount Allowed

Purchase

Officer


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Form 2

4. Receiving & Inspecting Materials

In large concerns, a separate Receipt and Inspection Department independent of

stocking locations should be set up to receive and inspect materials. But in small

concerns, the work of receiving the goods may be entrusted to the storekeeper. Oncompletion of the inspection, the goods receiving clerk should enter details of materials

received in store or Good Received Note. Five copies of the note should be prepared.

One copy will be kept by the Receiving Department and four copies along with the

Table 13

Materials will be sent to the storekeeper. He will again check the quantity

of materials and compare it with quantity given on the note. One copy will be kept by the

storekeeper for his record and the other three copies will be sent to the following

departments:

The purchasing Department

The Accounts Department

The Department Which initiated the requisition

Specimen form of Goods Received Note


STORES (GOODS) RECEIVED NOTE

Suppliers Name

No.

Purchase Order No.

Date

Serial

No

Descripti

on

Code

No

Quantit

y

Date Amount Remark

Received by.

Inspected by

Storekeeper

Costed by.

Stores Ledger Posted by


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Table 14

5. Checking & Passing of Bill for payment

When the invoice is received from the supplier, it is sent to the stores

accounting section to check both the authenticity as well as the arithmetical accuracy. The

quantity and price mentioned in the invoice are checked with reference to stores received

note and the purchase order respectively. The arithmetical accuracy is also checked and

verified.

Internal checks as regards purchase

KKR mills adopt certain internal checks regarding purchase. They are:

There should be separate department for arranging for all purchase

Check whether purchase requisition showing correct quantity, quality and

time by which the goods are required



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Accept best suitable tenders

Stores department should prepare good received note

Invoice clerk check the details of invoice

Accounts department should compare the invoice with the purchase order

Examine the Debit notes and see that they are properly entered in the

purchase return book

Internal checks as regards Stores

Stores is located at convenient place

On receipts of goods , they should be properly recorded by the stores keeper on

Good Received Note

Each item in the store should bear a reference number

The system of Bin card is used to show the receipt, issues and balances of the

stores.

Stock taking is conducted at regular intervals

Requisition slip is prepared

Stores accounting should be assigned to a separate department

Responsibilities of purchase Manager

Check whether there is continuous availability of material

Provide better control on purchasing Process

Check Purchase Requisition or indenting of materials

Select suitable Supplier based on terms and Conditions

Preparation of Purchase order for the supply of stores

Receiving & Inspecting Materials

Checking & Passing of bills for payment.

Responsibilities of Storekeeper



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All manufacturing concerns appoint a person known as the storekeeper. Chief

store superintendent who is in charge of the stores department and is responsible for

stores control. The storekeeper should have technical knowledge and wide experience

in stores routine and ability if organizing the operations of stores.

Receiving the stores correctly

Entering all receipts regularly in the Bin Cards

Keeping every item of stores in its allotted bin.

Ensuring that materials are issued only to those who present a duly signed

Requisition Note

Ensuring that the stocks do not exceed the maximum level nor go below the

minimum level at any time

Maintaining and supervising the duties of the different members of staff under

his charge

Preventing unauthorized persons from entering into the stores

Maintain stores in an orderly and tidy manner so as to facilitate easy handling

& Physical verification of stores & Prevention of loss in storage

Carrying out a regular review of the item of stores in hand for locating slow-

moving and non-moving items so that steps may be taken for their disposal

before they became obsolete

STRUCTURE OF PURCHASE DEPARTMENT


Chairman

Vice

Chairman

President

General

ManagerPurchase

Manager

Purchase

Asst. 3

Purchase

Asst.2

Purchase

Asst. 1

Helpers HelpersHelpers


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]

Figure 4

4.3 ACCOUNTS DEPARTMENT

Accounting is a language of business. The basic function of accounting is

communicating the result of the business operations to various parties who are interested

in it. Accounting department deals with recording, classifying, and summarizing of

business transactions which are of a financial character and are expressed in terms of

money.


Store

Keeper


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The staff and officers working in various accounting section of the

division shall carry out their work effectively and efficiently as per the guidelines. There

should be close coordination and exchange of information between the accounting sections

of the division to ensure uniformity in the accounting transaction, also the head of the

various accounting section will maintain close coordination with other department.

The following are the advantages of accounting:

Helps in ascertaining financial position of the business

Systematic recording to data is possible

Possible quantitative information

Act as an information system

Beneficial to different interested users of accounting information

The companies Act of 1956 lay down certain principles regarding

accounting of the company. Every company of India has to keep an accounts department

to maintain the correct and adequate accounts of the company. Accounts Departmentusually is a part of financial operators of the company.

Needs of accounting systems are:

To ascertain the result of operation i.e. profit or loss

To ascertain the financial position of the business i.e. solvency

To provide control the assets and liabilities of the company

To provide information to tax authorities like sales tax, income tax,

central excise etc.

Accounting Policies

1. Financial Statement



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i. The financial Statement has been prepared under the historical cost convention,

in accordance with the generally accepted accounting principles and the provisions of

the Companies Act, 1956 as adopted consistently by the company

ii. The company follows mercantile system of accounting and recognizes significant

items of income and expenditure on accrual basis

2. Fixed Assets and Depreciation

i. Fixed Asset are stated at historical cost, less accumulated depreciation

ii. Depreciation has been charged on written down value method at the rates

prescribed under schedule XIV of the Companies Act, 1956

3. Inventory

Inventory is valued at cost or net realizable value, whichever is less

4. Revenue Recognition and Expenditure

Items of Income and Expenditure are generally accounted for on accrual

basis unless otherwise stated.

5. Sundry Debtors

Sundry Debtors are considering good for which the company hold no

security other than the personal security of the debtors.

6. Accounting Standard

The Accounting Standard prescribed by the Institute of Charted

Accountant of India has been compiled with wherever applicable.

7. Retirement Benefit



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The companys obligation for retirement benefits to employees cannot be

reasonably estimated. Hence no provision for the retirement benefits payable has been

made and the same will be accounted on pay-as-you-go basis.

8. Provision for Deferred Tax

Deferred Tax resulting from timing difference between book and

taxable profit is accounted for using the tax rates and laws that have been enacted or

substantively enacted as on the balance Sheet date. The deferred tax asset is recognized

and carried forward only to the extent that there is a virtual certainty that the asset will be

realized in future.

Responsibilities of Accounts Manager

Manage all accounts and cost work

Checking the work done by the book keeper so as to ensure that all financialtransaction are correctly recorded

Effective cash management Preparing trail balance Passing adjusting & rectifying entries Preparing trading, Profit and Loss Account and Balance Sheet Designing Suitable accounting system to protect the business asset from improper

use

Keeping accounting Records to comply with legal requirement under Income TaxAct, Sales Tax Act, Company Laws etc

Stock verification Product Pricing

Responsibilities of cost accountant



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Ascertain the cost per unit of the different product manufactured by a businessconcern

Provide a correct analysis of cost both by process or operations and by differentelement of cost

Ascertain the profitability of each product and advise management as to how theseprofit can be maximize

Helps in preparation of budget & implementation of budgetary control Advice management on future expansion of policies and proposed capital project Organize the internal audit system to ensure effective working of different department Organize the cost reduction programmes with the help of different department

managers

Guide management in the formulation and implementation of incentives bonus planbased on productivity &

Cost savings Supply useful data to management for taking various financial decision Helps in supervising the working of punched card accounting or data processing

through computers

Exercise effective control of stock of raw materials, work-in-progress, consumablestores and finished goods in Order to minimize the capital locked up in these stocks.

Responsibilities of Cashier

Receipt and payment of cash As soon as cash received it should be entered in a rough cash book or dairy. The receipt numbers should be recorded for the respective entries made therein All mail remittance should be opened by the cashier All receipt of cash and or cheque should be banked daily Bank reconciliation statement should be prepared periodically by the cashier to

reconcile bank and cash balance

Proper voucher should be insisted for all petty cash expenses



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STRUCTURE OF ACCOUNTS DEPARTMENT

Figure 5

4.4 MARKETING DEPARTMENT

Todays successful companies share along focus and a hearty

commitment to marketing. Modern marketing seeks to attract new customers by promoting


Chairman

Vice

Chairman

President

General

Manager

Accounts

Manager

Cost

Accountant

Accounts

Officer

Cashier

Data Entry

Operators

Clerk


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superior value and to keep current customers by delivering satisfaction. Sound marketing

is critical to the success of all organization... But marketing combines many achieves-

marketing research, product, department, distribution, pricing, advertisement. Personal

selling, marketing strategy and others-designed to sense, serve and satisfy consumers

needs while meeting the organization goals. The marketing concept was born out of the

awareness that a business to start with the determination of consumer wants and end with

the satisfaction of those wants.

The term marketing concept holds that achieving organizational goals

depends on knowing the needs and wants of target markets and delivering the desired

satisfactions. It proposes that in order to satisfy its organizational objectives, an

organizational should anticipate the needs and wants of consumers and satisfy these more

effectively than competitors.

The ultimate purpose of production is the satisfaction of human wants.

Production of goods has no meaning unless they are distributed to customers. The goodsshould be transferred to customers at a time when they need them. Thus marketing

department makes goods more useful to the society by getting them where they wanted

and by supplying them to those people who want them. The KKR Group of companies

markets a number of diversified brands of products in the competitive market. Eh

marketing department works as a separate company with in the business enterprise and

deals with all the sales and marketing related activities.

The word marketing is a common word in every days life. It has

a major role in a manufacturing organization. Marketing is the distinguishing unique

function of the business. The main objectives of marketing goods and services are to

satisfy the customers. This department is considered as the assets of the company.

Marketing managers are often responsible for influencing the level, timing and

composition of customers demand in a manner that will achieve the company objectives.



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The word marketing is a comprehensive term and the

success of every company lies in the marketing activities. Marketing manager shall give

emphasis up on delivering customer satisfaction through real consumer concern and profit

will increase only through effective marketing. Marketing management is an ongoing

process under dynamic marketing environment. The force operating in the marketing

system and the philosophy and objectives of the organization will influence the marketing

management.

Marketing zones

South zone Central zone North zone

Idukki Ernakulam Kannur

Kottayam Alappuzha Palakkad

Trivandrum Trissur

Pathanamthitta Kasaragod

Kollam Calicut

Malabar

Table 15

Responsibilities of Sales and Marketing Manager

Give Orders & instruction to Sales Executives

Conduct Market Analysis

Give Promotion technique including Advertisement, Direct selling, Public relation

Solve complaints of customers by introducing quality products

Prepare details of shops and quantity of sales Check whether there is any pending in product supply

Responsibilities of Sales Executives

Collect orders from different shops

Fix the drivers root for sale

Identify complaints of consumers

Give information about consumers and shopkeepers



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Inform about market which has more sale

Policies and Programmes

Modern business is regarded as an integral component of

the society. In todays world, society is expecting much more from business than in the

past. Modern business must demonstrate social awareness, sensitivity and social

performance. The manager should consider the effect of their decision up on all stake

holders who are interested in the enterprise directly or indirectly and who may be

adversely affected by these corporate decisions.

Distributors

The KKR Group of companies has a large number of distributors in

Kerala, major cities in India and abroad, UAE, Muscat, Bahrain, Oman, qat6ar, Kuwait,

USA, Canada, UK, Switzerland, France, Australia, New Zealand, Singapore etc. it selects

the distributors in those places where Keralites are located. Considering the increasing

demand they have plans to

Rex-KKR Group of Companies os

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